The Victorian Transport Association (VTA) has unveiled alarming data; revealing that transport costs rose by +3.89 percent in the past year. “Our analysis shows that component transport costs continue to increase, some more than others,” says VTA CEO Philip Lovel AM.
“Obviously, labour is a key increase adding 2.43 percent to the Index. Rising labour costs will continue to put pressure on overall transport costs in the future,” he said. “Interest rates and vehicle capital costs also added another 0.75 percent, while fuel cost increases added another 0.36 percent”.
In addition, increasing administration outlay would reflect the added costs of transport regulatory compliance and other administrative functions. “We urge all of our members, and the transport industry generally, to seek full cost recovery,” Mr Lovel said. “It is vital that they act immediately.”
As heavy vehicle registration charges continue to increase annually, margins are quickly disappearing, while the diesel fuel tax credit available to on-road transport operators is decreasing. The on-road diesel fuel tax credit was 18.51 cents per litre (cpl) in 2008, and dropped back to 15.543 cpl in 2010 – a minus of 16 percent.
Mr. Lovel said, “customers must accept cost increases being passed on, or they will find more transport companies disappearing or reducing services.
“The financial health of the transport sector is at stake,” Mr. Lovel concluded.
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