1. National Local Government Asset Management and Public Works Engineering Conference “KEEPING THE COMMUNITY ALIVE” Philip N Lovel AM Chief Executive Officer Victorian Transport Association

2. VTA BACKGROUND Over 110 years experience Represents over 800 Freight & Logistics companies Prime Contractor/Employer Organization Commercial/Industrial Issues Involved in Rail, Road, Waterfront, and Interface Issues Industry more than members- leadership

3. SECTORS OF THE FREIGHT/TRANSPORT INDUSTRY Long Distance Road Freight Container Transport Furniture Local Government Warehousing Contract Distribution Tip Trucks Armored Vehicles Waste Concrete Mining Industries Earthmoving & Demolition Bulk Tankers Car Carrying Refrigeration Ancillary Transport Country Carriers Agriculture Primary Producers Federal Government Agencies Building & Construction Oil & Petroleum Wholesale & Retail Freight Forwarding

4. HOW MANY TRUCKS OPERATE IN AUSTRALIA? 2,589,852 -2,114,333 - Light Commercial 1.5 to 4.5tonne 81.09% -VICTORIA..483,097.. 22.85% - 95,452 - Light Rigid.. 4.5 to 12 tonne capacity 3.31% -VICTORIA 20,279.. 21.25% - 71,680 - Articulated.. 2.85% - VICTORIA 21,508.. 30.00% - 20,293 - Other (non freight).. 0.84% -- VICTORIA 5,867.. 28.91% Note: BUSES = 75,375 ( VICTORIA 16,508.. 21.90%) Motor Cycles= 463,057 (Victoria 114,438.. 24.71%) all data from published ABS statistics - 288,094 - Heavy Rigid.. Over 12 tonne 11.91% -VICTORIA 71,789.. 24.92% Avg Age Yrs Aust - Vic 10.8 – 11.5 11.2 – 11.7 15.9 – 17.4 11.2 – 11.5 14.4 – 15.4

5. FREIGHT TYPES Dangerous Goods Security Food Time Sensitive High Value / Low Value Small Units / Large Units Heavy / Light Temperature Controlled Waste Liquid / Powder / Granular / Gaseous Petrol/Diesel Fragile Over Dimensional

6. MAJOR FREIGHT GENERATORS Airport Rail Sidings Major Retail Distribution Centres Large Transport Depots Shopping Centres Quarries/Concrete Yards Landfills Sale Yards Waterfront- Stevedores / Empty Container Parks Oil Terminals / Refineries Transport Yards

7. THE CUSTOMERS! All Different Types Of Customers-large / Small / Individual No Standard Operating Hours All Deliveries Different Geographic Areas-CBD / Local / Intrastate / Interstate / International

8. WHAT OUR CUSTOMERS SAY… Just in Time’ is no longer enough  Getting a pallet to the right place at the right time was essential in the ‘90s – it is no longer enough  IN 2010 we need to get just “one item” to the right place exactly when it is needed  JIT, pick to zero, means that product movement will continue to be rapid, smaller orders more frequent, less buffer stock, more reactionary manufacturing. Everything is faster, smaller & more value.

13. FUTURE FREIGHT TRENDS There will be continuing growth in all sectors- more trucks A changing freight task- -More direct deliveries into homes -More through major facilities (ports/airports/major distribution centres Deliveries into small retail / food outlets will continue and grow More pressure from community & local councils for curfews and truck bans A growing trend to 24/7 deliveries Costs will continue to grow There will be more accidents particularly in the urban areas

14. FUTURE FREIGHT TRENDS Environment will continue to grow as an important issue Industry will move towards alternative fuels & hybrid vehicles Due to expanding urban areas travel delivery times will increase Use of technology will be important- many using it now Customers will need to be more involved in the logistics decisions outside their businesses

15. WHERE LOCAL GOVERNMENT CAN ASSIST THE FREIGHT & LOGISTICS INDUSTRY Understand the movement to 24/7 (Woolworths) and work with us to achieve it Work with industry on the last kilometre issues (not all weight!) Work with major customer base (your rate payers) to determine their needs, future activities & proposed changes to their freight operations -Lower costs -More certainty in deliveries Minimize truck curfews through out Melbourne/Regional areas Identify freight routes in Municipal areas and enhance their operation Address signage & street numbering Assist the freight industry to implement higher productivity vehicles (less trucks)