The rate of change in the trucking industry looks to be increasing, and trucking operators need to be prepared for the brave new world of trucking we are likely to be living in, it needs to be future proofing trucking. Brendan Richards outlined his view of the future at the Trucking Australia conference in Darwin.
“Change is the new constant is the message,” said Ben Maguire, Australian Trucking Association (ATA) CEO, speaking at the opening of the annual Trucking Australia conference in Darwin, recently. “For generations, in the industry we have managed and embraced change, but what is catching us all by surprise is the pace increasing in that change. “These challenges also represent opportunities – not only do the new technologies offer us a chance to change our businesses, but also the impact on how the regulators will apply those pressures on the industry and how the technology will influence that. With this progress comes increased expectations from customers.” One of the speakers at the event, Brendan Richards – a partner at Ferrier Hodgson and Azurium – is no stranger to change, or the management of change. He has worked in the corporate world as an adviser for over twenty years, counselling organisations facing financial challenges. He is a ‘corporate restructuring and business performance improvement specialist’. He is also a regular commentator on industry issues in Diesel’s sister title, Prime Mover. He addressed the conference, attempting to paint a picture of the years ahead for the industry and address some of the topics likely to come to the fore as we move through 2020 towards 2050. “There’s a word going around, we are now living in a ‘VUCA’ world,” said Brendan. “It’s an acronym and it’s a very apt one. VUCA stands for volatile, uncertain, complex and ambiguous. If you can’t relate to that you might be a bit behind the game, because that’s the world we are living in. There’s no doubt we have come to some sort of inflexion point, with the rate of change. “I have been looking at what 2050 might look like. Thirty-three years away sounds like a long time and with the way things are changing, how can anyone predict what life might be like in trucking in 2050? If you were to count the time backwards that takes us to 1985. To me, 1985 feels like yesterday. It’s gone unbelievably fast and the next 33 years will go by even quicker. “By 2050, transport will be a quite different industry to what it is today. This issue is not whether the changes I will indicate will actually occur, but it’s more about whether they happen by 2030.” Looking at transport today, there are 42,000 players in the industry. This figure has been relatively static for decades. There has been some consolidation, with firms like Toll undertaking 100 acquisitions over 25 years, for example. Of these operators, 41,000 have fewer than five trucks; many of them are owner-drivers. The top four players make up 15 per cent of the total market. There is a reason for trucking being so fragmented; the barriers to entry are low. The industry has been built on ferocious competition, often seeing operators leading the race to the bottom, in terms of rates.
“There are trends emerging, which we are seeing more of across the whole global economy, not just in trucking,” said Brendan. “There’s a range of global megatrends. Globalisation is a significant one, so is digitisation, urbanisation, as is resource scarcity. All of these things are changing the mix of how the world operates. “All of these things are happening in a world where there is increasing pressure and an increasing acknowledgement of the need to up the ante around safety and environmental protection. There’s a huge range of influences setting a new backdrop, which we all have to work in, as we push on to 2050.
In Diesel News this week, read about the NHVR Accreditation Review, EWDs, OBM and Wage Levels.
The National Heavy Vehicle Regulator (NHVR) has commissioned an independent review into heavy-vehicle accreditation schemes to support improved road safety.
“Heavy-vehicle accreditation schemes have proven benefits for road safety across a number of heavy-vehicle sectors, including trucks, cranes and buses,” said Sal Petroccitto, NHVR CEO. “The national roadworthiness survey released earlier this year showed major non-conformities for vehicles in accreditation schemes dropped from 13 per cent to nine per cent. Read more
The Australian Trucking Association (ATA) has announced the three finalists for the 2017 Craig Roseneder Award, which recognises technical and maintenance excellence in the trucking industry’s workshops.
The judging panel selected Dale Hedley (Vellex, New South Wales), Chris Blanchard (Herb Blanchard Haulage, New South Wales) and Mark Collins (Frasers Livestock Transport, Queensland)for their technical skill, aptitude and dedication to the industry. Read more
There have been announcements about a Grain Scheme, Master Code and Autonomous Rules this week, read about them on Diesel News.
The Victorian Transport Association has welcomed the establishment of the state’s first Grain Harvest Management Scheme, which will provide a productivity and safety boon for farmers and grain transport workers.
The scheme will allow heavy vehicles to increase their load by five per cent during the grain harvest season from October 1 to April 30 2018, when delivering grain to receivers who are also participating in the scheme.Read more
DPWA Fremantle Surcharge, Customer Service, Freight Upgrade, Harvest Productivity and Tramanco on Display, in this week’s Diesel News.
DPWA to Introduce Infrastructure Surcharge at Fremantle Terminal
Logistics service provider, DP World Australia (DPWA), has announced that it will introduce an infrastructure surcharge at its Fremantle Terminal as part of the basis for which access to the terminal is granted, for both road and rail operators, from 30 October 2017.
“Property costs at Fremantle Terminal have risen considerably in the last five years,” according to DPWA General Manager Operations – Fremantle, Luke Westlake.
“DPWA has incurred material increases in the costs of occupancy of more than 25 per cent, covering cost of council rates, land tax and rent,” he said.
“Additionally, terminal infrastructure maintenance continues to add a high cost to the business. DPWA avoided passing these costs onto the supply chain over this period, attempting to offset them through efficiency improvements. Despite DPWA’s continued efforts, these material step changes in costs cannot be offset.
“The surcharge will be $8.22 (excluding GST) per container and will apply to all full containers received or delivered to/from landside operators at Fremantle Terminal.”
ATA Calls for Govt to Improve Road Customer Focus
Improving the customer service experience for road users’ needs to be a central focus for governments’ management of the road network, according to the Chair of the Australian Trucking Association (ATA), Geoff Crouch.
Crouch spoke following the release of a research report on measuring infrastructure asset performance and customer satisfaction from the Bureau of Infrastructure, Transport and Regional Economics (BITRE). “This timely report on developing an infrastructure and customer satisfaction framework identifies service quality attributes that should be measured to improve the customer service of infrastructure,” Crouch said. “Additional economic gains from infrastructure relies on its efficient management, operation and use. “The report identifies the importance of cost, access, safety, reliability, timeliness, user amenity and information for how customers interact with infrastructure, including roads.” He added that performance monitoring of roads should also be extended to privately run toll roads. “Australia is experiencing ever-increasing, unsustainable, and unfair toll increases on heavy vehicles but without any measurement of this funding better services to the users paying these costs,” he said. “We need to set service standards for roads which establish the service that users can rely on, including standards on safety, access for heavy vehicles, mobile data access, and the provision of rest areas. “There also needs to be fair and competitive supply chain costs, with independent regulation of heavy vehicle charges, toll road charges and landside port charges. “Governments should establish independent management and funding of our roads that are focused on improving customer service for road users through better safety, access, reliability and cost.”
$65m Upgrade to Queensland Freight Connections
The Queensland government will spend $65 million to transform the Sumners Road Interchange on the Centenary Highway to improve freight connections.
Premier Annastacia Palaszczuk has said the upgrade would improve safety and cut travel times for drivers in Ipswich, Springfield and the surrounding Centenary suburbs.
“This upgrade, which will also create 50 jobs, will reduce congestion on the daily commute, and cut travel times for 5,500 heavy trucks that use this interchange daily, improving freight connections and supporting local businesses,” said Palaszczuk.
According to the Queensland government, works for the project are expected to commence within 12 months, following the completion of design and tenders for construction – construction of the upgraded interchange is then expected to take two years to complete, weather permitting.
New Scheme to Boost Freight Performance during Harvest Season
The Victorian government recently announced a new scheme that will allow heavy vehicles to transport five per cent more grain.
The Grain Harvest Management Scheme will allow heavy vehicles, except for road trains, to increase their load when delivering grain to receivers who are also participating in the scheme, according to Minister for Roads and Road Safety, Luke Donnellan.
The change will reportedly boost safety and productivity by reducing the number of trips between farms and grain receivers during the harvest season from 1 October 2017 to 30 April 2018.
“We know this is the busiest time of year for grain farmers, that’s why we’ve introduced this scheme to give the industry a helping hand,” said Donnellan.
“This will not only boost safety by giving farmers and drivers more time to move more grain, but boost productivity for an important part of our economy,” he said.
The Victorian government has said this scheme will grant farmers some leeway when loading trucks with grain at their busiest time of year, allowing heavy vehicle operators and other drivers to drive safer and move more of their product on time.
While a five per cent loading concession will be allowed, vehicles must not exceed manufacturer ratings.
Vehicles must also comply with the uniform national standards for vehicles built after 1 January 2002, which should encourage the use of newer, safer vehicles.
Heavy vehicle operators will need to apply to VicRoads for a label, which will be displayed on their windscreen and will need to carry documentation that shows the vehicle’s year of manufacture.
The Grain Harvest Management Scheme will be evaluated by VicRoads after the first year.
Tramanco Joins MEGATRANS2018 Lineup
Transport solutions firm, Tramanco, has joined the inaugural MEGATRANS2018 trade show to showcase its unique range of weighing systems for heavy vehicles.
The family-owned Australian company joins a growing list of diverse exhibitors at the multi-modal supply chain event set to take over the Melbourne Convention and Exhibition Centre 10-12 May 2018.
Tramanco Managing Director, Roger Sack, said the company began in 1975 by supplying and installing on-board weighing systems for heavy vehicles.
The company has since moved into electronic weight monitoring and data logging systems that have expanded its market even more, especially with the introduction of its modular CHEK-WAY system.
“We’re unique in that we design and we also develop all of our own software, so we can provide total solutions for all the people set to attend MEGATRANS2018,” he said. “And because our products are Australian made, they’re built for Australian conditions.”
Sack said a major benefit of the show covering all aspects of the supply chain is that it will highlight the interconnectivity between different facets of the supply chain.
“It’s quite unique and a great idea. I’ve been to hundreds of shows over the years and I’ve never seen or heard of one like this before,” added Sack.
“The show just makes it all click together,” he noted, adding that as the company deals with myriad heavy vehicles, the event covers everything the company has to do with the movement of goods from port to destination.
Sack said attending just one trade show, rather than many, to engage with a wide range of clients is another bonus in exhibiting at MEGATRANS2018.
“Being centred in a city like Melbourne, makes it more accessible for people from New South Wales, Tasmania and even New Zealand – they’re all within a couple of hours of it,” he said.
“It’s an opportunity for us to present our solutions at an event where we can expect everyone from the whole logistics and supply chain industry to be.”
Nominations are now open for the 2017 Craig Roseneder Award, which recognises technical and maintenance excellence in the trucking industry, according to the Australian Trucking Association (ATA).
The 2017 Craig Roseneder Award is reportedly open to individuals with a minimum of five years’ experience working full time in the Australian trucking industry for a trucking company, supplier or commercial workshop as a workshop manager, mechanic or support person within the maintenance field for heavy vehicles.
According to the Australian Trucking Association, organiser of the Award and the Technical and Maintenance Conference (TMC) held in Victoria, this year’s Award recipient will receive a fully paid trip to Atlanta, Georgia, to attend the US Technology and Maintenance Council’s 2018 Annual Meeting and Transportation Technology Exhibition, including return airfares to the USA, full conference registration, five nights’ premium conference accommodation, partners’ programme registration (if applicable) and $1,500 spending money.
The recipient will also reportedly receive complimentary registration to the 2018 ATA-ARTSA Technical and Maintenance Conference.
“I was extremely honoured to be selected for the award,” said 2016 Award winner, Cade Robinson. “Attending the TMC conference in the US was an educational, memorable and humbling experience, and it inspired me to expand my knowledge and explore even more opportunities within this industry.”
Nominations must be received by Friday 22 September. Self-nominations will not be accepted.
The award will be presented at the 2017 Technical and Maintenance Conference.
For more information on the Craig Roseneder Award, visit the ATA website.
Among the topics in the news this week from Diesel News are ESC, PBS, Linfox, Truck Classes and Roller Brake Testing.
The Australian Government should require new trucks and trailers to be fitted with stability control technology and should do it fast, according to the Australian Trucking Association (ATA) and the Australian Livestock and Rural Transporters Association (ALRTA).
Geoff Crouch, ATA Chair, said electronic stability control is a vehicle safety system that monitors the stability and sideways acceleration of a heavy vehicle, and kicks in to brake the vehicle if it detects a rollover starting. Read more