The trucking industry is at a pivotal juncture, facing commercial pressures that call for urgent action to ensure its sustainability and profitability, writes NatRoad CEO Warren Clark.

At NatRoad, we have identified a critical need for a $3 billion federal Clean Transport Fund (CTF) to support the sector’s transition to lower emissions. This fund is not just about emission reduction, it’s a commercial necessity that will help secure the future of small, medium, and large trucking businesses.

Trucking is the backbone of Australia’s economy, responsible for moving goods efficiently across cities, towns and the country. Despite its vital role, the industry operates on razor-thin profit margins, averaging just two per cent. Add the shortage of 26,000 drivers and the burden of regulatory compliance, the sector is under growing pressure to remain viable.

Our responses to the government’s review of the Transport and Infrastructure Net Zero Roadmap and Low Carbon Liquid Fuels, and our policy paper: ‘Stronger Economy, Lower Emissions’ have highlighted the need forl support. Existing government plans fall short of providing the comprehensive backing required.

Small trucking businesses ensure essential goods reach even the most remote areas. These businesses operate under tight budgets, making it hard to invest in new technologies or comply with evolving regulations.

Without substantial financial support, many small businesses may be unable to afford the necessary upgrades, risking their survival.

The CTF would provide the critical support needed to help small trucking businesses transition to lower emissions without hampering their operations, such as facilitating the rollout of electric trucks, recharging infrastructure, and hydrogen solutions, where they make sense.

Additionally, better heavy vehicle access and comprehensive information for making low-emission investment decisions would help these operators to remain competitive in a rapidly changing market.

For medium-sized trucking businesses, the commercial pressures are equally daunting, with larger fleets and often higher operating costs, making the transition to lower emissions complex and expensive.

The CTF would help ease some of these financial pressures by providing funding for advanced technologies and infrastructure, reducing emissions and improving operational efficiency and lower long-term costs.

Large trucking businesses, a linchpin of Australia’s supply chain, are also facing significant commercial pressures. These businesses are under increasing scrutiny from major transport customers and stakeholders to reduce their carbon footprint.

However, the costs associated with transitioning to lower emissions can be prohibitive. The CTF would provide the financial support to invest in cutting-edge technologies and infrastructure, ensuring that large businesses can meet their sustainability goals without compromise.

The CTF would promote a fair and equitable transition for the entire trucking industry. It would help level the playing field by providing small and medium-sized businesses with the resources needed to compete with larger operators.

This is crucial for maintaining a diverse and resilient supply chain, which is essential for Australia’s economic stability.

Major transport customers cannot continue to seek low-cost transport contracts while claiming to be committed to sustainability. They must offer better rates and contract terms to enable road freight companies to invest in low-emission solutions.

The CTF would support this by adding a supply chain emissions reduction obligation on big businesses, making them responsible for their scope 3 emissions.

Governments must do more to support the trucking industry. Successive governments have invested billions in aiding big energy businesses to decarbonise, yet small trucking businesses have missed out.

The CTF would represent just 2.5 per cent of the cost of the 10-year infrastructure pipeline, a reasonable request considering the significant public benefits, such as lower emissions and health costs.

The trucking industry is at a crossroads. Without serious investment and a transition strategy, the sector risks being pushed into crisis.

A Clean Transport Fund can stop that happening. It is time for the Federal Government and big businesses to step up and support the sector that keeps our economy moving.