Logistics and Management Report: Analysis of NSW Logistics Issues

This report analyzes the current trends and challenges in the logistics and supply chain sector within New South Wales (NSW). It focuses on issues such as port congestion in key ports like Port Botany, traffic route challenges, and insufficient land availability, particularly in Western Sydney. The report examines the impact on companies like Qube Holdings and Zara, highlighting declining customer service quality and ethical concerns. It explores problems with intermodal stations, government regulations, and workforce skill shortages. The report also provides potential solutions, including infrastructure improvements, enhanced rail routes, and government initiatives to address congestion and improve supply chain efficiency. The role of government in addressing current logistics problems is also discussed.

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Logistics and Management
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Introduction
This purpose of this essay is to determine supply chain’s current trend that is experienced
by the logistic firms as well as retailers who are situated in New South Wales. Several studies
that have been conducted regarding the supply chain challenges indicate that there is ports
congestion in the neighboring New South Wales regions such as the Port Kembla, Port Jackson,
as well as Port Botany. The most important ports of the above is Port Botany since it is able to
handle materials’ highest capacity. The state’s present practice is suffering from high costs that
are associated with congestion among the traffic routes as well as other challenges that are as a
result of network routes. Insufficient land availability in Western Sydney adds to the challenge of
developing the logistic infrastructure particularly close to the port areas. These concerns
regarding the current challenges have been researched on according to firm’s case studies. Such
studies have been by conducted on Qube Holdings Pvt as well as Kiosk Zara among other
companies that are facing similar challenges. These case studies have highlighted the different
challenges that face all these organizations. Current trends indicate that a company such as Zara
is experiencing problems to do with the decline in the quality of customer service. Additionally,
the report as well addresses various concerns that are linked to supplier breach of the code of
conduct aiming to have a fast transportation channel. The referenced situation on Qube Holdings
is associated witha new intermodal station’s setup necessary to improve the logistic systems in
Moore bank in Western Sydney. The upcoming facility’s likely problems are addressed deeply in
this essay. Nonetheless, different qualitative research indicates that there is a need for
government’s contribution in addressing the current logistics issues. The operations’
sustainability has been shown based on different qualitative studies that have been carried out on
various challenges.

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Current New South Wales Logistics Problems
The main issues that are related to Western Sydney presently are issues that are related to
the dispersed terminal station that monitor the state’s logistics activities. The current guidelines
on materials’ demand are not according to timely delivery of these materials (Bierwirth,
Kirschstein and Meisel, 2012, pp.200). The stakeholders’ lack of attention is as well having
severe impacts on the organizations that take part in this business. Nonetheless, there are many
issues faced by the government when it comes to regulating the activities at the ports as well as
the maximum utilization of the available land area that includes the rail route’s scope located
near Port Kembla.
According toBlack, Roso, Marušić and Brnjac(2018) KPMG devised a model that assists
in studying the challenges that relate to the deficiency in skilful labor in New South Wales’
logistics industry. Additionally, entry barriers of new truck drivers have further enhanced the
challenges that are related to the employees in the logistic system (Black, Roso, Marušić and
Brnjac, 2018, pp.43). The deficiency of skilful employees in cargo handling among every third
party logistic operator adds to the current situation’s detrimental condition. Also, the study by
McEvoy indicates that workers taking part in the field of supply chain activities do not possess
soft skills thus the need for them to upgrade their skills regarding managerial and leadership
skills thus improving on operations in the current situation.
Nonetheless,Dekker, Bloemhof and Mallidis(2012)demonstrates that organizations like
Qube are almost taking a crucial lead of developing an intermodal terminal at Moorebank
(Dekker, Bloemhof and Mallidis, 2012, pp.674). The various firms that were earlier mentioned
are experiencing many challenges in their network routes which are continuously affected as a

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result of the interrupted trade routes associated with the upcoming inland passenger rail service
crossing from Melbourne to Brisbane. As a result, the organization’s transshipment of materials
from the Port Botany to South Australia may end up being affected at a later date after the
completion of the rail project (Ghaderi, Cahoon and Nguyen, 2015, pp.72). There are many
questions arising as to whether the intermodal station services are capable of delivering open
ended logistics solutions to the area’s tenants. In addition, there have been objections from the
Liverpool council concerning the likely health hazards as well as carbon emissions associated
with the construction activities. Also, some of the experts have raised concerns about the
increased traffic congestions caused by the construction activities.
Nonetheless, the supply chain activities of firms such as Zara are questionable. This
organization is well-known for its behavior of breaching the convectional practices that govern
the supply chain operations, particularly in the clothing sector. The company believes in the
product’s successful control until that same product has been delivered to the end client
(McIntosh, Newman and Glazebrook, 2013, pp.37). These unethical practices by Zara associated
with its supply chain’s activities have raised concerns about the ethical issues. Thus, Zara has to
improve substantially on its social as well as working conditions as well as giving extra priority
to its workers.
Another crucial issue is the unavailability of sufficient stevedoring organizations which
are likely to be associated with the tenants near the port areas, particularly at Port Botany. Port
Botany is viewed as Australia’s second largest port based on its annual demand (Poulos, et al,
2016, pp.260). The current stevedoring firms which include Brotherson Dock and Container
Terminals Australia are showing signs of being insufficient in handling the huge annual demand
that is approximated at twenty equivalent units’3.2 million annually. Also, the airport terminals

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face related problems which are contributed by the increasing air traffic among the routes that
link Western Sydney freight line. Cargo activities and ecommerce increased levels contribute to
these challenges of accommodating the air traffic’s capacity. The different measures that have
been taken by the current and previous government have majorly focused on achieving the
medium-term objectives and goals instead of aiming to achieve the long-run goals. The long-run
planning has mainly been affected by the enhanced concerns on health matters as well as the
effects on the environment. Nonetheless, the state is also concerned with the raising issues which
are as a result of the unavailability of unoccupied land in Western Sydney, mostly in the urban
areas. As a result of the described challenges, there is dire need to shift focus from NWS’s urban
to the remote areas of NWS. In the year 2013, the government introduced extra rail routes.
Measures Necessary to Address NSW’s Current Situation
Infrastructure firms such as the Brookfield Partners are famous in availing infrastructural
resources to organizations like Qube holdings as well as Asciano Limited. To address the current
challenges, it involves improving the port activities at the Asciano’s Patrick port division (Roso,
Russell, Ruamsook and Stefansson, 2015, pp.271). This is because the port has a tremendous
capability of accommodating the high demand for the containers. Additionally, the port has the
potential of providing a long-term solution to the current problem of meeting Southern Sydney
region’s logistic demand. Also, there is need that the logistics routes have an augmented focus on
the rail routes with the expectation of increasing operations’ flow and the service’s speed.
The current issues that are associated with intermodal logistics hub can be managed by
the Southern highlands’ intermodal logistics hub. Some regions in the Southern highlands
contain large space that can be utilized to introduce new rail routes as well as lowering the

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current road transit’s traffic congestion, located at Port Botany and Moorbank. Research carried
out suggest that a huge potential lies along the highway that connects Westlink M7 that links the
M7 motorway route directly to the New South Wales’ Western Sydney. It is essential that the
government puts importance while selecting a port’s facility. The intermodal trade route that
crosses through Southern highlands possesses the highest capability of improving the supply
service, which is facilitated by its strategic location.
Sturgess, Rahman and Argyrous(2018) observe that the rail route found in Port Kembla
has reduced the possibility of being affected by the cargo transshipment via rail route.
Accessibility easiness to the Sydney intermodal as well as the M7 route may seem the best
position option of enhancing Sydney hub’s logistic services. By linking the above mentioned
routes, then NSW will have proved to be useful in substantially improving the intermodal
transportation using the rail routes. Additionally, studies have shown that logistics can further be
improved by linking Sydney logistics via Illawara district. This district has the ability to connect
Moss Vale’s logistic centers by using rail route. Notwithstanding, the route will also avail an
alternative access to the Western Sydney and organizations will be in a position to congestion
related to the network by making use of this route (Sturgess, Rahman and Argyrous, 2018,
pp.68). The problems that are related to workforce challenges can be managed effectively by
using the Transport for New South Wales. The company’s objective is focusing on the current
delivery cycle as well as enhancing customer service, logistics services and transportation’s
planning. The Transport Freight and Logistics Co located in New South Wales is to be blamed
for contributing to the deficit of the current need for engineers. Additionally, it is linked with the
shortage in transportation industry’s current requirements. To improve its current logistics
activities, Zara has focused on leveraging its capital assets. The company has ensured that it

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increases its capital investments in the production as well as the distribution facilities. This is to
ensure that the supply chain operations are more responsive. Recently, the company has invested
huge sums of its money that assist in increasing and enforcing the current supply chain
operation’s speed.
NSW’s Government Involvement in Solving Current Problems
In the past, NSW’s government had put in place several initiatives aimed at responding to
the problems associated with network congestion. Currently, the government has implemented
various initiatives aimed at promoting the organization’s supply activities through the use of
Public Private Partnership. With this in mind, the government is fully committed to enhancing
Qube Holdings Private Limited’s supply activities. The firm is focused on establishing an
intermodal station that connects Port Botany with the South Australian Suburbs via Moorbank.
This project is not aimed focused at locating importers and exporters but it is as well aimed at
enhancing the current NSW’s logistics trade routes (Regmi and Hanaoka, 2012, pp.31). The site
that is selected to build the logistic center is more than 240 hectares. Hence, the land is available
to establish industrial storage as well as the supply chain operations. The current challenges
facing the warehouse managers and the tenants will be addressed since logistics service’s high
demand will be sufficed to achieve the current capacity requirements. Additionally, the initiative
will also improve the declining rail route service’s demand as well as focus on enhancing the
current situation’s logistics operations. Nonetheless, the logistic operators and the tenants will
benefit from this project. Qube logistics chairman elaborates that undertaking the interstate rail
project by NSW’s government will not affect Qube’s current operations. This is because the
proposed will only operate between Melbourne and Brisbane. He continues by saying that the
Southern Sydney rail route has fewer possibilities of interfering with the freight route because

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there is train passenger’s unavailability. This route will facilitate transportation from Moorebank
to Port Botany. Various other government institutions are as well helping in completing the
project carried out by Qube Holdings, such as Australian Track Corporation. Additionally,
NSW’s has also funded the project with $250 million within the first five years.
Additionally, the NSW’s government has taken a step ahead to include third party
logistics operators to share the opportunity in accessing Moorebank’s terminal. Thus,
government’s policy mechanism makes sure that the whole process of benefiting through
intermodal terminal’s setup is mutually beneficial within the operations of the supply chain.
These benefits are not only meant for the different tenants that engage in logistics and
distribution activities but also enhance the transportation services aimed at improving
competitiveness against other rival transportation facilities.
According toRegmi and Hanaoka (2012), there are many other initiatives initiated by
NSW’s government. These initiatives include leasing two main ports situated in Southern
Sydney. The two ports include Port Kembla which is specialized in handling grain products as
well as Port Botany. The New South Wales government has also taken other initiatives aimed at
refinancing the operations taking place at Port Kembla and Enfield Intermodal logistics center.
This also includes other ports such as Cooks Rail terminal as well as Port Botany which is the
most important port as earlier mentioned.
According toPoulos, et al(2016) the current initiative by the NSW’s is to construct a
high-speed uninterrupted access to Port Yamba’s national rail network. Further, the government
has taken the initiative of improving Port Kembla’s facilities through the development and
upgrade of the Princess Highway that will end up facilitating road transport hence reducing

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congestion. Other initiatives were taken by the government to ensure that the port activities are
efficient to include developing terminals at Port of New Castle as well as completing the first
stage of constructing the Sydney freight corridor.
Varsei and Polyakovskiy(2017) describes that among the several current initiatives that
the NSW’s government has taken suggests that the current actions are also aimed at expanding
the terminal space that is found in Port Jackson. Also, it focuses on building new port facilities at
Port Botany as well as engage in drilling activities with the intention of accommodating the
rising demand. Other government involvements in solving the current problems include
constructing new road terminal points aimed at improving Port Botany’s container operations
(Varsei and Polyakovskiy, 2017, pp.237). Additionally, the government is almost taking the
initiative of expanding container operations focusing to improve the speed of loading and
unloading process at Port Botany that limits large containers’ distribution process. Other
initiatives by the New South Wales government include incorporating warfare at Port Jackson.
This will assist in promoting internal tourism growth as well as lead to improving the supply
chain activities.
Conclusion
The deep analysis of the essay indicates that companies such as Qube and Zara holdings
are affected by the current rail and road network problems such as congestion in NWS. Further,
the essay has studied the different qualitative tools as well as action plans that can be put in place
to enhance the efficiency of the current situation. The most advocated solution of addressing
these problems that are associated to a deficiency in the intermodal logistics facility is the Public
Private Partnership. The essay has also taken a deep analysis of the sustainability by ensuring

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that there is proper utilization of the land resources as well as constructing a logistic center at
Southern Sydney’s Southern Highlands. Different initiatives that are taken by the government as
well focus on sustainability of the current operations. The other qualitative analysis that is in the
essay demonstrates that enhancement of Moss Vale enterprise zone will result in being beneficial
in the facilitation of the present logistics activities.

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