Volume of goods transported in Australia is expected to increase @ 10% by 2025. Will Australia be able to provide logistics support to it?: Ken Research

ByVijay Kumar

1.  Australia’s overall score in LPI (decreased from 3.84 in 2010 to 3.7 in 2020

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  • Australia’s Total LPI score decreased from 84 (2010) to 3.7 (2020).
  • Australia ranked 20thAustralia (2020), falling from 18th Australia (2018).
  • Australia ranks 1stin Oceania region.

This creates a big opportunity for new logistic companies and firms to cater to the falling standards of logistics and provide better support & efficiency to it.

2. Australia has built a vast road network, which has improved logistics mobility.

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  • Total Length of Road Network (2019): 920,217 km
  • Single Longest Track: Highway 1 connecting all mainland state capitals – 14,500 km World’s longest national highway
  • Major Routes of Australia – Sydney – Melbourne, Sydney Brisbane, Brisbane – Cairns, Brisbane – Darwin, Brisbane – Melbourne, Melbourne – Adelaide, Adelaide – Perth and others.
  • Transportation contributes around ~ 60% to the logistics market in Australia.
  • Total volume of goods transported is around 768 Bn Ton Kms as of 2020, with an overall increase of 15% as compared to 2015.
  • Road Freight is expected to continue dominating the market, contributing 55% to the transportation market.

3. Truck Platooning to lower fuel cost and emissions being a catalyst to logistics market in Australia

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Benefits

  • Improves Safety; reduces accidents
  • Reduces labour cost and transports more (quantity)
  • Improves efficiency in supply chain
  • Lowers fuel consumption & CO2 emissions
  • Increases driving range of trucks used in transportation

 All these factors aid in the expansion of the logistics support throughout Australia.