Consolidation of Transport providers
The industry continues consolidating with various Australian transport companies acquired by larger groups. The latest amalgamation is Borders Express, which has been acquired by Singapore Post.
Singapore Post has been active in the Australian market and has a few brands under the banner of FMH Group. These include FMH Logistics, GKR Transport, Niche Logistics, BagTrans, Formby Logistics, Spectrum Transport, and Couriers Please.
ERA expects this trend to continue as more and more acquisitions occur by the larger Transport/Logistics groups.
Future of Freight Industry
The future focus of the Freight Industry centres around infrastructure build, with the Australian Government remaining resolutely dedicated to a robust 10-year infrastructure pipeline valued at USD 120 billion, focusing on delivering land transport projects that hold national significance and contribute to shaping the nation’s future.
The 2023-24 budget represents a stride forward in establishing an infrastructure investment pipeline integral to nation-building endeavours. This initiative forms the bedrock for constructing a sustainable and credible lineup of projects, selected based on diverse economic and societal goals, encompassing regional connectivity, quality of life enhancement, and safety enhancement.
Land transportation accounts for more than 80% of freight transportation in Australia, with railways transporting the majority of bulk goods. Road freight demand is leading the industry, followed by rail freight, supported by infrastructure development.
Enhancing port connectivity is key to Australian trade, with the Port of Melbourne, the Port of Sydney, and the Port of Brisbane being top ports. Delayed shipments and rapidly increasing freight rates affect Australian international container ports and container trade, especially ships travelling through the Red Sea.
AI in the Transport Industry
Leveraging AI in transportation helps the sector minimise traffic congestion, increase passenger safety, reduce the risk of accidents, lessen carbon emissions, and decrease overall financial expenses. In short, AI has ushered the industry into a new era of innovation, offering a multitude of benefits that transform how we navigate and manage transportation systems.
Realising the transformative role of AI in transportation, businesses in the industry are making significant investments to gain a competitive edge and stay ahead of the times.
How quickly is this being adapted in Australia?
It is unknown at this stage, but many transport companies will have a competitive advantage once they adapt and introduce AI.
Call Michael (+61 412 923 188) today to help you understand how we can help you achieve your Freight and 3PL goals!
