With Australian and international supply chains under pressure, and resilient capability becoming increasingly critical, the federal government has updated the National Freight and Supply Chain Strategy and released a new National Action Plan.
Since the Strategy was first released in 2019, Australia’s supply and freight networks have experienced significant setbacks from the effects of COVID-19, geopolitical shifts, extreme weather events and worker shortages. This has been particularly challenging for remote regions of the country, as food pricing and insecurity rises.
A report from the Australian Food & Grocery Council (AFGC), released in March, showed more than 75 per cent of surveyed manufacturers were experiencing a moderate-large scale impact on business from supply chain disruptions.
With Australia’s freight task projected to grow 26 per cent between 2020 and 2050, the government stated support for the sector is vital.
Minister for Infrastructure Transport, Regional Development and Local Government, Catherine King, said without a viable and reliable freight network, Australia stops.
“The journey of goods from farm-gate, factory or port to the shopping aisle or building largely goes unnoticed, except in those rare instances where something in the supply chain goes wrong,” said King.
“As industry and consumer demand grows, it’s vital our roads, rails and ports can accommodate increasing freight movements with resilience, efficiency and emissions-reduction front of mind.”
The updated Strategy underscores the importance of the sector for the national economy and the refreshed strategic freight priorities, setting the agenda for a collaborative approach to deliver actions by governments and industry across freight modes. It outlines four priority areas – productivity, resilience, decarbonisation, and data – aiming to support more efficient supply chains.
Accompanying the Strategy, the new National Action Plan outlines a set of actions that government and industry will work together to deliver over five years. Key actions include;
- developing a National Freight Resilience Plan to ensure a consistent and coordinated response to significant supply chain disruptions
- developing a Freight Infrastructure Investment Framework to guide infrastructure investment decisions in freight networks across Australia
- conducting safety research on batteries and zero emission power technologies for freight vehicles and locomotives as well as promoting the uptake of safety and productivity boosting technology
- modelling the current and future freight and supply chain network, to consider what is needed to support its efficiency and effectiveness into the future.
The AFGC, which called for stronger supply chain fortification last year, welcomed the new Strategy and Action Plan, with recently appointed CEO, Colm Maguire, stating it reflects a timely and necessary commitment to improving the infrastructure and systems underpinning the food and grocery manufacturing sector.
“Australia’s food and grocery industry depends on reliable, efficient and resilient freight networks to keep shelves stocked and households supplied with essential goods,” said Maguire.
“We welcome the renewed focus on freight productivity and resilience. The strategy’s emphasis on coordinated national action and investment in critical infrastructure is a strong signal that the government understands the central role supply chains play in Australia’s economic and social wellbeing and how crippling the heightened number of disruptions have been in recent years.
“From regional food processors to major manufacturers, our members rely on seamless logistics to deliver perishable and non-perishable goods across vast distances. This strategy provides a framework to address long-standing challenges and shift the dial meaningfully on productivity for our sector,” he said.
The full National Freight and Supply Chain Strategy and new National Action Plan are available online at freightaustralia.gov.au.
