Road freight industry blasts plan to scrap fuel tax credits

Trucking bosses have been quick to slam the proposed abolishment of the Fuel Tax Credit (FTC) for heavy vehicle operators by the Productivity Commission (PC).

The PC argues that by lowering the cost of diesel for trucking operators the credits make it cheaper to burn fossil fuels, therefore reducing the incentives to switch to alternative, cleaner fuels.

South Australian Road Transport Association Executive Officer Steve Shearer has labelled that argument as “absurd”.

“The vast bulk of heavy vehicle freight movement is linehaul on intercity, rural and often remote routes,” Shearer said.

“Alternative fuel options for that linehaul freight task are simply not available and will not be available as sustainable and affordable options for many decades yet, if at all.

“Some 85 per cent of the road freight task is simply not contestable by rail as its logistically and economically impractical.”

Shearer said the commission’s proposal to abolish the FTC would instead increase the cost of road freight for every product, from food to clothing, bedding and house building materials.

“Resulting in unnecessary and unacceptable increases in the daily cost of living without any gain in environmental outcomes.

“It is time the Productivity Commission performed its research and work in the real world, based on well-researched and proven facts to produce realistic, achievable and appropriate outcomes.”

The Australian Trucking Association (ATA) Chair Mark Parry said the tax on truck fuel would more than double under the PC’s plan to hike truck taxes and phase out FTCs.

Under the FTC system, trucking operators pay an effective fuel tax rate of 32.4 cents per litre rather than the full rate, which jumped to 52.6 cents per litre from February 2.

The commission’s own figures show its plan would more than double the effective fuel tax paid by trucking operators to 66.1 cents per litre by 2035.

Speaking in support of the ATA’s 2026-27 pre-budget submission, which urges the government to reject the plan, Parry said the FTC system reduced the cost of freight for everyone in Australia, as well as our rural exporters.

“Removing fuel tax credits would increase costs for industry and hard-pressed Australian households, who have already had to face a 21.5 per cent increase in electricity prices and an 11.2 per cent increase in childcare fees in 2025,” Parry said.

“Many trucking businesses would not be able to pay the increased fuel tax, which would go up by about 8 per cent each year.

“Trucking businesses have already had to pay a 19 per cent increase in fuel tax over the last three years, as well as dealing with rising costs, extended payment terms, driver shortages and natural disasters.”

Parry said the PC’s plan would not achieve its goal of encouraging decarbonisation.

“The commission’s report does not analyse the effect of removing fuel credits on emissions, but I can save everyone the time and trouble,” he said.

“Its effect would be zero, because it would not address the real world barriers holding back the industry’s adoption of low emission solutions.

“It would not address the engineering reality that there is no single technology available to replace diesel engines.

Parry said many regional communities rely on trucking operators to move and deliver all their daily necessities.

“This requires diesel engines, so the commission’s approach would just be an unavoidable increase in tax.

“For those businesses that do have an alternative to diesel, the effective tax increase would reduce their financial capacity to invest in new vehicles and equipment.”

Parry said instead of taking up the PC’s advice, the government should implement a voucher scheme to reduce the up-front cost of electrification or alternative fuel
options for operators.

“A low carbon fuel standard to encourage the use of renewable diesel and support high productivity and low emission vehicles,” he said.

NatRoad CEO Warren Clark also called for no change to the FTC scheme until a viable Forward Looking Cost Base is developed with a resultant Road User Charge (RUC) applicable to all road users.

Fuel tax credits are one of the top 20 expenditure items in the budget and are forecast to grow by 20 per cent over the next four years.

The tax break will cost $10.8 billion this financial year and grow to about $13 billion by 2028-29, according to the budget papers, with just under half of that going to resources companies, including more than $1.4 billion going to iron ore miners and about $1.4 billion to coal miners.

The same commission report, however, recommended FTCs be retained for miners captured by the Safeguard Mechanism, Labor’s signature emissions reduction scheme.

That requires facilities producing more than 100,000 tonnes of CO² emissions each year to cut their output by 4.9 per cent annually or buy offsets to make up the difference.

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TRP opens new Victoria site

PACCAR Parts’ TRP brand has opened a new truck and trailer parts store in Leongatha, Victoria.

The new store joins the ever-expanding TRP store network throughout Australia and New Zealand, now standing at 26 stores in the region and 365 outlets world-wide.

An opening ceremony was held on 3 February to commemorate the Gippsland Truck Centre owned and operated facility.

“We are always striving to find more ways to better support all of our customers and TRP Gippsland with its access to all major brands of truck parts will really compliment the South Gippsland region,” said Gippsland Truck Centre General Manager, Joe Harton.

“The support we have had from our customers has been really positive and we are truly grateful for all of there support.

“We look forward to improving our relationships with all of our existing customers and building new relationships in the region as we continue to support the transport industry across Gippsland; ensuring our customers have the best access to quality parts and in turn their trucks have maximum uptime.”

The TRP Gippsland store stocks well-known brand consumables for all major truck brands and TRP branded parts, which come with a minimum 12-month warranty.

In other news, TasPorts’ largest-ever infrastructure project has commenced.

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New TRP store opens in South Gippsland

The town of Leongatha, in Victoria’s South Gippsland region, is now home to a new truck and trailer parts store under the globally successful TRP brand.

The new store had its grand opening on February 3, and is owned and operated by Gippsland Truck Centre.

It joins the ever-expanding TRP store network throughout Australia and New Zealand, now standing at 26 stores in the region, and 365 outlets worldwide.

The TRP brand is positioned as an affordable all makes supplier of high-quality parts for prime movers, rigid trucks, and all types of trailers. The store stocks well-known brand consumables for all major truck brands and all TRP branded parts, which come with a minimum 12-month warranty.

Joe Harton, General Manager, Gippsland Truck Centre, said, “We are always striving to find more ways to better support all of our customers and TRP Gippsland with its access to all major brands of truck parts will really compliment the South Gippsland region.

“The support we have had from our customers has been really positive and we are truly grateful for all of their support.

“We look forward to improving our relationships with all of our existing customers and building new relationships in the region as we continue to support the transport industry across Gippsland; ensuring our customers have the best access to quality parts and in turn their trucks have maximum uptime.”

Inside the new TRP Gippsland store. Image: PACCAR Parts

TRP is Australia’s fastest growing truck and trailer parts business offering an extensive range of proven, affordable and reliable quality parts. TRP parts are manufactured under strict quality control and backed by a minimum 12-month warranty, making sure customers can trust TRP to keep their trucks and trailers on the move.

The TRP Gippsland store is located at 36 Yarragon Rd, Leongatha, Victoria. Opening hours are from Monday to Friday 8:30am to 5pm.

There is also a dedicated call out service available. For more information, please call 03 5643 3008.

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Eurocold helms efficient production in Queensland

The state of Eurocold’s Berrinba, Queensland, production facility makes one thing very clear – Eurocold is a business designed around teamwork. From engineering to assembly and quality control, collaboration is a daily discipline.

Over the past five-and-a-half years, Eurocold has built a production culture shaped by change, where the ability to adapt quickly and build with precision has become central to performance. This focus has been sharpened by a cold chain sector undergoing swift transformation.

“We are in a rapidly changing industry,” says Eurocold COO, Clayton Nel. “Refrigerated transport has seen a strong push towards higher thermal efficiency, smarter materials and improved build quality.

“Telematics and real-time visibility have become standard expectations. At the same time, demand is rising for faster delivery and more flexible last-mile solutions, driven by growth across grocery, meal delivery and pharmaceuticals.

“More freight is being moved within the cold chain, and a change in what consumers want is creating new refrigeration standards.”

Eurocold is supplying this growing customer base with ideal solutions through a great web of collaborative production.

“Eurocold engages business owners to make sure they can enter the industry meaningfully, with the tools and assistance that is right for them,” Clayton says. “We plan for our customers’ initial performance and their long-term growth. That’s what makes us unique.”

Eurocold operates as a completely knocked down (CKD) assembler, sourcing best-in-class components from specialist manufacturers around the world and bringing them together under one roof. Rather than relying on a single supply chain, the company selects premium truck chassis, high-performance refrigeration units, insulated bodies and fit-out accessories independently, allowing each vehicle to be built around the demands of its task.

Clayton describes the CKD model as fundamental to how quality is engineered into every truck. Local assembly provides tighter control over production, consistent build standards and the flexibility to tailor each vehicle to customer requirements.

“This gives Eurocold deep product knowledge, faster parts access and quicker repairs, which are just as important,” he says.

The approach sees chassis sourced from leading global manufacturers, refrigeration systems supplied by specialist providers and insulated bodies delivered from ISOKIT in Italy. Once assembled, completed vehicles are deployed across Eurocold’s depot network in Queensland, Victoria, New South Wales, Western Australia and South Australia.

Headlining Eurocold’s extensive production network is its Berrinba assembly facility in Queensland. The 8,677-square-metre site’s operations are upheld by a team of 33 people and underpinned by distinct business mantras under Clayton’s purview.

“We share our manufacturing facility with our head office,” he explains. “Our team covers all of our key functions such as our supply chain, production, finance, sales and Queensland’s repair division.

“Our setup is already quite collaborative given we share a space, but this is further encouraged through our four values – ‘people are everything’, ‘in it together’, ‘stop waste’ and ‘enjoy the ride’.”

The Berrinba facility acts as Eurocold’s cultural lifeline by championing these values. The operational processes within it specifically promote cooperation and efficiency in two ways. Eurocold’s consolidation of operations, along with its support of employees to apply soft skills to their manufacturing tasks, act as points of difference.

“Eurocold’s teams work as one connected community,” Clayton says. “This creates a tighter feedback loop, faster decision-making and a more personal relationship with operators.

“Additionally, we find that most companies do not prioritise the integration of soft skills like planning, communication, time management and more when it comes to gaining efficiencies. Eurocold employs people with manufacturing and automotive backgrounds to apply these soft skills to its work. It’s critical for our productivity, which is all to benefit our customers.”

This approach is evident in Eurocold’s production scheduling. The company relies on highly skilled coordinators and their problem-solving abilities to keep its supply chain lean. In addition, the implementation of critical data tells Eurocold how much stock should be held to support customer demand.

“We hold 90 days’ worth of stock based on historical company data,” Clayton says. “This ensures we have the right amount of stock to provide to customers in case we experience delays with parts or material imports from Italy.

“We want to be able to provide a solution for customers immediately, and this kind of planning allows us to do just that.”

This initiative has even extended to structuring building processes to support a set of precision workflows and create a lean assembly line. The Berrinba site has full drive-through capabilities with four roller doors on both ends and a floor divided into four lanes – one lane reserved for container unloads and stock control, the middle two to handle production volume and the fourth to be what Clayton refers to as an ‘exotic lane’ which manufactures vehicles that don’t follow the same timeline or processes as Eurocold’s other builds.

“This structure keeps our manufacturing process moving,” he says. “Vehicles progress from one end of the facility to the other with each step of the building procedure.”

These processes are also supported by cross-functional training, another collaborative feature of the company.

“Every one of our team members can complete at least 80 per cent of any given build, regardless of what their primary role is in our team,” Clayton explains. “This is part of our onboarding plan to make everyone into a team player. It creates a culture of reliability, ownership and care among our facility.”

The care in Eurocold’s Berrinba operations is further maintained by the presence of other soft skills utilised such as communication and motivation. Leaders at the site foster high-quality work and efficiency by assisting employees in taking responsibility for their output.

“Eurocold’s integrated structure promotes a work culture where team members at all levels are encouraged to contribute and take ownership of their areas,” Clayton says. “This approach builds pride and accountability, improves communication and accelerates problem-solving. It ultimately ensures customers receive better service because everyone is invested in the outcome.”

The efficiency achieved through this integration of skills to create a lean supply chain majorly contributes to Eurocold’s extremely quick turnaround times of between 14 to 21 days for scheduled builds. Although the state of Eurocold’s Berrinba facility and its manufacturing output is in phenomenal shape, Clayton is excited to improve it.

“The future of the Berrinba facility revolves around the development of more confidence and collaboration,” he says. “This will allow us to become a more cohesive team.

“While we are proud of our success to date, we are constantly reviewing our performance and striving for improvement.”

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Macquarie Wharf works begin

TasPorts’ largest-ever infrastructure project, the redevelopment of Macquarie Wharf 6 in Hobart, has commenced.

TasPorts has commenced early works on the Macquarie Wharf 6 redevelopment, marking the start of its largest infrastructure project to date and a major upgrade for Tasmania’s freight and port capabilities.

The redevelopment will deliver dedicated berthing for Australia’s icebreaker and research vessel, RSV Nuyina, as well as a permanent marine base for the Australian Antarctic Program. It forms the first stage of the broader Macquarie Wharf Redevelopment Project, supported by a $188 million investment from the Albanese Government.

Federal Minister for the Environment and Water, Murray Watt, said the project will provide critical infrastructure to support Antarctic science and operations.

“Antarctic and Southern Ocean science has never been more important, and the redeveloped wharf will support the Australian Antarctic Program to continue its critical work,” said Watt.

“This project secures Tasmania’s role as the gateway to East Antarctica and provides a permanent home tailored to the Nuyina – Australia’s world-class scientific and icebreaking ship.”

Tasmania Minister for Infrastructure and Transport, Kerry Vincent, said the commencement of works represents a significant milestone for the state.

“The start of works on the first stage of the Macquarie Wharf Redevelopment Project is an important step forward for this nationally significant project,” said Vincent.

“It means jobs on the ground, local industry involved, and real progress on infrastructure that will benefit Tasmania’s economy for decades to come.”

The announcement follows TasPorts awarding the redevelopment contract to Hazell Brady in December 2025.

TasPorts Group Executive Major Projects, Assets and Technical Services, Michel de Vos, said a specialist project team is already in place and working closely with TasPorts to deliver the project.

“Detailed design is now underway with site investigations, including geotechnical surveys scheduled ahead of demolition in the coming months,” said de Vos.

“We’re proud to be partnering with the Australian Antarctic Division and Hazell Brady to deliver infrastructure of national significance that will support Antarctic research, trade and one of Tasmania’s key working ports for decades to come.”

Practical completion of the Macquarie Wharf 6 redevelopment is scheduled for August 2028.

In other news, Followmont Transport has introduced a new program into its operations.

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Red tape slashed for crane operators in South Australia

Crane operators will no longer have to obtain as many consent requests from road managers with the introduction of three new notices to cut access red tape in South Australia.

Eligible crane operators will no longer require a permit to access road networks outlined in the South Australia Class 1 2-Axle up to 28t Articulated Steering Crane Mass and Dimension Exemption Notice 2026 (No.1), South Australia Class 1 4-Axle to 6-Axle All Terrain Mobile Crane Mass and Dimension Exemption Notice 2026 (No.1) and South Australia Class 1 6-Axle to 9-Axle Crane Mass and Dimension Exemption Notice 2026 (No.1).

The development of these access reforms contributes to the South Australian government’s request to the National Heavy Vehicle Regulator to transition heavy vehicle access permits to notices.

South Australian Department for Infrastructure and Transport (SA DIT) Chief Executive, Jon Whelan, said the notices will deliver significant productivity benefits for the crane industry.

“The new notices enable safer, more efficient crane movements across the state by making it easier for eligible heavy vehicles to access key networks,” Whelan said.

“This will mean a more streamlined process for operators, with fewer road managers consent requests than before.”

NHVR Director Service Delivery Steve Miller said the new notices had been developed in consultation with SA DIT and industry to help improve cross-border access and reduce the administrative burden associated with the permit application process.

“The new notices will make it easier for crane operators from other participating states and territories who are accustomed to operating under notices to access these networks in South Australia,” Miller said.

Miller said the new notices provides access certainty for crane operators.

“Through these notices, we have worked with the South Australian government and industry to ensure the appropriate safety controls are in place so crane operators, particularly mobile cranes, can be ready to attend work sites on short notice.

“By cutting repeat permits, we are working with local and state road managers to grow reliable road networks that will keep the industry moving and drive Australia’s economy.”

Operators are reminded to review the Specified Road Manager Network Requirements, contained within the Operator’s Guide for each notice and the Heavy Vehicle – Road Operations Access Map (HV-ROAM), ahead of travel.

For more information, including access conditions and details on the approved routes, operators are strongly encouraged to review the accompanying Operator’s Guides and networks:

South Australia Class 1 2-Axle up to 28t Articulated Steering Crane Mass and Dimension Exemption Notice 2026 (No.1)

South Australia Class 1 4-Axle to 6-Axle All Terrain Mobile Crane Mass and Dimension Exemption Notice 2026 (No.1)

South Australia Class 1 6-Axle to 9-Axle Crane Mass and Dimension Exemption Notice 2026 (No.1)

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Main South Road duplication opens to traffic as part of $810.4 million project

The duplication of Main South Road between Aldinga and Sellicks Beach has opened to traffic over the weekend, marking the completion of the $810.4 million Fleurieu Connections Project.

The Main South Road duplication includes a new interchange at Aldinga, with a new underpass and improved crossings to Aldinga and Willunga, as well as a dual carriageway between Aldinga and Sellicks Beach.

The first stage of the duplication of Main South Road between Seaford and Aldinga was completed in late 2023.

Stage 2 of the Main South Road duplication from Aldinga to Sellicks Beach was jointly funded, with $221.6 million from the Australian Government and $588.8 million from the South Australian Government.

Main South Road is an important link between Adelaide and the Fleurieu region and carries around 19,000 vehicles a day, with traffic volumes expected to grow to 26,000 vehicles a day by 2036.

Along with the duplication, the installation of wide centre medians and wire rope safety barriers to separate northbound and southbound traffic have been incorporated into the design to help improve safety and prevent the risk of head-on crashes.

Other features of the project include two U-turn bays to facilitate local access, intersection upgrades at Hart and Colville Roads, Norman and Rogers Roads, and Hahn and Cox Roads, as well as upgrades at Perth Street and a realigned Sellicks Beach Road that improves sight lines and safety.

The project also includes the construction of a shared use path along the western side of Main South Road.

Over 9000 tonnes of glass – the equivalent of 43 million recycled glass bottles including wine bottles from the region – was repurposed in the construction of the roadway from Aldinga to Sellicks Beach.

Speed restrictions will remain in place on the newly opened duplication and the underpass over the coming months as finishing works are completed.

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OSOM compliance blitz kicks off in Queensland

The National Heavy Vehicle Regulator (NHVR) has partnered with the Queensland Police Service (QPS) to launch a blitz focusing on Oversize Overmass (OSOM) movements in Queensland.

Called Operation Kindle, the blitz is aimed at addressing OSOM permit breaches in the state’s southeast.

According to the regulator, this follows recent non-compliant rates of 43 per cent.

The NHVR says Operation Kindle will combine roadside inspections with education to reinforce permit conditions, vehicle standards and safe load management for OSOM movements over the next several weeks in areas including the Port of Brisbane and Burpengary.

NHVR Director Northern Region Kelli Ready said multiple operations conducted throughout 2025 identified mechanical, dimension and loading breaches as the primary contributors to non-compliance.

“High levels of non-compliance in an area involving complex heavy load movements are concerning, particularly when these combinations can reach mass limits of up to 150 tonnes and lengths of 19 metres, meaning even the slightest miscalculation can have serious consequences,” Ready said.

“Operators must clearly understand their permit requirements and curfew conditions, which exist to protect road users, infrastructure and the industry.

“We don’t want operators taking unnecessary risks, which is why Operation Kindle has been established to strengthen our coordinated efforts alongside the QPS and ensure OSOM permit conditions, including curfews, routes and mass limits, are being met.”

QPS Road Policing Group Inspector Gareth Bosley said OSOM loads presented an increased risk on Queensland’s roads and urged all drivers to prioritise public safety.

“While it’s essential that enforcement agencies manage these risks, it’s also up to operators and drivers to ensure they’re undertaking these movements safely and in accordance with their permit conditions,” he said.

“This includes ensuring loads are secure, vehicles are in good mechanical condition, and the loading of vehicles does not compromise the driver’s ability to safely control it on our road networks.”

Ready also reminded industry of the importance of prioritising daily checks and regular maintenance.

“Both the NHVR and QPS are committed to ensuring safer roads across Queensland, and we will continue to work with industry to achieve this,” she said.

“While we know most operators do the right thing, those who cut corners must be held to account- roadworthiness of heavy vehicles is paramount, and when mechanical systems aren’t up to standard, mistakes can be deadly.

“Officers will be working to educate drivers on the importance of mechanical inspections, permit conditions and loading requirements, to ensure they fully understand their responsibilities for road safety.”

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$45 million for 16 new road projects in NSW

Over $45 million will help fund 16 new projects across NSW, aiming to create safer and more resilient roads for communities from Lismore to Wagga Wagga.

The funding comes from the latest tranche of the Australian Government’s Safer Local Roads and Infrastructure Program (SLRIP).

Among the 16 NSW projects to be funded under the latest tranche of the program are:

The NSW Government will receive $5 million towards the $30 million project to replace the existing Grawin Creek Bridge with a new bridge designed to improve heavy vehicle freight access along the Gwydir Highway near Collarenebri.
Parkes Shire Council will receive $5 million to seal three sections of the Cookamidgera Road, delivering a fully sealed link between Parkes and Cookamidgera.
A further $5 million has been allocated to Kyogle Council to design and upgrade 3.4 kilometres across three sections of the Clarence Way between Bonalbo and Urbenville.

The NSW funding is part of an approximately $86.2 million nationwide commitment under the latest tranche of the program.

Of this, more than $77.6 million will go towards projects in regional Australia.

The SLRIP was created by the Australian Government with over $200 million available each year. The aim of the program is to ease the administrative burden on local councils, state and territory governments.

Minister for Regional Development, Local Government and Territories Kristy McBain said the funding would help make roads safer.

“We recognise that regional councils often need additional financial support to assist with meeting rising costs and increased pressure on transport infrastructure due to climate change and extreme weather,” she said.

For the full list of NSW projects being funded under tranche 3 of the SLRIP, click here.

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#PicOfTheDay – Jarrath Farrawell

A ripper shot of MFT Haulage’s ‘Buckshot Ranger’ T909, snapped at harvest in Garah, NSW.

We’ll choose a pic to appear in our Facebook cover slot, and will publish some of the best pics in our upcoming print edition of Big Rigs where you now also have a chance to win a $500 Shell Coles Express Gift Card.

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  1. Australian Truck Radio Listen Live