Oz logistics industry “the backbone” of economy

The report also shows that inefficiencies in the industry will cost Australia dearly unless all state governments continue to focus on reform of regulation and infrastructure.


Australian logistics industry


A report published by the Australian Logistics Council, the industry body for the Australian logistics industry shows that the Australian logistics industry adds $131.6 billion a year (8.6 per cent) to GDP and employs approximately 1.2 million people.

The report also shows that inefficiencies in the industry will cost Australia dearly unless all state governments continue to focus on reform of regulation and infrastructure. Reform such as this can improve supply chain efficiency and the report shows that a 1 per cent increase in productivity would increase GDP by $2 billion per year. 

“This landmark economic report shows the logistics industry is the backbone of the Australian economy, making an enormous contribution to GDP and employing more than 1 million Australians,” said Michael Kilgariff, ALC Managing Director.

“The report also demonstrates that with focus and attention on reform, greater efficiencies can be achieved across the supply chain and all Australians will benefit as a result.

“The logistics industry is critical to every business and consumer in the country, yet it does not get the attention it deserves.”

“The industry faces multiple threats to efficiency which cry out for action, including nationally significant logistics infrastructure, greater certainty on planning for freight, eliminating overlapping regulations which affect productivity and ensuring there is a whole-of-supply chain focus on strategic corridors,” he said. 

Mr Kilgariff urged all levels of government to study the report and to put in place policies and legislation to reap the benefits from a more efficient logistics industry. Their constituents would expect nothing less. He said, “Australia’s rising freight task makes it essential that government, industry and the community put aside sectional and regional interests and focus on improving national supply chain efficiency for the greater national good.” “In 2011-12 the domestic freight task totalled almost 600 billion tonne kilometres — about 26,000 tonne kilometres for every person in Australia. 

“Government figures also show that Australia’s freight task is projected to increase by 80 per cent between 2010 and 2030 and triple by 2050.

“Taking a more national approach to improving supply chain efficiency and achieving productivity growth in the sector is critical to not only achieving economic growth but will also benefit all consumers,” he said.