Freight and logistics – the key to productivity
In 1859, a grain farmer from Melton in Victoria said that it cost more for him to transport his grain 25 miles to Melbourne than it would to send it by ship from Liverpool. Fast forward to 2011, Phil Butler, CEO of Melbourne manufacturing company, Textor Technologies, also expressed similar challenges, stating that it costs more for him to transport his products toSydney, than toAsia.
Freight and logistics is a common challenge for many businesses, and judging by these two experiences from different eras,Australiais still plagued by the “tyranny of distance”. With our natural geographic disadvantages our freight and logistics network is on the back foot.
However, with increased competition from neighbouring countries,Australiais already feeling the pressure of this natural disadvantage. Congestion, emissions and oil vulnerability, are just some of the many pressures that make it hard forAustraliato make locally developed products – which in turn affects our global competitiveness.
Reliance on roads
Since the early 1900’sAustralia’s rail development has been comparatively slow despite an even greater need to transport goods to market with increasing pressure from a population of nearly 20 million more people.
Australia’s reliance on roads has a knock-on effect to our entire freight and logistics network. Without efficient rail systems in place, the Siemens Picture the Future – Mobility research has found that many unnecessary freight trips are conducted by road via B-doubles and triple-trailer road trains. In fact, between Melbourne and Sydney, more than 90 percent of freight is carried by roads.
Congestion, road damage and emissions are major by-products of this inefficient freight system and the Siemens research has also found that an average of 25 lives could be saved each year if the transition from road to rail could be made for such trips.
The future of consolidation hubs
The ideal solution would be to implement a rail network across the eastern states ofAustraliawhich is frequented by long distance freight trucks. Rather, long distance freight should be moved by rail, leaving short distances to trucks – that are either hybrid vehicles or electrified. Coordinating all of this movement should be the establishment of consolidation centres, located outside of major city regions that bring together goods from different modes onto trucks for the final leg.
Such a system would helpAustraliaovercome the natural disadvantages plaguing the freight and logistics network, and alleviate some of the pressures experienced by local industries. With productivity on a 1 percent decline since 2003/04,Australia’s freight and logistics system could hold the key to long term economic prosperity. For this to happen, Government, public transport authorities and industry need to collaborate and start developing an efficient freight and logistics network to support our future growth.
High speed rail – the key to our productivity gains and economic success
The Federal Government report into Australia’s eastern high speed rail network between Brisbane and Melbourne, via Sydney and Canberra has been estimated to cost almost $100 billion. While this may sound like a colossal amount, other studies have shown an even greater cost associated with impact our existing transport system has on our nation.
If we were to take a national approach to tackle this problem we could potentially save this $100 billion by developing a transport system that is interconnected ensuring all modes work together to serve through a personalised approach both for passengers and our freight transport systems. This is made up of around:
- $11 billion annually in congestion costs including many avoidable factors like time wasted in traffic, maintenance, fuel and emissions, a figure that is expected to increase to $20 billion by 2020
- $27 billion spent towards road trauma every year
- $62 billion in healthcare related costs including obesity, chronic diseases and respiratory conditions, all of which results from sedentary transport (eg. cars) and pollution
The Picture the Future – Mobility research that will be released at AusRAIL in Brisbane on Wednesday 23 November, suggests that Australia’s transport system requires major investment to deal with the increasing pressure of population growth and as a trigger to reverse Australia’s declining productivity. With over 80 percent of the population already crammed in cities, the cost of inaction for Australia could be crippling for our economy and our productivity.
These figures do not even take into account the incredible opportunities that exist in stimulating regional growth and pushing down the price of the freight and logistics network. With a transport revolution predicted by the research on the horizon, Australia now needs to engage in strong infrastructure development now to gather this momentum. Australia now needs to take our transport infrastructure into the next phase of development – that is, to seamlessly integrate every aspect of the network. Without this, Australia could be left behind on the world stage at a crucial time where global competitiveness is king.
So when we consider the costs of not dealing with our transport issues today, it makes perfect sense to start investing in nation building projects such as the eastern high speed rail network and opening up new employment, tourism and regional development opportunities for the future of our nations growth.
Australia’s economy needs a seamless and integrated transport system
Australiais now at the brink of a major revolution in transport and the next 20 years will bring exciting changes for our nation.
In the future our transport will shift from an operations-based system, to one that is truly user-focused. But this all depends on how well we can collaborate to overcome the essential disadvantages of our current transport system – disadvantages such as our vast distances between capital cities, 1300 regulatory bodies in our political structure, and, a transport model based on the motor vehicle. All of these challenges now act to inhibit our growth and global competitiveness.
The Victorian Government has announced new ambitious plans to undertake new transport projects acrossMelbourneand preparing us for a growing population.Australiahas the most urbanised population of any developed country in the world with 85 percent of people living in cities. The transport investment is all part of a plan that needs to address the growing frustration Australians have with the current transport network in major cities acrossAustralia.
The shift to personalised mobility
In a globalised world, where news, business, products – even people – are constantly moving, mobility is essential to the way we live. In Australia, where we live in a vast yet highly urbanised environment, mobility is even more important in getting us from A to B.
However, at the moment, mobility in Australia is just that – a way to get from A to B. In other words, the way we move is seen as a series of separate journeys, rather than a seamless, continuous mobility process.
Picture a future where a system – say an App on your iPhone – intelligently learns your daily travel habits to suggest smarter and faster forms for transport. For instance, on your way to the airport, the system could help you find the fastest route, navigating any travel hazards at any time of day. Once you arrive to the airport, the system could tell you where to park, the most convenient store to visit to buy your morning coffee and paper and let you know when the bus shuttle arrives at the carpark. When you touch down at your destination and head to the baggage carousel, the system could even be able to tell you where your bag is and what time it would be expected to appear on the baggage carousel.
Personalised or intelligent mobility will be vital for our future, not only making our daily commuting easy and convenient, but also facilitating our economic growth and prosperity. Siemens is working on this technology and is looking to start commercialising this clever technology in the next decade.
Can Australia become the most admired nation?
Today Australia is seen as a ‘lucky country’ by many, but what I would like to see is that we are seen as the most admired country. What does it mean to be admired? Admiration is about taking the lead, developing new strengths, making the most of our competitive advantages and protecting our greatest assets – our people.
Safety for many companies is seen as a cost – but it is actually the opposite. Companies who have developed a safety culture actually save money. Currently, workplace fatalities and injuries cost Australians $57 billion and 280 lives a year. On the roads, 1400 lives are lost every year at a cost of $27 billion. ButAustraliacould save these costs and valuable lives if we were to invest in safety.
Today, we release our new research, Picture the Future – Safety. This research has identified the most pressing issues that Australia faces in safety. The impact of casualisation on workplace safety, increasing driver distraction on the roads and the safety of public infrastructure in urbanised environments are just some of the issues that we explore. The Picture the Future – Safety research, provides us with a 2030 technology blueprint outlining how we, as a nation, can achieve this together.
Let’s aspire to become an admired nation based on our own achievements. Let’s work focus on our people to become the safest nation and lead the world in safe practices.
- Albert Goller, CEO Siemens
Tell us what you think of our Picture the Future Safety research www.siemens.com.au/picturethefuture
Can Australia become the most admired nation?
Today Australia is seen as a ‘lucky country’ by many but I question whether this is for the right reasons. What does it mean to be admired? Admiration is about taking the lead, making the most of our competitive advantages and protecting our greatest assets – our people.
Safety for many organisations is seen as a cost – but it is actually the opposite. Companies who have developed a safety culture actually save money. Currently, workplace fatalities and injuries cost Australians $57 billion and 280 lives a year. On the roads, 1400 lives are lost every year at a cost of $27 billion. But Australia could save these costs and valuable lives if we were to invest in safety.
Today, we release our new research, Picture the Future – Safety. This research has identified the most pressing issues that Australia faces in safety. The impact of casualisation on workplace safety, increasing driver distraction on the roads and the safety of public infrastructure in urbanised environments are just some of the issues that we explore. The Picture the Future – Safety research, provides us with a 2030 technology blueprint outlining how we, as a nation, can achieve this together.
Let’s aspire to become an admired nation based on our own achievements. Let’s work focus on our people to become the safest nation and lead the world in safe practices.
- Albert Goller, CEO Siemens
Tell us what you think about Picture the Future Safety: www.siemens.com.au/picturethefuture
Workforce casualisation – impacts on safety
Over 25 percent ofAustralia’s workforce is currently made up of part-time or casual employees, contractors and seasonal workers. The flexibility of a casualised workforce is attractive to some, but it also presents unique safety challenge for industries into the future.
How safe are Australian workplaces?
Currently,Australiaspends around $57 billion every year in medical expenses, lost hours and compensation due to workplace fatalities and injuries. Each year, around 280 people do not make it home from work. And, if you work in agriculture, construction, transport and logistics as well as manufacturing, you are among the highest risk for workplace incidents.
These statistics rankAustraliaseventh in the OECD for workplace safety. According to the Picture the Future – Safety research,Australia’s casualised workforce has been the ‘sleeping giant’ of workplace incidents. The lack of safety education among a transient workforce is the key reason.
The impact of workforce casualisation
Flexibility, lifestyle and availability are some of the reasons why 25 percent of Australians prefer to work casually. Their employers also benefit from reduced personnel costs, lower head count and flexible business practices. On the other hand, there are many disadvantages as well, including the lack of job security, career opportunities and earning potential, but none greater than safety.
A casualised workforce is more prone incidents simply because workers are not exposed to the greater workplace environment as much as full-time employees. Therefore, the transient nature of these workers could lead to communication issues or safety culture differences which impact on the number of incidents in the workplace.
Overcoming the safety challenges of workforce casualisation
The Picture the Future – Safety research calls for a marked increase in safety education, especially on-the-spot training where workers are provided with safety instructions as and when they approach potentially hazardous tasks. Enabling this is the introduction of sensors embedded into clothing or goggles which communicate directly to machinery or vehicles and display clear safety information to workers as they approach each task.
This sensor revolution also extends to machines that automatically shut down if it detects the person operating the machine is not qualified to do so. Whether in clothing, machines or buildings, sensors will be the next revolution in workplace safety. They will helpAustraliato build safe workplaces beyond barriers or yellow lines.
