National interest in development of Air Freight Export Council

31/8/94

The State Government's work in establishing Western Australia's Air Freight Export Council (AFEC) is attracting national interest.

Transport Minister Eric Charlton said other States and Territories were focusing attention on the development of AFEC in WA because of the Australia-wide problem of providing ongoing adequate air cargo space.

"AFEC could well become a national model for overcoming these problems," Mr Charlton said.

In July, the Government set up an interim AFEC in order to take advantage of the critical October to February peak air freight period.  Chaired by Director General of Transport Stuart Hicks, it comprises industry groups and will operate until March next year when a properly constituted and permanent AFEC is put in place.

Mr Charlton today announced funding for the council and the appointment of two executive officers.

AFEC will cost $380,000 to operate in the first two years and Cabinet has decided to make a special allocation of $200,000 to assist funding requirements in 1994-95.

"In addition, the principals of Air Cargo Management Pty Ltd - David Borthwick and Geoff Lord - will take on the executive officer role of AFEC for the council's first two years of operation," the Minister said.

"After that time it is expected that the perishable air freight industry will take on responsibility for the executive arm of AFEC.

"Mr Borthwick and Mr Lord are well respected throughout the freight and airline industries and together they have more than 50 years of airline, freight forwarding, exporting and consulting experience specialising in perishable and general cargo transport.

"Both men helped pioneer fruit, vegetable and dairy exports to Singapore from WA and live lobster exports to Japan and Taiwan."

A recent study commissioned by the Ministerial portfolios of Transport, Primary Industry and Commerce and Trade showed that the value of air export to WA was approaching $300 million and growing.  It also identified that up to $80 million in perishable exports could be jeopardised over the next two years if action was not taken to overcome constraints in air freight capacity.

"AFEC is being established to ensure the development of a world-class air freight distribution network from WA," Mr Charlton said.

"The council will develop and manage a strategic plan for air freight exports on an integrated basis so that problems of insufficient capacity are overcome, thus maximising returns to individual companies and the export industry as a whole.

"The development of exports in perishable products is one of this State's major income- earning activities, with strong indications of the growth in the future.

"Opportunities exist for WA to expand its air exports to the rest of the world, and in particular to the Asia-Pacific region which is a demanding market place with growing competition as export nations improve their skills in trading with this part of the world.

"WA must improve the co-ordination of its air export capacity if it is to have a bigger share of this market."

Media contact:  Dean Roberts 321 7333 or 222 9595