Weekend Times


The Times

Business News

A COVID 'ring of steel' around Sydney would play havoc with Australia's supply chains

  • Written by Flavio Romero Macau, Associate dean, Edith Cowan University

If a “ring of steel[1]” was actually placed around Sydney, as suggested by Victorian premier Daniel Andrews, the rest of Australia would suffer in ways that aren’t immediately apparent.

Completely sealing a city or a region is not unprecedented. It happened last year in China, India, Italy and France.

In those instances it wasn’t just local facilities that were shut down, but also factories and distribution centres serving the rest of the country and the movement of goods into and out of the regions.

The rest of Australia got a taste of what would happen earlier this month when Amazon[2] temporarily closed down its Moorebank fulfilment centre in Sydney, after two workers tested positive to COVID-19. Suddenly, it was unable to ship tens of thousands of orders.

It’s worthwhile examining what a near-literal ring of steel would do.

Greater Sydney sold A$281 billion[3] of goods and services to the rest of Australia in 2019/20 — $81 billion more than it brought in.

Made in Sydney

Sydney made five times as much from selling goods to the rest of Australia than it did from exports.

While financial services accounts for most of these sales (42.5%), manufacturing comes in a respectable second (12.6%[4]).

A COVID 'ring of steel' around Sydney would play havoc with Australia's supply chains Smithfield-Wetherill Park Industrial Estate.

Sydney’s Smithfield-Wetherill Park Industrial Estate, home to more than 3,000 manufacturing, wholesale, and transport firms using more than three million square metres of warehouse space, is one the largest industrial areas[5] in the Southern Hemisphere.

About 8%[6] of Australia’s poultry meat and 15% of Australia’s mushrooms come from Sydney. Bacon, ham, and salami would also take a hit without the Primo Foods facility in Chullora.

Without Asahi Beverages in Huntingwood and Coca Cola Amatil’s Eastern Creek distribution centre and Northmead bottling plant, Australia would find it hard to get Pepsi, Coke and Schweppes soft drinks.

Petrol would become harder to come by. While Sydney’s Clyde and Kurnell refineries closed early last decade, Sydney remains a major hub for imports. Sydney’s Clyde and Parramatta terminals store gasoline, diesel and lubricants.

Read more: 'Panic-buying' is the new normal: how supply chains have adapted[7]

Much of Australia’s manufacturing takes place in Greater Sydney, including boilers and specialised equipment for the mining industry.

Toilet paper would at least be safe. Australia has four main manufacturers, three in Victoria (Sorbent, Safe, Merino) and one in South East South Australia (Kleenex).

Arnotts has moved much of its output to Brisbane, making Tim Tams safe as well.

Going through Sydney

A COVID 'ring of steel' around Sydney would play havoc with Australia's supply chains Port Botany: 2.5 million containers per year. National Maritime Museum

Greater Sydney is Australia’s largest logistics hub[8]. Sydney’s Kingsford Smith Airport handles 45% [9] of Australia’s air freight.

Of the 2.5 million containers arriving in Port Botany[10] each year, one-fifth are moved to the rest of Australia over roads such as the Hume and Pacific highways, or through trains running between Sydney and Melbourne, Brisbane and Perth.

Australia Post processes more than half a million parcels a day at Chullora.

The Woolworths distribution facilities at Yennora and Minchinbury move nine million cartons a week.

Many of Australia’s distribution chains aren’t set up to operate without Sydney.

Depending on its strength, a ring of steel would impose considerable challenges.

References

  1. ^ ring of steel (www.news.com.au)
  2. ^ Amazon (www.theurbandeveloper.com)
  3. ^ A$281 billion (economy.id.com.au)
  4. ^ 12.6% (economy.id.com.au)
  5. ^ largest industrial areas (www.fairfieldcity.nsw.gov.au)
  6. ^ 8% (www.dpi.nsw.gov.au)
  7. ^ 'Panic-buying' is the new normal: how supply chains have adapted (theconversation.com)
  8. ^ logistics hub (mhdsupplychain.com.au)
  9. ^ 45% (www.transport.nsw.gov.au)
  10. ^ Port Botany (www.nswports.com.au)

Authors: Flavio Romero Macau, Associate dean, Edith Cowan University

Read more https://theconversation.com/a-covid-ring-of-steel-around-sydney-would-play-havoc-with-australias-supply-chains-165313

The Weekend Times Magazine

Making these five clever moving mistakes will cost you both money and time

Moving to a new location can be a thrilling adventure, but it can also be costly and stressful. Because so much packing, planning, and logistics are involved, it is easy...

Car Removal Melbourne and Clearing Vehicles the Easy Way

Unwanted vehicles can quietly become a problem, occupying space, losing value, and creating unnecessary stress. Car removal Melbourne offers a practical way to deal with cars that are no longer useful...

CHECK.CHECK.CHECK. The new ‘Slip, Slop, Slap,’ for a night out campaign

CHECK.CHECK.CHECK. The new ‘Slip, Slop, Slap,’ for a night out launched by the Night Time Industries Association A new campaign Check. Check. Check. encouraging punters to do their...

Let's talk about nits!

My daughter struggled with nits for 8 years until I found this miracle cure Nits. The one-word granted to strike fear into mums everywhere … and have them immediately scratching their...

Evaporative Cooling Cleaning Melbourne for Fresh Air and Reliable Cooling

Regular Evaporative Cooling Cleaning Melbourne is essential for maintaining clean air, consistent cooling performance, and the overall reliability of evaporative cooling systems. These systems are widely used across Melbourne due to...

Rodent Control: Effective Strategies to Protect Your Home and Health

Rodent control is an essential part of maintaining a safe and healthy environment in both residential and commercial properties. Rodents, including rats and mice, are not only a nuisance but...

The Aussie Man Launches Debut Range of Men’s Grooming Products

Brand new Australian made men’s skincare company The Aussie Man has today announced the launch of their new range of organic skincare.  The Aussie Man uses hero natural ingredients such as...

Eradicate Sugar To Aid Good Mental Health

It’s R U OK Day tomorrow, Thursday 10 September, the national day of action for people to check in with their peers, family and friends to see if they’re ok.  Twenty...

Laser Skin Clinic Kew: Advanced Treatments for Radiant, Healthy Skin

With advancements in modern cosmetic treatments, people no longer need to rely solely on skincare products to achieve visible results. Professional clinics offering laser technology have become trusted destinations for...

hacklink hack forum hacklink film izle hacklink testpadişahbetgalabetNon GAMSTOP Casinosbeste online casinonon GamStop casinos UKNon GamStop Sitesjojobetonline casinos australiaonline casinosonline casino australiacasinos not on GamStopjojobetjojobetzlybraryjojobetcasibomcasibompusulabet