The modern desire for ever efficient logistics has seen the industry step outside its traditional operating model, with portions of the market finding efficiencies by relocating hubs away from capital centres.
Modern technology and consumer habits are shaping the future of the transport industry and how we are delivering goods and services.
One solution is the de-centralising of logistics hubs, where warehousing can be integrated with road transportation links, rail freight lines, and even air freight capabilities, away from the congestion of major ports.
Although not without problems, regional centres will tend to offer lower cost land, an ease of expansion, plus strong access to a ready workforce.
“Everybody wants 24/7 deliveries, we know that,” noted Bill Gillespie, Hino Australia General Manager of Brand and Franchise Development.
“How do you deal with congestion on the roads, is it better to use rail, sea or trucks, or is it a combination?
“That’s proving to be, when you talk to people in the marketplace, their biggest challenge.
“There’s no doubt that the with the move to ‘last mile of delivery’ for e-commerce businesses, the issue is real, and one that is affecting all of the supply chain.”
A recent example is a nationwide shoe retailer with 350 stores, selling stock that is largely imported from overseas.
With the increase in competition from the online environment, companies such as this are faced with the scenario of differentiating their delivery offering.
“Amazon have entered the market and have promised next day delivery, and in response the retailer has said they will provide same day delivery,” said Mr Gillespie.
“All it means is that they have to figure out where to put the warehouse, and how they connect that to the shipping of the goods from the ports.
“They have to bring the products into a distribution centre, and then be able to disseminate those goods.
“All of that connectivity is proving to be a huge strain, hence the need for intermodal centres, where the rail meets b-double transport, then they can ship on a b-double down to centres outside of the capitals, then light or medium duty trucks can take the goods for the last mile delivery.
A shining example of de-centralising in action has been the Toowoomba Wellcamp Airport, which has for 18 months been host to a weekly Cathay Pacific 747 freight service with Hong Kong.
Not only has the service met expectations with exporters of fresh produce from the local area, but it is also increasingly finding favour with importers, seeking an alternative to capital city airports.
When coupled with the impending opening of the second Great Diving Range crossing, expected later this year, Toowoomba is well positioned to take advantage of new logistics opportunities.
“That’s a really amazing occurrence now, who would have thought that Toowoomba would have been a place where goods would be exported in that manner?” said Mr Gillespie.
“But that’s what the pressure of this time-frame has meant to people, they can’t even wait for the goods to be shipped from the provincial centre to the metropolitan area.
“It’s a really great opportunity for regional Australia, where people are going through university in regional centres, but then moving to a major capital city to find employment.
“A lot of that can be retained in places like Parkes, Toowoomba, Bathurst, Albury-Wodonga and Wagga Wagga, those sorts of areas are going to be called upon more and more because of the growth of regional distribution centres.”
From a truck manufacturer stand point, there is already a noticeable shift in the buying habits of customers.
“What you are seeing is that people are starting to move more goods in one delivery, so you are seeing much bigger trucks in regional Australia,” said Mr Gillespie.
“That puts its own special challenges on the government with regards to the infrastructure, because the current road system can’t cope with what is required from it.
“People are now crying out for improvements, and of course the question is how to connect that up to the rail system and the ports, as people are now using coastal shipping.
“From Hino Australia’s point of view looking forward, we need to look at the mix between heavy duty, as I think everyone this year has seen a big shift in the so-called ‘class-A’ trucks, and that is being driven by some of this new work that is required.”