Logistics Problems In New South Wales: Service Provisions And Intermodal Transportation Linkage

Discuss About The Service Provisions And Intermodal Transportation Linkage.

Logistics Problems at NSW

This essay ascertains the current trends in the supply chain that are experienced by the logistics companies and retailers located in New South Wales. Different research has been undertaken regarding the shortcomings that are associated with the supply chain. It indicates that congestion exists in ports that neighboring New South Wales. Such areas include Port Kembla, Port Jackson, and even Port Botany. Port Botany is more essential of the three because it is able to handle high capacities. Among the current issues that the state faces are high costs which are brought about by congestion on traffic routes as well as other challenges due to network routes.

In western Sydney, the scarcity of land hinders the development of logistic infrastructure especially areas close to the port. These interests in regard to the present problems have been analyzed based on the companies’ case studies. Companies like Qube Holdings Pvt and kiosk Zara and other ports that face these similar issues are analyzed in this essays. The different challenges that are encountered by all these organizations have been highlighted in this case study. According to the current trends, the decline in customer service is a problem that is facing Zara Company. Besides, some concerns addressed by the report are linked to the suppliers’ inability to follow the law if they are to have a transportation channel that is fast. The situation that is referenced regarding Qube Holdings is due to the set-up of a new intermodal station that aims at improving Moorebank’s logistic system. This essay addresses some of the problems associated with the upcoming facility. However, different qualitative study shows that it is essential for the government to contribute in addressing the present logistic problems. The sustainability of the operations has been shown according to different qualitative studies held on different challenges.

The present problems that are faced by Western Sydney are as a result of the dispersed terminal station that oversees the logistics activities in the country. Currently, procedures on demand for materials are not in line with the delivery time of the same materials (Bierwirth, Kirschstein and Meisel, 2012, pp.200). The lack of attention by the stakeholders is also impacting on the organizations that engage in this business. Nonetheless, the government faces many challenges when it comes to controlling the activities at the ports and ensuring that the available land is maximally utilized. This consists of the scope of the rail route that is situated near Port Kembla.

Measures of Addressing NSW’s Current Issues

As noted by Black, Roso, Marusic and Brnjac (2018), in New South Wales, KPMG came up with a model that assisted in the study of the problems that are related to skillful labor deficiency in the logistics sector (Black, Roso, Maruši? and Brnjac, 2018, pp.42). According to the study, workers taking part in the supply chain field do not have good managerial and leadership skills hence need to improve them for proper operations in the present situation.

 Organizations like Qube are taking an important part in developing intermodal transport at Moorebank as Dekker, Bloemhof and Mallidis (2012) note. Some of the firms mentioned are having many problems in their network routes that are continuously affected due to interrupted trade routes which are in close link with the inland passenger rail that is being constructed from Melbourne to Brisbane (Dekker, Bloemhof and Mallidis, 2012, pp.674). There are a lot of questions coming up as to whether inter transport station services are able to deliver an open-ended logistic solution to the tenants found in this area. Also, the Liverpool council has objected to the project due to the possible health hazards and the carbon emissions that will result from the construction process (Ghaderi, Cahoon and Nguyen, 2015, pp.72). Additionally, there have been concerns form some of the experts regarding the increased congestions that will be as a result of the construction activities.

In addition, Zara’s supply chain activities are to be questioned. This is because the company has a reputation for its continued behavior to bleach the conventional practices that are used in governing the supply chain operations, mainly in the clothing sector. This firm believes that for a product to be successfully controlled, the control should be continuous until that product reaches the customer (McIntosh, Newman and Glazebrook, 2013, pp.37). Zara’s unethical practices that are linked to the activities of its supply chain have raised concerns among experts regarding the ethical issues. This calls for Zara to improve on its social and the working conditions, including giving its staff extra priority.

The other crucial problem is deficient of stevedoring companies that are able to associate with the tenants found near the ports, especially at Port Botany because based on its demand, it is the second largest port in Australia. The present stevedoring companies such as Brotherson Dock and Container Terminal Australia have shown signs that they are not in a position to handle the annual demand which is very high. Similar issues are faced by airport terminals and they are as a result of increased air traffic among routes which link the Western Sydney freight line (Poulos, et al., 2016, pp.260). The enhanced levels of e-commerce and cargo activities have contributed to the problem of accommodating the high capacity of air traffic. Most of the initiatives which the previous and the present government have taken are mainly focused on attaining the medium-term goal but does not consider factors such as the health matters and environmental effects (Qi, Liu, Aggarwal and Huang, 2017, pp.1361). The identified issues indicate that it is necessary to shift focus from New South Wales’ urban areas to its remote areas. It is observed that the government introduced additional rail routes in 2013.

Infrastructure companies that include Brookfield Partners are among the firms that avail infrastructural resources to companies such as Asciano Limited and Qube holdings. Aimed at addressing the present issues, there is a need to improve port operations at the port division of Asciano Patrick (Roso, Russell, Ruamsook and Stefansson, 2015, pp.271). The reason for this is because Asciano Patrick’s port has the capability to accommodate the increased demand for containers. Also, this port has the ability to provide a solution that is long-term to South Sydney’s present challenge of meeting the logistics demand. Notwithstanding, it is necessary to ensure that the logistics routes have a focus that is augmented on the rail routes with the interest of improving the flow of operations as well as improve on the speed of delivering services.

The use of the Southern highlands logistic hub can efficiently manage the present issues that are linked to the intermodal logistics hub. Some of the regions found in Southern Highlands have large spaces that can be used to construct new rail routes and to lower the present congestion resulting from the traffic of road transit (Bergqvist and Monios, 2016, pp.81). These regions are located at Moorebank and Port Botany. According to study, the highway that connects Westlink M7 motorway to Western Sydney found in New South Wales has got plenty of potentials of helping solve some of the issues affecting NSW’s logistics network. It is important for the government to put some consideration whenever it selects the facility to a port. Also, there are higher capabilities associated with the intermodal trade route that passes through the Southern Highlands. This is because its strategic location offers the opportunity of improving the supply service.

According to Sturgess, Rahman, and Argyrous (2018), the rail route that is located in Port Kembla has effectively minimized its likelihood of being impacted on by the cargo shipment by means of rail route. One of the best position options to improve the logistic services at Sydney hub are associated with the easiness of accessing the Sydney intermodal, including the M7 route. If these two routes are linked, then New South Wales will have successfully proved useful in the process of enhancing intermodal transportation by use of rail routes. Also, the current issue can be solved by connecting the Sydney logistics via Illawara district (Buch and Agrawal, 2016, pp.2219). The district has the capability of using a rail route to connect the logistic centers located at Moss Vale. This route will also be important in availing an alternative mean of accessing Western Sydney.

Additionally, by using this route, companies will avoid congestion that is associated with this link (Sturgess, Rahman, and Argyrous, 2018, pp.68). Using the Transport for New South Wales can help manage workforce challenges. The aim of an organization is to focus on the present delivery cycle and to enhance customer service, transportation planning, as well as improve logistics services. New South Wales’ Transport Freight and Logistics Co have contributed to the present deficit in the need for engineers and for this reason, it is to be blamed. The company is also associated with the deficit in the present requirements by the transportation sector. Aimed at improving its current logistics operations, Zara is targeting to leverage its capital assets (Caris, Macharis and Janssens, 2013, pp.109). The firm has made sure that its capital investment has been increased both in the production and the distribution facilities. It is has been noted that the organization has recently invested a lot of its capital to help enhance and improve the speed of its current supply chain.

To respond to the challenges that were associated with network congestion, the government had put in place many initiatives. Additionally, the government has presently actualized several initiatives including the Public-Private Partnership to aim at improving the supply activities of firms (Golinkoff, Ma, Song and Pasek, 2013, pp.324). As observed, the NSW government also has proved to be fully committed to improving the supply operations at Qube Holdings Private Limited. This company focuses on constructing an intermodal station which will link Port Botany to the South Australian Suburbs through Moorbank. This project’s intention is not only to locate the importers or the exporters but also to enhance the logistic trade routes within NSW (Regmi and Hanaoka, 2012, pp.31). There are huge chunks of land available to construct industrial storages and supply chain operations as evidenced by the more than 240 hectares that are set aside for the construction of the logistics center. Some of the present issues that affect the warehouse managers as well as the tenants will thus be addressed because the demand for logistics services will have been sufficed to attain the present capacity requirements (Bergqvist and Monios, 2014, pp.23). Notwithstanding, this initiative will also help in enhancing the reduced demand in the rail route services and it will also at improving the current situation of the logistics operations.

The other group that will benefit from this project are the tenants as well as logistic operators. As noted by the Qube logistics chairman, the undertaking by the New South Wales’ government on the interstate rail project will not have any effects with the present operations at Qube because this proposed rail route is only to operate between Brisbane and Melbourne. Additionally, this Southern Sydney rail route has got reduced likelihood to interfere with the freight route since there is the unavailability of the train for passengers. The route will improve the transportation activities between Moorebank and Port Botany (Song, Kim and Kim, 2013, pp.1805). There has been support from other institutions such as the Australian Track Corporation to make sure that the project carried out by Qube Holdings is complete. Within the first five years, the government has funded the project by allocating $250 million.

The government has also taken the initiative of including third-party logistics operators so that they share on the opportunity of gaining access to the terminal at Moorebank. The policy mechanism that is put in place by the NSW’s government ensures that there is a mutual benefit that results from the entire process of setting up the intermodal terminal within the supply chain’s operations. All these benefits are meant for the tenants that engage as well as the distribution activities (Pourbeyram, Nazemosadat and Mafi, 2015, pp.14493). Also, the benefits are meant to improve the transportation services, which will translate to increased competitiveness against other competitors in the transportation facilities.

As noted by Regmi and Hanaoka (2012), the NSW government has initiated several initiatives. Such initiatives consist of leasing two primary ports that are located in Southern Sydney. These two ports consist of Port Kembla that specializes in the handling the grain products and Port Botany (Lam and Gu, 2013, pp.263). Other several initiatives that are focused on the refinancing of Port Kembla’s operations, as well as the Enfield Intermodal logistic center, have been put in place by the government. This is also inclusive of other ports which consist of the Cooks Rail terminal and the Port Botany.

Poulos, et al., (2016) observes that the NSW’s present initiative is to come up with an uninterrupted fast access to Port Yamba’s national rail network. The government has also improved the facilities at Port Kembla through development and upgrading the Princess Highway that is meant to facilitate road transport thus minimizing congestion (Hoefnagels, et al., 2014, pp.799). The initiatives that the government undertook to make sure that the efficiency of the port activities is maintained is through the development of terminals at Port of New Castle.

Last, observing the different initiatives that have been put in place by the government, it is clear that these present actions are also focused on improving the size of the terminal space located at Port Jackson as Varsei and Polyakovskiy (2017) note. The government also targets at putting up new port structures at Port Botany and get involved in the drilling activities with the aim of meeting the rising demand. Some of the other observable involvement by the government also include constructing new road terminal points that will enhance Port Botany’s container operations (Varsei and Polyakovskiy, 2017, pp.237). In addition, the NSW’s government is improving the operations of the containers at Port Botany to make sure that the loading speed and the unloading process is efficient. The inefficiency at this port hinders the distribution process of large containers. New South Wales’ government has also incorporated a warfare at Port Jackson and it will help to promote the growth of internal tourism and enhance the supply chain activities.

Conclusion

The deep analysis by this essay indicates that the present rail and road network issues which consist of the congestion in New South Wales affect firms such as Zara Holdings and Qube. The essay has also identified some of the action plans and several qualitative tools that can be used to improve efficiency in the current situation. The Public-Private Partnership is one of the best solutions that can address the challenges that are linked to the deficiency in the intermodal logistics facility. The essay has also analyzed deeply sustainability by making sure that land resources are properly utilized and coming up with a logistics center at the Southern Highlands of Southern Sydney. The different initiatives by the government makes sure that the current operations are sustainable. Enhancing the Moss Vale enterprise zone will also prove beneficial since it will facilitate the current logistics activities.

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