Murray Goulburn Transport and Logistics

Murray Goulburn Presentation
Transport & Logistics
An Operational View
Who Is Murray Goulburn
Cooperative Co Ltd?
• We are a 100% Australian farmer owned
cooperative – “Aussie Farming Families”
(Ref : MG Devondale advertisements circa 2010)
• Established in 1950 in Cobram
• 60 Years of Cooperative ownership with
values that provide for farmers to benefit
from downstream processing and provide
maximum returns to the farmer.
Murray Goulburn has its origins in the soldier settlement region of northern
Victoria. Returned serviceman, many of whom had never seen a farm, had
become pioneer dairy farmers and were concerned that they were not getting the
proper return for their efforts from local proprietary dairy companies.
On 18 May 1949 the Murray Valley Soldier Settlers League called a meeting at
Katunga to gauge public interest in the establishment of a new co-operative dairy
factory. The support was unanimous and an interim committee was formed and
empowered to find out all the necessary details required to establish a new dairy
And it was this committee that recommended Cobram as the site for the plant,
mainly because the size of the town would make it easier to recruit workers and
its proximity to the Murray River for water and red gum logs to fire the boiler.
It was 20 February 1950 that the co-operative was registered as the Murray Valley
Co-Operative Dairy Produce and Trading Company and the factory was opened at
Cobram in May 1951. It was changed to Murray Goulburn following a number of
mergers with other smaller factories in northern Victoria.
Murray Goulburn Today
• 3.1 billion lts of Milk produced in FY 2009/2010
(ref: Annual Report MG 2010)
• 34.5% of Australia's total milk production is processed by Murray
Goulburn (Australia’s total production est. 9.0 billion lts)
(ref: Annual Report MG 2010)
• Murray Goulburn owns in excess of 190,000 tonnes of Storage capacity in
both dry and refrigerated goods over three (3) strategic sites
• Two port side facilities (gateway to Melbourne's port precinct) and one 30
acre distribution/logistics centre in Laverton North
• 170 company owned trucks, specialised bulk milk collection tankers,
refrigerated trailers, high volume distribution trailers (dry freight)
Murray Goulburn Today
• 400+ transport staff, including drivers, support staff, in house
maintenance teams & Management (not including distribution
• Total transport function from farm gate to end user (consumer)
• Distribution networks including all major capital cities, export containers
to over 100 countries in the world through our own and subcontractor
• 2009/2010 FY 25,000 containers exported through the Port of Melbourne,
Australia’s largest dairy exporter and one of the largest users of the
Melbourne port network
Transport Task
Murray Goulburn Transport is a complete supply chain network
and provides service to all parts of the business. Transport has
connections to every processing plant & distribution centre in
the business
• Farm To Factory – Milk off farm to processing plants
• Local Distribution – Processing to Logistics centres
• Freight forwarding to exports through ports
• National Distribution – to major supermarkets and end users
• Local transport – supply chain function – feeding consumables and
products to processing plants
• Local shipping ex Edith Creek (Tasmania) to mainland
Transport Divisions
• Farm to factory task is our major transport function with over 140
dedicated vehicles on the road for up to 24 hours a day 7days a week 52
weeks a year .
• In the FY 2009/2010 the farm to factory fleet clocked up over 21 million
kilometres collecting 3.1 billion lts of milk produced by 2400 dairy farming
families through out Victoria, Southern New South Wales & South
• Murray Goulburn have 7 manufacturing sites in regional areas throughout
Victoria & Tasmania.
Gippsland Transport
• Gippsland milk production for FY 09/10 was 1.07 billion lts (equivalent to
34.5% of total MG milk intake)
• Gippsland Fleet travelled 7.4 million kms in FY 09/10
• Gippsland fleet totalled 50 bulk milk collection tankers working up to 24
hours per day 7 days a week
• 90% of time on road sees Gippsland fleet using local roads owned &
maintained by local government (councils)
• 80% of time on road is on unsealed or partially sealed roads and is claimed
as “off road” use this includes private roads and access tracks on farm
• Gippsland Transport employs almost 200 people in driving & non driving
support roles
The Challenges
• As a major road user on local government roads we see and appreciate
the need to have the road network maintained to a standard and the
challenges that this provides.
• We see that focus is required on the major freight route for goods both in
and out of Sth Gippsland.
• Improvements are always sought in the road network, the Sth Gippsland
Hwy is one example of a road that has seen increases in traffic flow
particularly in the past five years however the road has seen little in the
way of improvement.
• Secondary Links such as the Strezlecki Hwy linking Leongatha to the
Latrobe Valley and East Gippsland are important and well frequented
roads yet again have seen little or no infrastructure changes in the past
five (5) years despite lobbying from various interest groups
The Challenges
• Although the population in and around South Gippsland & Greater
Gippsland is low density the acknowledgement that through various
channels the area is now for the most being acknowledged as a integral
part of the food bowl for not only Victoria but also Australia and also the
world through exports, not only Murray Goulburn.
• If there is food that requires transport to cities and larger regional hubs
for processing then a road network is required to meet the needs, We as a
processor/transport company/ farm gate production need to have
networks that will allow for the efficient and safe transport of goods with
a view of doing this with a reduced impact on the environment & the
communities we share the area with.
How do we maximise our efficiency?
• In our farm gate function (milk collection off farm) there is currently no
substitute for road transport.
• We then are looking for solutions that lessen the impact, Murray
Goulburn have and continue to invest in vehicles and plant & equipment
that provide efficient & safe practices.
– road friendly suspensions are fitted to all tanker fleet (prime movers &
– Euro 5 engines have been provided in the latest purchases,
– automated transmissions to improve driver comfort and increase fuel
economy have been specced in recent purchases
– LNG (Liquefied Natural gas) alternative fuel solutions have been fitted to
existing fleet to improve emissions on pre Euro 3 engines
– EBS/ESC – stability control systems have been fitted to applicable tanker fleet
to again lessen the impact of the vehicle both on the road network and the
LNG (Liquefied Natural Gas)
• Murray Goulburn operates the largest LNG powered fleet on the Eastern
Seaboard, currently 54 prime movers are operating on LNG in two key
sites, Leongatha & Koroit
• 3 models of engines currently operating using LNG technology Caterpillar
C12 & C15 Clean Air Power along with Cummins ISX/ Westport
• Testing conducted by the Australian government revealed 8% lower
greenhouse emissions (Caterpillar C15)(Ref: Heavy Vehicle LNG trials Murray Goulburn/RARE
Consulting 2008)
LNG (Liquefied Natural Gas)
• The option of the adoption of LNG by Murray Goulburn was based on the
following criteria.
– The only heavy vehicle fuel that appeared to provide comparable operation
with diesel, while also offering potential economic and greenhouse benefits
– Remains economic under the new federal fuel excise regime from 2011
– Adoption of dual-fuel technology allowed measured exposure to risk via diesel
– Historically a price-stable fuel relative to diesel price volatility
– A number of technologies supported by OEMs
– An abundant energy resource that is indigenous to Australia (i.e. energy
security) in the face of uncertainty about global oil resources (Ref: Heavy Vehicle LNG
trials Murray Goulburn/RARE Consulting 2008)
Computerised Scheduling of Milk
• Murray Goulburn have invested in technology that allows for the
maximising of milk collection through computerised auto scheduling, this
allows for trucks to be loaded effectively and efficiently using a range of
data inputs including:
– pick up windows of suppliers (farmers)
– Farm access (B double access)
– status of roads particularly with the added benefits of Mass
– and also including time parameters to govern shift length (drivers
• This all comes together to provide the best overall service to our farmers
– (customer service level)
Higher volume combinations
• Murray Goulburn pioneered the implementation of high volume
combinations and were the first tanker operator in Victoria to use a “B”
double for milk collection/distribution
“B-doubles now carry more road freight than any other truck
combination. Hard to believe but it is only 25 years since the first B-double
was granted a permit in the Eastern States, the Murray Goulburn Bdouble. Just 24 months earlier, Western Australia had granted permits to
two operators to carry shipping containers on B-doubles from Perth to
Fremantle, the first B-doubles in Australia”. (
Higher volume combinations
• Murray Goulburn Have continued building on this innovation and now run
in excess of 46 “B” double combinations across its fleet.
• This expansion has been able to be achieved through the commitment of
Murray Goulburn Suppliers and local government to allow for the
improvements sought through efficiencies with the allowance of higher
volume vehicles on their road networks
• Our suppliers see the advantages to high volume combinations as they are
the owners of this fleet and as any fleet owner the seek to find ways of
improving efficiencies and in doing so have invested on farm with opening
up access for larger vehicles
Mass Management
• All Murray Goulburn Fleet are operating under the Mass Management
accreditation throughout Victoria.
• Currently the fleet involved in milk collection in Southern New South
Wales does not enjoy the benefits of operating under Mass Management
• We also have similar issues in South Australia collection
• The benefits of operating under Mass Management allow for Murray
Goulburn to have less vehicles on roads this reduces the risks associated
with road transport and is a key component in our continuing ability to
remain competitive in the transport & logistics field.
Finished Goods Fleet
Currently Operating eight (8) company owned purpose built high volume “B”
double combinations transporting finished product from Leongatha to Murray
Goulburn distribution centres in Melbourne
These trucks have been purchased and are operated by the company to move the
finished goods from the Leongatha site to various locations in the Murray
Goulburn Logistics network.
All fleet operate under Mass Management accreditation and again this is key to
our ongoing involvement in this area.
The fleet averages 33,000kms per week and carries on average the equivalent
4,350 pallets a week ex Leongatha Manufacturing sites
This equates to our own fleet (excluding overflow contractors) travelling in excess
of 1.52 million kms annually on Gippsland and inner metropolitan freight routes
(Monash Fwy & Link roads)
In the FY 2009/2010 – Leongatha Manufacturing plant produced 237,000 tonnes
combined products
Recent Events
• Flooding in Northern Victoria and subsequent infrastructure damage.
• Damage to Major Highways, Northern Hwy, Murray Valley Hwy, Kiewa
Valley Hwy.
• Bridges washed out causing additional kilometres to be travelled to
accommodate for the damage incurred to major routes.
• Tankers loaded accordingly and not a preferred maximum limits increased
tanker activity to complete collection all adding to the cost of running our
business although we are not alone in this
MG Farming Families
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is the property of Murray Goulburn co
operative Ltd. and should not be reproduced
without the express permission of the author.