Effect of Australia’s New Inland Rail on the Trucking Industry

26 September 2019

Spanning 18,000 Km from the east coast to the west coast, Australia is the fifth largest country in the world. Incidentally, the bulk of the population is settled in major cities along the coastline. The vast distances between major cities in Australia led to the development of the country’s robust inland freight networks.

Australia plays a key role in the global economy and is the 20^th largest exporter in the world. In 2017, the country made a positive trade balance of $44 B after exporting $243 B and importing $199 B worth of products. The country relies on its road and rail networks to mobilize all these products across the country efficiently.

Significance of the Melbourne to Brisbane Inland Rail

In a bold inland rail project to link Melbourne and Brisbane, Australia has invested about $10 Billion. The project will cover 1,700 kilometers to connect more than 20 major towns across three states, namely Victoria, New South Wales, and Queensland.

The inland rail will streamline several bottlenecks and time constraints that have hampered freight transport between Melbourne and Brisbane. The project is also expected to create more than 10,000 jobs and boost Australia’s GDP by more than $16 Billion in 50 years.

Australia’s Road Vs Rail Debate

The development of the inland rail has fuelled the road vs rail debate in the freight industry. The debate questions on the efficiency and costs of using trains over trucks. Additionally, there is a concern on whether the new inland rail will put the heavy-duty truckers out of business.

However, there is a lot of room in the country for both systems to coexist. With a few relevant adjustments, the road and rail systems can be integrated and complement each other. In effect, the new rail system in effect may enhance the trucking industry rather than retard it.

Advantages of Rail and Road Freight Systems

Both road and rail freight systems have niches where they can outdo each other. The following list highlights a few areas where it is advantageous to use road over rail transport and vice versa.

Advantages of Road Transport

1. Efficient over short distances:

Road transport offers several flexibility advantages that trains cannot match. Trains operate on a fixed rail line that cannot handle door to door deliveries.

2. Fast Scheduled Delivery:

Trucks can deliver goods according to your schedule. This can save you from unnecessary storage costs. With rail transport, you have to adjust your programs to fit the train’s schedule.

Advantages of Rail Transport

1. Cost-effective over long distances

Using trains beats trucks over long distances. Trains carry more cargo and are up to 4 times more fuel-efficient than trucks. Also, the wear on your aftermarket parts for European trucks can be expensive over long distances.

2. Eco-Friendly:

Trains are more environmentally friendly than trucks as they emit up to 75% fewer greenhouse gases. Also, trucks consume close to 9 times more energy per tonne-kilometer than trains.

There are several ways in which the trucking industry can adapt to benefit from the development of Australia’s new inland rail system. For example, there will be immense opportunities to move cargo from to and from the train stations. Truck operators can extend the life of their vehicles and duration between services by plying shorter routes.

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Key Stats to Know About the Automotive Aftermarket

Riding on the back of the booming Italian and US auto markets and the development of autonomous vehicles, the global automotive aftermarket industry is progressing After over 10 consecutive years of growth following the global economic depression of 2008, the global automotive aftermarket reveals interesting data from the automotive industry. Let's see together what the state of the global automotive aftermarket is and the various future projections. The automotive aftermarket: 2018 in review: The year 2018 for the global aftermarket ended positively. According to data processed by the ANFIA Components Group, the turnover of the spare parts increased by 0.8% last year compared to 2017. Looking at the performance of individual product families in Italy, 4 out of 5 have a positive trend. The body and interior components had significant increase while in 2017, they had remained substantially stable. This was followed by increases in electrical and electronic components which recorded the greatest contraction in the previous year. The only parts with a negative sign in 2018 is that of engine components (-7.9%), which worsens its performance compared to 2017, when it had closed at -0.2%. Analysts point out that the two-figure increase recorded by the family of body and interior components. In this case, one can link to the fact that the renewal of the Italian fleet, which has now reached a median age of almost 11 years for passenger cars, proceeds slowly. According to them, this helps to ensure some continuity in maintenance work for older vehicles. You Must Know about the Aftermarket review in 2018: On the family of electrical and electronic components, researchers must say that, the increasingly central electronics and telematics had great roles to play here. While on the one hand, they have contributed to reducing the margin of human error in maintenance and repair operations. The electronics and telematics aftermarket offer products that are more reliable and safe. This market has also increased the sale of spare parts of this type and the maintenance and repair interventions on increasingly complex components. On the other hand, the decrease in the turnover of the engine components can be attributed in general terms. According to ANFIA, to the fact that the increasingly high level of quality of the components of the car, guarantees an extension of the average life. This, for complex systems such as the engine system, means that no replacement or repair work is necessary without major failures. Aside from the above information, there are hundreds of other trends and statistics to consider when it comes to the automotive market. Let’s take a look at them, shall we? Trends and statistics in the global automotive aftermarket: 1. In the last decade, the average usage of the vehicle fleet in the US has increased by about 17% 2. The length of use of new and already used vehicles over the last decade has increased by 60% 3. While 25% of the auto spare parts repair is handled by dealerships, 75% is done by independent repair shops. 4. 56% of automotive decision-makers predict a 30 to 50% decrease in the number of physical outlets by 2025, according to KPMG. As is with virtually all merchandise around the world, the automotive aftermarket industry is going electronic (online) and its marketplace is evolving. Parts and even repair services are being sold and offered online. Additional trends and statistics in the global automotive aftermarket: 5. The irruption of the autonomous vehicle into the public space would offer more flexibility and profitability for all stakeholders. For example, 43% of respondents in a study conducted by KPMG say that current vehicle owners no longer plan to own the traditional car by 2025. 6. One can't expect the demand for diesel engine replacement to thaw out quickly. Although diesel has become politically and socially unacceptable in many countries, the use of this fuel remains technologically and economically relevant for 50% of decision-makers worldwide. This figure even increased by 3 points in 2017 and illustrates the uncertainties that manufacturers face in this transition period. 7. As the world continues to anticipate the mass production of autonomous vehicles, the market is bracing up for an increase in demand of auto cooling systems such as the small AC compressor offered by Rigid for electric vehicles and car cabins. According to a report by Transparency Market Research, the automotive cooling system market will exceed $64b by 2026. During the period of forecast, the CAGR is expected to expand over 4%. Read Also: Pros And Cons Of Buying A Used Car 2018 Tesla Model S: The Complete Electric Vehicle 6 Reasons Why Vehicles Are Now Safer Than Ever

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Effect of Australia’s New Inland Rail on the Trucking Industry