Logistics sector set to have its say on productivity

PROTECTION of industrial land and contentious terminal access charges are just some of the topics likely to be raised by the logistics and ports sectors as part of the Senate Select Committee on Productivity in Australia.

The committee was announced late last year and is to be chaired by Liberal MP Andrew Bragg, with Labor’s Karen Grogan as deputy chair.

It is expected to hand down its report in September.

The committee terms of reference allow for examination of several key areas including the history of productivity growth, objectives for a multi-decade national settlement strategy and the current position and opportunities to gain productivity growth.

Ports Australia confirmed it was in consultation with member about their submission.

Chief executive Mike Gallacher said parliamentary bipartisanship would be crucial in the productivity response.

“Given the capital-intensive nature of port infrastructure, long-term investment depends on stable, nationally aligned regulatory frameworks providing industry with certainty across electoral cycles.

“That only happens when both sides commit,” Mr Gallacher said.

“Protection of industrial land is critical for supply chain productivity. All levels of government should have a coordinated planning approach that protects key industrial precincts, freight hubs and transport corridors.”

Mr Gallacher said they would like to see support for future in-demand skills in the areas of renewables and automation.

“This will play a key role in productivity as ports head towards more sustainable and digitised operations,” he said.

IFCBAA chief executive Scott Carson confirmed they would be lodging a submission, building on their "earlier contributions to the Federal Government led Productivity roundtables that were facilitated last year".

"Our focus remains on practical, trade-facing reforms that lift productivity through better use of data, digital systems and streamlined border processes, rather than adding complexity or cost," Mr Carson said.

"We continue to advocate for measures such as a genuine single window, advanced cargo reporting and stronger digital identity frameworks, which we believe can deliver measurable productivity gains across the supply chain while maintaining regulatory integrity.

"The federal government must focus on productivity in international trade as a core objective of this review."

Mr Carson said IFCBAA continued to advocate for smarter use of data and digital systems, not adding further regulatory complexity.

 "Inefficiencies and lack of competition at ports and airports continue to act as a drag on the entire supply chain, driving up costs for exporters, importers and ultimately consumers," he said.

 "More complete and accurate cargo data, provided earlier in the supply chain, would allow government to target risk more effectively whilst reducing delays and uncertainty for compliant traders."

Freight and Trade Alliance director Paul Zalai said the ‘big ticket’ issues would be the need for regulation to rein in spiralling terminal access charges imposed by stevedores and empty container parks, and the need to repeal Part X of the Competition and Consumer Act.

“[Part X] currently provides foreign-owned shipping lines with exemptions from Australian competition law—protection that is no longer warranted in today’s trade environment,” Mr Zalai said.

“Recent delays caused by border holds have again highlighted the unfair practice of import container detention administered by shipping lines.

“While we understand the need for disciplines to return containers within contracted timeframes, shipping lines need to be reasonable and give extensions when the cause of the delay is outside of the control of the cargo owner or freight forwarder.”

Mr Zalai said they would also highlight member concerns that Australia’s freight infrastructure was failing to keep pace with commercial reality.

“Structural weaknesses in the supply chain, including reliance on a small number of carriers, unreliable schedules, and equipment shortages, continue to undermine resilience and trade competitiveness,” he said.

Mr Zalai said major service providers operated with little accountability, shifting risk and cost onto shippers without meaningful consequence.

“We will also suggest exploring the establishment of an independent regulatory mechanism to address these imbalances and provide accessible dispute resolution,” he said.