Australia: The hard truth about interstate freight

 
Topic moved from News by bevans on 10 Aug 2020 12:14
  freightgate Minister for Railways

Location: Albury, New South Wales
Every business in Australia should read this article and email their freight forwarders and ask how is my freight going between cities please I am concerned about the environment.

Australia: The hard truth about interstate freight

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  BrentonGolding Chief Commissioner

Location: Maldon Junction
Every business in Australia should read this article and email their freight forwarders and ask how is my freight going between cities please I am concerned about the environment.

Australia: The hard truth about interstate freight
freightgate
Businesses are not the ones driving freight decisions, we do what our customers want us to do. And that is pretty much always to get it there yesterday. Our firm offers 2 to 3 choices to customers for order delivery and they pretty much always take the fastest and most expensive which in many cases means air freight. Vic > WA, Vic > Qld and Vic > NT are the primary examples for us, VIC > SA and VIC > NSW usually go by road even if overnight due to closer distances involved.

Until the consumer changes their mindset and decide that they don't need everything right now businesses are not going to change the way they operate. We are, after all, here to serve our customers' needs and wants and if we don't they will simply go elsewhere.
  a6et Minister for Railways

Every business in Australia should read this article and email their freight forwarders and ask how is my freight going between cities please I am concerned about the environment.

Australia: The hard truth about interstate freight
Businesses are not the ones driving freight decisions, we do what our customers want us to do. And that is pretty much always to get it there yesterday. Our firm offers 2 to 3 choices to customers for order delivery and they pretty much always take the fastest and most expensive which in many cases means air freight. Vic > WA, Vic > Qld and Vic > NT are the primary examples for us, VIC > SA and VIC > NSW usually go by road even if overnight due to closer distances involved.

Until the consumer changes their mindset and decide that they don't need everything right now businesses are not going to change the way they operate. We are, after all, here to serve our customers' needs and wants and if we don't they will simply go elsewhere.
BrentonGolding
Brenton spot on in regards to how things have changed, the article from Rail gazett highlights how the Australian businesses especially in the rail areas are continuing to be cut down & out by foreign owned businesses.  The aspect that there is no longer many if any Australian owned coastal ships that could take the place of the foreign ones, but at what advantage for an Oz company as they would be crewed by Australians at wages that are so much higher than the slave workers on the foreign owned ships.

The main point that I find in the article aside from the shipping side of the coin, is what you raise in the 2nd paragraph regarding the wanting it now, but how many actually need items now, or is it yesterday?  I would suggest that if a test case was carried out in loading freight onto ships in Perth, as well as on rail, with both leaving at the same time to arrive in say Port Botany, which one would arrive first, & be unloaded?

The other aspect in all of this is that of the increase in trucks and their power, I watch how many of them go up hills these days a lot faster than in the past, what happens when the road industry pushes and will approval for basically unlimited bogie dogs behind the PM?   I watch in the Hunter area and the M1 how with almost every truck movement with the main exception being the supermarket supply trucks which are single units and the remainder are B doubles. The M1 and many local roads are being wrecked and destroyed by the number of them.

In the end I am tired of seeing foreign owned interests, who pay slave wages to their employees taking over Australian work places for the benefits of the foreign companies and governments.
  Richard stroker Junior Train Controller

Totally agree with you BG , it’s up to the customer which mode is used.

Feel free to correct me if I’m wrong, wasn’t one of the reasons Woolworths uses sct , was to utilise rail over road ?

Nice article on last Sunday’s news about your Castlemaine railway BG
  Lad_Porter Chief Commissioner

Location: Yarra Glen
Nice article on last Sunday’s news about your Castlemaine railway BG
Richard stroker
Didn't see it.  Is there a link?
  viaprojects Chief Train Controller

it’s up to the customer which mode is used.

Richard stroker
most time the customer does not have an option ..

the only real way to transport freight under the wires is using a shipping container as most options of a local siding to unload is out of the question - sidings don't exist - aka a truck delivers a shipping container at your site to un/loaded your bulk items  or stand freight options for a single pallet deal ..

mostly the rail network does not have an option of roll on/off rail transport options due to height limits of the AU rail network .. or high speed rail to adjust for manual labour of loading freight ..
  justapassenger Minister for Railways

Totally agree with you BG , it’s up to the customer which mode is used.

Feel free to correct me if I’m wrong, wasn’t one of the reasons Woolworths uses sct , was to utilise rail over road ?
Richard stroker
That doesn't add up.

My guess is that Woolworths uses SCT for select flows because SCT is a mode agnostic transport operator which will use whatever combination of road and rail is needed to get the job done, and a very good one at that.
  BrentonGolding Chief Commissioner

Location: Maldon Junction
My original reply to the OP was addressing his comments and not the article in question. Now having gone back and read the article i offer the following

Firstly on the subject of shipping, i don't know why it would surprise anyone that our Federal Government would be happy to give foreign companies a leg up over Australian firms, they have a track record of doing just that. For years and years they let people importing goods into Aus do so with no duty and no GST which made it even harder for local firms to compete. Before you even dealt with issues such as low wages and poor conditions enjoyed by workers in the OS firm our own government gave them a 10% plus duty leg up to help them batter the local firms into submission. They have also sold out many Aus firms in free trade agreements, the one with Thailand springs to mind when Ford and Holden thought they would be a natural export to this RHD market only to find there was still a big tariff on cars over a certain cubic capacity (3000cc IIRC)

Secondly on the subject of Aurizon intermodal, how many years was it a 3 cornered contest between SCT, PN and Aurizon? Was it simply that the first 2 did a better job than Aurizon and were able to turn a profit where Aurizon weren't? More info such as respective volumes, total volume on rail at, say 5 year intervals during the period, total percentage of traffic on rail before, during and after, total tonnages carried on rail before, during and after etc etc need to be considered.

So while I agree that foreign ships flying flags of convenience and crewed by near-slave labour should not be allowed to compete for the domestic freight task I think that the reality might be a bit less straight forward
  don_dunstan The Ghost of George Stephenson

Location: Adelaide proud
They have also sold out many Aus firms in free trade agreements, the one with Thailand springs to mind when Ford and Holden thought they would be a natural export to this RHD market only to find there was still a big tariff on cars over a certain cubic capacity (3000cc IIRC)
BrentonGolding
THIS.

All the good jobs have been off-shored as a matter of deliberate policy to low wage competitors and now our chooks are coming home to roost.

There's a lot of people doing it incredibly tough out there with very little or no income and at some stage it's going to flow through to spending and ultimately the entire rubbish consumer-based economy that we have in this country. That's why things like AfterPay, Zip-Pay etc are positively thriving - AfterPay has shot up a whopping 740% since the start of the COVID crisis - because Aussie consumers are so tapped out that they don't even have the money for new whitegoods etc.

We're in for a world of pain as the next 12 months unfold...
  ANR Deputy Commissioner

There is no match to the efficiency and environmental benefit of a 1.8km double stacked super freighter.

We need to take more containers off the roads and place them onto rails. The government has to protect Australia's vital interests ... for a change.

It can charge the rail freight operators less, and recoup it's rail investment over a longer period of time.
  don_dunstan The Ghost of George Stephenson

Location: Adelaide proud
There is no match to the efficiency and environmental benefit of a 1.8km double stacked super freighter.

We need to take more containers off the roads and place them onto rails. The government has to protect Australia's vital interests ... for a change.

It can charge the rail freight operators less, and recoup it's rail investment over a longer period of time.
ANR
The trucking industry have fought tooth and nail to stop any attempts to move more stuff onto rail: The SA government tried to charge the trucking industry more for using the roads in the late 1990's but Alan Scott  (Scott's Transport) used his political influence to kill the proposal. He actually threatened to move from Mt Gambier to Queensland - which I think was a bluff anyway.

Lindsay Fox isn't a billionaire for no reason, there's a fortune to be made in trucking and they don't want to share that windfall with anyone else.
  Big J Deputy Commissioner

Location: In Paradise
Wow Don, I am agreeing with your posts. They are spot on. We haven't been smart.
  bevans Site Admin

Location: Melbourne, Australia
A Further follow-up on the crisis that is rail freight orchestrated by government policy in a deliberate way:

https://www.railpage.com.au/news/s/australia-s-rail-freight-crisis-deepens

Truss has caused so much damage.

Ironically the chairman of the ARTC is former Nationals party leader and deputy prime minister Warren Truss who, when he was transport minister was an architect of the moves that boosted sea and road transport.

The rail network now comes under the ambit of the current Nationals leader and Deputy Prime Minister Michael McCormack, who has maintained the Truss strategies.

Truss is an ethical person and it took a recently appointed new ARTC chief executive for the grim details to come out.

The government’s attack on rail has been relentless and efficient, albeit that it lowered transport costs.
The Australian

The attack on rail has been relentless as we have called out on Railpage for some time and defies logic the policy and decisions which have been made.
  freightgate Minister for Railways

Location: Albury, New South Wales
Warren Truss backs road and is then appointed to the ARTC and they finally call the problem out. This entire corruption scandal looking after road freight lobby will now have a massive cost on the economy and the environment.

It is really shameful.
  michaelgm Chief Commissioner

Warren Truss backs road and is then appointed to the ARTC and they finally call the problem out. This entire corruption scandal looking after road freight lobby will now have a massive cost on the economy and the environment.

It is really shameful.
freightgate
https://www.artc.com.au/uploads/ARTC-2019-Financials.pdf

Page 14.
Truss collected $178K in 2019, for his second job.
Cronyism is alive and kicking.
  james.au Minister for Railways

Location: Sydney, NSW
A big thing for Federal Rail is how the budget works.  Investments in ARTC are not counted as budget expense, but are capital items. And they need a dividend to be paid to hold this sham together.  

As soon as they realise the inland is going to be a project that won't pay dividends, there will be a big budget hit.

Tho with COVID, now might be the time to change how that works and just take the budget hit and be done with it.
  bevans Site Admin

Location: Melbourne, Australia
A big thing for Federal Rail is how the budget works.  Investments in ARTC are not counted as budget expense, but are capital items. And they need a dividend to be paid to hold this sham together.  

As soon as they realise the inland is going to be a project that won't pay dividends, there will be a big budget hit.

Tho with COVID, now might be the time to change how that works and just take the budget hit and be done with it.
james.au

James the entire setup a a scam just like ASIC.  ASIC makes it's money by selling access to documents.  (These documents in the UK are free) and ASIC then sends the money back to the FEDS as a dividend.

The entire rail sector has been the victim of a shocking campaign of relentless nobbling by liberal governments.
  michaelgm Chief Commissioner

A big thing for Federal Rail is how the budget works.  Investments in ARTC are not counted as budget expense, but are capital items. And they need a dividend to be paid to hold this sham together.  

As soon as they realise the inland is going to be a project that won't pay dividends, there will be a big budget hit.

Tho with COVID, now might be the time to change how that works and just take the budget hit and be done with it.

James the entire setup a a scam just like ASIC.  ASIC makes it's money by selling access to documents.  (These documents in the UK are free) and ASIC then sends the money back to the FEDS as a dividend.

The entire rail sector has been the victim of a shocking campaign of relentless nobbling by liberal governments.
bevans
The dividend paid to the shareholder in 2017/18 was $68 000 000.
No need for ARTC to make a profit, fees are excessive, dividend should be reinvested or middle ground achieved.

EDIT, unless privatisation is the ultimate objective.
  james.au Minister for Railways

Location: Sydney, NSW
EDIT, unless privatisation is the ultimate objective.
michaelgm
They looked at privatisation and didnt do it - how do you do that when the Inland project kills the financial cashflows for a good 10 year period?
  bevans Site Admin

Location: Melbourne, Australia
EDIT, unless privatisation is the ultimate objective.
They looked at privatisation and didnt do it - how do you do that when the Inland project kills the financial cashflows for a good 10 year period?
james.au

I have no problem with this.  Investment in the rail network is needed and more of it.

Did the industry have fair input into the inland project?
  james.au Minister for Railways

Location: Sydney, NSW
James the entire setup a a scam just like ASIC.  ASIC makes it's money by selling access to documents.  (These documents in the UK are free) and ASIC then sends the money back to the FEDS as a dividend.

The entire rail sector has been the victim of a shocking campaign of relentless nobbling by liberal governments.
bevans

Im all for cost recovery, and im also in favour of having a process to get that data so that it is a managed process but a $6 charge for a shareholder list is a little petty....

Again it comes back to the LNP balanced budget fetish.  The budget shouldn't be allowed to get out of hand (ie in a normal year spending should be properly managed) but their drive for 'balance' has put these perverse things into the administrative system.
  justapassenger Minister for Railways

EDIT, unless privatisation is the ultimate objective.
They looked at privatisation and didnt do it - how do you do that when the Inland project kills the financial cashflows for a good 10 year period?
james.au
It would be privatised on an outsourcing model (contracting out operations while government retains ownership of the assets) rather than selling the assets.

If the operator's profit is less than the inefficiency of having it run by the public service, then it's a financially viable move and you're onto the subjective question of whether it is “better” or not.

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