A key figure in Australian logistics says action and reform are needed in five main areas if supply chain efficiency is to improve.

ALC Managing Director Michael Kilgariff has made the call at the Future of Infrastructure Conference today.

“With a recent ACIL Allen report to ALC showing a 1% increase in logistics efficiency would boost GDP by $2 billion, ALC is calling for a greater government commitment to infrastructure action and reform,” Mr Kilgariff said.

“The first of these is passage through the Senate of the government’s asset recycling bill to stimulate investment in productive infrastructure.

“The second is progressing reforms to how infrastructure is priced and funded.

“When it comes to investment in our nation’s roads, there is a major disconnect between how revenue is raised and how spending decisions are made.

Kilgariff said the third priority area was ensuring the right infrastructure projects are selected for funding.

“ALC strongly believes that all major projects should undergo rigorous cost-benefit analysis before receiving public funding to test whether they are in Australia’s long-term economic interest, and that these analyses are made publicly available,” he said.

“ALC supports the Coalition’s undertaking to publish cost benefit analyses for all projects being considered for Commonwealth investment and looks forward to Infrastructure Australia undertaking this work.

Kilgariff said the fourth key goal was to ensure “we have a greater long-term approach to freight planning which is needed to encourage private sector investment in logistics facilities,” he said.

“ALC looks to both major parties to put business certainty and the economic interests ... ahead of politics.

“Finally, ALC is encouraging governments to continue their efforts to get more freight on to rail to help meet Australia’s rising national freight task.

“Moving more freight to rail, where it makes sense commercially, has the potential to improve urban amenity, reduce road congestion and decrease queuing times at ports,” he said.