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Final Report of the Freight Logistics Coordination Team

Final Report of the Freight Logistics Coordination TeamThe Freight Logistics Coordination Team (FLCT) has provided its Final Report to the Tasmanian and Australian Governments.

The FLCT has spent twelve months examining freight and supply chain issues in Tasmania, working with industry and key stakeholders to establish a strong evidence base.

The FLCT has focused on outcomes that will deliver improved freight efficiency for Tasmanian businesses, make Tasmanian businesses more productive and competitive, and support business growth. It has also examined the efficiency and cost of supporting freight infrastructure.

The Final Report identifies 26 recommendations in 5 key areas, supported by key observations across the freight system.

Key recommendations include:

  • Finalise a Tasmanian Freight Strategy by June 2014.
  • Develop Burnie Port as Tasmania's principal domestic container port.
  • Focus road investment on the Burnie-Devonport to Hobart freight corridor, and supporting regional connections.
  • Achieve commercial operation of above-rail service within five years.
  • Seek extension of the Tasmanian Freight Equalisation Scheme to international exports.
  • Market test commercial interest in providing a direct international container shipping service to Tasmania.
  • Establish an ongoing public-private  freight advisory group.
  • Establish an expert advisory panel to assist small to medium freight users improve their freight and supply chain outcomes.
  • Investigate alternative infrastructure funding models, including increased opportunities for private sector investment, divestment of non-core assets and the recycling of equity within government business portfolios.

The Final Report of the FLCT

The Tasmanian Government has provided an interim response to the FLCT's report (PDF 673KB) (WORD 331KB)

 


Background

The Freight Logistics Coordination Team (FLCT) was established as part of a one-off $20 million Australian Government funding package to assist Tasmanian exporters, following the cessation of direct international container shipping services to Tasmania in 2011.

Under the package, $1.5 million was provided to support the FLCT, together with direct and immediate assistance for Tasmanian exporters ($14.5 million) and infrastructure upgrades at the Port of Burnie ($4 million).

The broad objectives of the FLCT are to provide expert advice on freight and supply chain issues, and inform the development of a long-term freight strategy for Tasmania. The FLCT provides advice to both the Tasmanian and Australian Governments.

The FLCT is an independent expert advisory body, comprised of 19 senior representatives from across major shippers and producers, infrastructure providers, freight logistics companies and peak industry bodies. Membership was determined through an expression of interest process.

The FLCT is chaired by Mr Philip Clark AM.

Membership and Terms of Reference


Meeting schedule and activities of the FLCT

The FLCT has maintained a consistent schedule of meetings and key milestones, which has included six full Team meetings (the most recent on 25 November), sub-group meetings and informal, ongoing input to supporting consultancy work.

Sub-groups were established to focus on specific areas of the FLCT's analysis:

Sub-group 1. Freight System Analysis
Analyse current and future freight volumes, including freight projections by sector. Understand the impact of current and future infrastructure and services on business.

Sub-group 2. Supply Chain Quality, Cost and Benchmarking
Examine supply chains across sectors, including their operation, cost and quality. Benchmark supply chain costs against other jurisdictions.

Sub-group 3. On-Island Freight Issues
Analyse infrastructure demand, capacity, constraints, future planning and investment across ports, road and rail in Tasmania. The FLCT has released two interim reports to provide information on the directions on the Team, and inform broader debate.


Interim Reports

In August the FLCT released the Chair's Interim Findings, outlining its interim observations and directions. Support for an international exporters' assistance package was a key part of this report.

In early October, the FLCT sought public feedback on its work and draft recommendations via a public Discussion Paper. Fourteen submissions were received by the FLCT. The FLCT responded to some of the comments within its Final Report.

Non-confidential responses are provided below.


Major Consultancies on Tasmania's Freight System

Establishing the evidence base and engaging directly with industry are key elements underpinning the approach of the FLCT.

The FLCT sought independent advice and analysis on key policy, supply chain and operational issues affecting Tasmania's freight system. Over 150 stakeholders were consulted in the course of this work, much of which is new for Tasmania.

The consultancies undertaken were:

  • Juturna: Tasmanian freight infrastructure systems
  • Aurecon: Supply chains in Tasmania, Tasmanian shipping and ports, Empty container movements
  • GPS Logistics: International container shipping service viability
  • Thompson Clarke Shipping: Market testing of an international container shipping service to Tasmania (commercial-in-confidence)

A summary of consultancies is provided in the Chair's Interim Findings and the FLCT public Discussion Paper.

Individual reports, where released, are available here:

Supply Chains in Tasmania, Aurecon
The FLCT engaged Aurecon to undertake a major study on supply chain quality, cost and benchmarking. Their report is presented in two parts:

Tasmanian Freight Infrastructure Systems, Juturna
The FLCT engaged Juturna Consulting (Juturna) to undertake detailed industry consultation on freight system issues, supported by future market analysis.

Empty container movements, Aurecon
The FLCT engaged Aurecon to conduct a detailed review of empty container movements in and out of Tasmania; and to identify inefficiencies and opportunities for improvement.

International shipping, GPS Logistics
GPS logistics were asked to prepare a report to inform the FLCT's understanding of broad market issues influencing the viability of any new international container shipping service to Tasmania.