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Freight and Logistics Council of Western Australia

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					Freight and Logistics Council of Western Australia
Meeting 25 August 2011
Fremantle


EXECUTIVE SUMMARY


Matters discussed at the meeting included:


   o early outcomes from the Regional Freight Strategy;

   o priority grain freight routes for road transport;

   o changing supply lines for imports of consumer goods;

   o High Performance Vehicles serving Fremantle Port;

   o partial closure of Leach Highway;

   o protection of freight corridors and industrial land through the planning system;

   o progressing the findings of the East Kimberley Freight and Logistics study;
     and

   o Police escorts for out-of-gauge project cargo.
Freight and Logistics Council of Western Australia
Meeting 25 August 2011
Fremantle


ACTION SHEET


   o Arrange an event for industry and Government to hear the findings of the
     Regional Freight Strategy and discuss its policy implications.

   o Advise Minister of Council’s position on WALGA’s priority grain freight
     routes.

   o Access relevant trade data to confirm apparent development of north-south
     supply lines for WA consumer goods market.

   o Ongoing updates on the issue of High Performance Vehicles into Fremantle
     Port.

   o Quantify inefficiencies arising from the partial closure of Leach Highway to
     large trucks and advise Minister accordingly.

   o Develop brief for examination of processes to protect freight corridors and
     industrial land.

   o Raise progress report on Local Government study at next meeting.

   o Report back on forthcoming meeting with Infrastructure Australia on the
     National Freight Strategy.

   o Lack of Police resources for escort duties associated with heavy road transport
     to be raised at the forthcoming Out-of-Gauge Cargo Meeting.

   o Hold workshop in Kununurra to progress recommendations of the East
     Kimberley Freight and Logistics Study.




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Freight and Logistics Council of Western Australia
Meeting 25 August 2011
Fremantle


NOTES OF MEETING

Those present at the meeting included:

   o   Fred Affleck, Chair;
   o   Alan Bassham, Tronox;
   o   Ian King, Western Australian Road Transport Association;
   o   John Oliver, Chamber of Minerals and Energy;
   o   Bob Pearce, Forest Industries Federation;
   o   Graeme Sinden, Motor Trades Association;
   o   Graeme Wilson, Shipping Australia;
   o   Matthew Payne, Chamber of Commerce and Industry;
   o   Owen Davies, CBH Group;
   o   Murray Cook, Brookfield Rail;
   o   Peter West, Ports WA;
   o   Chris Leatt-Hayter, Fremantle Ports;
   o   Steve Martin, WA Local Government Association;
   o   Ian Duncan, WA Local Government Association;
   o   Reece Waldock, Director General of Transport;
   o   Doug Morgan, Main Roads WA;
   o   Cane Spaseski, Department of Planning;
   o   Mark Brownell, Freight and Logistics Council; and
   o   Glenda Galipo, Freight and Logistics Council.

Guests included:

   o Neil Matthews, Hyder Consulting;
   o Steve Beyer, Department of Transport; and
   o Cecylia Sylwestrzak, Department of Transport.

Agenda Item One: Opening Comments

Fred Affleck welcomed members, deputies and guests to the meeting. Apologies were
noted from Rob Voysey, Menno Henneveld, Jodie Ransom, Paul Larsen, Ken Potts,
Simon Johnson, Martin Mileham, Greg Martin and Tim Fraser, a number of whom
were represented. The notes of the previous meeting were accepted and it was
confirmed that associated actions were in hand.

Agenda Item Two: Presentations

Regional Freight Strategy

Steve Beyer gave a general overview of this work including the background, the
process, related consultation, timetable and progress. He then introduced the key
consultant on the project, Neil Matthews from Hyder Consultants. Neil said that the


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final work will involve four separate but related case studies covering the Pilbara, the
South West, the Yilgarn and a miscellaneous category based on various key
commodities. Neil described the content of the first two of these case studies which
involved aligning freight forecasts from a variety of sources and discussing the policy
implications of each.

In related discussion, it was agreed that the Council had an important role in
promoting the size of the identified freight task at a high levels in industry and
Government. For example, it was pointed out that the future value of the oil and gas
sector was the equivalent of 0.5 billion tonnes of iron ore. Similarly, it was noted that
unless some of the Bunbury Port access issues were addressed, in the future it would
experience the same problems currently associated with Newcastle Port in NSW.

Fred Affleck suggested that the Council host an event at the conclusion of the current
study that would share with industry and Government the results of the work and
discuss policy implications from it. This suggestion was accepted.

Priority Grain Freight Routes

Steve Martin opened the presentation by noting that his organisation and Main Roads
WA had agreed that a more strategic approach to grain roads was needed in this State.
The average road being used for grain haulage was not designed for the task and the
cost of pavement damage was increasingly difficult to meet. Steve confirmed that
WALGA’s preferred position was for grain to travel by rail, but that this was clearly
not possible in all cases and a more appropriate road network needed to be defined.
This was the background to the study.

Some 1,300 kilometres of strategic roads had been identified for grain haulage
including bin to bin and bin to port routes, but not farm-gate to bin. Upgrading costs
of $126 million and annual costs of $8.5 million would be involved. The matter had
been discussed with the Minister and he was receptive to the more strategic approach
to grain roads. (A copy of Steve’s presentation is attached to these notes and the full
report is available on the WALGA web-site.)

In related discussion, Owen Davies confirmed that CBH was supportive of the
approach and would use its influence to ensure that the identified network was used.
However, he did point out that the network was based on trucks of smaller capacity
than many in the industry. Steve Martin acknowledged this, but said that it was
important to commence the process. Doug Morgan added that the better the quality of
roads, the greater the potential leakage from rail. This was an important policy issue
for the Government. Fred Affleck suggested that the Minister be advised of the
Council’s view. This was accepted.

Agenda Item Three: For Decision

Changing Supply Lines

Mark Brownell commented on anecdotal evidence from industry that a change in
distribution patterns for consumer goods was increasingly seeing imports brought
directly into WA rather than via a national warehouse on the east coast as was the


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traditional method. At the same time, there were indications that a range of
manufactured goods previously supplied to WA from the eastern states were now
coming in direct from overseas. Each of these developments related to the growing
size of the WA market and emerging distribution technology.

The result of these changes appeared to be a new emphasis on north-south supply
lines at the expense of east-west ones. If this trend was proven, it had implications for
Fremantle Port and for traditional east-west supply lines. Mark suggested that relevant
data be analysed to confirm the trend. After due discussion, this was agreed to.

Road Access Fremantle Port

Ian King noted that discussions with Main Roads WA on the issue of High
Performance Vehicles into Fremantle Port were progressing. Three major
intersections had been identified as of concern. Doug Morgan commented that these
were million dollar issues and should be viewed more broadly in the context of the
forthcoming Metropolitan Freight Strategy. This point was noted, but there was an
interest in ongoing updates in the interim.

Ian King also raised the issue of the partial closure of Leach Highway to large trucks,
a decision of the previous State Government. He suggested that it may be timely to
revisit the issue because of its negative impact on road transport services. Doug
Morgan commented that the issue may still be important at a political level. John
Oliver said that this should not stop the Council putting a viewpoint if inefficiencies
had been caused. It was decided that Ian King would quantify the impact of the partial
closure and that Council advice can go forward on that basis.

Agenda Item Four: For Information

Freight Corridor Protection

Fred Affleck commented that this issue had been discussed by a Council working
group and it had been acknowledged that there is no broad understanding of the
statutory processes to adequately protect freight corridors and industrial land. He said
that in the absence of this understanding, it was difficult to intelligently promote the
issue. A brief was presently being developed for a consultant to develop the
understanding of related processes. Reece Waldock noted his support for the work
and said that Departments of Transport and Planning should each be involved.

Local Government Study

An update on progress with this study was held over until the next meeting.

Meeting Infrastructure Australia

Fred Affleck reported that State-based freight councils had been invited to meet with
Infrastructure Australia with a view to seeking industry support for the
implementation of the National Freight Strategy. This meeting was to occur shortly
and he would report back to the Council as to its outcome.



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Ports Review

Reece Waldock said that there was little he could say about progress of this review as
the matter was before Cabinet. He was hopeful of an outcome shortly.

East Kimberley Freight and Logistics System

Fred Affleck reported that despite the Council having investigated this issue and made
some firm recommendations, there had been little take-up by relevant Government
agencies. He felt that it was important to raise the profile of the matter to achieve
some progress and suggested a related workshop in the region to take the matter to a
wider audience. This was agreed.

Out-of-Gauge Project Cargo

Ian King reported that no Police resources were available for escort duties until the
New Year due to commitments associated with CHOGM. This posed major problems
for industry, particularly in the resources sector. Reece Waldock noted a meeting on
the general issue of out-of-gauge cargo to be held on 7 September and suggested the
matter of Police resources be raised then. This was agreed.

Agenda Item Six: Closing Comments

Fred Affleck thanked members, deputies and guests for their time and input. He noted
that the next meeting was to be held on 29 September and closed proceedings at that
point.




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