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CILTA ESTABLISHES FUTURE LEADERS FORUM

The Chartered Institute of Logistics and Transport has established The Future Leaders Forum focusing on the development of career opportunities for young people across the industry.

A group of the Institute’s younger members met in Melbourne on Saturday, 22nd July deciding that the “Young Professional” concept already in place should be broadened to include all young people seeking the opportunity for career development in the transport and logistics (T&L) industry.

The group recognized the career opportunities for younger people, particularly with the projected growth in freight logistics over the next decade and the need to replace the experience of people expected to exit the industry in the next few years.

The group consisted of representatives from across CILTA:

Western Australia – Kerry Job (Chair)

Victoria – Heidi Law and Sam Walker

NSW – Aaron Shelley

Queensland – Beth Petersen

South Australia – Evan Knapp

Northern NSW – James Griffiths

The group also included Jessica Brocklebank of the Australian Logistics Council and Leah Davis of Mack Trucks Australia.

The Future Leaders Forum, involving people under the age of 35 years, will focus on:

·  Professional Development

·  Networking and Activities

·  Communications

·  Membership Growth

·  Creating a Positive Image for the T&L industry

·  National Representation of the Future Leadership Forum

The Future Leaders Forum will be represented on the National Council of CILTA and will play a key role in the forthcoming CILTA/LAA Supply Chain Conference in Perth on 16th and 17th November this year.

Enquiries concerning the Future Leaders Forum should be directed to Kerry Job on 0400 240 831 or

In This Issue:

·  CILTA Activities

·  National News

·  Statewide Events

·  International News

·  Conferences

CILTA joins the Executive of the Australian Logistics Council

Ivan Backman Chairman of ALC has invited CILTA to join the Executive of the Council.

The Institute has been an active member of ALC for some time however the new role involves the Institute’s closer involvement with the strategic development of the Transport and Logistics Industry.

Mr Backman said that the invitation was a result of the contribution that the Institute had made to date and the preparedness of the Institute to be involved.

CILTA Chairs Australian Rail Summit

The Australian Rail Summit which was held in Sydney on 18/19 July was a successful event in that it brought a range of interested people together to understand the future options in the Australian Rail Industry.

The first session included the Hon. John Watkins MP, Deputy Premier and Minister for Transport NSW as Keynote Speaker. The Minister provided a firm outline of the future opportunities for rail networks in New South Wales.

Bob Scheuber, Chief Executive Officer of Queensland Rail, followed with an outline of the new direction that Queensland Rail was taking in the development of the rail system in Australia, and of the part QR was taking in assisting railways overseas.

The first day’s session also included Don Telford, Chief Executive Officer of Pacific National, who talked about developing a successful interstate rail freight operation. Mr. Telford was followed by Brian Nye, Chief Executive Officer of the Australasian Railway Association who presented a closer look at the review of Australia’s freight transport tasks.

The second day was chaired by the Executive Director of CILTA who introduced the Hon. Warren Truss, Deputy Leader of the Nationals and Minister for Transport and Regional Services. Minister Truss outlined the Federal Government’s strategy for developing an improved rail network across Australia.

Senator Kerry O’Brien, Shadow Minister for Transport, presented the Opposition’s perspective on freight and passenger infrastructure development.

Overall, the Summit helped to bring a closer knowledge of what was happening in the rail industry. It is also fair to say that the Rail Summit, in its 6th year, has helped to provide a common understanding of the opportunities for an improved and developed rail system in Australia.

CILTA/LAA National Awards

The Chartered Institute of Logistics and Transport and the Logistics Association of Australia (LAA) will partner the Australian Supply Chain and Logistics Awards to be held in Perth on 17th November 2006.

The partnership of CILTA and LAA, the two pre-eminent associations representing professionals working in the Supply Chain and Logistics industry makes these proud and historic Awards the most prestigious and influential in the industry.

The Awards will be conducted at the Burswood Resort in conjunction with Supply Chain WA 2006. Supply Chain WA 2006 is a major national event incorporating a two day conference and exhibition.

Nominations papers for the National Awards will be available soon with the nomination closure date being 31st August.

Full details of Supply Chain WA 2006 can be found at http://www.keynotewa.com/supplychain-06/index.html. Included at this site are full details of Call for Papers, Registration of Interest and Sponsorship and Trade Opportunities.

The Institute is seeking Sponsors for the event with details of the Sponsorship Package available on the web site mentioned in the previous paragraph.

All enquiries should be directed to the National Office.

TOLL Holdings Tips $1.5b from Asset Sales

Mr. Paul Little, Toll Chief Executive announced TOLL Holdings expects to raise as much as $1.5b from the compulsory sale of assets following its $6.2 billion purchase of rival transport firm Patrick. Among the assets it must offload to satisfy the ACCC is a 50% share in rail freight operator Pacific National, Patrick’s Bass Strait shipping business, Patrick’s Tasmanian freight forwarding business and either Patrick’s or Toll’s vehicle transport business.

Toll announced it now holds 100% of equity securities in Patrick, following the completion of the compulsory acquisition of its shares on July 1.

Mr. Little also reaffirmed Toll’s $492 million net profit target for 2007.

Linfox and K&S Corporation Likely Buyers for the Purchase of FCL

Trucking companies Linfox and K&S Corporation appear to be the most likely buyers of transport firm FCL in the wake of the Toll-Patrick deal, according to media reports. Also making the short list of bidders for FCL were Queensland Rail and SCT Logistics.

FCL transports more than a million tonnes of freight per annum by road, rail and sea and has 13 branches covering all mainland capital cities. The firm had been the subject of a Patrick takeover bid prior to Toll’s successful offer to Patrick shareholders.

Mack Releases New LT Feature

Mack has released a new option for its Super-Liner LT truck that it says will lower tare weights and cut costs for its users.

Mack product planning and fulfillment General Manger, Gary Richards said the tare weight saving was more than 150kg.

In an industry where size matters, LT operators can now transport larger loads than ever before.

Transport and Logistics key to Australia’s Economic Growth

The Federal Transport Minister Warren Truss told the AusIntermodal Conference recently that the Transport and Logistics industry was a key sector in the economic growth of Australia and as such careful planning was needed.

Mr. Truss told transport executives at the Melbourne event that Australia needed to continue to reform and improve the transport sector if it is to handle the growing freight task in the next 20 years.

Mr. Truss told delegates that transport reform was a key part of the Council of Australian Governments agenda. He said “Australian and state governments are embarking on wide-ranging reforms that will help ensure we get the most our of our transport infrastructure and logistics systems.”

Perth Airport to be a Transport and Logistics Hub

Perth Airport will be the site for the development of a Coles Myer Limited Distribution Centre because of its extensive transport networks, the Australian Government announced recently.

Federal Transport Minister Warren Truss approved plans for the development by Western Airports Corporation.

Mr. Truss said the site offered the ability to service commercial developments through the extensive transport networks which accessed the site. “The development will be located within the airport and have access to two major road and rail networks which link the Perth Metropolitan region”, Mr. Truss said.

New Freight Link Proposed for Melbourne

Melbourne City Council has proposed a new east-west road freight link and outer suburban rail terminals as ways of improving freight efficiency in the city over the next 15 years.

The proposal was included in the Council’s Plan “Moving People and Freight Strategy” which was released last week.

The Council said the east-west link could maximize the attractiveness and competitiveness of Melbourne as the freight and logistics hub of south-east Australia.

The plan is expected to relieve road congestion in the inner north of the city and allow surface roads to be reclassified to enable easier movement by local traffic, walking, cycling and public transport.

The Council also supported the development of shuttle and freight-only lines, provided impacts on existing residents, businesses and river traffic was minimized.

VTA Technology Study Findings Due

The Victorian Transport Association is about to release the findings of its report into the use of technology in the transport industry.

The study was completed late last year and measures current patterns of technology use in the transport sector while identifying trends towards future improvement.

More information can be obtained from the VTA website at www.vta.com.au.

Western Australian Group Strikes Deal with China

Western Australian firm Advanced Engine Components has signed a deal with China’s Dongfeng Nanchong Automobile to develop natural gas engines for small, medium and heavy-duty trucks and buses.

Dongfeng is a subsidiary of China’s third-largest automotive manufacturer Dongfeng Motor Group and is one of the largest producers of natural gas engines for the Chinese market.

The company expects to complete a new production facility this year with a production capacity of 30,000 vehicles and 20,000 natural gas engines per year. It expects to produce 4,000-5,000 natural gas engines in the 2006 calendar year.

ACE has been selected to jointly achieve this goal through its Natural Gas Vehicle System (NGVS) technology.

ACE now has production arrangements with three of the five largest heavy-duty engine manufacturers in China, accounting for the majority of diesel engines and trucks sold in the country.

QR Educates on Crossing Dangers

Queensland Rail will hold a series of educational and media events to help raise public awareness of rail safety as part of the National Rail Safety Week being held this week.

QR Chief Executive Officer Bob Scheuber said the primary aim of the campaign, organized by the Australasian Rail Association, was to raise awareness and understanding of road user and pedestrian behaviour at level crossings and, as a result, reduce the number of collision that occurred at these sites.

Queensland records an average of 19 collisions each year involving motorists or pedestrians at level crossings. Half of these occur at protected crossings with flashing lights, boom gates or both.

The state has the highest number of level crossings in Australia with 3927.

Qantas to Expand Freight Operations

A strategic freight alliance between Qantas and Queensland Rail could be approaching as the airline moves to offset a fall in it passenger earnings.

Qantas and government-owned Queensland Rail have actively pursued merger and acquisition opportunities since Toll’s $6.2 billion takeover of Patrick created a new colossus in the transport and logistics section.

Media reports yesterday said that Qantas had signaled the company’s intentions to expand its freight presence, primarily through its air operations. However, Qantas has taken a battering in the passenger market due to the effect of high fuel prices and relatively low profit margins. Qantas indicated last month that its pre-tax profit would be about 55% lower than last year.

The airline last month denied it had plans to buy family-owned trucking business Linfox but has had several discussions with Queensland Rail about possible alliances.

QR Calls for Mass Distance Charging

Queensland Rail has called for the introduction of mass distance charging for transporters using the Auslink road network in its submission to the Productivity Review Commission of road and rail infrastructure pricing.

Submissions from rail groups to the inquiry have argued that road transporters get a more favourable deal on infrastructure pricing relative to rail – thus enjoying the bulk of Australia’s freight consignments as a result.

QR’s submission said mass distance charging – where transporters pay for the roads they use according to how much pressure they exert over how long a distance – was an essential first step in minimizing the economic costs of the current imbalanced pricing arrangements. The submission called for such and arrangement to concentrate on major freight corridors where competition between rail and road existed, but have the potential to be extended to other parts of the road network in the future.

New Zealand Freight to Double in 15 Years

We have been continually reminded that Australia’s freight task will double by 2020, however, New Zealand has a similar prediction with freight volumes in that country expected to double during the next 15 years.

The New Zealand Herald recently reported that a report commissioned by a lobby group – The Road Transport Forum – predicted road rather than rail transport would pick up the majority of the freight increase.

Road was tipped to carry about 80% of NZ’s freight – or 184 million tonnes per annum by 2020.

Road Transport Forum Chief Executive Tony Friedlander said that rail had the potential to play an increased role in the handling of freight but offered no substitute for an efficient, reliable and safe road transport service.

Toll NZ rejected this view and said rail only needed long-term investment to handle freight increases.

New Software Package for Supply Chain

US Software firm RedPrairie has released a new Transportation Management Solutions package for the supply chain industry.

The company said the new package, DLx Transportation, allowed for significantly improved user productivity for those involved in the planning, optimization and execution of product shipment delivery.

“The new Global Trade Management option provides improved international trade logistics capabilities

and the Fleet Management option optimizes street routing for managing fleet-based same day delivery services”, RedPrairie said.