2023 has been another year to once again throw big challenges at the industry, and those with solid governance practices and business models have held firm during this tough economic year. However, there have been several notable business closures and action needs to be taken by the government to ensure that transport costs are respected and equitable for everyone to sustain this vital sector that underpins the Australian economy.
One of the major areas that will impact the road freight sector is the Closing the Loopholes legislation which was drafted during the year. Sustainable road freight supply chains and contract networks are vital to the economic future of the Australian economy. Typically, the road freight industry is more a price taker than maker, and results in an industry characterised by tight margins and relatively high capital costs.
Decades of experience shows that business viability is compromised where unfair commercial influence and pressure is applied with an in-balance of economic power at the top of supply chains and the consequent contractual networks.
The in-balance of economic power goes to the very heart of the sustainability of road freight operators. With many economic pundits predicting an increase of freight volumes in road freight to be at least 46 percent over the next five years. With tight profitability across the industry there have been several notable businesses failing across the country this year.
The road freight industry has relied upon improved efficiencies through bigger trucks and productivity gains to remain viable, however there has been little done in the setting of minimum standards to ensure freight costs are understood and respected within the supply chain.
Through the Australian Road Transport Industrial Organisation (ARTIO) the QTA, Victorian Transport Association, NSW ARTIO, Tasmanian Transport Association and Western Roads Federation are representing the voice of employers with government and the TWU. This high-level engagement ensures employer interests are represented and importantly, what considerations there need to be to make up minimum standards for the road transport industry.
Infrastructure investment remains a key priority and the announcement by Hon. Catherine King, Minister for Transport, Infrastructure and Regional Development to stall promised funding for the Inland Freight Route (IFR) was a major setback for Queensland productivity. The QTA was nominated to join the 'Team Queensland' delegation led by the Deputy Premier to travel to Canberra in November to lobby against funding cuts or delays to road infrastructure projects critical to Queensland. We would expect that priority will continue for this vital link in the next Budget round. Recent damage and extended cuts to vital freight routes as a result of ‘Jasper’ reinforce how important it is to have an all-weather inland freight route.
As Queensland has one of the fastest growing container ports in Australia, with the Port of Brisbane Pty Ltd (PBPL) handling product worth around $50 billion each year, any cuts to infrastructure funding would be detrimental to the supply chain. PBPL handles over 95 percent of Queensland’s import and export containers and 50% of Queensland’s agricultural exports and most of Queensland’s meat exports.
In addition, currently the South Burnett, Central Highlands, Atherton Tablelands, Gladstone, and Mackay Port regions that supply these major export markets, cannot be accessed with the safest high productivity vehicle combinations due to infrastructure requiring urgent upgrades. The Inland Freight Route is critical to unlocking access for high productivity vehicles to enable the delivery of larger volumes of freight and reduce truck traffic on our roads, particularly on the Bruce Highway, in the order of 25%.
Our project work continued through 2023 and to enhance driver safety and guidance on navigating Cunningham’s Gap, QTA worked with TMR to produce a set of practical conversational style videos now hosted on YouTube on the intricacies of driving on this piece of infrastructure. The First on Scene Project was rolled out in this year which saw face-to-face training take place around Queensland. The project will continue with the development of a Toolbox Training Resource and an online video learning campaign in 2024. As part of the project a practical Glovebox Guide was also developed which will be distributed more widely with the Toolbox Talk Resources.
The Heavy Vehicle Safe Drivers Program commenced and will continue into 2024. The driver mentoring training successfully injected some newly trained job-ready drivers into fleets around Queensland. Next year will also see our new innovative Think. Act. Drive project commence using an online gamified learning platform to support drivers to manage behaviours and reactions that impact safety.
Achieving a reduction to the commencement age to 17 of the HV Driver Apprenticeship was a big gain for industry. Increasing awareness of transport career opportunities was also a big focus this year with our Get In2 Transport and Logistics Program in North Queensland and Southern Downs Region. The inclusion of career guidance school staff in tours proved to be valuable to open eyes to the roles available in the industry.
A huge highlight of the year was the QTA Road Freight Industry Awards that attracted over 450 guests and the announcement of our 2023 Industry Award Winners.
With a Queensland State Election in October 2024, we will be working hard on our Election Advocacy Priorities that will focus on roads infrastructure investment, continue to expand access to improve productivity, employment standards and sustainability.
2024 Events will include our annual Breakfast re-branded to Diversity in Transport on 6 March, QTA Platinum Partner Golf Day 7 June, and Road Freight Industry Awards on 21 September 2024.
We welcome you to renew your membership and go into 2024 with the confidence you are backed by a leading industry association that genuinely represents road freight, provides specialist employment relations service and offers personal support by experienced staff that know the industry.
On behalf of the QTA Board, I would like to thank our specialist team of dedicated long-serving staff, Lisa, Ebony, Frances and Justine and also to Jim who joined us in April to provide Employment Relations Services. Also, thanks to Camilla who was our Industry Skills Advisor for several years and to Angela who now provides workforce planning services. All staff make up a team that has a genuine commitment to providing personalised service in a professional and responsive manner to ensure your businesses can operate efficiently and safely.
As always, if any urgent issues arise over the Christmas/New Year period, please contact me on 0418 736 802 or Lisa on 0405 152 952.
We remain committed to doing our very best to support you wherever you are in Australia, and we look forward to supporting you again in 2024.
The entire QTA team offers our best wishes for a Merry Christmas and a Happy and Safe New Year.
Safe travels
Gary