Smarter and targeted infrastructure investment
Problem
Australia’s freight task is growing and changing. The volume of freight carried is expected to grow by over 35 per cent between 2018 and 2040, an increase of 270 billion tonnes (bringing the total volume moved to just over 1000 billion tonnes).
The growing demand for freight is straining existing infrastructure and affecting service levels along the supply chain. Australia’s widely dispersed population and climatic vulnerabilities exacerbate this challenge.
To accommodate expected growth of the freight task, Australia will need to build capacity through both infrastructure investment as well as the efficient use of existing assets across all modes.
Appropriate and improved access to trade gateways, improved access to the first and last mile of the freight task, enhanced digital infrastructure availability, and improved freight infrastructure provision is needed to ensure our infrastructure investments drive the efficiency and productivity gains we need to meet our growing freight task now and into the future.
Outcomes we want to achieve
- Develop new, well planned and located major freight gateways and hubs
- Improve landside access to major freight gateways
- Improve regional freight links
- Develop Northern Australia’s freight infrastructure
- Enable freight’s digital future
- Advance heavy vehicle road reform to facilitate efficient investment in infrastructure.
These outcomes will be achieved through four priority actions.
Actions
1.1: Ensure that domestic and international supply chains are serviced by resilient and efficient key freight corridors, precincts and assets
1.2: Provide regional and remote Australia with infrastructure capable of connecting regions and communities to major gateways, through land links, regional airports or coastal shipping
1.3: Identify and support digital infrastructure and communication services necessary for improved and innovative supply chains
1.4: Advance heavy vehicle road reform to facilitate efficient investment in infrastructure
Action 1.1
Ensure that domestic and international supply chains are serviced by resilient and efficient key freight corridors, precincts and assets
Why we need action
To meet our growing freight task, Australia needs to build capacity along key freight corridors, ensuring assets are used effectively and are resilient in the face of change.
Where we want to be by 2024
To develop new major freight gateways and hubs and improve landside access to existing gateways, we aim to:
- Progress towards a more strategic and networked approach to freight-related investment
- Develop a comprehensive infrastructure investment framework for freight that includes consideration of non-build options such as planning and adoption of new technologies
- Plan and construct freight infrastructure to meet capacity requirements
- Put in place strategies to make freight infrastructure and supply chains more resilient to disruption
- Continue public and private investment in freight related infrastructure.
| Between now and 2024 we will | Example actions we are taking or will take |
|---|---|
| a) Develop a national framework for freight-related infrastructure investment, including consideration of non-build solutions |
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| b) Develop new major freight gateways and hubs |
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| c) Improve landside access to major freight gateways |
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| d) Assess and improve the resiliency of key freight assets and supply chains |
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Action 1.2
Provide regional and remote Australia with infrastructure capable of connecting regions and communities to major gateways, through land links, regional airports or coastal shipping
Why we need action
Our supply chains rely on regional and remote transport infrastructure to facilitate the majority of movements of our key exports to international markets and to deliver essential goods and services to isolated communities.
Long distances between population centres, climatic disruptions, high maintenance and repair costs, and relatively low levels of infrastructure create challenges in securing connectivity and reliability of product distribution through supply chains.
Where we want to be by 2024
To improve regional and remote freight links, we aim for:
- Better linkages from major regional and remote producer areas to key freight corridors and trade gateways (ports and airports)
- Improved all weather access to export gateways, including in Northern Australia
- All levels of government to improve and upgrade infrastructure in regional and remote areas to lift regional freight productivity, access and safety across all modes and delivery of essential goods and services to isolated communities.
| Between now and 2024 we will | Example actions we are taking or will take |
|---|---|
| a) Develop regionally based investment frameworks for key freight corridors |
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| b) Provide infrastructure to connect regions and remote areas to markets |
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| c) Target infrastructure investment programs to improve regional and remote freight access and safety |
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| d) Fund local governments to maintain and upgrade freight assets that support community sustainability |
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Action 1.3
Identify and support digital infrastructure and communication services necessary for improved and innovative supply chains
Why we need action
Adopting new and innovative technologies, including connected and automated vehicles, is vital to improving supply chain productivity, efficiency and safety. For their effective introduction, emerging technologies will rely on digital infrastructure, including data, positioning and telecommunications services.
Work to investigate our current and future needs will help governments and industry understand the digital infrastructure we need to facilitate the arrival of emerging freight technologies.
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 enable freight’s digital future, we aim for:
- New infrastructure to be future-proofed
- Improved mobile coverage along major freight corridors through initiatives such as the Mobile Black Spot Program
- Digital infrastructure deployed to support innovative operations and technology improvements.
| Between now and 2024 we will | Example actions we are taking or will take |
|---|---|
| a) Investigate digital infrastructure needs to support the deployment of innovative freight technologies |
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| b) Improve telecommunications access to support freight operations |
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| c) Ensure digital security in the freight system, including in the collection of data from innovative freight technologies |
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Action 1.4
Advance heavy vehicle road reform to facilitate efficient investment in infrastructure
Why we need action
More closely linking infrastructure provision to its use through pricing and investment reforms will promote the use of the most appropriate mode for a given freight task.
Creating strong competition within markets and between transport modes will improve efficiency and productivity.
Where we want to be by 2024
In advancing heavy vehicle road reform, we are aiming for:
- Stronger links between heavy vehicle road user charges and investments into road infrastructure services
- Increased transparency to road users regarding levels of service and investments
- Increased funding certainty for road managers, helping to deliver optimal road maintenance.
| Between now and 2024 we will | Example actions we are taking or will take |
|---|---|
| a) Further develop Heavy Vehicle Road Reform |
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| b) Explore and trial options for alternative heavy vehicle charging mechanisms |
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| c) Design heavy vehicle reform elements in a way that could be applied to broader road reforms in future, should governments decide to pursue them |