Alternative Modes of Operation and Future Projection of Freight Modes in Australia - Assignment Example

Institution : xxxxxxxxxxx Title : xxxxxxxxxxx Tutor : xxxxxxxxxxx Course : xxxxxxxxxxx @2015 АLTЕRNАTIVЕ МОDЕS ОF ОРЕRАTIОN АND FUTURЕ РRОJЕСTIОN ОF FRЕIGHT MОDЕS IN АUSTRАLIА According to (BITRE 2014), domestic freights summed to a total of 600 billion tonnes kilometers between 2011 and 2012. In this regard, an average every citizen moved freight of about 2600 tonnes kilometer. While out of the total domestic freight rail accounted for about 49 percent, road transport accounted for about 35 percent. Sea and waterways freight, on the other hand, accounted for about 17 percent out of the total while air accounted for way below 0.01 percent (BITRE 2014; BROOKS 2011, pp 2). Example 1 Although road transport is the main mode of transport, statistics shows that rail accounts for the most bulk freight per kilometre. In the major cities, for instance, road freight accounted for about a fifth of the total Australian road goods during 2011 and 2012 (BITRE 2014). Trucks act as the most dominant examples road transport even at a glance at the Australian roads. Some of the trucks are owned by individual entrepreneurs while companies or organizations own more than one truck. The trucks offer freight services to retail and wholesale traders who apparently form the largest share of road transport sector. Manufacturing, construction, as well as agriculture and mining sectors, seek services from the road freight service providers like the trucks. Most customers use trucks more because of time and speed. For instance, most retailer business like supermarkets utilizes trucks that travel less than 100 kilometres. Customers equally like trucks in the delivery of goods as they offer personalized services including door to door delivery. Further, entrepreneurs go for trucks for easy transportation of perishable goods like fruits, vegetables and grocery. Compared to railway transportation, road transportation additionally offers a guarantee in the transportation of refrigerated and dangerous goods, for instance, the LPG and hence mostly utilized by both retailers and wholesalers. Heavy vehicles mainly involved in roads freight are way above 95 percent of the Australian road goods transport. Light vehicles, on the other hand, account for a smaller percentage but account for over 92 percent road use. The innovation of heavy trucks such as B-doubles has boosted the mode consequently increasing efficiency and returns of longer distances freights. According to researchers, the introduction of B doubles have facilitated road freight to attain a considerable competitive status as rail transport over longer distances freights for instance Melbourne-Brisbane (IPA 2000, pp. 14). GKR Transport and Air Road companies among others offer transport and logistics services to road freight customers in Australia and mostly utilize trucks in service delivery. Example two Rail transport has become attractive in internal freights where it accounts more percentage in volume than road freight. Consumers mostly seek rail transport for bulk freights such agricultural products as well as mining commodities (ARA 2013). Transportation of bulk goods in long distances requires the use of a lot of fuel and cost. In this regard, railway services become the most convenient compared to other freight modes like road and air freight. Compared to railway transportation, trucks have lower carrying capacity and high fuel consumption meaning more cost particularly because of the many trips due to the bulk freight. In Australia, rail transport is mostly used because of its safety and cheap cost compared to road transport. Equally, it is most sorts because of its capacity to carry bulk freight over longer distances. In most cases, the main user of rail freight mode includes manufacturers as well as farmers and miners who transport their products locally to other companies and the ports for exportation. Equally, manufacturing companies may move their imported bulk goods from the ports to their companies hence facilitating in the production process. Railway lines in Australia concentrate on mega mining industries and mega agricultural crop firms hence aiding in the transportation of the products. The sugar industry in Queensland, for instance, utilizes rail freight services in the utilization of both raw products and end products. Additionally, rail networks serve the mega mining industry in Queensland hence facilitating mega profits compared to the use of road freight services. The Australian government in partnership with private sector operates the railway freight services. In Queensland State for instance Queensland Rail (Australian government owned), Australian Rail Track Corporation as well as Arizona private company manage railway freight services. Example 3 Other freight modes in Australia include pipeline and conveyors. They supply of portable drinking water as well as well as sewerage services are the most evident utilization of this mode. Indeed, the vast majority of Australian gets supplies of both drinking water and sewer services via pipelines. Equally, this mode aids the movement of other products such oil and gas that would have otherwise could be transported using other means like road rail or sea. Further, pipelines become responsible for transportation of slurry, cable conduits and power line. Conveyers, on the other hand, have become very instrumental nearby plants for instance in the transportation of coal and minerals transported to processing points. Obviously, such commodities could have been transported by road or rail modes but conveyor method is much more efficient and convenient (BITRE 2014 pp.7). Sustainability is both an international goal and the Australian people commit themselves to it. The diversification of the pipelines in different states aids in the development of a more sustainable world since the pipelines compared to other transportation means reduces the level of fuel consumption. Consequently, the levels of greenhouse gases are highly reduced compared to the use of road and rail freight services. Equally, pipeline and conveyers reduce noise pollution hence becoming a more sustainable solution to social impact. Cost effective systems in Australia facilitate the development of fast growing economy hence raising the living standards of Australian. In this regard, pipelines that cost effectives compared to other freight modes facilitated sustainable achievement of this goal (APIA 2013). Example 4 Between the years 2010 and 2030 Australian domestic freight is expected to be on an increment status where it was projected to increase by 80 percent according to BITRE (2014, pp. 8). Indeed, the mass moved by ports in 2010 are estimated to increase 2.5 times, 250 percent increment more precisely. If breaking the whole domestic freight projections, road transport freight is expected to increase by 180 percent by 2030 and 190 percent for the rail total freight during the same period. To realize the projected dream heavy vehicle productivity need to be increased, and more efficient fuels used in order reduce greenhouse gases. Road infrastructure is expected to develop hence restricting trucks to some roads and hence easing congestions on other roads more sustainably. Example 5 In the strategic plan to achieve the projected dream, the Australian government intends to undertake several infrastructure milestones such as the Melbourne-Brisbane inland rail line and Moorebank Intermodal Freight Terminal among others. Such development will ease traffic congestions at the road transport since more freight services seeking customers will turn to rail mode and another mode that are equally developed. Consequently, development of railway infrastructure will reduce the number of trucks on the roads which would otherwise be creating congestions hence solving the problem sustainably. Example 6 Development of other modes for instance conveyers, pipelines and sea freights will further reduce congestions on the roads sustainably. BITRE (2014, pp. 8). Indeed, the Austrian People seek to build more pipelines, for instance, private-public partnership as well as privatization of some of the current pipelines as well as developing other new ones. As BITRE (2014, pp. 8) argues the gradual progression in GDP and population growth will facilitate the gross projections of pipelines. Equally, the growth of Asia particularly economic growth will equally facilitate the future projection since Australia will increase its export of raw material and consumer products. Reference Australasian Railway Association 2013, Australian Rail Industry Report 2011–12, Report prepared for the ARA by the Apelbaum Consulting Group, ARA Ltd, Canberra. URL: www.ara.net.au/publications. BROOKS, M. R. (2011). Understanding mode choice decisions: a study of Australian freight shippers. Sydney, Institute of Transport and Logistics Studies, the Australian Key Centre in Transport and Logistics Management, the University of Sydney. Bureau of Infrastructure, Transport and Regional Economics May 2014 , Freightline 1 – Australian freight transport overview, View sep 17 2015, pp. 1-10, http://investment.infrastructure.gov.au/funding/projects/rail.aspx Infrastructure Partnership Australia 2000, Meeting the 2050 Freight Challenge, pp 1-74 Ports Australia 2012, Trade Statistics for 2011–12, Ports Australia. URL: www.portsaustralia.com.au/tradestats, Accessed: March 2013. Wellman K, & Spiller M, 2012, Urban Infrastructure: Finance and Management. John Wiley & Sons The Australian Pipeline Industry Association Ltd 2013, Code of Environmental Practice, pp 1- 240 Read More