Australasian Transport News (ATN) Issue 360

“The near-$10 billion the state gains for the 50-year lease is a huge amount” Australia’s second-biggest economy is about to become flush with government cash – where it will be flushed to and how wisely are questions only time will answer. But it doesn’t take a pessimist to believe that the detail will abound with devils. The expected long-term injection of costs into the New South Wales economy of its port privatisation approach gives rise to such suspicion. The NSW government will expect savings through infrastructure investment to ameliorate this but there is likely to be an uneven spread. On the plus side for Victoria, the near-$10 billion the state gains for the 50-year lease is a huge amount; twice as much as Port Botany and others three years ago.…

One of the highlights of our trip to Sweden with Volvo Trucks was a visit to the Volvo Museum, near the Gothenburg HQ. There are heaps of fascinating old cars and working vehicles, including the very first Volvo truck – this 1928 model with a two-litre engine putting out a whopping 28hp (20kW). At the other end of the size scale is a mammoth prime mover built in America in 2005 – a VN 780, this one with a lounge/kitchen/office/bedroom which is two metres tall and 77 inches (195cm) long. Under the bonnet of this model you could have an engine as big as a Cummins rated to 565hp (415kW), or a Volvo D12 as low as a modest 365hp (270kW). That’s a lot less than the grunt put out…

 THE OFFICE of Australian Small Business and Family Enterprise Ombudsman (ASBFEO) Kate Carnell has published its findings into the effects of the now-defunct Road Safety Remuneration Tribunal (RSRT). “The ASBFEO should inquire into ways to reduce payment terms for owner-drivers as part of its inquiry” The inquiry, launched on the request of then-small business minister Kelly O’Dwyer, examined the impact of the Contractor Driver Minimum Payments Road Safety Remuneration Order (RSRO) in the months leading up to its commencement, as well as the time when it was in force. The report reveals that RSRO imposed “significant” financial and emotional pressures on owner-drivers and small business operators. “The payments order was discriminatory in its application to owner-drivers and small family businesses and this discrimination was not based on a sound and…

INDUSTRY GROUPS including the Australian Trucking Association (ATA) and NatRoad see merit in the Australian Small Business and Family Enterprise Ombudsman (ASBFEO) findings on the effects of the Road Safety Remuneration Tribunal, while the Transport Workers Union (TWU) criticises it for misrepresenting industry issues. The Ombudsman recommends developing an industry code of conduct for the road freight industry under the Competition and Consumer Act 2010 – a recommendation the ATA and NatRoad back. “A mandatory code under the Act would address the payment terms issues facing small trucking businesses,” ATA CEO Christopher Melham says. “The code would need to cover payment times, a prohibition on set offs and pay-when-paid arrangements, and alternative dispute resolution. The ACCC would be a highly credible regulator for the code.” NatRoad chief executive Warren Clarke…

NATROAD SAYS it will continue to back its exemption application to have its members officially excluded from existing and subsequent changes to the provisions of the NSW General Carriers Contract Determination (GCCD) despite industry criticism. The Australian Road Transport Industrial Organisation (ARTIO) NSW branch has been repeatedly arguing against the validity of NatRoad’s application, which has seen opposition from various corners of the industry. Having submitted evidence to the NSW Industrial Relations Commission (IRC) to back its claim against NatRoad’s approach, ARTIO NSW went on to raise doubts whether “unregistered” organisations such as NatRoad have the right to be heard by the Commission in the first place. “ARTIO NSW said the Act [Fair Work Act 2009] confers no such right on NatRoad because an unregistered organisation has no standing in…

Volkswagen and Navistar International have come to terms on a ‘strategic alliance’ which will see Volkswagen Truck & Bus take a 16.6 per cent stake in the truck maker. According to the German automotive giant, the new deal will see it work with the US-based truck maker on “strategic technology and supply cooperation and establish a procurement joint venture”. The 16.6 per cent stake will be bought through a primary share issuance at US$15.76 (A$20.54) per share, equalling an aggregate purchase price of close to US$256 million (A$333.69 million). According to Volkswagen Truck & Bus CFO Matthias Gründler, the immediate part of the deal surrounds the supply of powertrain systems. “Our collaboration, especially with regard to the powertrain, will considerably increase our synergy potential,” he says. “Navistar will be able…