TERMS OF REFERENCE - PRODUCTIVITY COMMISSION REVIEW INTO AUSTRALIA’S MARITIME LOGISTICS SYSTEM

Friday, December 10, 2021

A unique opportunity to address much needed operational and regulatory reform.

Further to last weeks' member notice referencing a commentary from the Prime Minister,  we are pleased to advise The Hon Josh Frydenberg (Treasurer) and The Hon Dan Tehan (Trade Minister) this morning announced that the Productivity Commission will conduct a formal inquiry into Australia's maritime logistics system to understand any long-term trends, structural changes, and impediments that impact the efficiency and dependability of Australia's maritime logistics system and connected supply chains.

As part of this, the inquiry will have regard to operational cost drivers including industrial relations, infrastructure constraints, data sharing and technology uptake in Australia's ports and related transportation networks in order to assess the overall competitiveness of Australia's ports.

The inquiry should also identify any mechanisms available to address identified issues – commencing in January 2022 and providing a formal report in August 2022 – READ MORE

As a part of close and ongoing engagement with the federal government, Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) have been provided the detail of the Terms of Reference which we understand will be posted on the Productivity Commission's web site later today. 

Terms Of Reference - Productivity Commission review into Australia's maritime logistics system

In undertaking the inquiry, the Commission should:

1.Examine the long-term trends, structural changes, and impediments that impact the efficiency and dependability of the maritime logistics system, including developing a framework of performance measures to determine port performance and benchmarking Australian ports internationally.

2.Determine the broader economic impact of the maritime logistics sector, and assess the sectors' operating model and any structural impediments, on consumers, business, and industry. This should include examining costs of curfews imposed at some ports, impacts of urban encroachment on ports and connections to ports, and adequacy of development planning and land protection. It should also look at the economic impact of delays; uncertainty and the capacity for logistics chains to respond; and increased freight costs (including fees and charges in the sector) and cancellations of sailings, including on importers, exporters, and supply chains.

3.Examine workforce issues, including industrial relations, labour supply and skills, and any structural shifts in the nature and type of work in the maritime logistics sector.

4.Assess infrastructure needs and constraints, including options to enhance the efficiency of ports and connected landside supply chains and the interactions between decisions of different levels of government. This should include reviewing rail access at container ports; any imbalance between the types of containers for imports versus exports; the suitability of container storage facilities; and costs and benefits of investing in new port and shipping infrastructure or enhancements to existing infrastructure to enable the use of larger ships. This should also identify the role of Governments and the private sector in meeting current and future infrastructure challenges in the sector.

5.Research mechanisms to help improve the sector's resilience and efficiency. This should include examination of technology uptake, innovation, data capture and sharing across international freight networks compared to Australia; examples of areas where Australia does well; identification of technologies that offer the greatest productivity gains in the Australian circumstances; and identification of any barriers to greater uptake of technology and innovation.

6.Have regard to the interlinkages and dependencies between the maritime logistics sector and other logistics systems, such as airfreight and landside supply chains. For example, the impact of the resumption of airfreight on ports, the preparedness of ports for disruptions in these supply chains and the role of ports for landside supply chains.

7.Have regard to the ACCC's container stevedoring monitoring report; the Productivity Commission study into vulnerable supply chains; the National Freight and Supply Chain Strategy agreed by Commonwealth, state and territory governments; and the Government's in-principle acceptance of the Harper Review's recommendation to repeal Part X of the Competition and Consumer Act 2010.

FTA/APSA commends the federal government for responding to our advocacy by commissioning this inquiry with a wide ranging terms of reference providing a unique opportunity to address much needed operational and regulatory reform.

Paul Zalai - Director FTA | Secretariat APSA | Director GSF