The result of a deep dive into factors contributing to inefficiencies in Australia's grains freight supply chain were released in a report commissioned by GrainGrowers Limited (GGL) last week, on the same day as the group's annual general meeting.
Independent global strategy consultancy LEK was appointed by GrainGrowers in February to compile the report, titled 'Connecting the Dots: Improving Australian Grain Supply Chain Efficiency'.
Over a six-month period, LEK consulted with key stakeholders across various segments of the supply chain to identify where existing challenges and opportunities for improvement lie.
The report delved into the six key areas of road funding, bridge infrastructure, road regulation, rail, supply chain data and port connectivity that are limiting freight efficiency for Australia's grains industry and, as a result, reducing the international competitiveness of the sector.
GrainGrowers chairman and York farmer Rhys Turton said the investigation was prompted by consecutive results of its annual policy survey, in which members continued to highlight the grain freight supply chain was one of the biggest issues facing the industry.
"Freight is a very significant challenge in that it takes money out of the pockets of our farmers," Mr Turton said.
"So we commissioned LEK to ascertain where exactly the bottlenecks and inefficiencies are and compile that into one great big report, which has a State by State focus, but also includes a national overview of why these issues in grain freight are occurring."
With Australia's local councils responsible for 87 per cent of Australia's road network, the report determined that systemic long-term under-funding of local governments has left regional road networks in an extremely poor condition, often preventing freight vehicles from accessing "first and last mile" roads essential for getting grain to market.
Rail infrastructure managers and regulation were also found to significantly decrease rail freight efficiency, adding to the complexity of rail operations and increasing costs to growers using the network.
"In some of the States you have major rail infrastructure that is out of the hands of the government and growers and, as a result, it is being really inefficiently run and is really expensive," Mr Turton said.
With thousands of bridges across Australia also requiring replacement, the report highlights bridge infrastructure as another factor affecting efficient access on many of the nation's key grain freight routes.
"Often it's something as silly as one bridge on a highway cannot handle the massive load and axle loadings of a truck, so the truck has to take a great big detour around that section of highway," Mr Turton said.
"So the report demonstrates that by fixing a single bridge you can sometimes potentially decrease the kilometres travelled by those grain trucks and as a result, decrease the costs incurred by growers."
Mr Turton said GrainGrowers would further examine and "pick apart" the report along with State farming organisations and Grain Producers Australia (GPA), to make a compelling argument to government for further investment in the six areas highlighted.
"By doing that, we're hoping we can return some of those inefficient dollars back into our growers pockets," Mr Turton said.
