Earlier today, a statement was released by the Federal Treasurer, Josh Frydenberg, and the Minister for Trade, Dan Tehan, about the Productivity Commission’s review into the Australian maritime logistics system. Just as we were about to publish this item, Terms of Reference were published. A summary of the Terms of Reference is given below.
The media statement reads as follows:
The Morrison Government has tasked the Productivity Commission with undertaking an independent review into long‑term structural issues affecting the productivity of Australia’s maritime logistics system.
While the Australian Competition and Consumer Commission found global factors were a significant contributor to rising shipping costs and delays, through this review the Government will ensure that domestic issues are not compounding the problems caused by supply chain disruptions under surging global demand for goods since the start of the COVID‑19 Pandemic.
The Productivity Commission’s review will examine any long-term domestic trends, focussing on operational cost drivers, including industrial relations, infrastructure constraints and technology uptake in Australia’s ports and related transport networks in order to assess the overall competitiveness of Australia’s ports.
The inquiry complements earlier work by the Productivity Commission on supply chain vulnerabilities and risks as part the Government’s commitment to ensuring the Australian economy is prepared for any possible supply chain disruptions. The report will also build on a range of initiatives undertaken by the Morrison Government to help ensure supply chains remain functioning and resilient including throughout the COVID‑19 pandemic, including the provision of $107.2 million for the Supply Chain Resilience Initiative and the Sovereign Manufacturing Capability Plan.
The Productivity Commission will begin consultation in January 2022 and provide a final report in August 2022.
Terms of reference – a summary
Just as we were about to publish this item, Terms of Reference were published. Details can be found here!
Scope of the inquiry:
- The purpose of this inquiry is to understand any long-term trends, structural changes, and impediments that impact the efficiency and dependability of Australia’s maritime logistics system and connected supply chains
- Examine the long-term trends, structural changes, and impediments
- Port performance
- Determine the broader economic impact of the maritime logistics sector
- Assess the sector’s operating model and any structural impediments on consumers, businesses and industry
- The economic impact of delays
- Workforce issues, industrial relations
- Assess infrastructure constraints, including the efficiency of ports
- Research mechanisms to help improve the sector’s resilience and efficiency
- Have regard to the interlinkages and dependencies between the maritime logistics sector and other logistics systems
- Have regard to the ACCC’s container stevedoring monitoring report and the PC study into vulnerable supply chains
