DISCUSSION DOCUMENT ONLY

Managing Supply Chain Impacts for Containerised Freight

While the State Government has come into office with a commitment to develop new port facilities in the Outer Harbour at Fremantle, there remains a need to manage truck impacts on the community associated with the current container supply chain across the interim perioduntil containers are seen in the Outer Harbour.

It is unlikely that there is a single solution to the problem of container truck impacts. Rather, there is probably a wide range of initiatives that could assist, some of which relate directly to operations at the Port and others whose focus is elsewhere. The challenge is a supply chain issue rather than a port issue.

The initiatives might include:

  1. progressing selective road network upgrades to address particular congestion points;
  2. transferring freight from road to rail;
  3. development of inland intermodal facilities as hub and spoke operations;
  4. introducing new technology to enable productivity and safety improvements, together with benefits to the environment and community amenity; and
  5. identifying and addressing particular inefficiencies that manifest at the Port such as empty running and day time operations.

There may be other initiatives that should also be considered and the Government’s commitment to Bunbury Port as part of the long-term Fremantle solution is relevant in that respect.

The identified initiatives are considered on the following pages in an attempt to set the context for a broad top-down discussion with key stakeholders in industry and Government. It should be noted that the achievement of these initiatives will be made the more likely if the timing of Outer Harbour developments is better understood by industry. In that respect, the Government should be urged to progress related planning with urgency.

Managing Supply Chain Impacts for Containerised Freight

1)Road Network Upgrades

Objective

  • address particular congestion points for container trucks through selective upgrades across the road network

Elements

  • High Street Fremantle upgrade (including High Street/Stirling Highway corner)
  • Other port truck congestion points (including Leach Highway/Stock Road interchange, Kwinana Freeway)

Status

  • High Street Fremantle upgrading approved with funding in place. Development options being assessed
  • Main Roads WA yet to model other congestion points on network

Timing

  • Medium term. Construction High Street upgrade to commence first half 2019

Actions

  • Seek industry views on other key port truck congestion points on the road network
  • Urge Main Roads WA to model congestion points
  • Call for High Street works to be brought forward from current timing because of their critical nature to industry and community
  • Main Roads WA to analyse current intersection timing performance
  • Consider contingency planning to keep freight moving when traffic incidents occur
  • Examine non-infrastructural traffic management solutions such as lane configuration/markings

Input

  • Main Roads WA
  • WA Road Transport Association
  • Port Operations Task Force
  • Community

Managing Supply Chain Impacts for Containerised Freight

2)Freight Rail as an Alternative to Road Transport

Objective

  • A greater proportion ofcontainer trade moving by rail to/from Inner Harbour

Elements

  • Protection of freight rail corridor in both developed and undeveloped suburbs through use of land use planning policy and operational improvements
  • Costs in freight rail supply chain to Port
  • Infrastructure constraints such as inland intermodal facilities
  • Continued subsidy support of Port freight rail service
  • Lack of commercial incentives for industry to use rail
  • Local community impacts

Status

  • Relevant State Planning Policy is being reviewed
  • Alternative planning approach at local government level being developed
  • Working with rail industry to find operational solutions to noise

Timing

  • Short-medium term. Planning initiatives to resolve during 2017-18
  • Short-medium term. Operational solutions identified during 2017-18

Actions

  • Continue to support corridor protection policy change at State and local government level
  • Progress operational solutions to freight rail noise
  • Identify costs across freight rail supply chain
  • Examine infrastructure constraints across freight rail supply chain
  • Implement new subsidy arrangements for service
  • Model commercial influences impacting on use of freight rail service
  • Suggest operational/commercial initiatives to encourage greater use of rail service

Input

  • Above rail operators (WATCO, Aurizon, Pacific National, SCT)
  • Below rail owners/leaseholders (Brookfield Rail, PTA)
  • Fremantle Ports
  • Departments of Planning and Transport
  • Local government authorities
  • Community

Managing Supply Chain Impacts for Containerised Freight

3)Intermodal Development

Objective:

  • Enhance efficiency and potential of freight rail service and intermodal facilities

Elements

  • Capacity issue at present Forrestfield terminal
  • Broader intermodal strategy that takes account of Outer Harbour needs

Status

  • Various options for increase in intermodal capacity under discussion
  • Broader strategy floated by industry, but yet to progress

Timing

  • Short-medium term. Solution to current intermodal capacity issue to resolve during 2017-18
  • Medium-long term. Broader strategy to be developed as rail volumes increase and Outer Harbour requirements are identified

Actions

  • Continue to support corridor protection policy change at State and local government level
  • Progress operational solutions to freight rail noise
  • Identify costs across freight rail supply chain
  • Examine infrastructure constraints across freight rail supply chain
  • Implement new subsidy arrangements for service
  • Model commercial influences impacting on use of freight rail service
  • Suggest operational/commercial initiatives to encourage greater use of rail service

Input

  • Intermodal operator
  • Above-rail operators
  • Below rail owners/leaseholders
  • Department of Transport
  • Fremantle Ports

Managing Supply Chain Impacts for Containerised Freight

4)New Technology and Automation

Objective

  • Encourage the take-up of rapidly emerging new truck technology in the interests of vehicle productivity, road safety, community benefits and environmental impacts

Elements

  • New technology initiatives and related applications across supply chain (such as traffic light priority for trucks at major intersections) are available
  • Road transport industry needs to introduce new technology in its own interests

Status

  • No formal Government position on accessing the benefits from new technology application across road network
  • Larger and more professional operators introducing new technology for their own commercial advantage
  • Some other operators unable or unwilling to upgrade fleet

Timing

  • Short term. Formal Government position could be in place in 2017-18

Actions

  • Main Roads WA to develop an understanding of technology potential across road network
  • Road transport industry to be incentivised towards technology take-up
  • A road transport accreditation scheme defining entry levels for work at Port (standards for vehicles/drivers) be considered
  • Examine use of smart transport initiatives (such as brokerage system for trucks as Uber has done for taxis) to improve productivity
  • Consider greater use of ITS solutions to optimise effectiveness of network

Input

  • Main Roads WA
  • WA Road Transport Association
  • Port Operations Task Force
  • Fremantle Ports

Managing Supply Chain Impacts for Containerised Freight

5)Road Transport Issues at Port

Objective

  • Contain growth in truck numbers at Port through addressing identified issues such as empty running and low level of after-hours operation

Elements

  • Considerable research conducted on issue by Fremantle Ports in recent years
  • Growing discussion by Government and industry
  • Research occurring on behavioural drivers (FLC/WARTA project)

Status

  • Issues understood but no broad strategy to address them

Timing

  • Short term. Strategy should be finalised and introduced in 2017-18

Actions

  • Minor adjustments to present system will not deliver sufficient benefits in required time-frame
  • New measures (such as incentive pricing, road transport accreditation) will be required
  • Consider relevant operational improvements available to stevedores if they had long term leases
  • Develop better understanding of motivators/incentives for behavioural change (FLC/WARTA project)
  • Examine means of introducing High Productivity Vehicles to Port in a manner not detrimental to freight rail service
  • Consider if Mass, Dimension and Load conformance can be improved to assist vehicle efficiency

Input

  • Port Operations Task Force
  • WA Road Transport Association
  • Fremantle Ports
  • Department of Transport
  • Main Roads WA