Western Region 'Ideal' for Freight City'
Mon, Mar 5 2007

A BOLD plan has been proposed to create a "national logistics city" in Melbourne's west to foster economic development in the region and bolster Melbourne
as a key freight hub.

The Institute for Logistics and Supply Chain Management at Victoria University has written the preliminary study, backed by the municipalities of Wyndham, Maribyrnong, Melton, Moonee Valley, Brimbank and Hobsons Bay, the Committee for Werribee
and the Western Transport Alliance.

Institute director Professor Pieter Nagel said he "logistics city" idea aimed to create hubs containing services that supported the transport and freight sector.

"These can include finance, banks, insurance and new technologies," he said. "These would work towards an efficient and integrated logistics network."

Dr Nagel said a logistics city in the west would bolster Melbourne and Victoria's position as the nation's leading freight hub and benefit Australia's role in world trade.
"The concept of a logistics village is nothing new. Dubai has a 25-kilometre logistics city," he said. Shanghai is also developing one.

He said the strategy also aimed to be a catalyst for economic growth in the region, based on its strengths, which include Melbourne, Essendon and Avalon airports, the Port of Melbourne, the Dynon rail terminal, ntermodal centres, an extensive freeway network and many
transport companies.

Dr Nagel said studies showed that the west's manufacturing, transport and storage industry
was unlikely to create jobs.
"While it is appealing to
speculate on new industries
developing in the west, this is
unlikely to occur," he said.
Typical services at a logistics
hub would include manufacturing,
containers, warehouses, pallet
services, customs, education
and training, financial and IT.
Typical businesses would be
distributors and importers, road
and rail providers, importers and
exporters, aerospace and automotive
parts suppliers and
wholesalers. Dr Nagel said planning
and consolidation were
necessary if a logistics city was to
succeed in the west.
"The need for action is
urgent. Proactive business and
job development plus the associated
investment in education
and training are required within
five to eight years," he said.
"If this does not occur, the
opportunity to make a difference
to the western region will most
likely be lost."
Victorian Freight and Logistics
Council chief executive Rose
Elphick said the west had
tremendous capacity to bring
together a range of activities.
"This would be a great opportunity
to generate innovation
through business clusters around
core activities," she said.
However, she said south-east
Melbourne also had unused
capacity. There was industrial
land in the municipalities of
Casey and Cardinia, and Melbourne's
next container port
would be at Hastings, she said.

LINK www.vu.edu.au/iIcsm

KEY POINTS:

* Study highlights benefits of a freight and logistics "city" in Melbourne's west.
* Hub is unlikely to create jobs.
* It could make Melbourne Australia's leading freight hub.