AUGUST 2006

Chairman’s Update

I am delighted to advice that Tim Blood, Managing Director of P&O Ports and Don Telford, CEO of Pacific National have accepted our invitation to join the ALC as members. We look forward to their input.

Recently there have been major changes in the logistics industry that continue to reinforce the need to maintain focus and commitment on our agenda. These include:

• Work on the FTA with China is likely to have huge impacts and opportunities
• Toll’s purchase of Patrick has changed the landscape, but is really a continuation of a longer term trend
• QR and Babcock & Browns purchase of ARG
• Linfox’s purchase of FCL

Other Major events from the government’s side include:

• AusLink corridor studies moving forward
• Melbourne port strategic plan release
• NSW State Plan – with no mention of Freight Logistics

There are the events that we have been predicting as we have met of the last couple of years and it is coming true.
In response I believe that we are clearly on the right track with or focus on;

• Getting the right infrastructure in place
• Doing everything that we can to make sure that we have the capable people needed to make the system work
• Sorting out the avoidable and unnecessary variations in rules and regulations that add unnecessary cost to domestic and international customers
• Getting a better understanding of what is coming up over the horizon, emerging trends, New ideas and getting the data on which to make decisions.

Over the next few months, however, we are intending to look carefully at both the future of the industry and the role that ALC should play. We will then be asking you to debate this at the next meeting in Perth on 17 November and to commit resources to ALC so that we can maintain the momentum that we have and are building.

Ivan Backman