NAB’s Sector Insight reports utilise our expertise across a range of industry sectors to explore current issues, present forward looking views and opportunities for growth and progression. Our reports also include some perspectives from respected industry leaders in each edition.

Welcome to our 2012 publication of Sector Insights: Transport & Logistics.

In this edition, we bring you insights into various changes and developments impacting the transport and logistics industry. We draw on the experience and expertise of NAB Senior Executives across our franchise, as well as knowledge and observations from key industry figures.

Recent months have seen a renewed focus from government authorities in enforcing safety and compliance standards within the industry. This has resulted in adverse publicity for a number of operators, having been charged with a range of breaches.

As part of our executive perspectives, Jon Luff, Chairman of Australian Trucking Association, discusses current and proposed regulations and the Association’s views on the challenges and opportunities for improved safety on our roads.

NAB Economist Michael Creed takes a look at the current economic conditions. Which sectors are facing into the challenges of the high Australian dollar, while looking at the opportunities presented from online retailing and the projected mining investment? We also outline the consequences for transport and logistics businesses serving these sectors.

Australia’s new carbon tax officially went ‘live’ on 1 July. We take another look at the complexity of the Carbon Pricing Mechanism to see how early movers can find savings by locking in a supply of permits, at prices below the anticipated trading prices of permits in the secondary market.

We also provide an insight into how a regulatory change in the banking sector, Basel 3, will impact funding costs. More importantly, we consider the cost implications for users of term debt as the new capital and liquidity regulations are rolled out by Australian Prudential Regulation Authority (APRA). There will be trade-offs for both funding and hedging strategies, as lenders and borrowers alike seek to minimise the cost of compliance.

The boom in the natural resources sector has presented different challenges for the transport and logistics sector. The most significant of which is workforce management – attraction and retention of qualified employees. With an ageing workforce, and the industry suffering an image problem, many companies are investing heavily in training. We take a look at the issue and how industry participants may be able to implement effective solutions.

Changing times and challenging environments have forced many a company to really consider their choices and direction in order to continue to grow, thrive and survive. Australia Post is one such company that is successfully adapting from their ‘traditional’ business model to embrace and evolve with the changes and challenges being faced.

Alex Twomey, GM External Affairs at Australia Post, discusses the substantial shift in business mix away from its loss making monopoly assets and how they are implementing innovative adaptations. Of particular focus for them is harnessing the increasing demand for parcel post as a result of the growing popularity of online shopping.

Our inaugural Sector Insights report in 2011 discussed the prospects for further consolidation within the Victorian bus sector. This prospect became a reality in January this year, when Ventura acquired Grenda. Andrew Cornwall, Ventura Group MD, provides his insights on the industry and where the family owned Ventura will focus its opportunities for future growth.

As we find ourselves amidst interesting and changing times in the economic and corporate worlds, we trust you will find useful takeaways for your business’ journey from our Sector Insights.

Download the full report to find out more.

• Transport & Logistics Sector Insights – July 2012 (PDF 4MB)