The last month has presented a number of challenges and opportunities for ALC.

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1 NEWSLETTER >> MARCH 2010 >> ISSUE 02 IN THIS ISSUE A Snippet from the Chairman ALC launches New Strategic Plan P2 ALC Annual General Meeting P2 ALC Priority Policy Issues P3 Minister Albanese Keynote Address to ALC Forum P3 State of Australian Cities 2010 P3 The last month has presented a number of challenges and opportunities for ALC. ALC was conceived to implement the Australian Logistics Minister Albanese writes to ALC P4 ALC Submission on the National Freight Network Plan P5 CoAG Reform Council Report to CoAG P6 Transport Ministers and Industry Discuss Safety P6 ALC Workshop on Future in Supply Chains 2020 P7 ALC Annual Yearbook P7 CoAG Road Reform Plan P7 Women in transport & logistics P8 National Railway Level Crossing Strategy P8 Infrastructure NSW P8 ALC Forum Images P9-10 About ALC The Australian Logistics Council (ALC) is the peak national body for Australia s Transport & Logistics (T&L) freight industry. The aim of ALC is to influence government policy decisions to ensure that Australia has a safe, secure, reliable, sustainable and competitive T&L freight industry. ALC Update ALC Update is a free newsletter ed to all our members and stakeholders on the first Thursday of each month. If you would like to subscribe/unsubscribe, please contact ALC. Know how we can improve ALC Update we d love to hear your feedback? Contact P: F: E: admin@austlogistics.com.au A: 1/25 Geils Crt, Deakin, ACT, 2600 PO Box 20, Deakin West, ACT, 2600 Prior to the ALC Forum we received a letter from Minister Albanese noting the progress ALC has made to establish itself in Canberra as the peak national body for Australia s freight T&L body. Minister Albanese said it is essential that ALC continues to take the necessary steps to establish itself in Canberra representing the freight T&L industry. A copy of the letter is on page 4 The letter clearly endorses and recognises ALC as the peak national body for Australia s freight T&L industry. It also sets the pattern for the ongoing strategy, structure and performance of ALC as we implement our new strategic plan, grow our membership, and sustain momentum, presence and influence in national T&L issues. Copies of this letter have been distributed to members. Early March was full-on with an ALC Board, Council and Forum being held in Sydney. All had very good attendances with 170 plus at both the Cocktail party and Forum. Key messages from the high quality speakers clearly indicated that ALC must take up a pivotal role in advising governments, particularly with the projected growth of our artery in the Australian economy. Australia s freight task has more than doubled over the last 20 years, is expected to almost double again by 2020 and triple by Of great importance was the endorsement by the ALC Board of the reconfigured way forward the ALC Strategic Plan for The Board recognised the withdrawl of federal funding and given the requirement that ALC should be driven, funded by and representative of the Australian freight T&L industry, agreed that a membership fee will in future be applied to all ALC members. Finally I advise that I will be resigning as ALC Chair, effective on 27 May, the date of our AGM. It has been a fascinating journey of 7 years, I have enjoyed fighting the lows and riding the highs; but most importantly to me it has been a bit of giving back to the industry that has been my life for so long. My resignation could have been earlier; any organisation needs continually refreshing with new blood and new ideas at the top, but I have held back to ensure we found the right successor. I am delighted to announce that Don Telford, latterly of Asciano, has accepted the position, effective from the AGM in late May. Don is well respected in the industry and I totally endorse his appointment. More next month. Regards Ivan Backman, Chairman P1

2 CEO UPDATE ALC launches New Strategic Plan ALC launched the new Strategic Plan for at last week s ALC Forum. A copy of the Strategic Plan is available on the ALC website. The driver behind the development of the new strategic approach was feedback from key ALC industry and government stakeholders that ALC should take the necessary steps to establish itself as the go to organisation in Canberra representing the Australian freight Transport & Logistics industry. The desired outcome was that ALC should be viewed by Government as the primary source of information on Australian freight T&L issues. This transformation in ALC comes at a critical time given the Prime Minister s announcement in January 2010 that: In 2010 the transport priority for the Council of Australian Governments will be freight transport. Minister Albanese has recently written to ALC advising that he and the Prime Minister look forward to working with ALC to ensure freight policy is given rightful prominence in the national economic and infrastructure discussion. With this in mind, ALC is positioning itself as the peak national body for Australia s freight Transport & Logistics (T&L) industry. The aim is to influence government policy decisions to ensure that Australia has a safe, secure, reliable, sustainable and competitive freight T&L industry. The ALC membership demographic has interests across the full spectrum of the Australian freight T&L supply chain, including owners, providers and users of infrastructure, as well as suppliers of goods and services. ALC has developed a number of Objectives (behind which sit a number of specific strategies and actions), which are to: 1. Be the nationally recognised voice of the major participants in Australia s domestic and international freight T&L supply chains. 2. Support appropriate nationally consistent regulatory frameworks and transparent markets to ensure Australia enjoys the full benefits of national freight T&L policy development and reform. 3. Promote the freight T&L industry s image and profile and encourage greater recognition by governments and the community of the importance of the industry s contribution to Australia s economy. 4. Drive implementation of strategies to improve Australia s domestic and international supply chains. In developing this plan for , the Board also agreed that the key to success of ALC in the future will be its ability to be a truly unified voice for its industry, and the financial commitment and engagement of its members. To ensure that this remains the case, in 2010 ALC will conduct an Environmental Scan of members and survey external stakeholders with the objective of conducting another strategic planning meeting early in 2011 to establish a Strategic Plan to take the organisation through to ALC Chairman, Ivan Backman, welcomes delegates to the 2010 ALC Forum ALC CEO Michael Kilgariff launches the ALC Strategic Plan at the ALC Annual Forum ALC Annual General Meeting The ALC AGM will be held in Sydney on 27 May, between 10 am 1pm. The venue is Level 47, MLC Centre, 19 Martin Place, Sydney. This will be the first AGM under the new Strategic Plan and membership structure. All financial ALC members are urged to attend and consider nominating for the ALC Board. I look forward to working with you on the critical T&L issues that all Governments will be dealing with in the next few years. Michael Kilgariff Chief Executive Officer P2

3 ALC Priority Policy Issues Over , ALC will focus on a number of key policy issues, reflecting the desire by the ALC Board to specifically focus on advocacy, regulation and infrastructure. ALC Strategic Plan State of Australian Cities 2010 Anthony Albanese, Minister for Infrastructure & Transport, has launched the State of Australian Cities 2010 report. Regulation CoAG and ATC national transport policy and regulatory reform agenda. National Logistics Safety Code and Retail Logistics Supply Chain Code of Conduct. Competition Policy in the T&L sector. ALC Policy document A Seamless Economy: A Seamless Supply Chain. Future Supply Chains Infrastructure National Ports Strategy. National Freight Network Plan. National Transport Policy Framework. Capital City Strategic T&L Systems. Smarter Supply Chains ICT in the T&L Industry. This will be an important part of the ALC focus on the CoAG agenda on Strategic Planning for Cities. A copy of the Report can be downloaded at State of Australian Cities 2010 Report The speech can be accessed at gov.au/aa/speeches/2010/ AS04_2010.htm ALC Strategic Plan Minister Albanese Keynote Address to ALC Forum Anthony Albanese MP, Minister for Infrastructure, Transport, Regional Development and Local Government delivered the keynote address to the ALC Annual Forum. Of significant interest was that Minister Albanese: Backed the ALC view that the Australian transport and logistics industry generates up to 14.5% of Australia s GDP and provides more than one million jobs across 165,000 companies. Recognised ALC as being a body that is national and is cross-modal and A forum removed from the tired policy debates of the past. A forum that rejects the negative frame that pits one mode of transport against another, and is instead focussed on the positive frame of improving the efficiency and safety of freight supply chains. Said the Government had broken the nexus between the infrastructure policy cycle and the 3 year electoral cycle. Underlined the contribution to be made by the National Ports Strategy and a National Freight Network Plan. Acknowledged that the maritime industry has been neglected in the recent past and needs to be considered within our overall transport strategy. Used the ALC study The cost impact of regulation disparity in cross border regions as an example of why the need for regulatory reform is critical. Emphasised the importance of regulatory harmonisation, the pace of reform needs to be lifted to meet the challenges that lie ahead. Outlined the December 2009 COAG agreement on national criteria for capital strategic planning systems to ensure cities have strong, transparent and long-term plans in place to manage population and economic growth and address future challenges. A copy of the Minister s speech is available at infrastructure.gov.au/aa/ speeches/2010/as03_2010.htm P3

4 MINISTER ALBANESE WRITES TO ALC P4

5 ALC Submission on the National Freight Network Plan ALC has made a submission to Infrastructure Australia on the National Freight Network Plan, titled A Seamless Economy - A Seamless Supply Chain. Prime Minister Kevin Rudd set the policy tone for ALC in 2010 when said on 20 January that: In 2010, the transport priority for the Council of Australian Governments will be freight transport. and the freight task will require a massive effort companies will have to improve transport and logistics strategies and efficiencies, and governments will have to undertake substantial new investment and policy reform. The Australian Government is developing not only the NFP but a National Port Strategy as part of an overall National Transport Policy Framework. An Exposure Draft of the National Port Strategy has been released to ALC and a briefing was held recently in Adelaide for stakeholders. In 2010, the transport priority for the Council of Australian Governments will be freight transport. The ALC Recommendations can be summarised as: 1. The function of the National Freight Plan operating within the National Transport Policy Framework is to ensure the regulatory environment, infrastructure and investment are in place to meet Australia s freight needs. 2. A national partnership between the states and territories should: Identify nationally significant infrastructure (through the Australian Transport Council); ensure land use decisions give priority to nationally significant infrastructure; and provide a fund to finance land-use decision by state and local governments that favour nationally significant infrastructure over other land uses. 3. Open-access inland ports be identified building on the research contained in the 2006 National Intermodal Terminal Study. Decisions would have regard to competition principles; cost-benefit analysis; and the connection between the port and freight destinations. 4. The National Freight Network Plan should encourage the development of mechanisms permitting the transfer of non proprietary information across the transport and logistics chain, including (where necessary) legislation that will permit the development and use of impartial industry wide ICT solutions where that would enhance the efficiency of the transport and logistics chain. 5. The National Freight Network Plan should aim at a single Land Transport Regulator responsible for regulation across all modes. 6. The Plan should state that prices for road transport should be linked to costs. New measures should give an incentive for high productivity vehicles. 7. The Chain of Responsibility (CoR) laws should recognise the ALC National Logistics Safety Code which is harmonising the safety practices of different industry sectors. A logistics participant who follows the NLSC Code should be taken to have satisfied national CoR legislation. 8. A body called Freight Australia should be created within Infrastructure Australia to monitor the National Freight Plan. P5

6 Transport Ministers and Industry Discuss Safety The Chairman of the CoAG Reform Council, Paul McClintock, is pictured briefing the ALC Annual Forum 2010 on 3 March on the Report. CoAG Reform Council Report to CoAG The CoAG Reform Council released the first report to COAG on the National Partnership Agreement to Deliver a Seamless National Economy, on Tuesday 23 February The COAG Reform Council has been established by COAG as part of the new arrangements for federal financial relations to assist COAG to drive its national reform agenda. The council is independent of individual governments and reports directly to COAG. This is the first annual report to COAG on the performance of governments against the 36 areas of reform 27 deregulation priorities; eight competition reforms; and ongoing reform of regulation making and review to be achieved in the five years of the National Partnership. In relation to transport and infrastructure reforms, the council found that there has been a significant loss of momentum, and has recommended that COAG reassess the infrastructure and transport agendas to reinvigorate reform in these vital areas. Download the full report, the compendium and the COAG response from the COAG Reform Council website coag.gov.au/crc National Partnership Agreement to Deliver A Seamless National Economy implementation plan: www. coag.gov.au/intergov_agreements/ federal_financial_relations/ docs/national_partnership/ seamless_national_economy_ implementation_plan.pdf The implementation plan sets out the milestones agreed to by the Commonwealth, State and Territory governments and the COAG Reform Council is reporting against these milestones in its annual reports on the Seamless National Economy. National Partnership Agreement to Deliver A Seamless National Economy: intergov_agreements/federal_ financial_relations/docs/national_ partnership/seamless_national_ economy_np.pdf ALC CEO Michael Kilgariff attended a meeting with Asian, Australian and New Zealand Transport Ministers, as well as transport & logistics industry representatives in Melbourne in February to discuss road transport logistics safety and productivity. Initiated by ALC member, Lindsay Fox, in his role as one of Australia s representatives on the APEC Business Advisory Council (ABAC), the Melbourne meeting was hosted by the Hon Anthony Albanese, Australian Minister for Infrastructure, Transport, Regional Development and Local Government. Transport Ministers have key roles to play in facilitating trade within and between regions. An efficient, safe and secure transport sector to facilitate the movement of goods and people underpins economic and social development and prosperity. Improved transport logistics also means enhanced supply chain connectivity and improved productivity. The meeting agreed that addressing chokepoints and barriers in the logistics supply chain to allow for the smooth and safe flow of goods and services will make a major contribution to trade facilitation and community development. P6

7 ALC Workshop on Future in Supply Chains 2020 The Australian Logistics Council (ALC), supported by the Australian Freight Councils Network (AFCN) is working to establish a national industry policy position for the transport and logistics sector. ALC and AFCN have commissioned global consultants, Capgemini, to guide Australia s T&L leaders through a full-day ASE (Accelerated Solutions Environment) workshop, to be held in Melbourne on Thursday March 25. The aim of the Workshop is to develop robust and effective arrangements for the industry that identify, endorse and advocate solutions to federal strategic issues. The aim is to promote a sustainable, capable and productive future for transport and logistics. The basis for the work will be a major European study conducted recently under the umbrella of the Global Commerce Initiative, a consortium of the biggest retail companies in Europe, with associate companies in the US and Australia. ALC Annual Yearbook This report, Future in Supply Chains 2016 has been adopted as a template for broader work in Australia because it goes beyond the notion of compliance with government regulation and environmental legislation (now and likely in the future), and examines a positive set of business models for sustainability in supply chain management. Australian companies must seek to be proactive in this area, and not wait until government imposes rules on the industry. At the workshop we will: Determine an industry view of what logistics will look like in the future in Australia Determine the top five issues that the industry currently faces that will affect the future of logistics in Australia Discuss how we can mobilise the industry to take a proactive contribution Any ALC member interested in attending can contact the ALC Secretariat. In conjunction with Executive Media Pty Ltd, ALC is producing a 2010 annual Yearbook. The Yearbook will be a comprehensive source of information for industry members, providing valuable insight into the policies, priorities and projects of the ALC and case studies on the importance of logistics to the Australian economic and social fabric. The ALC Yearbook provides a unique opportunity to reach the key decision makers within the highest levels of industry and government. I encourage you to discuss an advertising package with Executive Media. CoAG Road Reform Plan ALC attended a COAG Road Reform Plan (CRRP) Stakeholder Breakfast in Sydney on Friday 12 February. The purpose was to provide stakeholders with an update on the work plan and draft policy framework. The CRRP Board took away a number of strong messages and key issues including: Industry at the table transparent engagement and direct involvement by industry to ensure constructive consultation across the entire stakeholder landscape. Regulatory certainty need for industry to have clarity around pricing to enable forward planning including consultation with end consumers who will ultimately form part of the solution. Community Service Obligation further analysis and definition required to determine the appropriate costing of the social obligation component of road provision. Unlocking the network engagement with local councils to determine how access issues, particularly the last mile, could be addressed in the interests of achieving a national regime. P7

8 Women in Transport & logistics ALC is finalising arrangement for the 2010 Women Moving Forward Program - index.php?option=com_content&task =view&id=133&itemid=264 In a related development, a paper published by Women in Supply Chain (WISC) has called on the transport and logistics sector to industry to adopt a diversified workforce and a culture which accepts women in the workforce so that the industry can move forward. WISC is a voluntary group working to establish a dynamic networking environment for women within the transport and logistics industry and to provide a vehicle to encourage and enable proactive and constructive integration of women within the industry on an ongoing basis. Making Women Visible - The unseen gender in Transport and Logistics, released on February , aims to promote discussion within and beyond the transport and logistics community of the contribution women make to the industry. While looking at the education and training of women in the sector, or lack thereof, the paper also investigates as many options as possible to attract women to the transport and logistics industry and identify impediments to entry into the industry. It also examines issues affecting women working in transport and logistics such as women s lower share of discretionary payments, industrial and occupational segregation, family-friendly workplaces and discrimination. WISC makes 14 key recommendations for companies in the sector to ensure that women are able to compete equally for employment, promotion and training and to boost their retention of skilled women in this sector. To obtain a copy of the report go to: com.au/resources/ MakingWomenVisible.pdf National Railway Level Crossing Strategy The National Railway Level Crossing Strategy ( ) has been released. This Strategy has been developed by the Rail Level Crossing Group on behalf of the Commonwealth, State and Territory Ministers working together through the Australian Transport Council to coordinate national transport and road safety policy issues. Further information at UnderstandingRoads/Rail/ Pages/Rail.aspx Infrastructure NSW The NSW Opposition has released a policy document Infrastructure NSW - Making the right infrastructure decisions and delivering better projects. The Opposition has undertaken to establish a professional and independently chaired body called Infrastructure NSW to improve the identification, prioritisation and delivery of critical public infrastructure across the State. To download a copy of the policy click HERE P8

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