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NSW Budget delivers critical transport funding

The New South Wales Government’s first Budget has delivered on its commitment to ensure essential transport infrastructure and roads used by regional communities are safe and accessible.

The NSW Government is setting out a long-term plan to implement infrastructure and services across regional NSW.

The 2023-24 NSW Budget includes:

$10 million to improve the network of heavy vehicle rest stops across regional NSW
$1.4 billion for the delivery of a new regional rail fleet to replace the ageing regional fleet
$390 million to establish the Regional Emergency Road Repair Fund to support regional councils in managing existing roads and prioritising works based on the needs of their communities, particularly those damaged by natural disasters
$334 million to establish the Regional Roads Fund to build new roads in rural and regional areas
$333.9 million to replace ageing timber bridges through the Fixing Country Bridges program, providing improvements to regional bus services and supporting councils through the Fixing Local Roads Program
$95.9 million for the Fixing Country Rail program, to deliver improved capacity and reliability to the regional rail network and deliver a highly functional network for moving freight in and out of regional areas

In a statement online, a NSW Government spokesperson said transport services within the state are vital.

“Roads, rail and transport services are critical to life in regional NSW, connecting communities to one another and supporting the movement of goods produced in our regions to national and international markets,” the spokesperson said.

“No matter where you live in NSW you should have access to safe, reliable transport options.

“The Minns Labor Government is setting out a long-term plan to repair the budget so we can deliver the essential infrastructure and services families across regional NSW rely on.”

In other news, construction of Linfox BevChain’s new beverage facility in Laverton, Victoria is progressing well, ahead of its completion in early 2024.

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Linfox’s largest ‘supersite’ takes shape

Construction of Linfox BevChain’s new beverage facility in Laverton, Victoria is progressing well, ahead of its completion in early 2024.

Buildings under construction total 70,000 square metres on a substantial 15-hectare allotment, the largest in the Linfox portfolio.

The site will have capacity to hold around 72,000 ambient and temperature-controlled pallets when complete.

Once finished, the new site will provide much-needed extra capacity for BevChain’s customers, seeking to accommodate growing consumer demand.

According to Linfox, it is also well-placed to BevChain customers and major arterials including the new West Gate tunnel.

“The project is a significant investment in our beverage supply chain and the broader Victorian economy,” said Linfox President BevChain, Misha Shliapnikoff.

“It will leverage the expertise of local talent, boost employment through the construction effort and support locally-manufactured products used in the building process.

“This project, and others like it, underpin Linfox and BevChain’s commitment to modern, trusted supply chains that support customers and the wider industry.”

Aligned with Linfox and BevChain’s commitment to act sustainably, the warehouse is striving for design and as-built 5 Star Green Star certification from the Green Building Council of Australia.

It features various environmentally friendly features, such as a 500kW solar PV system and 500kWh battery energy storage system, smart LED lighting, electronic vehicle (EV) charging capability for electric battery trucks, rainwater harvesting and an operational waste management plan towards zero waste to landfill.

The BevChain Laverton site will begin operations in early 2024.

In other news, a second gateway from the Bruce Highway to southern Sunshine Coast has officially opened, with the $70 million Bells Creek Arterial Road now complete.

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Austroads shares skills gap analysis

Austroads recently assessed the skills shortage facing Australia and New Zealand’s transport agencies over the next decade and explored ways to address them.

Australia and New Zealand Roads Capability Analysis 2022 – 2023, undertaken by Oxford Economics Australia, provides an estimate of the skills and capabilities required by Austroads member agencies to continue delivering their service objectives, identifies potential and emerging workforce capability gaps and provides agencies and related stakeholders with potential solutions to meet these gaps through future development, national training and capability initiatives.

“With infrastructure investment in road construction and maintenance expected to continue across Australia and peak in New Zealand over the next few years, the insights and solutions contained in the capability analysis provide a clear picture of the realities of the industry, as well as a clear plan on how to address these skills and capability gaps in the workforce,” said Austroads CEO, Geoff Allan.

The study, according to Austroads, identifies capability gaps in New South Wales, New Zealand, and the Australian Capital Territory in the next 1-3 years and stresses the importance of implementing measures like enhancing productivity, reducing workforce attrition rate, attracting skills from other sectors, introducing incentives for the roads related education sector, and considering policy changes to attract more skilled migration.

For the other jurisdictions, there are risks in maintaining the existing workforce and attracting skills, given the rising construction activity in other sectors.

The report highlights shortages in specific roles and competencies, emphasising the importance of investing in education pathways.

In other news, the Federal competition watchdog has opposed the proposed acquisition of a majority interest in Horizon Roads by Transurban Group.

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2023 Craig Roseneder Award finalists announced

The Australian Trucking Association (ATA) has named three workshop professionals as the finalists for its 2023 Craig Roseneder Award.

The Craig Roseneder Award recognises technical and maintenance excellence in the transport industry’s workshops.

This year, Christopher Hall (Wickham Freight Lines), John Jenkin (Tatiara Truck and Trailers) and Shane Pendergast (Air Brake Systems) were selected as finalists.

With a long career in the mechanical and maintenance industry, Hall’s journey began in the heavy vehicle sector in New Zealand.

In 2010, he became an integral part of the Wickham Freight team where he has remained ever since.

Hall’s accomplishments include the successful reconstruction of Wickham’s initial factory-acquired trucks, a Kenworth C500 and C600, which recently won the coveted title in the Best Fleet category at the Casino Truck Show.

Additionally, he has completed 15 Euro V engine conversions, resulting in substantial savings for the company in terms of write-downs.

ATA’s second finalist, John Jenkin, co-founded Tatiara Truck and Trailers with his partner four decades ago.

Jenkin’s commitment to his hometown includes building a purpose-built training facility in collaboration with local schools, registered training organisations (RTO) and government bodies to create job opportunities for local youth.

Shane Pendergast, ATA’s third finalist, is the New South Wales Electronic Braking System (EBS) Service Manager and National EBS Training Manager at Air Brake Systems.

Pendergast has 39 years of trade experience in trucks, trailers, earthmoving and fleets, and a workshop manager, including seven years as an EBS/RSC maintenance support specialist.

The winner of the 2023 Craig Roseneder Award will be announced on Tuesday 17 October at the Castrol Vecton Awards Dinner, as part of the 2023 Technology and Maintenance Conference.

Sponsored by Castrol Vecton, the award winner will receive a fully paid trip to the United States to attend a US Technology and Maintenance Council Annual Meeting and Transportation Technology Exhibition including full registration, return airfares and accommodation, and $1,500 AUD spending money.

The winner will also receive complimentary registration to the 2024 ATA Technology and Maintenance Conference.

“Since 1998, the Craig Roseneder Award has honoured the professionalism and commitment of the men and women who work behind the scenes in Australia’s trucking workshops,” said ATA Chair, David Smith.

“Christopher, John and Shane have demonstrated over the years that they have superb technical skills and great dedication to our industry.”

In other news, the Federal competition watchdog has opposed the proposed acquisition of a majority interest in Horizon Roads by Transurban Group.

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ACCC blocks Transurban acquisition proposal

The Federal competition watchdog has opposed the proposed acquisition of a majority interest in Horizon Roads by Transurban Group.

The Australian Competition & Consumer Commission (ACCC) said the transaction would likely lessen competition to a substantial degree for future toll road concessions in Victoria.

Transurban is Australia’s largest toll road operator. In Melbourne, Transurban operates the CityLink toll road and is constructing and will operate the West Gate Tunnel toll road.

Horizon Roads operates the EastLink toll road in Melbourne and is the only other private toll road operator in Australia. Another toll road, the North East Link, which is set to be operational by 2028, is being built and will be operated by the Victorian Government.

“The proposed acquisition would result in Transurban entrenching its position in Victoria, and prevent the entry of a rival operator which could compete closely for future toll road concessions in Victoria,” said ACCC Chair, Gina Cass-Gottlie.

“Transurban would operate every single private-sector controlled toll road in Australia.

“The ACCC received submissions expressing strong concerns from stakeholders. We also received a submission from the Victorian Government outlining its concerns. The ACCC placed some significance on the concerns expressed by the Victorian Government.

“We have concluded that if Transurban doesn’t acquire Horizon Roads, it would likely be acquired by a potential long-term rival and could be used as a platform to develop the capabilities needed to compete more strongly for other toll road concessions.

“We therefore found that Transurban acquiring Horizon Roads would likely deter the emergence of a key rival for future toll road concessions.”

Transurban’s scale and in-house modelling provide it with a material advantage over rival bidders for toll roads, and the proposed acquisition will further entrench this advantage.

While there is a pool of traffic modelling experts in Australia and globally, Transurban has developed recognised expertise in preparing high quality traffic models in Australia that utilise detailed datasets, and can model options more quickly and cost-effectively than its rivals.

The ACCC’s investigation also considered the extent to which the Victorian Government has the ability to constrain Transurban and would be able to level the playing field for future sales of toll road concessions in Victoria.

“We acknowledge that the Victorian Government can run open tender processes, but where one party has material incumbency advantages compared to other firms who may be considering bidding there is less likely to be effective competition for future sale processes,” said Cass-Gottlieb.

In other news, a second gateway from the Bruce Highway to southern Sunshine Coast has officially opened, with the $70 million Bells Creek Arterial Road now complete.

 

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Fonterra reveals financial year 2023 results

Dairy co-operative, Fonterra, has announced its results for the financial year ending 31 July 2023.

In financial year 2023 (FY23), Fonterra’s reported profit after tax of $1.6 billion was up by $994 million.

Excluding the net gain from divestments of $248 million, normalised profit after tax was reported at $1.3 billion, a $738 million increase compared to the same period the year prior.

The company’s balance sheet metrics were also better than target levels, with a gearing ratio of 28.8 per cent and debt to EBITDA of 1.3x.

Total group reported operating expenses were $2.8 billion up from $2.5 billion due in large part to the impact of impairments, as well as increased costs from inflation and a “one-off favourable item” of $44 million in the previous year.

Fonterra CEO, Miles Hurrell, said while the company delivered strong earnings and made progress against key strategic initiatives in FY23, it was against the backdrop of a Farmgate Milk Price that has dropped across the season.

“Our 2022/23 season Farmgate Milk Price was impacted by reduced demand for whole milk powder from key importing regions,” he said.

“As the financial year progressed, we saw Global Dairy Trade prices drop, with the average whole milk powder price down 16 per cent compared to last season.

“We recognise the impact the reduced Farmgate Milk Price has on farmers’ businesses and have utilised our strong balance sheet to introduce a new Advance Rate Schedule guideline to assist on-farm cash flow.”

Despite this, Hurrell said he was pleased to be announcing a strong full year dividend of 50 cents per share – compromising an interim dividend of 10 cents per share and a final dividend of 40 cents per share.

“In addition, the Co-op returned tax free 50 cents per share to shareholders and unit holders in August, following the divestment of Soprole, giving a final cash pay-out to farmers of $9.22 per share backed kgMS,” he said.

“Our FY23 performance demonstrates that we are focusing on the right strategic priorities.

“This said, we are aware that there are challenging conditions on the ground for many of our farmers.”

Fonterra also reported a Return on Capital of 12.4 per cent for the last 12 months, up from 6.8 per cent in the comparable period.

“There were a number of key drivers that helped us deliver this result, including favourable margins in our Ingredients channel, in particular the cheese and protein portfolios,” Hurrell said.

“We also saw improved performance in our Foodservice channel due to increased product pricing and higher demand as Greater China’s lockdown restrictions started to ease from the start of calendar year 2023.

“Further, across the second half, the operating performance of our Consumer channel strengthened due to improved pricing. However, we adjusted the long-term outlook for our Asia Brands and Fonterra Brands New Zealand business, resulting in full year impairments of $101 million and $121 million respectively.”

According to Hurrell, Fonterra also recognised a gain on sale from its Chilean Soprole business of $260 million during the year.

“Looking at our reportable segments, Core Operations reported profit after tax increased $532 million to $572 million, due to higher ingredient margins,” he said.

“Global Markets reported profit after tax was up $77 million to $385 million, mainly due to higher sales volumes and improved pricing. This was partially offset by the impairments in its Consumer channel.”

Following the company’s successful FY23 performance, Fonterra has announced its outlook for the next financial year.

“We are watching market dynamics closely and there are indications demand for New Zealand milk powders will start to return from early 2024,” Hurrell said.

“Demand for other products, including Foodservice and our value-added ingredients, continues to be robust.”

Its FY24 forecast earnings range for continuing operations, Hurrell revealed, is 45-60 cents per share.

“While the favourable price relativities we’ve experienced across FY23 have reduced from their peaks, we are forecasting improved margins across our Consumer and Foodservice channels for FY24,” he said.

“We acknowledge that across the year, farmers will continue to feel the pressure from high input costs and a reduced Farmgate Milk Price. We’ll continue to do all that we can to support farmers through this challenging period.”

In other news, a second gateway from the Bruce Highway to southern Sunshine Coast has officially opened, with the $70 million Bells Creek Arterial Road now complete.

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New $70M highway connection opened in Queensland

A second gateway from the Bruce Highway to southern Sunshine Coast has officially opened, with the $70 million Bells Creek Arterial Road now complete.

The eight kilometre extension of Bells Creek Arterial Road was opened this past Tuesday, completing the 11.9 kilometre link between the Bruce Highway and Caloundra Road.

With more than 50,000 drivers using Caloundra Road every day, the brand new connection will give road users, including heavy vehicles and transport operators, a crucial second access to the Bruce Highway.

Co-funded by residential developer, Stockland, the Queensland Government invested $35 million to the extension as part of its commitment to prepare the Sunshine Coast region for “massive future growth”.

Opening the link on 19 September, Queensland Premier Annastacia Palaszczuk said the Government has kept its 2020 promise on the accelerated delivery of the Bells Creek Arterial Road.

“The population of the Sunshine Coast is booming – one of the reasons our government put funding on the table to bring its construction forward from 2030,” she said.

“Our Big Build is not just a promise, it’s a guarantee. A guarantee that our government will build the roads, bridges, schools, hospitals and infrastructure Queenslanders need now and in the future.”

Transport and Main Roads Minister, Mark Bailey, said the route will contribute to an improved traffic flow in the Sunshine Coast.

“Bells Creek Arterial Road now spans nearly 12-kilometres and will bust congestion on the Sunshine Coast, thanks to local member Jason Hunt’s tireless advocacy, and the workers who got the job done,” he said.

“We’ve delivered improved active transport connections, including an overpass bridge from Baringa and Nirimba, helping more Queenslanders get outside and enjoy our great lifestyle.”

According to Bailey, the Queensland Government is also investing over $32.1 billion in road and transport projects over the next four years.

“We’re delivering more lanes, better roads and safer interchanges, helping Queenslanders get home sooner and safer.”

In other news, the New South Wales Government has started another New England Highway upgrade, following the announcement of a different project northeast of Glen Innes last month.

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Government at a Snail’s Pace

We know the wheels of government turn exceedingly slow, but the Heavy Vehicle National Law process must be one of those which takes the biscuit, it’s government at a snail’s pace.

Over 20 years ago the process began to develop a national organisation to oversee regulation of the trucking industry across the country, in every state. This was a project which eventually became the National Heavy Vehicle Regulator.

In order to get this organisation into existence and within the law, there had to be an Australian first, one single Heavy Vehicle National Law. This did come to pass, eventually being passed in the Queensland Parliament, at the last minute, and adopted by some of the other states agreeing to abide by the rules of the Queensland law.

At the time, getting the original law onto the books had to be a rushed job. There had been delay after delay after delay, as you would expect, but a law did come into effect and the National heavy Vehicle Regulator did come into existence and did have a law which it could enforce.

Unfortunately, the process of developing the NHVR had many flaws and its first few months were a complete disaster. Then when the NHVR calmed down and actually started to work in a more effective manner, those enforcing the regulations realised that the HVNL, which had been rushed through the Queensland Parliament a few years before, was not up to scratch and needed to be completely rethought.

A rational person, at this point, would think that this need to fix the problem would have been very urgent. In fact, the process of developing a new HVNL took years, with long ongoing consultations among people in industry plus all of the state jurisdictions who were involved, plus many others.

Yet again, a rational person would expect that having done so much consultation and having been made aware of what the issues were in the HVNL to begin with, this process would come up with a new set of rules which everybody involved in the consultations could live with. 

As we now know, it turned out that the HVNL, which the National Transport Commission came up with, was dead in the water virtually before it appeared and the consequent rejection of that law lead to the Kanofski review of the whole process, which, yet again, took a long time.

When that review came out, most parties appeared to agree that the review made useful points which could be used in the development of a new HVNL. 

Now several years later there are ongoing discussions going on in the background and teams developing an HVNL for the regulation of the trucking industry.

We are now many many years after the problem had been identified. We are still having to deal with a basic law which is unfit for purpose and a system of change which is so distressingly glacial that the only reason there are there is freight moving on our roads, in an efficient manner, is because the road freight industry has been so badly treated by its regulators and by its lawmakers for so long that it has become resilient enough to be able to survive despite the total incompetence of those tasked with the job of creating a legislative framework, in which the trucking industry can work safely and efficiently.

 

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Efficient Business Starts With Effective Systems

Operating from its Hillston base in the Western Riverina district of NSW, Horne Ag Logistics has been in business since 2013 and learnt that efficient business starts with effective systems. 

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With Jeremy and Carly Horne at the helm, the business provides innovative and cost-effective solutions for bulk commodity transport, handling, and storage. Horne Ag operates bdouble and PBS adouble combinations, locally and interstate, to major ports and end-users.

“We live in a just-in-time world. A busy, complex transport business with constantly changing plans and customer needs requires reliable information and communication updates amongst staff. We also had no live data reporting for completed and future jobs. Any entry had to be manually added up, which was frustrating and time-consuming”, explains Jeremy.

They joined the MyTrucking family back in June 2022 and were quick to see the benefits and how seamlessly MyTrucking was able to solve their issues of transparency and traceability that they wanted to address.

“We chose MyTrucking for its simplicity and effectiveness. They haven’t over-complicated their system, and it’s easy to customise.

“The service is second to none. No question or query is too hard. They’re also strong supporters and sponsors of industry associations, which is great to see.”

While it was hard for Jeremy to break the habit and change the way they previously operated, some time invested in setting up the system properly and implementing it to its full capacity, they soon saw the benefits. From the streamlining of paperwork and invoicing, to it’s integration with Xero and customisable reporting, MyTrucking has removed some of the pain points for Horne Ag, giving everyone peace of mind (and saved them some valuable time!).

“Our customers rely on us to not over or under deliver on contract orders and tonnages. MyTrucking data reporting keeps us in close touch with all jobs, and ensures no “loose ends” are left behind or forgotten about.”

Learn more about MyTrucking or sign up for a free trial today.

 

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Day In Day Out to Keep Commodities Moving

Trucking and logistics are the backbone of Australia, working day in day out to keep commodities moving so that Australians have access to goods and resources, and sole trader, Jack Singh runs his business, iTruck, as a subcontractor to Allied Express.

Jack subcontracts for Allied Express under the name iTruck and has not looked back since jumping into the driver’s seat to become a truckie.

Jack has made his home in the trucking industry as an independent contractor for most of his career and has been working with Allied Express Transport for the better part of two decades.

“I’m an owner operator so it means that I’ve got my own business and Isuzu truck,” said Jack.  “I’ve been subcontracting with Allied Express for 17 years now, the work just keeps coming and honestly, I’m thankful for it.

“When I came to Australia more than 20 years ago, I started as a furniture removalist but it wasn’t fulfilling. Once I got into owning and operating my own trucks, it lifted up my lifestyle and lifted up the dreams I had. There were a few hard days of course but now the business is flying like an eagle!”

On the Road

The day starts at about four in the morning, taking Jack all over Sydney with some day as far as Wollongong, Newcastle and Canberra. A lot of Jack’s clients are in the automotive industry producing high end car parts and supplies, as well as OHS equipment like face masks.

A big part of the role of freight delivery driving is communication, and Jack is frequently touching base with customers and ensuring that important clients are being well looked after in between stints driving and unloading.

The days can be long and the work difficult, but Jack loves trucks and he particularly loves his own.

“I bought the late 2022 model of the FSR 140-260  from Dywers Truck Centre,” said Jack. “It’s a fantastic truck; I wanted a specific body length and size which makes it perfect for my everyday routine.

“When you drive metro, you need something that’s not too big or too difficult to move around, something that can easily get into car parks, handle tight corners and run around the city all day.”

The FSR’s Allison 2500 automatic transmission makes light work of the narrow city streets, loading bays and warehouse sites Jack frequents everyday, not to mention Sydney’s less than friendly traffic.

With an impressive 9-metre-long van body, there’s plenty of space to store the extra-large specialised pallets that make-up Jack’s runs. Jack further customised his FSR to include airbag rear suspension which he can control from the cabin.

Jack has a preference for rear media doors, which provide an extra 40mm of floor space as they’re located outside the rear frame of the body. As a by-product they also allow Jack total, uninterrupted brand coverage, including all the essential contact details.

“The FSR fits into almost any dock, any car park and you dance around corners… there’s just never any hassle with a truck like this,” said Jack. “In my opinion, the FSR is one of the best trucks for Sydney metro that we’ve got at the moment.”

With a Gross Vehicle Mass of 14,000 kilograms and Gross Combined Mass of 21,000 kilograms, there’s not much Jack can’t haul in his new truck. This means fewer trips back to base and less time spent on each route.

With standard safety features such as Anti-Lock Braking System, Anti-Skid Regulator and Cab Tilt Warning, safety is a clear priority for this generation of trucks and the cabs have been designed with comfort in mind for those who do the longer drives.

A Passion for Trucks

It’s easy to see that Jack is something of a perfectionist, which has served him well in his career. He knows his routes, his customers and most importantly his vehicle, like the back of his hand.

He embarked on plenty of research before purchasing the FSR 140-260, understanding the importance of investing in quality equipment to support his business.

“I’ve got a six-year warranty on this new truck and a service agreement from the dealer,” Jack detailed. “This means that if I get a job overnight, I just have to put the keys in the ignition and away I go and I know that I’m covered anywhere in Australia with the nationwide warranty.

“That is a big advantage that should be considered by anyone who’s thinking about buying a truck, you’re paying for that comfort and peace of mind. It’s easy with Isuzu, everyone attends to you immediately, and I have found there’s no waiting around on the phone or at the dealership.

“Trucking is not easy, I think everyone knows that. You have to put a lot of effort in, but when it takes off, things can run really well.”

Jack is as enthusiastic about operating his own business today as he was when he first set out all those years ago.

“I’m thankful for everything and everyone in the industry that have been a part of my journey and my career so far. It hasn’t always been easy, but I’ve loved it,” said Jack.

 

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