Transport logistics: market and efficiency

This would result in greater efficiency with a trend towards selecting the modes of transport which use the least fuel and therefore emit the least greenhouse gas emissions. The tendency would be towards selecting haulage companies with the best reputation for reliability. This would tend to favour those companies which were the most efficient in terms of management and administration.

In summary, an open market would provide all parties with:

• information on which to base an offer or make a counter bid;
• a mechanism promoting operational efficiency - particularly among hauliers; and
• the ability to select the best form(s) of transport to ensure timely and cost efficient delivery.

In addition, an informed market would:

• enable shippers to select the best available price - minimising inflationary effects of fuel price increases;
• bring about reduction of greenhouse gas emissions through efficiencies in the mode of transport used;
• promote technology needed to replace fossil fuels for transport with cheaper alternatives;
• increase profitability of and competition among transport companies;
• reduce freight costs through improved efficiencies; and
• initially help lower the retail price of transported goods, particularly outside capital cities.

This proposal was put to the Federal Transport Minister for his consideration. Shortly thereafter, his Department advised that a more appropriate way of achieving transport efficiencies was to build the inland rail link from Melbourne to Brisbane proposed by government. How this would provide the transport industry with access to greater information and an open national market was not explained.

The implication is that officialdom regards the present state of the transport market as acceptable. Is it? Can it be improved and if so, are there better ways of achieving this than those suggested above?