Logistics Management in NSW: Issues and Potential Solutions

This study discusses the present logistical issues faced by the transport operators in New South Wales region and potential action plans to solve the existing problems. It also evaluates the role of the government in mitigating the issues.

Running head: LOGISTICS MANAGEMENT
Logistics management
Name of the Student
Name of the University
Author’s Note

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Table of Contents
Introduction..........................................................................................................................2
The problems in the existing network of logistics in NSW.................................................3
Potential action plans to solve the existing problems..........................................................7
Role of Government in mitigating the issues....................................................................10
Conclusion.........................................................................................................................14
References..........................................................................................................................15

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Introduction
The “NSW freight network” comprises of several networks of railways and roads which
acts as the key service component on the networks such as industrial facilities, terminals and
ports where the main activities associated to freight is generated. Some of the important
discussions of the study relates to the present logistical issues faced by the transport operators in
“New South Wales region”. The several extents of the problems are often considered with
present regimes taken by the government related to the current transport of freight system. The
main problem is offered by the state relates to areas of management of workforce in the logistics
industry. The discourse in the underlined section of the study have included the increase in
congestion and concerns for network routes in Port Botany. The main considerations for
addressing the present situation in NSW have been considered with opinions of market leaders in
this field. The contributing role of the chairman for companies such as “Qube Holdings Limited,
Asciano Limited and Brookfield Infrastructure” is worth mentioning in terms of dealing with
different issues of network and cost considerations. The qualitative interpretation of the issues
relates to the problem of “land availability in Sydney and existing ports”. The study has
identified the potential problem of logistics operation due to the intermodal terminal which is set
at “Moorebank” located in “Western Sydney”. In addition to this, the latter part of the
discussions has shown the government initiatives such as co-funding and collaborative activities
exercised in facilitating better logistics function. The study has also evaluated the government
initiatives in improving the rail infrastructure and overall network interface in NSW (Nguyen,
Currie and Young 2015).

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The problems in the existing network of logistics in NSW
A logistics networks are determined with existence of terminal points which caters to the
logistical needs. The present depictions of logistics problem for the capital city of “New South
Wales” is related to specific freight services. The current affairs of intermodal services served by
the State government and port authorities are not in line with the divisional restriction of the
freights. In addition to this, Port botany which is the largest container port in Australia faces
major issues in growth regulation of urban system. The different measures taken for the
resolution of logistics conflicts and stakeholders interest are not addressed by the movement of
containerized freight cargo. Moreover, port botany could have obtained greater logistical
leverage if it was constructed in the suburbs of “New South Wales” (Black, Roso, Marušić, E.
and Brnjac 2018)
Figure: Logistics transport network for NSW

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(Source Roso, Black and Marušić 2017)
A typical problem faced by NSW rail operators is associated with the interfaces of
various parties. The existence of numerous access regimes further adds to the overall cost burden
for the existing supply chain activities of the companies. In addition to this, the containerized
movement across Port botany is particularly difficult with the access to transportation facilities,
land usage outlines and several modifications in shipping technology. The figure represented
below discusses that joining port areas and freight train which connects the rail network in the
region. The rail network in this particular case is not depicted to be efficient in accompanying the
demand and supply needs of “Western Sydney” (Zuccarello, West and Kamiya 2018). The
absenteeism of adequate stevedoring companies is depicted as another area of major concern in
handling the massive cargo at Port Botany which is seen to be more than “3.2 million TEU’s of
port containers every year”. The current stevedoring agents such as “Brotherson Dock” and
“Container Terminals Australia (CTAL)” have faced several challenges pertaining to lowering
the overall cost compared to the ports which are located in other places in Australia. In addition
to this, the marine liners in the logistics business have faced significant issue in managing
increased amount of logistics demand in Port botany. Moreover, “inland rail project” from
“Sydney to Melbourne” has further increased the problem of interfering with the Southern
freight line. Additionally, the freight line has to share a common rail path as the passenger route
which will significantly impede the flow of transit of goods (Mitchell and Kurniawan 2015).

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Figure: “NSW, transport routes with conflicts”
(Source: Chi, Frost and Ellis 2017)
The important logistical issues are also discerned with growing South Sydney traffic
thereby increasing the overall “freight throughput”. For accommodation of increased cargo levels
in the port area through air traffic, government has to take several measures to improve the
present airport infrastructure. A major issue in the NSW network is also associated with

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availability of land which is imperative in building urban terminal network. The present issues
relate to congestion of roads near the Port botany area. The previously taken development
measures by the government is unsuccessful in changing the intermodal facilities to meet long-
term and medium-term demands of import and export requirements (Liu, Gu, Bai and Zhong
2018)
Figure: Key Rail Freight Corridors in Sydney
(Source: Lu et al. 2017)
The model for labour demand formulated by “KPMG” has considered the lack of skilled
workers along with deficiency in meeting the labour demands. The deficit in the skill level
pertaining to logistics industry has posed major problem among the “importer, exporters and
wholesalers”. Furthermore, the various views of stakeholders have revealed there is a shortage of
experienced truck driver which has elevated the problem to a greater level. The stakeholder’s
consultations have been further taken into consideration to fulfil the cumbersome process of

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inexperienced driver in obtaining insurance which is a necessary part of the work. The second
main issue was related to “shortage of engineers in mining sector” which has affected the
supply chain in multiple ways thereby taking more time to complete a particular work. In
addition to this, the increasing transportation of freight logistics sector have included various
managerial roles which are suitable for application of situational knowledge and leadership.
Moreover, the logistics and “transportation industry skill council (TLISC)” has been able to
estimate an overall increase in workforce and maintain overall quality of the workforce (Feng et
al. 2017).
Potential action plans to solve the existing problems
In the recent times, the infrastructural firm such as “Brookfield Infrastructure Partners
(BIP)” has acquired Australian Freight Logistics Company “Asciano Limited”. In NSW, the
Patrick port division was identified with the prospective growth of service operation. This led to
several initiative over the positive impact on the local companies. This is being also having a
tremendous impact on improving the logistics infrastructure by getting a better control over ports
and rail networks at the same time reducing the cost (Zappavigna 2016).
The significant issues of present scenario are also relating to the intermodal logistics hub
being constructed in “Moorebank” in Southern Islands region. The fundamental criteria of
positioning and intermodal state of art itself relies on positioning of traffic jamming and
existence of rail paths. The excerpt given below clearly signifies the unique positioning of
“Hume Highway” lies in the west of intermodal zone. In addition to this, the highway in the
western link M7 is depicted to facilitate with the direct access to NSW. This is inferred to be
having a potential for competitive edge in other regions (Teye and Bell 2016). Despite of the
presence of coal infrastructural facilities, it is not being put to use in an optimum way. The
critical factors to the traffic base for the import and export are interrelated with the choice of the

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port. Moreover, the “Port Kembla” have interlinked with the roadways by “Hume Highway”
via “Wilton”. The excerpt collected from the geological department of Australia shows that the
intermodal transport serves the best location in the “Southern Highlands area of Illawarra”.
Figure: Scope of Intermodal Development Near the Southern Highlands
(Source: Stanley 2015)
In carrying out this project the railroad of Port Kembla will not affect the transshipment
of cargo via railroad of Sydney Melbourne line. Presently, there is no restriction in association to
“Sydney intermodal and M7” which can also enabled uninterrupted access to the logistics hub at
Sydney. Henceforth, by adaptation of the strategy NSW will be able to increasing the capacity
for logistics demand by 40% as this will act as an alternate route to the Illawarra industrial zone
via Sydney.

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The statement given by “Maurice James (Chairman of Qube Holdings)” have stated
that even due to the fact that the interstate rail project is constructed, it will possess minimal
impact in the present operation of companies such as “Qube Holdings”. The proposed rail route
will be functioning from “Melbourne to Brisbane” whereas the “Southern Sydney Rail Link” is
less likely to be interfered with the route of cargo as there is unavailability of passenger trains.
Henceforth, there is less scope of passenger train interfering in the “Southern Sydney Rail
Link”. Moreover, the same path will be considered for freight from “Moorebank to Port
Botany”.
Several other studies have been performed to study the present spare capacity of “Moss
Vale to Kembla” till 2020.
Figure: Moss Vale region to assist further intermodal operations till 2020
(Source: Moylan, Chand and Waller 2018)

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Some of the major issues pertaining to skill deficiency in the logistics industry needs to
be delivered with the present operations of logistics industry in NSW by “Transport for New
South Wales (TFNSW)”. It is also accountable for enlightening the overall service of delivery in
terms of transport services, customer experience, efficient procurement of freight and planning of
transport facilities. TFNSW has also taken several initiatives to ensure a safe, clean and
trustworthy transportation services through “New South Wales”. As it is evident that the supply
chain industry is fragmented in nature, TFNSW needs to set up a transportation network with
various opportunities answering to the difficulties in a organized fashion. It should also look
forward to spread the leadership and knowledge practice in logistics activities (Halpern and
Graham 2018).
Role of Government in mitigating the issues
Some of the main government agencies such as “Australian track Corporation” is
assisting companies such as Qube Holdings in facilitating the transport operations near the
Moorebank to Port botany region so that the overall operations are not affected with the
intermodal project. Qube Holdings is depicted to enhance the rail network by joining of logistics
activities near the “Port botany” and suburb of “South Australia Moorebank”. It has further
aimed to set up a major intermodal project thereby connecting “Port Botany”. This is identified
as a joint venture between “State Government and Aurizon”. This will help the intermodal
operations in a number of way by tracing the importers and exporters situated at Moorebank and
providing an improved SC service in the region. The site is further depicted to be having a
potential of development of rail services with a total of 240 hector land area for industrial
warehousing. The different types of operators of warehouse, tenants will attract more demand for
logistics services.

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The present problems of unable to accommodate the increasing trade volume demand
will be met by the new construction of intermodal rail link. Moreover, the southern Sydney
freight corridor is less likely to be interfered with passenger networks. The recent initiatives of
government have also included the inclusion of “joint venture projects and public private
partnerships (PPP)” projects to take a leap ahead of the logistics network concerns. In addition to
this, the government has maintained a vital part of funding $ 250 million in first 5 years. The
public sector bank such as “Commonwealth Bank of Australia” have collaborated with several
private agencies in order to seek for new infrastructural expansion in “South-west Sydney”
region. This is identified as the first “public private partnership” initiative taken by the
government of Australia. There have been several propositions in building a new interstate rail
terminal project thereby setting up the joint projects in the area. Moreover, the Commonwealth
government has depicted to be supporting the private companies with contractual arrangement in
terms of providing open access regimes so that the pricing remains nondiscriminatory in nature.
This sort of pricing mechanism will further ensure that road operators will be able to maintain a
competitive price (Guimarans, Harabor and Van Hentenryck 2015).
Based on the initiatives of NSW government, there are two major ports which are
planned to be leased in the South Sydney region. The two ports are firstly, “Port Kembla”, the
largest terminal for grain dispatch and secondly, “Port Botany”, known for being second import
port of the Australia. The several initiatives taken by the NSW government in 2013 was
identified with refinancing the “Port Kembla, Enfield Intermodal logistics centre (ILC), cooks
Rail terminal” and “Port Botany”. This led to the consortium of NSW ports. The sale of public
assets has shown various viability of government led initiative in terms of recycling of assets.
Moreover, there are several scopes of funding the project of Westconnex which is situated 33 km
away from the road path connecting “New South Wales with Kingsford- Smith Airport along
with Port Botany”. In this regard, the main intention of the NSW government is suggested to

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minimise the traffic of “M4 western motorway, M 5 southwestern toll way” and the adjoining
areas in the arterial roads.
Figure: initiative of NSW government to connect South Western motorway with
Western motorway
(Source: Lu et al. 2017)
There are several activities led by the government in responding to restructuring of Port
Jackson is done by adding an extra terminal space. In addition to this, Port Jackson constitutes
building of new port at botany for increasing the overall channel depth and gathering the future
needs of dredging of container ships. Additionally, several measures have been taken to limit the
storage volume for containers at “Port botany” so that traffic jamming near the area can be
significantly reduced. Several types of other government bodies like “Commonwealth

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department of environment”, in cooperation with the “commonwealth department of transport
(DOT)” having to suggest various reforms in the overall planning process and suggesting
designing alternatives and understanding institutional responsibilities.
Figure: Conflict resolution process of logistics problem by the NSW government
(Source: Lu et al. 2017)

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Conclusion
The discussions of the paper have identified the key logistics issues in NSW as
intermodal services served by the State government and port authorities are not in line with the
divisional restrictions of the freights. The different measures taken for the resolution of logistics
conflicts and stakeholders interest are not addressed by the movement of containerized freight
cargo. Moreover, port botany could have obtained greater logistical leverage if it was constructed
in the suburbs of “New South Wales”. Moreover, inland rail project from Sydney to Melbourne
has further increased the problem of interfering with the Southern freight line. Additionally, the
freight line has to share a common rail route as the passenger route which will significantly
hamper the flow of transit of goods. Infrastructural firm such as “Brookfield Infrastructure
Partners (BIP)” has acquired Australian freight Logistics Company “Asciano Limited”. In
NSW, the Patrick port division was identified with the prospective growth of service operation
which an actor’s major solution to this problem. Additionally, recent initiatives by the
government have also included the inclusion of “joint venture projects and public private
partnerships (PPP)” projects to take a leap ahead of the logistics network concerns.

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