Australia’s Freight Sector Set to Surge with New National Strategy Focused on Growth and Resilience: Everything You Need To Know

The Australian government has unveiled an updated National Freight and Supply Chain Strategy, marking a pivotal moment in the country’s freight industry. The National Action Plan for 2025–2029 will focus on tackling critical areas such as productivity, resilience, decarbonisation, and data to improve Australia’s freight network. This revision aims to address challenges stemming from recent disruptions, including the COVID-19 pandemic, extreme weather events, and staffing shortages that have posed significant obstacles to the freight sector in the past few years.

Freight Growth Projections (2020–2050)

A major feature of the updated strategy is its focus on future growth projections and the evolving role of different freight modes. The total domestic freight task is projected to grow by 26%, from 765 billion tonne-kilometres in 2019–2020 to an estimated 964 billion tonne-kilometres by 2049–50. This increase signals a rising demand for efficient transport solutions across Australia.

Breaking down the growth by transport mode, road freight is expected to see a substantial rise of 77%, reaching approximately 394 billion tonne-kilometres by 2050. Meanwhile, rail freight, a cornerstone of Australia’s bulk commodity transport system, is projected to grow by 5.7%, reaching around 460 billion tonne-kilometres by 2050. Despite this more modest growth, rail remains a dominant player in the freight sector, with its infrastructure playing a vital role in carrying bulk commodities like coal and iron ore.

In contrast, air freight is forecasted to experience a remarkable 103% increase, from 290 million tonne-kilometres in 2020 to 589 million tonne-kilometres by 2050. This reflects the growing importance of air transport in handling high-value, time-sensitive goods. Coastal shipping is expected to remain relatively stable, with projections indicating annual freight volumes between 105–110 billion tonne-kilometres. These figures underscore the growing demand for efficient freight systems across all modes of transport.

Rail Freight Market Overview

The Australian rail freight transport market was valued at USD 13.07 billion in 2025 and is projected to reach USD 15.79 billion by 2030, growing at a compound annual growth rate (CAGR) of 3.86%. Non-containerized bulk commodities, such as iron ore and coal, are expected to remain the major contributors to the market, with these goods accounting for 63% of the market share in 2024.

In terms of operational scope, interstate freight corridors are expected to dominate, with an impressive 81% market share in 2024. This indicates that the majority of rail freight will continue to be driven by long-distance routes that connect key industrial regions, particularly those focused on mining and agriculture. Rail’s established infrastructure is likely to continue being central to Australia’s freight system due to its ability to carry large volumes of bulk cargo efficiently over long distances.

Strategic Initiatives for the Freight Industry

The National Freight Action Plan introduces several strategic initiatives aimed at enhancing the resilience and efficiency of the freight sector:

National Freight Resilience Plan: This plan is designed to ensure a consistent and coordinated response to significant supply chain disruptions. By anticipating future challenges, the government aims to provide the framework for a more resilient freight system.

Freight Infrastructure Investment Framework: This framework will guide future infrastructure investments, ensuring that the country builds and maintains freight systems capable of supporting the growing demand for transport services.

Safety Research: The government has prioritized safety research on battery and zero-emission traction technologies for freight vehicles, including locomotives. This is a critical step toward decarbonising Australia’s freight sector and reducing its environmental footprint.

Network Modelling: A significant initiative of the strategy involves modelling both current and future freight networks to assess what is needed to support the efficient and effective operation of Australia’s supply chain.

These initiatives align with Australia’s broader goals of enhancing productivity, improving environmental sustainability, and ensuring the long-term viability of its freight infrastructure. As the nation moves toward more sustainable modes of transport, these plans will ensure that Australia is ready to meet the demands of the future freight market.

Conclusion

The revised National Freight and Supply Chain Strategy and its associated Action Plan represent a forward-thinking approach to addressing the challenges and opportunities within Australia’s freight sector. With a focus on increasing productivity, improving resilience, embracing decarbonisation, and utilizing data-driven decision-making, the government is taking significant steps to future-proof the country’s freight network.

The growing importance of all modes of freight transport—road, rail, air, and coastal shipping—will require careful planning and investment to ensure that Australia can accommodate future growth in freight volumes. The National Freight Resilience Plan and the Freight Infrastructure Investment Framework are key components in building a sustainable, efficient, and reliable supply chain system.

Ultimately, this strategy will position Australia’s freight sector as a leader in innovation and sustainability, contributing to the country’s economic growth while tackling the challenges of an evolving global marketplace.

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