Fast-tracked national supply chain and freight review commences

A rapid-fire federal and state government inquiry to determine whether Australia’s freight and supply chain strategy remains fit-for-purpose has begun.

A rapid-fire federal and state government inquiry to determine whether Australia’s freight and supply chain strategy remains fit-for-purpose has begun.

Australia’s infrastructure and transport ministers agreed to fast-forward a scheduled five-year review of the National Freight and Supply Chain Strategy from 2024 in response to calls from farm and other industry leaders.

Federal Infrastructure and Transport Minister Catherine King said governments recognised that supply lines had suffered “unprecedented and compounding disruptions” over the past four years due to covid, extreme weather, geopolitical tensions and worker shortages.

The situation caused farm input price hikes and shortages, from energy to diesel and other fuels, fertiliser and chemicals, to fodder and seed, haulage and spare parts.

Minister for Infrastructure, Transport, Regional Development and Local Government Catherine King. Picture: Sam Ruttyn

ABARES estimated that the soaring input costs wiped nearly $6 billion from farm production values in 2022.

Many producers also lost market access after global shipping stalled and floods destroyed roads and cut rail lines.

The strategy, which includes more than 300 initiatives across three levels of government, has not been reviewed since its introduction in 2019.

Ms King said its aims were to increase the “safety, productivity and resilience” of supply chains and set the long-term agenda for government and industry across all freight modes.

She also said it would look for gaps in the strategy’s goals and identify immediate priorities for the next five-year period until it is again reviewed.

“The review is a critical opportunity to take stock of what has changed and what has been achieved since 2019,” she said.

“It will help build a more effective strategy that is better equipped to address Australia’s growing and changing freight task.”

National Farmers’ Federation president Fiona Simson on her Liverpool Plains property in New South Wales. Picture: John Elliott

National Farmers’ Federation president Fiona Simson welcomed the review and hoped it would lead to stronger supply chains that “are good for our farmers, are good for our economy and are good for Australian families struggling with the rise in cost of living”.

“Given Australia’s freight and logistics costs are some of the highest in the world, more efficient and resilient supply chains will give our farmers the edge to be more competitive in international markets and bring down costs locally,” she said.

Submissions can be made until September 29 and the government will hold a national roundtable later this month.

Review recommendations are scheduled to be delivered by the end of the year.