Steps to improve air freight capacity out of Perth

31/8/93

The State Government is taking steps to improve air freight capacity out of Perth.

Transport Minister Eric Charlton and Primary Industry Minister Monty House said today that Western Australia's soaring trade in high-value perishable exports - which was increasing at the rate of 25 per cent per annum - would be threatened unless there was an adequate flow of air freight capacity.

Producers of fruit and vegetables, meat and livestock, dairy foods, wildflowers and live lobsters faced constraints on expanding their overseas sales in the next few years due to limited capacity to airfreight these exports.

"Producers of these high-value commodities are penetrating lucrative markets but there is pressure on the supply of capacity in some sectors of the air freight market," Mr Charlton said.

"Many more exporters are likely to face capacity constraints within the next year or two."

Mr House said there were producers of perishable products such as fruit, rock lobster and wildflowers, who had experienced problems with delays in exporting by air.

"We cannot allow this valuable trade to be frustrated, and so we have established a study to look at the whole issue and make recommendations to the Government on ways of overcoming the difficulties," he said.

An air freight committee, comprising export industries, consultants Western Global Pty Ltd and representatives from the Departments of Transport, Agriculture, Commerce and Trade and Fisheries, has been formed to carry out the study.

Mr Charlton and Mr House said Western Global's principals had wide experience in transportation, logistics and system design with particular emphasis on air freight.

The study will begin by identifying existing and future constraints.

Other areas of examination will include:

·         identifying influences on the provision of scheduled airline capacity;

·         ascertaining the availability and suitability of dedicated air freight capacity (both scheduled and charter); and

·         ascertaining present and future demands of the various sectors of the perishable export market.

The company and departments will develop commercially feasible solutions to problems in air freight logistics as well as strategies to give Western Australian exporters a competitive edge.

Western Global will be guided by a special steering committee representing Government and primary industries, and will report its findings and recommendations by the end of January.

"Exporters of live lobster into Taiwan and Japan are already concerned about the future availability of air freight space," Mr Charlton said.

"It is predicted that live lobster exports will increase by about 2,000 tonnes this year, and by a further 2,000 tonnes next year, providing there is sufficient air freight capacity.

"Perth is being used almost exclusively as an air freight export point because of the greater choice of destinations and frequency of flights.

"Outbound international freight from Perth Airport rose from 14,800 tonnes in 1989 to 26,264 tonnes last year.

"Industry is predicting this will rise to more than 32,000 tonnes this year."

Singapore is the dominant market for WA's air-freighted perishable exports, but other important destinations are Hong Kong, Tokyo, Taipei and Jakarta.

Mr Charlton said one of the problems was that scheduled airline capacity was provided in response to growth in demand for passenger seats.  Revenue from the sale of freight space was icing on the cake.

"If the current growth in demand for freight space on scheduled international airline services continues, there is potential for serious capacity constraints on consignments to Singapore, Kuala Lumpur, Hong Kong, Tokyo, and perhaps Brunei," he said.

Mr Charlton said the study would also give particular attention to existing and potential demands for air freight capacity in the State's regional areas, including the South-West, Great Southern and Kimberley.

"I am confident that like our move to improve shipping capacity from Fremantle, this study will find solutions to elements that threaten to stifle the export of perishables and provide us with a strategy to enhance export growth in the interests of the entire State," Mr Charlton said.

Media contact: Dean Roberts 321 7333 - ah pager 480 9999 (94065)

Will Henwood 481 2044 - ah pager 480 5325