Contestable Freight Trends and Implication for Governments: Working Paper 1

Freight transport adds no value but more cost to the freight it carries. They have direct influence on the cost of commodities and, as a result, the price of living. Therefore, all of the freight actors try very hard to maximise freight transport efficiency aiming at minimising overall transport and operation costs. Nevertheless, in the world of competition, what manufacturers try to achieve is not only cost but also time minimisation. Higher demand for movement of part-finished goods to reduce inventory costs leads to a higher number of time sensitive freight movements in the recent years. Aside from air transport which is an expensive mode for carrying very time sensitive freight over a long distance e.g. international level, road is a less expensive and more popular choice for less time sensitive freight over short to medium distance e.g. local and regional levels. However, increasing truck traffic piles up undesirable burdens to road users and community, including air pollution, traffic congestion, pavement deterioration, traffic safety, and sustainability etc. Consequently, the authorities try to seek for contestable alternatives to road-only mode which include road-rail intermodal. This report aims at providing a comprehensive review of the recent trends and policies of freight transport, particularly of time sensitive and contestable freight, in Australia and around the world