Industrial Estates and Business Parks
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1 Industrial Estates and Business Parks 25 February 2016 Michael Kilgariff, Managing Director, Australian Logistics Council
2 Focus Areas An overview of Melbourne s industrial estate market as it relates to the logistics industry. A discussion on some critical logistics issues currently at play in Melbourne. A summary of the Infrastructure Australia 15-year Plan released last week.
3 Corporate members
4 Associates National sponsors
5 The National Freight Task This trend is expected to continue at a growing rate over the next 40 years
6 Australia s freight logistics industry A 1% improvement in our supply chains, could boost national GDP by $2 billion. Australia s rising freight task is expected to: Double in next 15 years Nearly triple by 2050 Directly contributed $131.6 billion to Australia s economy in Employs around 1.2 million people
7 Colliers Report The industrial market in Melbourne over the latter half of 2014 and early months of 2015 was characterised by strong sales of retail industrial lots In 2014, a total of $1.26 billion worth of industrial property in Victoria changed hands. This is above the previous annual record of $1.1 billion recorded in The Victorian Freight Strategy estimates the freight and logistics sector contributed between $19 and $23 billion, or about 8% of total economic activity to Victoria's economy in 2011.
8 Plan Melbourne Refresh The Victorian Government announced an update to Plan Melbourne in March 2015 The Plan needs to: emphasise the importance of preserving specific industrial lands and logistics precincts and corridors. recognise that they are important elements in the continuing evolution of Melbourne. ensure there are measures in place to appropriately protect buffer zones.
9 Port of Melbourne ALC supports the long term lease of the Port of Melbourne, with the proceeds going to productive logistics infrastructure. Port of Melbourne will be Victoria s premier port for years into the future. The port will need to be worked near to capacity so it may handle the projected freight traffic. The Port of Melbourne predicts that by 2025, Victorian port international and mainland container volumes are projected to increase to 4.7 million TEU, a 214% increase on the 2.2 million TEU. ALC encourages both sides to resolve the compensation matter ALC supports a port being built when it is needed (and not before) and not be delayed when the evidence shows it s required.
10 Cost Benefit Analyses ALC supports all projects undergoing rigorous cost benefit analyses to test whether they are in the public interest the Victorian Auditor General found the East West Link business case did not provide a sound basis for the government s decision to commit to the investment. It underscores the need to ensure project proposals are rigorously thought through first and subjected to proper scrutiny Infrastructure Australia highlights this area of concern in its 15-year infrastructure plan
11 Infrastructure Australia 15-year Plan 78 recommendations for reform Revised Infrastructure Priority List which identifies 93 projects and initiatives The Plan was developed following consultation on the Australian Infrastructure Audit report
12 National Freight and Supply Chain Strategy Recommendations Partnerships with governments and the private sector should lead the development of the Strategy, which should: map nationally significant supply chains and their access to supporting infrastructure and gateways; evaluate the adequacy of the institutional framework supporting freight networks and; recommend reforms and investments that will move the efficient movement of freight. In particular, the strategy should: facilitate the mapping of nationally significant supply chains and their connections across ports, airports, roads, rail and coastal shipping; identify the key bodies overseeing their efficient operation and; recommend a series of reforms and investments to enable the more efficient movement of freight.
13 Protection of Key Freight Corridors Effective corridor protection mechanisms to ensure the timely preservation of freight corridors and strategic sites for future infrastructure. ALC encourages jurisdictions to consider an intergovernmental agreement for the payment of incentives to fund corridors
14 Recommendations 1. Link infrastructure funding to States against delivery of reform outcomes; 2. Consolidate all Federal Funding pools into an integrated and transparent Infrastructure Fund; 3. State and territory governments ensure statutory planning instruments deliver high quality design 4. Continue the process to consolidate local governments so as to increase efficiency and service quality; 5. Continue to provide incentives for state and territory governments to recycle mature infrastructure assets;
15 Recommendations 6. State and territory governments should deliver and consistently update land use plans for all Australian cities; 7. All state and territory governments should deliver long term infrastructure plans; 8. Infrastructure service standards should be used to guide future and project development; 9. The development of national governance principles to support better project decision making across the public infrastructure sector; and 10. Implement a heavy vehicle road charging structure in the next five years, and extend to light vehicles within ten years.
16 ALC supports Heavy Vehicle Road Reform To improve supply chain efficiency and welcome public debate ALC has proposed an industry roundtable involving industry and government New approach to road funding required The need for road reform has been highlighted in recent times by: The Productivity Commission report on public infrastructure the Harper Review the National Commission of Audit.
17 Conclusion Freight efficiency matters for all Australians Without a long term plan for Australia s freight future, we will miss an opportunity to build a stronger economy ALC Forum is the largest and most influential gathering of leaders and key policy makers in the Australian logistics industry.
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