Enable improved supply chain efficiency
Problem
Increasing global and domestic supply chain complexity can drive up transaction and coordination costs for freight operations and the economy as a whole. Managing this growing complexity, and the threat of disruption, is exacerbated by traditionally fragmented supply chains.
To address these costs, complexities, and secure ongoing participation in global supply chains, Australia needs to adopt compatible systems and platforms, standards and technologies. Harmonisation across the supply chain will reduce friction and information pinch points, facilitate smooth interactions with trading partners and position us to respond to new freight sector developments.
To support this, our freight sector will need to be sufficiently skilled, technology-aware and accepted.
We can realise needed efficiency gains through actions to improve interoperability and adopt global standards, develop an appropriately trained workforce, introduce productive freight technologies, and build community understanding of freight’s importance.
Outcomes we want to achieve
- Decreased transaction costs and other barriers to moving freight seamlessly along supply chains
- An appropriately-skilled freight workforce – now and in the future
- Technologies to improve freight outcomes
- Building community acceptance of freight.
These outcomes will be achieved through four priority actions.
Actions
2.1: Adopt and implement national and global standards, and support common platforms, to reduce transaction costs and support interoperability along supply chains
2.2: Promote training and re-skilling of industry and government workforces appropriate to current and future needs
2.3: Facilitate new and innovative technologies that improve freight outcomes and understand the deployment, skills and workforce requirements for operators and infrastructure
2.4: Build community acceptance of freight operations
Action 2.1
Adopt and implement national and global standards, and support common platforms, to reduce transaction costs and support interoperability along supply chains
Why we need action
Adoption of national and international standards will help Australian businesses integrate into global supply chains, driving interoperability and enabling adoption of new freight technologies. Research and pilots in Australia have shown that the adoption of global data standards demonstrate significant net economic benefits.
By encouraging businesses to adopt international standards and facilitating the development of collaborative supply chain platforms, we will reduce transaction costs to businesses and move towards interoperability within Australia and internationally.
Linkages: Action 1.3 (provision of digital infrastructure) and Action 2.1 (standards development and adoption) together enable the trialing of new technologies under Action 2.3.
Where we want to be by 2024
To achieve national interoperability and standards for moving freight along supply chains, we aim for:
- An agreed position on and adoption of global and national level data standards
- Increased rail standardisation and interoperability across Australia’s rail networks
- Increased freight flows through trade gateways by better coordinating operators in port and airport supply chains
- Increased harmonisation of Australian road vehicle safety standards with standards developed by the United Nations.
| Between now and 2024 we will | Example actions we are taking or will take |
|---|---|
| a) Encourage adoption of international standards |
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| b) Encourage the adoption of collaborative electronic platforms along supply chains |
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| c) Ensure standardisation and interoperability across rail networks |
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Action 2.2
Promote training and re-skilling of industry and government workforces appropriate to current and future needs
Why we need action
The Australian freight industry is experiencing shortages of skilled workers across its sectors. At the same time, automation and other technological changes are shifting workforce needs. From a government perspective, we need a public sector workforce sufficiently trained to appropriately plan and regulate freight activities and make informed decisions.
To address these issues, Australia needs a collaborative approach between government and industry to identify current shortages, ensure training programs address future skills needs, and enhanced workforce diversity to address short-term and long-term requirements of the freight sector.
Linkages: Workforce skilling needs to operate new technologies identified under Action 2.3 will translate into workforce-related actions under Action 2.2.
Where we want to be by 2024
To ensure a sustainable freight workforce that can meet our freight challenge, we aim for:
- Freight industry education and training programs that deliver a freight workforce with the right skills and capabilities to meet current and future workforce needs
- Enhanced capability of government planners and decision-makers to understand freight and supply chain benefits and needs and have the resources to make informed decisions related to freight.
| Between now and 2024 we will | Example actions we are taking or will take |
|---|---|
| a) Collaborate with industry to review the state of the freight sector workforce to identify current skills shortages and understand future long-term workforce needs and barriers, and options to address workforce challenges |
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| b) With industry involvement, work with the education and training sector to ensure that programs deliver future skills required by the freight sector |
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| c) Work with industry to build diversity in the freight sector to address short-term and long-term workforce needs |
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| d) Ensure that regulation delivers desired workforce outcomes |
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Action 2.3
Facilitate new and innovative technologies that improve freight outcomes and understand deployment, skills and workforce requirements for operators and infrastructure
Why we need action
New technologies, including connected and automated vehicles, drones and distributed ledgers, can increase network efficiency, decrease risks to transport users, reduce fuel usage and emissions, and enhance traceability of supply chains.
While some work is underway in this area, we need a coordinated approach and to share learnings of the many technological advancements underway in the Australian context. Further research and trials are necessary to understand how these technologies can enhance freight performance.
Linkages: Action 2.3 relates to the adoption and use of technologies that are enabled by the digital infrastructure, standards and common platforms supplied under Actions 1.3 and 2.1. Workforce skilling needs to operate new technologies identified under Action 2.3 will be translated into workforce-related actions under Action 2.2.
Where we want to be by 2024
To ensure new and innovative technologies are made available and are adopted to improve freight outcomes, we aim for:
- A nationally coordinated approach between governments and industry to researching and trialling new freight technologies
- The right enabling regulatory environment, infrastructure, data streams and workforce skills to deploy emerging freight technologies
- Introduction of ready to deploy technologies to the Australian market in a manner that is technology neutral and maximises economic and social benefits while meeting community expectations of safety, security and privacy.
| Between now and 2024 we will | Example actions we are taking or will take |
|---|---|
| a) Examining the infrastructure and skills needs and priorities of key freight stakeholders to facilitate the introduction of freight technologies |
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| b) Develop a national coordinated approach to researching and trialing new freight technologies, particularly cross-modal applications. |
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| c) Collaborate with industry to develop strategies to facilitate the introduction of ready to deploy technologies to market |
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Action 2.4
Build community acceptance of freight operations
Why we need action
Residents’ concerns about noise, emissions and safety place pressure on local councils to deny access or introduce curfews on freight activity. These local first and last mile access or operating restrictions when aggregated reduce freight network efficiency and productivity.
A collaborative approach between governments, industry and communities that communicates the importance of freight to the economy and society, whilst addressing options to deal with negative freight impacts, will build acceptance of the sector to reduce inefficient restrictions on freight operations and movements.
Linkages: Initiatives to build community acceptance under Action 2.4 will help facilitate better land use planning and access under Actions 3.1, 3.2 and 3.3. Community acceptance is also dependent on having appropriate regulatory frameworks in place under Action 3.4.
Where we want to be by 2024
To build community acceptance of freight, we aim for:
- Implementation of communication and education programs for the importance of freight
- Forums that bring together representatives from the community, industry and governments for all key freight precincts, such as ports and intermodal terminals
- Implementation of programs to mitigate freight’s physical impacts on community amenity through planning or practices
- Increasing community awareness of the importance and benefits of freight.
| Between now and 2024 we will | Example actions we are taking or will take |
|---|---|
| a) Collaborate between governments, supply chain participants and communities to promote freight’s importance for the community and economy |
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| b) Identify options to deal with noise and other impacts that might otherwise continue to create community pressure for restrictions on freight |
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| c) Work to develop solutions that reduce restrictions on freight movements |
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| d) Build community acceptance of freight by educating and raising awareness among communities on how to safely and positively engage with freight |
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