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Larger and heavier trucks would be allowed to deliver around the clock under a plan proponents claim would save the industry, businesses and consumers billions of dollars every year.
In its final report into the heavy transport sector, the Productivity Commission found that there has been almost no improvement for almost two decades in the ability of trucks to carry loads and get them to their destinations quickly and cheaply – reforms that could draw the ire of residents and local councils.
It found the recent surge in diesel prices caused by the US war against Iran had highlighted the importance of the trucking sector moving towards electric vehicles that would both reduce operational costs, cut noise and enable the more efficient delivery of goods around the country while also reducing greenhouse gas emissions.
Australia’s productivity levels have been stagnant this decade, contributing to a drop in living standards. The government announced a $10 billion productivity package in the budget, which included a range of measures including cuts to red tape aimed at small businesses, the axing of 497 nuisance tariffs and plans to reduce heavy transport costs.
The Productivity Commission report says the heavy vehicle transport sector accounted for 5 per cent of GDP, directly employed 273,000 people and was pivotal to the day-to-day functioning of the economy.
Despite its importance to the economy, the commission found that after a steady increase in productivity from the 1970s to the mid-2000s, it had effectively flatlined for the past 20 years.
According to the commission, advances in truck technology with the advent of electric prime movers meant limits on how much trucks can carry should be increased by several tonnes in a move that would boost the economy by up to $2.7 billion.
The commission found that while heavier loads would do more damage to roads, the financial benefits would outweigh repair costs.
Further benefits worth up to $2 billion could be generated by overhauling the paperwork required for trucks to use particular roads and the training system for drivers.
The advent of quiet electric trucks should also be used to either end or sharply reduce the curfews enforced by states and local councils on delivery services. In some local government areas, for instance, internal combustion engine trucks are prevented from delivering goods to supermarkets between 10pm and 6am.
Rolling out specialist electric chargers for trucks would help Australia upgrade its vehicle fleet, the commission argued, saying this was key to boosting productivity and reducing reliance on diesel.
“The largest potential productivity benefits will arise from reforms that increase access to Australia’s road network for high productivity vehicles.
“The recent fuel supply disruption has only strengthened the case for reform to unlock higher productivity and lower emissions vehicles.”
The commission noted that while many nations were heavily investing in electric trucks, Australian transport companies were sticking with internal combustion vehicles.
Across China, more than a quarter of new trucks are electric. Three years ago, they accounted for 7 per cent.
There has also been large interest in the US, where Tesla has started mass production of its electric Semi earlier this year.
Companies such as Walmart and Pepsico have bought hundreds of the vehicles, which have a range of up to 500 miles (800 kilometres), report higher safety levels and can maintain speed in mountainous areas much better than their internal combustion engine counterparts.
In Australia, almost half of all new cars sold are electric or hybrid. But less than 2 per cent of new trucks are electric.
The commission said states should overhaul their heavy vehicle regulations to enable the fast-tracking of electric trucks.
The recommendations will now go to the federal, state and territory governments for consideration.
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Shane Wright is a senior economics correspondent for The Sydney Morning Herald and The Age.Connect via X or email.From our partners
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