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best practice freight governance

Are We Seeing the Death of V/Line Freight?

Whilst the glory days of Victorian rail freight are well and truly behind us, there has long been a view that rail freight is the most energy efficient way of transporting freight, particularly long haul and bulk commodities such as grain and much of the container traffic around Victoria and interstate.

Whilst the glory days of Victorian rail freight are well and truly behind us, there has long been a view that rail freight is the most energy efficient way of transporting freight, particularly long haul and bulk commodities such as grain and much of the container traffic around Victoria and interstate. Despite its numerous challenges rail freight has far greater potential to meet its zero emission obligations than road freight vehicles and should therefore be the favoured freight mode for the future.

The recent decision by the State government to allow “A Doubles” as well as “B Doubles” use of Victoria road network comes as a shock. The trucking industry has already taken most of the Vline’s freight business and this decision will enable it to capture much of what remains but increased numbers of very large road vehicles will come at significant social, economic as well as environmental cost.

Heavy trucks account for most of the damage to our road system and this is becoming a major issue in many regional areas. Studies by the BOT in Queensland estimate damage from a “B”double are 23,000 times that of a private motor car. Road damage impacts other road services such as buses which reduces their ability to maintain service schedules and connections with other services and is well documented. It also causes vehicle damage and increased maintenance and servicing costs, as well as increased risk of road crashes and road trauma. Large road vehicles also generate significant noise and air pollution, the costs of which can take years to manifest themselves, but can be severe, particularly in built up areas. According to Australian Rail Track Corporation

  • the accident cost associated with road freight transport is ten times that for rail freight transport on a per tonne kilometre basis

  • the cost to the Australian economy of heavy vehicle accidents has been estimated at up to $3 billion every year.

But the trucking industry has other problems. Heavy truck drivers often have long shifts and are under severe pressure to meet deadlines and make as many trips as possible. Additional pressure can apply to owner drivers to pay financial and operating expenses associated with their vehicle. This creates an environment which encourages drivers to bend or break the rules and drive when they are fatigued. Use of stimulants etc to keep them awake whilst driving is well known. It has been estimated that 10% of drivers are on drugs or stimulants. The crash on the Eastern Freeway last year in which police men and women were killed highlights these concerns. These issues are well understood and is one of the reasons why the work force in this industry is aging and not being replaced by younger people.

It is easy to view the introduction of “A” Doubles as an isolated case of policy failure but is only one many which are systematically undermining the rail freight industry and if not addressed quickly will result its demise in Victoria. It reflects a lack of understanding of the strategic importance of rail freight in the freight industry and what is required to run it as a business in a competitive environment. Given these concerns, this decision by the State Government is extraordinary and must be challenged.

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