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Business View Australia - February 2015 19
obligations and coping with population growth. In
the decade to 2011 Australia’s productivity growth
stagnated, averaging below one per cent per an-
num over the 9 years to 2010/11. This means that
over that time period economic growth was mostly
generated from increases in population and labour
participation, and Australia’s increasing wealth was
driven largely by a favourable movement in the na-
tion’s terms of trade. In the past two years produc-
tivity has been double the average over the preced-
ing nine years with economic conditions leading to a
period or relative restraint in wage claims, however
this performance cannot be guaranteed to continue.
Logistics is a critical element in the productivity of
the nation. The true Logistics industry is estimated
to represent 8.6 per cent of the nation’s Gross Do-
mestic Product, it is a significant cost in Australia’s
bulk export trades, and Australia’s significant import
of manufactured goods means that efficient supply
chains from ports to customers are essential for en-
suring that consumers of imported goods are receiv-
ing the goods at the lowest possible prices.
There are challenges to the efficiency of the Logis-
tics industry. Fuel prices remain high, regulatory
burdens to the industry have increased and state
and national regimes overlap, as do the scopes of
different regulatory agencies, creating costly du-
plication and confusion. Urban congestion is slow-
ing the nation’s roads and hindering pick-up and
delivery activities for all modes of transport. Urban
encroachment is hindering planning approvals and
development of necessary infrastructure, including:
railways, roads, airports, port expansions and inter-
modal facilities.
The Australian Logistics Council’s focus is to improve
the productivity, efficiency and safety of the freight
logistics industry.