The Victorian Transport Association (VTA) opened State Conference 2026 by highlighting the resilience of the freight and logistics sector and the unprecedented challenges operators are facing.
In a wide-ranging address, VTA CEO, Peter Anderson, told delegates the conference theme reflects the unbroken commitment of operators who continue delivering for Australia against mounting economic, regulatory and workforce pressures.
“Freight never stops – and neither do the people who power this industry,” he said.
“But the pressures on operators today are intense: rising costs, regulatory complexity, shifting markets and growing uncertainty.
“Our industry keeps going, but it cannot keep absorbing these pressures without meaningful support and structural change.”
The opening of State Conference 2026 coincides with the announcement of the Victorian Freight Decarbonisation Co‑Investment Program and the Victorian Electric Heavy Vehicle Trial.
Both initiatives were launched this morning by Victorian Minister for Roads & Road Safety and Ports & Freight, Melissa Horne.
In his speech, Anderson acknowledged the $8 million co-investment fund as a positive win for transport.
“We commend the Victorian Government for delivering practical, hands‑on programs that support operators to trial cleaner vehicles, upgrade their infrastructure and test new business models,” he said.
“Decarbonisation will take time – there is no single replacement for diesel – but programs like these give operators clarity, real‑world experience and a viable pathway forward.”
While decarbonisation is the long-term pathway, fuel volatility remains the most immediate and destabilising challenge for transport businesses, Anderson noted.
“Fuel prices no longer move on supply and demand alone; they move on geopolitical instability, speculative trading and global uncertainty,” he said.
“A 10-20 cent spike per litre can wipe out margins overnight.
“Operators simply cannot absorb that risk – not when margins are already razor thin.”
Anderson therefore stressed the essential role of the fuel levy as a transparent and defensible mechanism.
“The fuel levy is critical to the survival of operators,” he said.
“It ensures legitimate cost recovery and protects cashflow.
“Without it, operators risk collapsing under cost shocks they cannot control.”
Freight customers misrepresenting freight costs or resist surcharge mechanisms were also criticised.
“Transport accounts for about 12-13 per cent of the cost of goods sold – fuel is only a fraction of that,” said Anderson.
“Operators must not be forced to subsidise transport for the rest of the supply chain.”
The issue of sham contracting was also addressed – with Anderson describing it as “one of the most dangerous threats from within our sector”.
He made it known to attendees that contracting gives rogue operators a 30 per cent cost advantage and is “crippling compliant businesses who operate legally and safely”.
“It is undermining legitimate operators, eroding safety and contributing to the black economy,” said Anderson.
According to the VTA, the Australian Taxation Office has reported a surge in tip-offs relating to sham operations in road freight, with regulators are now escalating enforcement.
On 13 March, the Australian Taxation Office and Fair Work Ombudsman issued a joint statement confirming a significant escalation in national compliance and enforcement activity targeting sham contracting, specifically identifying road freight as an area of concern.
The opening of State Conference 2026 also addressed the ongoing issue of driver shortages, with the association revealing it is now reaching critical levels.
“We have proven – through nearly 450 job‑ready drivers trained with Armstrong’s – that structured education works,” said Anderson.
“Now we need regulatory settings that support the recruitment and onboarding of new drivers into long‑term careers.”
With freight volumes expected to double over the next 20 years, Anderson stressed that productivity is non-negotiable.
“We cannot double the number of trucks, drivers or congestion – the maths simply doesn’t work,” he said.
“We need better road access, stronger bridges, modern intermodal hubs and more high‑productivity vehicles.”
The VTA therefore reinforced that profitable operators are essential to a safe, modern industry.
“Profit is not a dirty word – it is the foundation of safety, reinvestment and sustainability,” said Anderson.
“Operators cannot invest in safer vehicles, new technologies or alternative fuels if they are not making a fair and reasonable return.”
VTA State Conference 2026 concludes on Tuesday 24 March.
In other news, Fonterra has released its results for the first half of financial year 2026.
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