Logistics in Australia
In terms of geographic size, Australia is larger than Europe. But it only has 4 million more residents than the Netherlands. Consequently, large distances must be covered. Australia plays a leading role as an exporter of raw materials and agricultural products. Because mining centers in particular are often located in inhospitable regions, a special form of logistics infrastructure is required.
Geographic challenges in Australia
Even though only about 20 million people live on the continent, Australia is bigger than Europe in terms of space. These facts reveal the broad expanses that characterize the country’s interior. Australia is a little more heavily populated only in a 50-kilometer-wide coastal strip. This area stretches from the city of Adelaide in the state of South Australia to the city of Cairns in the state of Queensland. In western Australia, the city of Perth is the only heavily populated area. The economic centers are located near the major cities of Sydney, Melbourne, Brisbane, Perth and Adelaide. This area is also the home of important harbors, which play a pivotal role in the import and export of industrial and agricultural products. These cities also have international airports [1].
Core countries for trade
The core exporting countries include Japan, China, Korea, the United States, India, Taiwan and New Zealand. The largest importing countries are China, the United States, Japan, Singapore, Great Britain and Germany. A major share of freight transports is done by sea [2].
Australian infrastructure
Australia is one of the world’s major coal exporters. Large amounts of iron ore are extracted as well. These raw materials are loaded for export in special harbors. These materials are generally hauled from the country’s interior to the harbors by rail. Given the expectations for a continuing strong demand for raw materials around the world, both the rail network and the individual loading harbors will probably be expanded. Rail transports are being increasingly used in other economic areas as well [1].
Logistics requirements and service areas
Thanks to the long distances and the large freight volume of foodstuffs, the TTS Transport, transshipment, storage services are very critical to Australia.
The level of CEP services Courier, express and parcel services offered primarily in major cities is comparable to that found in other industrial countries.
The market for contract logistics Contract logistics is on a similar level. For instance, DHL has signed a five-year contract to deliver prescription medication to pharmacies within 24 hours, including those in remote areas. Other value-added services, including order acceptance, storage and invoicing, are provided.
Logistics centers in Australia
All logistics centers in Australia are located near the major coastal cities. With 4.2 million residents, Sydney is the largest city in Australia and serves as a hub for the transport and storage sectors. Australia’s processing industry is largely based around Melbourne, which requires the supply of raw materials and intermediate products as well as the delivery of finished products to other parts of the country and to international markets. Melbourne has also evolved into a logistics center and hub for the southern Pacific region. Export trade with New Zealand is a focal point here. Agricultural products like cotton, wool, grain and meat are transshipped and stored outside the major metropolitan areas [1].
Important logistics service providers
The most important Australian logistics service providers are Toll Holdings, Queensland Rail, RailCorp, Linfox, Pacific National, P&O Australia, Mainfreight, ANL Container, Co-op Bulk Handling and Star Track Express. The international logistics service providers in Australia include DHL, Schenker Australia and Kühne & Nagel [1].
Recommended reading
Fundamentals of Logistics Management | Grant / Lambert / Stock / Ellram 2005
References
[1] Australien | Reichwein 2006. In: Transport und Logistik | Bundesagentur für Außenwirtschaft (Hrsg.)
[2] The World Fact Book | Central Intelligence Agency 2007



