If the Australian road transport industry had kept relative pace with median global capital investment, the Australian industry would have spent an incremental $9 billion from FY2018 to FY2022.
Technological innovation will be key to improved sector productivity and efficiencies. Following a trend seen in the US, driverless vehicles and drone deliveries are expected to pick up momentum, as well as AI utilization, improving real-time visibility within supply chain logistics.
With an increasing national focus on ESG (Environmental, Social, and Governance), sustainable operating practices will become an ever increasingly important consideration for road transport sector operators.
This trend means significant capex will be required as operators upgrade and update their fleet – which currently contribute a significant proportion of emissions in the sector.
While the sector will be somewhat reliant on innovation and infrastructure investment to drive emissions reductions, early adopter operators could be at a competitive advantage, as larger corporations look to how they can reduce their ‘scope 3’ (value and supply chain) emissions.
Innovation with a focus on sustainable business practices will be key to success with early adoptors holding a potential competitive advantage.