Freight Transportation Regulation and Challenges

This essay analyzes the challenges posed by changing regulations in the freight transportation sector, including prescriptive vehicle standards and deficiencies in the National Transport Authority in Australia. The essay highlights the need for duplication of administrative processes to cope with changing regulations.

Running head: FREIGHT TRANSPORTATION REGULATION AND CHALLENGES
Freight Transportation Regulation and Challenges
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1FREIGHT TRANSPORT REGULATION AND CHALLENGES
Abstract
The primary aim of this essay is to discuss about the challenges that the changing regulations
pose in the sector of freight transportation. It elaborates on the challenges pertaining to
prescriptive vehicle standard and the deficiencies in relation to National Transport Authority
within Australia. The essay highlights how the duplication of different administrative process
can help the transportation sector in coping with changing regulations.

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Thesis Statement: Changing regulations in relation to freight transportation poses a
challenge to freight transportation
1. Introduction
Freight transportation is instrumental in playing a significant role pertaining to supply
chain as it helps in the process of delivering of products along with services. The changes in
the global platform has huge impact on the arena of logistics environment. Proper
management of that of freight transportation has become imperative in the present age.
Logistics services helps in supporting the movement of that of materials from inputs with the
help of production to that of the consumers. It comprises of the physical activities like that of
transport along with that of non-physical activity like that of supply chain design. This essay
analyses how the changing regulations pertaining to freight regulation poses to be a challenge
for that of current freight transportation.
2. Transport and Freight Regulations
2.1 Direct Government Regulation
The current regulatory approach across Australia makes use of direct government
regulation with the help of prescriptive tools within the sector of road freight. The rules that
apply to vehicles and they have different kinds of aims like safety along with that of asset
protection. According to Hitchins, Castor and Freer (2015), the current methods pertaining to
National Transport Commission (NTC) act as direct method pertaining to regulation. Direct
government regulation can help in providing high level of that of control by making use of
prescriptive methods. Direct government regulation will not need much from the industry and
industry is supposed to abide by a standard set. The pricing in relation to road access is at the
present age determined by Australian Transport Council (ATC) that follows the
recommendations of that of NTC. The charges are on the basis of average of the road

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expenditure of the last three years. The charging instruments are that of registration charge
along with that of fuel charge. The registration charge is paid to the Territory treasures and
the fuel charge is paid to that of Commonwealth. It is paid by taking recourse to diesel excise.
NTC is reviewing the pricing policy by the help of fourth pricing determination. It has been
stated by SteadieSeifi et al. (2014) that the current pricing tools along with regulations can
only help in providing partial solutions as the road infrastructure is neither costed nor is it
priced on that of a comparative basis. There exist no linkage between that of pricing and that
of the supply of infrastructure. The dearth of that of direct pricing system suggests that the
road managers does not have much incentive to supply high productivity vehicles.
2.2 Challenges in relation to prescriptive vehicle standard
According to Ross et al. (2015), current prescriptive process pertaining to heavy
vehicles occurs with the help of Australian Design Rules. This process is dependent on
prescriptive standards that is combined with that of performance standard. The prescriptive
standards are rigid in terms of definition. They can be applied to the generic type of the
vehicles. The industry is continuously facing the issue of technology change along with that
of high variable customer need. The road infrastructure is not at all homogeneous. It has been
stated by Alexander and Merkert (2017) that the prescriptive vehicle standard result in
different kinds of standards that does not allow maximum productivity. They have been
designed for the protection of critical points pertaining to infrastructure. The prescriptive
standards act as the proxies in relation to safety along with that of asset protection outcome.
They help in providing clarity within the sophisticated industry. They may help in the process
of effective enforcement but they are based on poor understanding pertaining to relationship
between that of performance standard and that of desired outcome. According to McFallan
and Higgins (2016) there are issues that involve progression pertaining to standard
accreditation along with that of harmonisation. The operations within that of prescriptive

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framework ‘as of right’ can be carried out till a breach of standard is brought out with the
help of an enforcement agency. It can be said that there are consistency in relation to the rules
that apply that provide for seamless operation in between the state borders. It has been stated
by Ghaderi, Fei and Cahoon (2015), that the reduced confidence can lower the incentives in
relation to innovative solutions. It can be stated that beyond that of ‘as of right’ framework
there will be less consistency along with that of limited mutual recognition. Dearth of the
factor of consistency along with that of mutual recognition can pose restraints.
2.3 Deficiencies in process of NTC
According to Liang et al. (2016), the NTC has stated that key weakness in relation to
land transport regulation are related to that of process as compared to that of specific reforms.
The weaknesses that exist in relation to regulations is on obtaining agreement on that of a
reform that risk a low common denominator outcome. There are inconsistencies pertaining to
implementation that can prove to be a hurdle in relation to regulations. The willingness of
making joint decisions can help in the automatic recognition of processes. NTC model mainly
aims at obliging to the jurisdictions but it does not have any power other than that of
influence. It does not have much power so that it can ensure the approving of proposals. It
has been stated by Bandeira et al. (2018) that the NTC can only report regarding any
divergence to that of ATC and the ATC can take suitable action that can help in addressing
the inconsistencies. This acts as a limitation in relation to the current reform process.
According to Cui, Dodson and Hall (2015), the timing that is required for the implementation
of national reforms can vary on account of difficulty in ensuring passage with the help of
Territory parliaments. Local implementation can take a long time from six months to that of
several years. The NTC agrees to the fact that divergence in relation to national model can
help in retaining consistency within the arena of jurisdiction. National penalties can be
proposed like that of model only but local variations can exist. It has been stated by Monczka

5FREIGHT TRANSPORT REGULATION AND CHALLENGES
et al. (2015) that the elements pertaining to enforcement reform can be designated as
‘desirable’ as compared to that of ‘essential’.
Difficulties in relation to consistency of the implementation can give rise to
considerable frustration for NTC along with that of road transport industry of Australia. It is
found that even when the reforms are implemented on consistent basis, the regulatory burden
can prove to be onerous. It will require administrative process and other decisions that should
be duplicated across that of jurisdictions (Silvestre 2015). This can cause to be an issue for
the road vehicles along with that of the rail freight sector. Efficient process of decision
making can improve the consistency of implementation.
Growth in that of the rail sector within Australia is dependent upon the factor of the
government prioritising that of infrastructure investment. North-south rail corridor can be
said to be uncompetitive on account of the factor of poor reliability. 20 % of the overall
goods is transported with the help of rail specially between that of Melbourne along with that
of Sydney (Hitchins, Castor and Freer 2015). The operators face challenges pertaining to the
funding of infrastructure that can help in meeting the growth pertaining to rail freight. The
GFC has resulted in distressed state of the shipping industry. A large number of vehicles has
resulted in a competitive market that has a bearing on the margins of the operators. Market
challenge has been created because the wages have forced the operators to register the
vehicles in that of overseas jurisdictions (Silvestre 2015). The management of the industrial
relations can pose to be a challenge for the operators. An accident that took place in Sydney
in October 2013 involved that of Cootes fuel tanker. It clearly showed that safety concern can
have effect on that of the operator of the revenue. The large operators can defray the
compliance cost across that of an asset pool. The small operators face the compliance cost
and they do not have the ability of recovering them with the help of higher rates.

6FREIGHT TRANSPORT REGULATION AND CHALLENGES
3. Conclusion:
The pricing tools of the present in Australia can help in the process of providing of
solutions on a basis that is comparative. It can be stated that there does not exist any kind of
relation between pricing and that of supply of infrastructure. Lack of direct pricing system
means that the managers of the road cannot provide incentive to the high productivity
vehicles. The different regulations and standards that exist does not facilitate the process of
maximum productivity. The regulations have been designed for protecting critical points in
relation to infrastructure. The primary aim of NTC is abiding by the jurisdictions and it only
has influence. It cannot approve the different kinds of proposals. Divergence pertaining to
ATC can be reported by NTC and suitable measures taken by ATC can address different
kinds of inconsistencies. The difficulties in association with implementation can cause
frustration for the NTC. It can be said that even when the reforms are implemented
consistently but the regulatory burden can be burdensome. Administrative process along with
that of other decisions being duplicated through the jurisdictions can help in dealing with the
changing regulations.
4. Recommendations
The conditions pertaining to competition along with pricing of the freight forwarders
should be regulated that can help in dealing with the changing regulations. Common carrier
obligation in relation to railways should not be practiced in freight transportation. The
attainment of economic efficiency will need both regulation along with competition which
can help in removing some of the barriers. The non-economic regulation in relation to road
transport should be confined to the absolute minimum to overcome of the challenges
pertaining to freight transportation.

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References:
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Evaluating air traffic markets with gravity modelling. Journal of Air Transport
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Bandeira, R.A., D'Agosto, M.A., Ribeiro, S.K., Bandeira, A.P. and Goes, G.V., 2018. A
fuzzy multi-criteria model for evaluating sustainable urban freight transportation
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overview. Transport Reviews, 35(5), pp.583-598.
Ghaderi, H., Fei, J. and Cahoon, S., 2015. The impediments to the competitiveness of the rail
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Ross, C.L., Amekudzi, A.A., Guhathakurta, S. and Welch, T.F., 2015. Freight Impacts on
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