National policy to solve transport woes

							                                          Australian Financial Review                                  Brief: NTC
                                          Friday 15/2/2008                                             Page 1 of 2
                                          Page: 3
                                          Section: General News
                                          Region: National Circulation: 88,264
                                          Type: National
                                          Size: 468.82 sq.cms.
                                          Published: MTWTFS




National policy to solve transport woes
Annabel Hepwotth

A high-level adviser to the federal ductivity of supply chain oper-              trial a model known as "incremental
and state governments is developing ations in key sectors such as                pricing", in which trucks can pay an
a national transport plan that could mining, grain and livestock, as well        extra charge to carry a heavier load
include a radical user-pays system as better links to the ports and              above the normal regulated truck
of road charges and sweeping regu- urban congestion.                             mass limits.
latory reforms to avoid a blow-out     The commission's chief executive,           In the longer term, the NTC plans
in freight costs.                    Nick Dimopoulos, will today argue           to investigate broader reform look-
  The federal Minister for Infra- for a national framework at a ing at pricing tied to mass, distance
structure and Transport, Anthony business lunch in Melbourne.         and possibly location.
Albanese, has asked the National Woolworths chief executive              "There are different models. They
Transport Commission to advise on Michael Luscombe said freight costs all have their pluses and minuses,"
a national policy to aid the Rudd were already rising.                Mr Deegan said.
government's agenda of fixing       "Clearly there are cost pressures    "We're not looking to rush into
bottlenecks    through     advisory being faced by the industry and you this. But industry need to say, `Well,
agency Infrastructure Australia.    can't ignore them, and we've tried to if I can get my trucks in and out or
  The Business Council of Australia absorb them," he said.                my trains in and out with greater
and National Farmers Federation        "The big question is around               payload and more efficiently,           is
have demanded a national policy to infrastructure - port, air freight            there a pricing mechanism that helps
improve the efficiency and capacity depots, rail, and major link roads."         me make that work'?
of the road, rail, air and sea Mr Deegan said a national policy                    "We don't think we should rush
transport network.                  could also target major road pricing         into that. And like the rest of the
   Business has long called for a reform.                                        industry, we want to make sure we
national freight policy to address     "If you can take hours off                get technology right. You don't
bottlenecks such as poor access to someone's delivery times by getting           want to get the wrong gear."
the ports for heavy vehicles, inad- road pricing right ... which is where          Mr Deegan said the NTC was
equate roads and underinvestment industry is very interested in going,           being "deliberately cautious" about
in rail.                            then you are going to arrive on time,        the issue, but said pricing reforms
   Without such a policy, business safe, at a cheaper price," he said.           should make the freight system more
fears the problems will only worsen    The commission has been work-             efficient and productive, in turn
as the volumes of freight are ing on reforms that could ultimately               reducing pressures on business costs.
expected to double by 2020.         lead to truck charges tied to the              Separately, the Australian Logis-
   National Transport Commission weights hauled, and potentially the             tics Council will release a major
chairman Michael Deegan said the distance travelled, as part of a push           report today, obtained by the AFR,
agency also backed a national to move cargo more productively.                   which calls for simpler, nationally-
framework amid concerns that           Versions of this style of road            consistent regulations in road
reforms agreed to by governments in pricing are used in New Zealand,             weight limits, environmental con-
the past had slowed.                Switzerland and Germany.                     ditions and safety.
  "Is ... harmonisation happening         Industry groups have urged an        The report, which the council
quickly enough? Industry's answer       overhaul of the current system of hopes will contribute to the NTC's
would be `no', and I would agree        charges - which comprise the transport plan, also proposes the
with them," he said.                    commonwealth's diesel fuel excise government investigate tax relief or
  "There are lots of opportunities if   and state government registration incentives for investors developing
Australia gets its transport and        charges - to better link it to mass transport infrastructure.
logistics more efficient.               and distance.                                                   with Sue Mitchell
  "We could export more. We The current system averages
could export all sorts of goods access prices paid by trucks across                KEY POINTS
because we could be cleaner, chea-      different vehicle types - meaning
per and faster."                                                                   Anthony Albanese has asked the
                                        that large trucks are cross-subsidised
   Mr Deegan said the plan would                                                   NTC to advise on a national policy.
                                        by smaller trucks.
canvass more efficient pricing sig-       Mr Deegan said the current sys-          This will provide much-needed
nals, nationally-consistent rules,      tem -of charging was "pretty               improvements to transport
planning and investment. It could       clumsy".                                   networks.
look specifically at lifting the pro-     The NTC has been preparing to            Freight could double by 2020.




                                          Copyright Agency Limited (CAL) licensed copy                                   Ref: 33710209
                                            Australian Financial Review                                            Brief: NTC
                                            Friday 15/2/2008                                                       Page 2 of 2
                                            Page: 3
                                            Section: General News
                                            Region: National Circulation: 88,264
                                            Type: National
                                            Size: 468.82 sq.cms.
                                            Published: MTWTFS




There have been many calls for a policy to address inadequate roads and poor access to ports for heavy vehicles.   Photo: ROB HOMER




                                            Copyright Agency Limited (CAL) licensed copy                                              Ref: 33710209