Transport and logistics industry
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1 Transport and logistics industry The Transport and Logistics Industry Skills Council (TLISC) is responsible for the development and review of training packages and advice to Skills Australia in this industry. In the national training system the transport and logistics industry comprises the following key sectors: Logistics Management, Road Transport and Warehousing Rail Ports Maritime Aviation. The transport and logistics network comprises ports, roads, railways, freight terminals, airports, and distribution and materials handling centres. It affects every part of the Australian economy including what we buy, how much we pay and how we get from one place to another. Improvement to Australia s economic productivity will depend on a well integrated transport system that ensures safe and efficient mobility of people and goods. According to in TLISC the sector contributes $90 billion to the Australia economy annually and employs an estimated 500,000 individuals directly and over one million people in both direct and associated roles. Small business is dominant in the sector with over 165,000 businesses operating. Freight movement is expected to double over the next decade. The industry is facing some major challenges: a shrinking local labour pool difficulty attracting and retaining employees in some sectors an ageing workforce, many of whom will retire over the next decade increasing pressures on existing transport infrastructure increasing pressure on freight movement to meet supply. Logistics management, road transport and warehousing National context The training package for this sector is TLI07: Transport and Logistics Training Package According to TLISC Environmental Scan 2010 barriers to overcoming skills shortages in the road transport sector are found in the community perception that the industry is dangerous, fatiguing and has little potential for career development. Skills shortages in this area are linked to an aging workforce. Competition from other industries that employ drivers, such as mining and construction, also has an impact on the shortage of truck, tanker and delivery drivers. In addition, increased freight volumes, technological upgrades, increases in distances travelled, and regulatory reform result in greater demand for more highly skilled truck drivers. Further, as patronage on buses has risen in metropolitan areas, so has the demand for bus drivers. During , individuals undertaking a driving licence assessment will be provided with a statement of attainment identifying that they have completed part of a nationally endorsed qualification. Previously, licence requirements were not linked to a national qualification, which meant learners were less likely to complete a full qualification. It is anticipated that industry and RTOs will encourage new learners who have achieved the licence unit to then continue on their training pathway towards completion of a full qualification. Embedding licensing competency standards into qualifications has the capacity to focus the training effort on longer-term skills development rather than just gaining a licence January 2011
2 The shortage of driving instructors is primarily associated with heavy vehicle driving instructors. Personnel from the labour pool from which instructors are drawn are often attracted by the improved pay and conditions of logistics and management roles. In the warehousing sector the challenge is to promote careers in the industry to school leavers and other young workers. Forklift drivers, particularly those with specialist skills, are in demand by many organisations. New licensing certification for forklift drivers was introduced in 2009, adding to skills shortages. The occupation Warehouse Administrator is a critical component of the efficient operation of warehouse facilities. Warehouse administrators have a broad range of logistics and distribution skills and are highly attractive to many industries, including construction, retail and resources. In a common career path, workers develop their skills in transport and logistics before moving on to more attractive options outside the industry. This results in a high turnover in this occupation. There is also a high demand for professional transport company managers and supply and distribution managers as employers seek to improve operational efficiencies and gain competitive advantage. Employers are looking to employ overseas applicants with comparable skills. Occupations and qualifications in demand at a national level have been identified by TLISC and are summarised in Table 1 below. Table 1: Logistics management, road transport and warehousing occupations and qualifications in demand at a national level. Occupation Truck Driver Delivery Driver Tanker Driver Transport Company Manager Dip Logistics TLI50107 Supply & Distribution Manager Bus Driver Forklift Driver Warehouse Administrator Qualification Cert II Transport & Logistics (Road Transport)TLI20207* Cert IV Transport & Logistics (Road Transport)TLI40207 Cert II Transport & Logistics (Road Transport)TLI20207* Cert IV Transport & Logistics (Road Transport)TLI40207 Dip Logistics TLI50107 Cert III Transport & Logistics (Warehousing & Storage) TLI30207 Cert IV Transport & Logistics (Warehousing & Storage)TLI40107 Cert IV Transport & Logistics (Road Transport Driving Driving Instructor Instruction)TLI41207 Note: * Certificate II in Transport and Logistics (Road Transport) TLI20207 has been replaced by Certificate II in Driving Operations TLI21209 ** Certificate III in Transport & Logistics (Road Transport) TLI30207 has been replaced by Certificate III in Driving Operations TLI31209 None of these occupations are included on the Australian Government s Australian Apprenticeships National Skills Needs List or the current Department of Immigration and Citizenship Skilled Occupation List (SOL) January 2011
3 Local context The transport and logistics industry in the ACT and region largely comprises road transport, logistics management and warehousing. As with the national context, this is closely linked to retail sector activity. The transport and logistics sector includes: general freight, including interstate and local couriers special freight, including fuel, livestock, chemicals furniture removals public transport, coach and taxi. According to the 2009 ACT Skill Demand Survey, ACT industry stakeholders identified the occupations Truck Driver, Bus Driver and Store Person as prioritised occupations for vocational education and training in The occupation Supply and Distribution Manager was shortlisted as a prioritised occupation in the Managers and Administrators group. The occupation Supply and Distribution Manager is also included in the ACT State Migration Plan Occupation List. Table 1, above, lists the in demand qualifications that are linked to the occupations Truck Driver, Bus Driver and Supply and Distribution Manager. The occupation Store Person is linked to qualifications at Certificate II to IV level in Transport and Logistics (Warehousing & Storage). According to the Transport Training ACT (the ACT Regional Transport & Distribution Industry Training Council) the transport and logistics industry in the ACT is experiencing shortages in: heavy vehicle drivers in all categories (average age of drivers is 53 years) front line managers fork lift drivers (continued high demand). Transport Training ACT further report that demand for freight is expected to double by 2020 and that, currently, freight is an area where the rate of employment is good and the dropout rate is low. The industry sees occupational health and safety (OH&S) as a critical component of all training especially those using vehicle loading cranes and long haulage. Fatigue management is more critical now it is covered by legislation introduced in 2008 in all states and territories except WA and ACT. According to ACTION Buses, the ACT is expanding, adding new suburbs, and there is increasing need to expand public transport services. Currently, the ACT is not experiencing difficulty in attracting bus drivers to the industry and ACTION Buses regularly recruits trainees under the Australian Apprenticeships program. The traineeships are not required to comply with national requirements but help to maintain public transport standards. Some bus drivers become transport field officers as this position has a higher pay scale. Analysis of commencements of Australian Apprentices between 2008 and 2010 (see Table 2) indicates that the most popular traineeship is the Certificate III in Transport and Logistics (Road Transport), followed by the Certificate III in Transport and Logistics (Warehousing and Storage). There has been a limited demand for Australian School-based Apprenticeships (ASBAs) in Certificate II in Transport and Logistics (Warehousing & Storage). ACTION commenced 15 new workers in traineeships in Certificate II in Transport and Logistics (Road Transport) in Table 3 shows that in significant job seeker demand for Certificate II in Transport and Logistics (Warehousing and Storage) and Certificate III in Transport and Logistics (Warehousing and Storage) was met through the Productivity Places Program (PPP). As seen in Table 4, further training places for job seekers were awarded in September 2010 for Certificate II in Transport and Logistics (Warehousing and Storage) and Certificate III in Transport and Logistics (Warehousing and Storage). For existing workers, training places were awarded in the second 2010 PPP allocation round for Certificate IV in Transport and Logistics (Warehousing and Storage) and Certificate IV in Transport and Logistics (Road Transport) January 2011
4 Table 2: ACT Australian Apprenticeship commencements in logistics management, road transport and warehousing qualifications, Qualification Type Year Commencements Cert II Transport & Logistics (Warehousing & Traineeship Cert II Transport & Logistics (Warehousing & ASBA Cert II Transport & Logistics (Road Traineeship Transport) TLI Cert II Transport & Logistics (Logistics Traineeship Operations) TLI Cert III Transport & Logistics (Warehousing & Traineeship Storage) TLI Cert III Transport & Logistics (Road Traineeship Transport) TLI Cert III Transport & Logistics (Logistics Traineeship Operations) TLI Table 3: ACT PPP commencements in logistics management, road transport and warehousing qualifications, October 2009 to June 2010 Qualifications Cert II Transport & Logistics (Warehousing & Cert III Transport and Logistics (Warehousing and Storage) TLI30107 Commencements Job Seekers Existing workers Table 4: PPP training places in logistics management, road transport and warehousing qualifications allocated in the 2010 ACT PPP allocation rounds. Qualification Cert II Transport & Logistics (Warehousing & Storage) TLI20107 Cert III Transport & Logistics (Warehousing & Storage) TLI30107 Cert IV Transport & Logistics (Warehousing & Storage) TLI40107 Allocated places Job Seekers Existing workers Cert IV Transport & Logistics (Road Transport)TLI Transport and logistics qualifications were not eligible under the Priorities Support program (PSP) during January 2011
5 Conclusion The following qualifications have been identified as priority industry-specific training needs for the ACT transport and logistics industry in These qualifications, and associated occupations, have been identified using the combined evidence of past demand for Australian Apprenticeships and PPP training places, ACT industry feedback, and evidence of skill shortages presented in the 2009 ACT Skills Demand Survey, the TLISC Environmental Scan 2010, and the ACT State Migration Plan Occupation List. Transport and logistics occupations and qualifications for the ACT Industry Training Needs List Occupations Truck Driver Relevant Qualifications Cert III Transport and Logistics (Road Transport) TLI30207/Cert III Driving Operations TLI31209 Cert IV Transport and Logistics (Road Transport) TLI40207 Bus Driver Cert III Transport and Logistics (Road Transport) TLI30207/Cert III Driving Operations TLI31209 Despatching & Receiving Clerk Store Person Warehouse Administrator Supply and Distribution Manager Cert III Transport and Logistics (Logistics Operations) TLI31107 Cert II Transport & Logistics (Warehousing & Cert III Transport and Logistics (Warehousing and Storage) TLI30107 Cert IV Transport & Logistics (Warehousing & Storage)TLI40107 Dip Logistics TLI January 2011
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