Infrastructure spending, particularly on rail, are the transport highlights of the 2018 Budget.
Spending on rail, whether specifically freight or passenger, will produce significant efficiency and productivity benefits across the freight network, benefiting transport companies, importers and exporters, and consumers.
One highlight ($400 million) is the duplication of the Port Botany freight line, which has been on the transport wish-list (at least in NSW) for many years. Duplication of this freight line in Sydney's port and airport precinct should take significant amounts of freight off the already congested road network around the port and airport.
This works in with the National Freight and Supply Chain Strategy, to which the budget has committed $5 million over four years. This Strategy is the essential element in the attempt to pull together the diverse strands into a focused and deliberate whole.
The budget also commits several billion dollars (from the $75 billion infrastructure fund announced in last year's budget) to roads around Australia, including $5 billion for East-West Link and North-East Link in Melbourne. While not necessarily freight- specific improvements in the road (and rail) networks, this will certainly improve efficiencies in supply chains.
Perhaps the most controversial measure is the imposition of a new levy on imports, in the form of a tax of A$10.02 per TEU (20' container) and $1 per tonne on non-containerised goods. The levy is intended to provide around $115 million in the first year to fund higher quarantine standards relating to exotic pests and the like.
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