Federal Budget guide: What the transport industry needs to know

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Owner/Driver  /  May 10, 2017

Road upgrades and proactive safety initiatives are high on the road transport industry’s wishlist, but both require all-important funding. Last night’s Federal Budget saw infrastructure spending high on the agenda, with a number of road and rail upgrades set to better connect regional and metro Australia.

Federal Treasurer Scott Morrison spoke passionately about the importance of infrastructure as he handed down his second Federal Budget, with a slogan to boot: "To support growth we choose to invest in building Australia, rail by rail, runway by runway and road by road."

"It is important to invest in infrastructure…but we have to make the right choices on projects, proving the case to ensure they are part of a broader economic growth strategy," Morrison said.

The Treasurer did his best to quell concerns that infrastructure spending can sometimes be misguided, outlining plans for a new agency to oversee project financing.

"Our new infrastructure and projects financing agency will help us make those right choices, recruiting people with the commercial expertise to ensure we use taxpayers’ money wisely," he said.

A total of $75 billion in funding has been allocated to infrastructure developments over the next ten years, with a good portion of that detailed in this year’s budget.

In Queensland, $844 million will be used to upgrade the Bruce Highway including $530 million for works on the section from Pine Rivers to Caloundra.

The M1 Pacific Motorway, Gateway Upgrade North, Toowoomba Second Range Crossing, Warrego Highway and Northern Austral Roads Programme will also receive funding for long-awaited works.

Minister for Main Roads and Road Safety Mark Bailey says the Queensland funding falls short of what is needed for what is the largest state road network in the country.

 "I am disappointed we didn’t get our NARP funding back for regional roads in North and Western Queensland," Bailey said. 

"Six months ago, the Turnbull Government ripped-off Queensland by around $150 million in promised roads funding under the Northern Australia Roads Programme (NARP).

"This means projects benefiting truckies like installing overtaking lanes or improving heavy vehicle safety on the Flinders Highway between Townsville and Charters Towers missed out, as well as funding for Heavy vehicle rest areas and stopping places on the Landsborough Highway between Barcaldine and Cloncurry.

"A list of initiatives on Infrastructure Australia’s priority list also missed out on funding including the remaining sections of Ipswich Motorway Rocklea-Darra upgrade, Cunningham Highway – Yamanto to Ebenezer/Amberley upgrade and other Brisbane to Gold Coast transport corridor upgrades. These upgrades would be of great benefit to Queensland and Australia’s freight and supply chain productivity."

Over in Western Australia $1.6 billion in Commonwealth funds has been invested for better roads access and the government has committed $237 million of that for the Kwiwana freeway as well as $100 million for an access road upgrade near the Fiona Stanley Hospital.

Victoria has had $1 billion made available for regional rail and infrastructure projects, with most of that money going to rail. The Tullamarine Freeway widening will see $112 million in 2017-18, the Western Freeway will get $77 million in 2017-18 and the Princes Highway West and East will see improvements.

Following a joint Victorian and Federal Government agreement late last year, the Monash Freeway upgrade, completion of the M80 Ring Road upgrade, Rural and Regional Roads Package and Urban Congestion Package will receive Federal support.

New South Wales will inject $710.1 million in 2017-18 to the Pacific Highway duplication and a number of Regional Road Freight Corridor projects have received funding under the Commonwealth’s Asset Recycling Initiative.

The Northern Territory Roads Package will receive funding, along with the Regional Roads Productivity Package.

South Australia and Tasmania saw modest road upgrade funding, with money committed to South Australia’s North-South Corridor projects and Tasmania’s Midland Highway.

The National Heavy Vehicle Regulator (NHVR) received the ongoing $3.9 million for their Heavy Vehicle Safety Initiative – funds redirected from the abolished Road Safety Remuneration Tribunal (RSRT).

"I believe this budget will allow the NHVR to continue with our work to improve heavy vehicle safety and improve productivity for Australia’s heavy vehicle sector," NHVR chief executive Sal Petroccitto said.

"In particular we welcome the on-going investment in the $3.9 million Heavy Vehicle Safety Initiative, as well as the freight-enhancing infrastructure and road safety programs outlined in the budget"

The Australian Trucking Association (ATA) welcomed Budget announcements surrounding safety measures and infrastructure improvements.

"The Government was re-elected in 2016 with a commitment to continue funding the Heavy Vehicle Safety and Productivity, Roads to Recovery, Black Spot and Bridges Renewal programs beyond 2019-20," ATA Chair Geoff Crouch said. 

"These programs are highly cost effective and deliver safety improvements such as truck rest areas, roundabouts and street lights at dangerous places on our roads. Meanwhile, the Bridges Renewal Program is upgrading bridges that are critical to truck access to local communities. 

"The 2017-18 Budget confirms that these programs will continue through to 2020-21. Their safety benefits will continue to flow." 

The ATA also highlighted positive implications of the small business asset write-off extension for trucking businesses.

"The vast majority of trucking businesses are small businesses. 94 per cent have a turnover of $2 million or less," Crouch said. 

"The Government’s decision to extend the instant asset write-off to 30 June 2018 will benefit many eligible businesses."

National Transport Minister Darren Chester confirmed that the Government provided an extra $16 million to extend the Keys2drive program, providing around 200,000 free lessons to learner drivers as well as  conducting an inquiry into the National Road Safety Strategy.

The Australian Government will also continue to fund the Black Spot Programme with $684.5 million from 2013–14 to 2020–21 so it can continue to deliver safety improvements around dangerous sections of road.

As far as funding not specifically roads-related but relevant to the road transport industry, the Western Sydney airport and the Melbourne to Brisbane in-land rail project will both go ahead.

The Western Sydney airport planned for Badgery’s Creek will commence works in 2018 following the allocation of $5.3 billion in equity.

The hotly-debated Melbourne to Brisbane in-land rail project, to be delivered by the Australian Rail Track Corporation (ARTC), was provided with $8.4 billion in funding.

The 17,000 kilometre rail project will begin this year and is projected to support 16,000 jobs during the peak of construction.

Concerns for the road transport industry with the introduction of an in-land rail project connecting Brisbane and Melbourne remain, but Livestock, Bulk and Rural Carriers Association (LBRCA) President Lynley Miners suggests it may actually support trucking jobs.

"Some commodities can go on rail and it works with heavy stuff like grain and coal, but time-dependent goods will still rely on trucks," Miners said.

"Road transport will also play a big part of building the in-land rail network and it’ll create plenty of work for transport operators.

"Everyone talks about the freight task doubling by 2030, but the roads aren’t keeping up with that as far as population growth and the need for everything to expand.

"If rail is part of the system well so be it, we’ve just got to make sure we still get our share of the money for road upgrades and improvements," he said.

The NHVR echoed this sentiment, insisting that rail supports the rapid growth in Australia’s overall freight task.

"I believe it’s important that freight investment extends beyond the road network to the rail network to support the on-going growth in Australia’s freight task," Petroccitto said.

For a full breakdown of state-by-state transport-related infrastructure funding, click here.

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Federal Budget: Main Roads Minister says QLD ripped off

Owner/Driver  /  May 10, 2017

Minister for Main Roads Mark Bailey calls on Turnbull to give Queensland its fair share of roads funding ahead of tonight's Federal Budget.

As well as a fair share of road funding for Queensland, Bailey has asked that the State also receives the funding the Turnbull Government ripped away six months ago.

Bailey says it's time for the Prime Minister to prove his mettle to Queensland voters who are sick and tired of playing second fiddle to other states when it comes to infrastructure spending.

"Six months ago, the Turnbull Government ripped-off Queensland by around $150 million in promised roads funding under the Northern Australia Roads Programme (NARP)," Bailey said.

"The Federal government originally allocated $375 million in NARP funding for Queensland in their last budget, but they went back on their word giving us just $223.8 million.

"The Palaszczuk Government put forward 26 projects and had our 20 per cent funding on the table for all of them, but the Federal government only committed to ten projects.

"This means projects like installing overtaking lanes or improving heavy vehicle safety on the Flinders Highway between Townsville and Charters Towers missed out.

"It’s disappointing to say the least that Queensland’s fair funding share was siphoned and spent interstate.  So I’m hopeful that this funding will be put back in tonight's Budget."

List of unfunded Queensland NARP projects:

• National Land Transport Network:  Road Renewal
• Flinders Highway (Hughenden – Cloncurry):  Pavement widening and strengthening (Package 2)
• Flinders Highway (Townsville – Charters Towers):  Overtaking lanes
• Flinders Highway (Townsville – Charters Towers):  Heavy vehicle safety and productivity package
• Capricorn Highway (Rockhampton – Duaringa):  Valentine Creek bridge upgrade
• Gregory Developmental Road (Belyando Crossing – Charter Towers):  Pavement widening
• Gulf Developmental Road (East of Mount Surprise – Normanton):  Pavement widening (Package 1)
• Landsborough Highway (Barcaldine – Cloncurry):  Heavy vehicle rest areas and stopping places
• Burke and Karumba Developmental Roads (Cloncurry – Karumba):  Pavement widening (Package 1)
• Cairns (Captain Cook Highway):  Cairns Airport Access upgrade (Stage 1)
• Capricorn Highway (Duaringa – Emerald):  Gregory Highway intersection upgrade

Minister Bailey says he isn't convinced the Turnbull Government has Queensland top of mind, citing the leaked parts of its infrastructure plan this week as proof.

"Apparently tough new tests are going to be imposed on the states as part of its infrastructure plan, but what will this do apart from increasing red tape, paperwork and causing project delays?" Bailey said.

"I’m also concerned about their conditional user-pays plan to toll all new motorways labelling it as the "fairest way".  This wouldn’t be fair on taxpayers if there isn’t an alternative route, so I think this blanket approach is flawed.

"It’s getting a little tiresome to continually have to fight for Queensland’s fair share of roads funding from the Turnbull Government, the M1 and the Ipswich Motorway are clear cases of this.

"Queensland is a vast decentralised state with some 186,000 kilometres of public roads including 33,343 km of state-controlled roads, which is more than any other state or territory.

"Of course more funding should be spent on Queensland’s roads infrastructure than of the other States/Territories.

"Our roads network is a vital link across Queensland and serves a diverse economy from mining, agriculture, tourism and service industries.

"We’re also subject to extreme climate conditions more than others that impact our roads network like cyclones and flooding."

Minister Bailey confirms he'll continue to put Queensland’s interests first and fight for the state's fair share of funding.

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