Examining Logistics and Transport Issues in the Australian Market

This report provides an overview of the logistics and transport industry in Australia, focusing on the issues and challenges faced by 3PL firms. It discusses the Australian transport networks, including roads, railways, airports, ports, and pipelines, along with relevant legislation such as transport regulations and quarantine laws. The report highlights geographical, environmental, seasonal, legislative, and technological challenges, including the impact of Australia's vast size, environmental concerns, seasonal weather patterns, and strict quarantine laws. It also touches upon the role of technology and other challenges affecting the logistics and transport sector in Australia. Desklib provides access to similar solved assignments for students.

Running head: LOGISTICS AND TRANSPORT ISSUES
LOGISTICS AND TRANSPORT ISSUES
Name of student
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LOGISTICS AND TRANSPORT ISSUES
Table of Contents
Introduction....................................................................................................................2
Discussion......................................................................................................................2
Transport networks in Australia.................................................................................3
Legislation in Australia..............................................................................................6
Technology.................................................................................................................8
Logistics and transport issues in Australia.................................................................8
Geographical challenges........................................................................................9
Environmental challenges....................................................................................10
Seasonal problems................................................................................................10
Legislative issues.................................................................................................10
Technological challenges.....................................................................................11
Other challenges...................................................................................................13
Conclusion....................................................................................................................13
References....................................................................................................................15

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Introduction
The report intends to discuss the issues that are confronted by logistics industries in
the Australian logistics industry. The brief discussion of the Australian logistics industry has
been provided in this report along with the brief description of the 3PL logistics has been
provided in this report. The issues that are faced by the logistics and the transport industry in
Australia has been concisely specified in the report. Finally, this report accomplishes with
suitable decision for the report.
The terms like the third party logistics, the logistics outsourcing as well as the
contract logistics has been presented in the past years, nonetheless usage of the specific
relations is not constant. Any 3PL firm could be considered as the external company that is
used for performing the logistics functions, which are conventionally been performed within
any organisation (Fernie and Sparks 2018). The 3PL firm acting as the logistics service
benefactor executing the service assistances on the behalf of the shipper where all the facility
providing comprises of minimum transportation. The logistics could be described as any
function that is accountable for effective flowing of the resources from the contractors into
any organisation, over the processes within any organisation and then out to the clients
(Woudsma, Jakubicek and Dablanc 2016).
Discussion
The transport networks in the Australian industry comprises of the vast collection of
the styles of the conveyance. Because of large magnitude of any nation, the road, air freight,
as well as the rail comprises of the share in the transportation happenings while the shipping
is immensely significant for the international cargo (Dablanc 2014). Like any other country in
world, the logistics acts as the main part in the assisting of executing the proper transportation
for the economy of the countries. It has been stated by the Australian Logistics Council that

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even though the overseas experiences offers the several examples, the situation in the
Australian economy as the remote, sparingly occupied island continent is majorly reliant on
the export of the raw materials, and it poses the distinct challenges for the logistics and the
transport for the 3PL firms (Agrawal, Singh and Murtaza 2015). As per the several
researchers, it has been stated that majority of the cost of the activities of the logistics in the
past decade covers almost 10% of the GDP of Australia.
Transport networks in Australia
Network for the transport in the Australia economy comprises of the vast range of the
transportation (Li 2014). Because of the huge size of this country, there is the significant
portion of the air, rail, and the road all shares the transportation while the shipping could be
discovered as the important for the international freight. The 3PL freight providers are mainly
in this country as the majority of the companies and the industries requires the freight
providers to transport their products to the other parts of the world (Gonzalez-Feliu, Semet
and Routhier 2014).
Roads: The network of the Australian roads is formed by the three categories that are
the local roads, the Federal highways, and the state freeways. The federal freeways are the
huge roads that connects the capital cities. Majority of the finance for the roads in the country
is offered by the Federal government, all though the state governments provides the
significant contribution whenever it is required (Rushton, Croucher and Baker 2014). The
state freeways and the native roads makes up for the residual roads along with the fact that
the funding comes from individual state government. The conditions of the road in the
Australian geography are commonly increasingly good with the multilane freeways that are
joining the cities among one another. The regional centres could be linked by the highways,
which are continuously being improved and are upgraded (Shafiee 2015). The various kinds
of the road and the warning signals are more than adequate and the various kinds of the safety

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features like the barriers, guard’s rails and the road reflectors are implemented. There is the
constant development of the roads transport in the Australian industry and this helps the
logistics and the transport industry to transport the products using the roadway methods
easily (Leiras et al. 2014). There has been the implementation of the speed limits that are
enforced all through the country for ensuring that the safety of the drivers are considered. In
the isolated zones, there are significantly longer sections of the road while the curving roads
could be faced elsewhere, and together of them could be significantly hazardous for the
drivers for the various motives.
Railways: Rail network for the transporation of the goods using the railway transport
in the Australian economy has been discovered to be not extensive as any further countries all
across world, even though the freight rail transportation has been the essential section of the
logistics network of Australia. The rail transportation did not develop as efficiently as the
other transportation methods in the country due to the various issues that were encountered
while implementing the railways in the country (Taniguchi and Thompson 2014). But in the
present years, there have been the implementation of the various track gauges, and the most
popular is the three various gauges are still utilised in the various section of the country, even
though each of the capital city in mainland has been connected by the fourth uniform gauge.
The government of the Australia implemented the Australian Rail Track Corporation that is
the corporation which majorly controls the great portion of the railways in Australia. It
majorly comprises of the unvarying gauge lines, but it also include the smaller lines in the
regional sector. There are also several operators like the state corporation and the large
mining corporations that solely controls the rail line in the country, Australia. It has been
discovered that the majority of the lines have not been electrified (Tofighi, Torabi and
Mansouri 2016). All of the freight and bulk of the extended distance traffic of passenger
commonly functions using power of the diesel, even though bulk of the rail systems for the

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metropolitan public utilise the electricity. The huge amount of the positions has been
developed completely on for majority of the transportation of the iron ore, copper, coal and
the sugar cane. Even though the network might be discovered as significantly smaller than
any other network in world, the rail shows the vital part in movement of the products all
across Australia (Yue, You and Snyde 2014).
Airports: Each of the capital city in the Australia country, be it state or the territory
has been serviced by the major airport. The other large airports includes the Gold coast and
the Caims that are both situated in the state of Queensland. Bulk of the Australian Airports
are increasingly adjacent to the city and they have the enhanced road networks while several
of them have been connected with the rail. Even though it has been discovered that majority
of the coastline has been ruled with the airports, the assistance to the population centres, it
has been surprisingly discovered of the amount of the airports in the regional Queensland.
The specific airports serves the regional centres which could be the home to the mining
procedures (Ravi and Shankar 2015). In the terms of the goods and the cargo, each of the
airports comprises of the facilities for catering the variety of the shipments. Again, the airport
in Sydney could be discovered as the largest airport and it allows the incoming of the goods
efficiently. Majority of the airports in the Australian geography are used by the logistics
providers for the cargo shipments or the passenger transport. The air cargo in specifically
essential for the goods that are required to be transported in the short period of time (Marchet,
Melacini and Perotti 2014). The overnight deliveries are easily achievable all through the
Australian market that is easily allowed by the air transport. The high end goods also depends
immensely on the air transportation.
Ports: Just as the airports, the each of the capital city has been assisted by the major
shipping harbour. There are several important harbours all around Australia. The sea
transportation is immensely significant for the industry of exports of Australia. The

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Australian economy depends significantly on the form of the transportation for the majority
of the exports (Vieira, Fransoo and Carvalho 2015). While the inland water transportation has
not been considered as the common because of the fact that the minor number of the lakes
and the internal waterways, the local shipping alongside coast also prevails. It has been
discovered after the recent survey that the Japan and the China country are in the leading
countries for the import and the export partners while considering the terms of the value
(Zeimpekis, Ichoua and Minis 2014). It is commonly believed that 99% of the international
trade is successful because of the international shipping. The air freight presents the 1% of
the remaining exports that are increasingly important for Australia. The abundance of the
valuable raw materials in Australia like the coal as well as the iron ore leads to the
extraordinary demand from several countries all around world. The continuous developing
industry of China depends significantly on the materials that are sourced inside Australia
(Christopher 2016). The Australian economy depends significantly on the Chine country for
the several trade in consumer goods, which are not commonly economically feasible for
production within the market of Australia.
Pipelines: One less mutual type of the transportation is utilisation of the pipelines. The
pipelines are coomonly utilised for the transportation of the natural gas, ethane, oil and slurry
(Macharis et al. 2016). The natural gas could be considered as most of the common substance
that is required to be conveyed by the pipeline plus there is the impartially widespread setup
of the pipes all through Australia.
Legislation in Australia
There are several kinds of the legislation that significantly affects the logistics
procedures in Australia. Some of the crucial regulations have been descried below:

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Transport regulations: Several strict regulations or guidelines have been implemented
for the transportation in Australia (Arvis et al. 2018). All the Australian states comprise of
their respective regulations even though there are several other regulations that covers
majority of the country. The regulations comprises of several prospects but not restricted to
the vehicle capacity, the extreme loads, the packaging, the speed limits as well as the various
other kinds of the goods that are transported (Ducret 2014). The most hazardous code for the
goods conforms to the standard laid by the United Nations plus it has been imposed
nationwide. The vehicle length has been considered as the crucial regulation all through
Australia and specifically for large road trains that operates in the remote areas (Cotrell et al.
2014). The road trains are significantly great, the multi trailer automobiles that operates in the
Australia economy. These are significantly utilised in the supplementary countries that
includes Canada and Mexico. The major intent is the transportation of the huge amount of the
supplies across the great distance with the elimination of the requirement of the rail
transportation. It is significantly useful in the isolated areas that could not be easily accessed
by the rail (Blecker 2014). The road trains could help in carrying several kinds of the cargo
that includes the fuel, wood, animals and the coal.
Quarantine laws: The quarantine laws in the Australian legislation are significantly
strict because of the fragile ecosystem. The biodiversity of Australia is significantly different
from any other location in world and it has been considered that the little foreign substance
could lead to the immense changes in the environment (Bhattacharjya, Ellison and Tripathi
2016). Due to the implementation of the quarantine act 1908, the received of the goods has
been subjected to the strict checking and several things are significantly forbidden from
making entry in country.
Work protection: The workforces unions have increasingly been demonstration for the
increased work protection in the variety of the job segments. This led to the implementation

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of the various work safety laws by the Australian government over last decade (Waters and
Rinsler 2014). This has led to the severe troubles for the logistics providers who are wishing
to import and transport the goods in the country.
Technology
The technology in the logistics is constantly enhancing all through the world and the
technology implementation in the logistics of Australia is also improving. It has been
considered in the present business scenarios that the information technology is requirement in
the logistics. The warehouse systems have been increasingly becoming additional advanced
using the proper utilisation of the RFID or the Radio Frequency Identification along with the
barcode scanners. The job of the elimination of the paperwork has helped in the increasing
the efficiency and the effectiveness in workplace (Fredriksson and Liljestrand 2015). The
implementation of the automated facilities of the sorting has immensely increased the
capacity of sorting for the warehouses that in turn has enhanced the chief times. The
warehouses, the apparatus and the other fragments of the assets have increasingly enhanced
the protection system that are implemented for the prevention of the theft and the vandalism.
The advanced IT technologies like the ERP systems also holds the superior amount of the
evidence and it provides the quicker and the increasingly appropriate entrance than it was
obtained earlier. The worldwide placing system as well as the RFID technology permits the
tracking in the real time all through Australia. The items that are sent abroad could also be
tracked (Lagorio, Pinto and Golini 2016). The GPS and the other navigational technologies
offers the ability of calculating the most appropriate routes for the transportation by the road
and it also helps the effective monitoring of the traffic conditions.
Logistics and transport issues in Australia
This sections provide the clear description of the various logistics challenges that are
faced by the various 3PL and the 4PL logistics providers in Australia. It covers the challenges

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that are related to the demography, geography, the legislation, environment and the
technology and some other challenges that are present in the businesses (Bing et al. 2016).
Geographical challenges
Several kinds of the geographical conditions could be encountered all around
Australia. The urban and the regional areas provides the various logistics issues to the various
logistics providers.
Traffic congestion: The significantly larger coastal cities in Australia, specifically in
Melbourne and Sydney experiences the traffic congestion almost all the days of the week.
During the daytime, the traffic conditions are the worst that directly affects the transportation
of the goods in the country (Mangan, Lalwani and Lalwani 2016). The motorways and the
freeways that have been created for relieving the issues of the traffic congestion are also
significantly crowded that has led to the several transportation issues for the logistics
companies. Even though there is the constant development of the new plans and the solutions
for reducing the congestion in the roads, this issues is still prevailing due to the fact that the
rise of the vehicles are increasing exponentially. The transportation of the goods is discovered
to be immensely affected by congestion that are faced in the roads and the delivery is
significantly affected (De Marco et al. 2014). The one solution that is being implemented by
the logistics providers is the effective transportation plans that allows the proper analysis of
the routes that could be taken for executing the quick delivery of the products.
Road changes: This is the most common issue that is being faced in Australia for the
local roads that are required to be modified and adjusted for helping the controlling of the
flow of the traffic in the specific local areas (Galvez et al. 2015). There are several upgrades
in the highways that helps in the bypassing the local towns and it could help in improving the

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travel times and the safety of the pedestrians while helping in reducing the traffic congestion
on the smaller roads.
Environmental challenges
The climate of AUStralia as well as the environmental conditions represents the
various kinds of the challenges for the logistics operations. the global awareness of the
climate changes as well as the linked pressures also develops several challenges. The trend
that is being considered in the present times is the use of the green logistics. The minimising
of the waste and the pollutions is being increasingly considered by the several logistics
providers for ensuring that the business operations are viewed by all the public and
considered as environment friendly (Melnyk, Narasimhan and DeCampos 2014). The
operation with the consideration of the environment has grown to the sole issue for the
logistics providers who intend to remain on the good side of the common people. There is the
major requirement of the development of the renewable energy sources and it is required to
be developed at the significant rate and the implementation of the renewable energy could
take significant time.
Seasonal problems
Natural calamities: Australia is the country which is commonly impacted by the
various kinds of the natural calamities. Most mutual are the floods and the hurricanes that
could root the significant amout of the damage to both the equipment and the infrastructure.
The costs and the delays are the common output of such natural disasters.
Legislative issues
The national legislation the various kinds of the logistics issues for the logistics
providers. These specific challenges could be in the variable stages of the business, from the
operative to the tactical.

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Funding disagreements: The disagreements of the funding are the common issue for
the logistics providers in Australia. The state as well as the federal governments have the
major accountabilities of providing the required funding to the specific areas like the
infrastructure, education and the health. In the relations of the logistics, it could be
disadvantageous to the procedures if the roads and the railways have not been developed in
the schedule time as the result of the disagreements. The industry of the logistics needs the
functioning as well as useable infrastructure like the railways and the roads for the effective
operation.
Transport guidelines: the guidelines that governs the effective crusade of the goods
could directly impact the procedures of the logistics. If the privileged transportation is
necessary then it might be required to possess the supplementary permits or the especially
altered vehicles and the alteration of the vehicles or the procurement of the vehicles might
require the permits that might take time and would incur the additional costs (Ravi and
Shankar 2014).
Quarantine: If any company wishes to perform the importing of the goods to Australia
as the part of the business, it is required to obtain the authorisation from the AQIS. Even
afterwards the permission has been gained by the companies, there might be the issues or
regulations that restricts the importing of the unwanted materials in the country. The logistics
and the transport providers faces this issue due to the fact that the products might be bought
from the intended companies but the importing might be restricted as it would face the severe
punishment from the governments. The random quarantine inspection are also executed as
the additional methods of the security. The exports are being closely monitored and the
permits are also required.

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Technological challenges
The present level of the technology in modern world represents the various kinds of
challenge to the logistics industry and due to the fact that the continuous advancement of the
technology is taking place, the extra challenges might arise in the near future. Some of the
technological issues are:
Additional costs: The modern technology could be observed as extremely costly. The
possessing of the updated technology might provide the companies with the strategic and the
competitive advantage but the needed levels of the investment must be also considered by the
logistics companies. The supplementary detailed forecasting and the budgeting are required
to be executed for properly ensuring that all the supplementary costs that are to be incurred
are somewhat feasible
Lack of the integrated systems: The proper ensuring that the various suppliers and the
customers have the similar computer and the ERP system could be immensely difficult. The
companies as well as the primary or the largest supplier might utilise the similar system but
the smaller suppliers might have the different systems that are utilised by them. The clashes
among the system could lead to the delay in the time and it could also disrupt the flow of the
information among the various required channels.
Dependence on the technology: The increasing amount of the information is presently
being stored on the computer and the internet servers. Factually, it is presently considered
that there would be the time when it would be significantly difficult to synchronise the
various systems that are being used by the companies and logistics providers. If the
technology fails due to some reason, it could create several problems.
Resistance to the changes: This issues has been considered as the simple but it is the
ongoing challenge which is the conventional resistance to the changes in the organisations.

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Several employees might have the feeling that the change is significantly difficult and it
perhaps might not be necessary. In the logistics, there might be the situation in the business of
the logistics providers where the ERP implementation is being done and this implementation
might require several weeks. There is the major requirement of providing the required
training to all the employees of the organisation regarding the proper working with the ERP
system.
Other challenges
Rising prices of fuel: It has been observed that there is the significant rise in the road
and the freight rates along Australia. A significantly large reason for this rise is the rising fuel
prices. The companies of the logistics industry faced the strain when all across the world,
there was the major issue of the higher fuel prices.
Security issue: The theft and the property damage is the increasing risk in the
movement and the storage of the goods. The items that are of significant risk involves the
high value of the electronic goods like the computer equipment as well as the laptops and the
mobile phones and the goods like the jewellery or the artefacts. The security systems are
presently being installed in the logistics industries and there security system are being
constantly updated for providing the required security.
Conclusion
Therefore, it could be decided that logistics as well as the transport industry of
Australia are facing several issues due to various reasons and it has created significant
difficulty for the logistics providers. The modern technology could be observed as extremely
costly. The possessing of the updated technology might provide the companies with the
tactical and the reasonable advantage but the needed stages of the venture must be also
considered by the logistics companies. The 3PL firm acting as the logistics service benefactor

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executing the service assistances on the behalf of the shipper where all the facility providing
comprises of minimum transportation. The logistics could be described as any function that
is accountable for effective flowing of the resources from the contractors into any
organisation, over the processes within any organisation and then out to the clients. The
transport networks in the Australian industry comprises of the vast range of the modes of the
transportation. Because of the large size of any country, the road, air freight, and the rail all
comprise of the share in the transportation events while the shipment is immensely vital for
the international cargo. The network for the transport in the Australia economy comprises of
the vast range of the transportation. Because of the huge size of this country, there is the
significant portion of the air, rail, and the road all shares the transportation while the shipping
could be discovered as the important for the international freight. The transportation of the
goods is discovered to be immensely affected by congestion that are faced in the roads and
the delivery is significantly affected. The one solution that is being implemented by the
logistics providers is the effective transportation plans that allows the proper analysis of the
routes that could be taken for executing the quick delivery of the products.

15
LOGISTICS AND TRANSPORT ISSUES
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