Australia’s transport industry is the lynchpin of our national economy, moving goods efficiently across the country and keeping supply chains intact.
However, we face increasing productivity challenges that threaten sustainability, profitability, and our ability to meet the demands of a growing economy.
While safety must always remain paramount, it is critical that industry leaders and policymakers strike the right balance between regulation and efficiency.
The ability of transport operators to meet delivery schedules, manage costs, and remain competitive depends on ensuring productivity is a national priority.
Transport operators are contending with growing regulatory burdens, compliance costs, and workforce shortages, all of which add pressure to their bottom line.
While safety regulations are essential to protecting workers and the public, they must be implemented in a way that does not unduly stifle operational efficiency.
A streamlined, outcomes-focused regulatory framework is needed — one that allows businesses to operate safely while also fostering innovation and improved productivity.
Overly prescriptive compliance requirements can result in inefficiencies that increase costs, delay freight movements, and hinder competitiveness.
The right policy mix must consider both safety and the practicalities of running an efficient freight operation, ensuring transport businesses can continue to deliver essential services without unnecessary impediments.
To truly support the transport industry, Victorian and Commonwealth policymakers must put productivity at the forefront of their transport strategies.
This means investing in road infrastructure, reducing red tape, and supporting technology adoption to optimise logistic operations.
Road congestion remains a significant productivity barrier, particularly in major metropolitan areas. Bottlenecks, outdated infrastructure, and inadequate freight corridors slow down deliveries, increase fuel consumption, and drive up costs.
Governments must prioritise investment in road upgrades, better traffic management systems, and new freight routes that allow goods to move efficiently. Increased funding for road maintenance, particularly in regional areas, is also essential to ensuring the reliability and safety of transport networks.
Furthermore, governments should recognise that transport businesses operate on tight margins. Policy settings must ensure that operators remain viable by addressing cost pressures such as fuel, insurance, and wages.
Sustainable businesses are crucial for a resilient supply chain that benefits all Australians.
The rising cost of doing business in the transport sector cannot simply be absorbed indefinitely — there must be an ongoing commitment to policies that promote fair competition, provide certainty, and allow operators to invest in new technology and fleet modernisation.
One of the greatest opportunities to improve productivity in the transport sector lies in the adoption of new technologies.
Telematics, automation, and artificial intelligence-driven logistics systems have the potential to increase efficiency, optimise route planning, and enhance safety outcomes.
Governments should play a proactive role in incentivising the uptake of these innovations through grants, subsidies, and regulatory frameworks that encourage technological advancement rather than hinder it.
The transport industry itself must also take proactive steps to drive efficiency.
This includes embracing new technologies, streamlining operations, and advocating for reforms that promote both safety and productivity.
Collaboration between industry and government will be key to achieving these objectives.
Training and upskilling initiatives are also vital ensuring that the workforce is equipped to handle emerging challenges and make the most of new systems and processes.
Transport productivity is not just an industry issue — it is a national economic imperative.
Ensuring that freight and logistics businesses can operate efficiently is critical to keeping supply chains moving, businesses successful, and consumers supplied with essential goods.
Without a well-functioning transport sector, the broader economy suffers through increased costs, supply shortages, and lost competitiveness.
We call on policymakers to make increasing productivity a key policy goal. A strong, competitive transport industry is in the national interest, and urgent action is needed to ensure its long-term viability.
Now is the time for government and industry to work together to deliver the reforms, investments, and innovations needed to secure a more productive future for transport and logistics in Australia.
Peter Anderson
CEO, VTA
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