Australia has always been a leading driver when it comes to adopting technological advancements. More than 600 logistics tech start-ups are developing in the country for faster transportation.
Government supports the logistics market intensely through their policies such as National Freight & Supply Chain Strategy which aims to ensure smooth transportation, along with technological advancements which include AI, Internet of Things (IoT) technology, drones, robotics which facilitate the process & reduce chances of accidents, thereby making it easy for the logistics market to grow.
Story Outline
- Government investment in infrastructure like Thriving Suburbs Programme is driving growth in freight forwarding revenue despite seeing a decline in 2022-2023.
- Logistics market in Australia is leveraging advanced technologies like AI, robotics and blockchain to improve efficiency, reduce accidents and enhance operational effectiveness.
- Australia’s active participation in international trade with significant portion of economy dependent on trading & foreign direct investment, highlights the importance of logistics industry in facilitating growth & connectivity.
1. Government’s Increased Infrastructure Drives Growth in Freight Forwarding Revenue
Recent trends suggest that government has increased the expenditure levels on infrastructure. In the Thriving Suburbs Programme, there has been an investment of $200 million where the investment is made for urban & suburban community infrastructure. Revenue for rail, sea & freight forwarding revenue has seen an annualized 1.1% increase over $11 billion dollars, despite a 0.6% decline in 2022-2023.
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2. Technology constantly transforming the Logistics Market in Australia
Logistics market in Australia is utilizing various technological advancement which includes AI, Robotics, Blockchain amongst other technologies. Many Asia-Pacific countries use a form of Internet of Things technology (IoT), IoT applications for inventory management, warehouse management, order management etc. Tools like AI & Machine Learning play a key role in recognizing the next steps towards increasing functionality in the region. More than a quarter of countries plan to invest in technology like drones (33%), robotics (30%), artificial learning & machine learning (29%). Using technologies will help seize opportunities, create competitive advantage and improve operational efficiency.
According to Ken Research, the Australian logistics market is adopting these technologies at a similar rate of 20 to 30 per cent to ensure an efficient process, reduce accidents & ensure that the work force is adequately trained to use these technologies.
3. NFSCS Policy for the Best Logistical Solutions for Australia
For the first time in 20 years, Australia government along with the inputs from the industry devised a multimodal freight strategy for:
- smarter & targeted infrastructure
- enabling improved supply chain efficiency
- better planning, coordination & regulation
- locating freights & performance data in a better way.
What National Freight & Supply Chain Strategy aims to achieve: safe, secure & sustainable operations, innovative solutions to meet freight demands, an adaptable & skilled workforce, a fit for purpose & regulatory environment.
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Various government policies like NFSCS, Special Economic Zones & 17 Free Trade Agreements (FTAs), increased use of technology to ensure smooth logistics process; these practices ensure that logistics across various sectors in Australia grows positively.
4. Australia’s Contribution in International Trade & Logistics in 2022
Australia is a major player in international trade market with 45% of Australia’s economy dependent on trading, with services & digital trade established as major areas of growth. Foreign direct investment (FDI) has grown by approximately 7% in the last decade & has now topped A$1 Bn dollar in the last decade & have attracted A$472-billion-dollar trade in 2021-22. The constantly evolving logistics industry ensures that the necessary goods are transferred across the international market which facilitates the country’s economic growth.
Keeping all these factors in mind, it can be said that Australia’s constant commitment to adopting technological advancement, seen through the emergence of over 600 logistic start-ups. This ensures faster & smooth transportation process. As there is sudden increase in users of ecommerce platforms and seeing Australia’s contribution in international trade, the constantly evolving logistics market can ensure economic growth & seamless global connectivity.