12 Jul

Should Governments be Placing More Funds into Logistics?

Recently, the Australian Logistics Council commended the NSW government for placing more investment into key freight routes.

Along with this, though, the ALC also believed that the NSW government could take it further by allocating more funds into the Restart NSW Infrastructure fund, which would see a greater improvement on logistics infrastructure.

They listed their key focuses as being an improvement of the Northern Sydney Freight Corridor and Enfield Intermodal Logistics Centre, as well as improvements to see more road freight going through rail and an overall improvement to critical areas of freight infrastructure.

Of course whether or not more funds do end up being allocated to such NSW-focused improvements all depends on what the government ultimately decides. But it raises the question: should governments be placing more funds into logistics infrastructure?

Personally, we would say yes, and not just to road freight-related logistics, but across the board. Australian rail freight to this date has had a bad reputation of having a poor infrastructure that could be substantially improved to increase efficiency and cut costs.

Along with the carbon tax that is now in effect, more routes and better technologies are needed for logistics companies across the board. If we’re going to find ourselves paying more because of this new legislation, then we also need to see some growth in how well we can perform our tasks.

The truth is logistics companies can only do so much with the infrastructure that is at hand. Regardless of whether it’s QLD, NSW or any other state or territory, the more efficient logistics can become, the better. And with predictions that logistics is going to become even more fundamental over the next 10 years, infrastructure improvements are needed.

Of course, this is just our view. What’s yours? Do you agree or disagree? Let us know in the comments below.

* Image source: sscreation / FreeDigitalPhotos.net

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