Informing transport infrastructure investments using TraNSIT: A case study for Australian agriculture and forestry

Abstract

Transport infrastructure is essential to moving over 85 million tonnes of agricultural products and 30 million cubic metres of timber from farms and production areas to domestic and international markets each year in Australia. Agriculture supply chains in Australia are characterised by long distances with transport costs accounting for up to 40 percent of the market price. Targeted infrastructure investment and/or regulatory changes can substantially reduce transport-related logistics costs. To provide a comprehensive view of transport logistics costs and benefits due to infrastructure investments and regulatory changes in agriculture and forestry supply chains, CSIRO developed a computer-based tool – the Transport Network Strategic Investment Tool (TraNSIT). TraNSIT optimises transport routes for upto hundreds of thousands of enterprises and millions of vehicle trips between farms and their markets, providing information on routing to maximise cost efficiencies. Through an Australian Government initiative, TraNSIT was applied to over 30 commodities representing 98% of Australian agricultural and plantation forestry volume transported by road and rail. TraNSIT is now a comprehensive logistics tool that has been applied to the largest agricultural supply chain dataset ever assembled in Australia. This paper provides an overview of TraNSIT, its adaptation to agriculture and forestry logistics as part of the project, and its application to several case studies in Australia including new road links, rail versus road and flooding.