Why the State Government’s Supply Chain Taskforce Report is a Missed Opportunity

The WA Government has missed a golden opportunity to identify and implement localised measures to improve the supply-chain in the short-term, according to a local shipping industry expert.

The long-awaited Shipping and Supply Chain Taskforce Report was handed down in October, making more than a dozen recommendations, including that WA work with the Federal Government to boost the number of Australian-flagged vessels to increase capacity and assist in emergency circumstances, such as when rail and road routes are interrupted.

Managing Director of local freight-forwarding company EES Shipping, Brian Hack, says while the recommendations are welcome, most will take time and Commonwealth cooperation to implement.

He says they’re largely macro-level measures, which will do little to improve local operations in the short-term.

“While the recommendations will be beneficial in years to come, they’re not going to have an impact on the supply-chain issues we’re currently seeing.”

“The problems that triggered the Taskforce in the first place still remain, and when the next disruptive event happens – whether it be weather-related, workforce related or something else – we’ll find ourselves back in the same position as when the Taskforce started more than 18 months ago.”

“We’re just kicking the can down the road.”

Mr Hack says a number of local supply-chain inefficiencies weren’t addressed in the report, including a lack of consistency in local government policies, HPV restrictions and opportunities for efficiencies at Fremantle Port.

“There are a number of things that can be done immediately which will assist in making landside operations far more efficient, cost-effective, and able to react more quickly to disruptions in the supply-chain.”

Mr Hack says some of those things are;

• Consistency Among Local Government: Mr Hack says each local government area has different rules around truck movements such as pick up and drop off times, making it difficult to develop time-efficient routes. Even issues such as on-street parking in certain areas can cause problems, making it difficult for trucks to efficiently get in and out of areas, costing valuable time and money – which is ultimately passed on to consumers.

• HPV Restrictions: High Performance Vehicles (HPV) are restricted in the number of containers that can be carried at any one time, which results in a higher number of truck movements and inefficient routes being used, particularly in areas that aren’t adequately serviced by rail-freight.

• Port Efficiencies: Different terminals often work in slightly differently ways, which can make overall operations clunky and not as efficient as they can be. “It’s no one’s fault, it’s just how things have always been done. But if we can create some consistency, smooth out wait times and avoid double-handling, the overall benefit is potentially significant.”

Mr Hack says the Taskforce report appeared to lack the depth and urgency required, particularly on the back of the pandemic, and subsequent flooding events that cut off both road and rail in the north and east of the state.

“Those events resulted in empty shelves for lengthy periods of time, which is highly visible and allows the general public to see with their own eyes what happens when the supply-chain is disrupted.”

“Because the shelves are currently stocked, the public pressure has been removed and there doesn’t seem to be the same urgency to fix the issues as there has been in the past.”

“But when the next disruptive event happens – and it’s a when, not an if – we will see the exact same results, because nothing has changed or been put in place to resolve the issues.”

Western Roads Federation CEO Cam Dumesny agrees and says while he supports the report’s recommendations more broadly, there is a need for reform at a micro-economic level.

“Simple changes, such as allowing trucks to take four containers out of the Port instead of three would have a significant impact on truck movements and freight costs, which flows through to the consumer and broader economy.”

“Road, rail, sea, and air freight aren’t competing with one another, they need to operate as a symphony, not a cacophony. We need a whole of system approach to act as a conductor, to allow all elements of the supply-chain to work in harmony together.”

“There are steps that can be taken, and now, without waiting for further reports or policies to be developed.”

ENDS

About Brian Hack

 

EES Shipping is one of Australia’s major international freight forwarders and plays an extensive role in the promotion and development of overseas markets for Australian manufacturers and suppliers. Managing Director Brian Hack is one of three brothers with decades of experience at the helm of EES Shipping, based in Western Australia. He is also the WA freight forwarding representative on the WA Port Operations Task Force. EES Shipping was named Champion Transport and Logistics at the 2022 Australian Small Business Champion Awards and DCN Freight Forwarder of the Year 2022.