Google AI

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

How Homeowners Can Prepare for Asbestos Removal in Melbourne

If you own an older home in Melbourne, there’s a chance asbestos-containing materials may be present somewhere on your property. That’s why professional asbestos removal Melbourne services are necessary, but as...

Box Mixers launches at home cocktail mixers

Box Mixers has announced its new range of zero alcohol cocktail mixers, made from all natural flavours, crafted to make drinking cocktails at home simple and convenient. Designed to appeal to...

Prime Minister interview with Karl Stefanovic and Alison Langdon, Today

KARL STEFANOVIC: Joining us now from Kirribilli House in Sydney. PM, good morning to you. Thank you for your time.    PRIME MINISTER: G’day Karl.   STEFANOVIC: The Premiers don't seem to be listening...

Trading With Quantum AI: A How-To Guide

Quantum AI can be used in any country where retail CFD trading is legal. The site does warn that registration spots are limited, so your first try might not be successful. If...

Alcohol and your brain: study finds even moderate drinking is damaging

It’s a well-known fact that drinking too much alcohol can have a serious impact on your health, including damaging your liver. But how much is too much? For conditions such...

Catch a Flight to Broome for a Tropical Adventure

If you’re dreaming of a getaway that combines tropical beauty, rich culture, and a sense of adventure, look no further than Broome. Tucked away in Western Australia’s Kimberley region, Broome...

Do we really want our kids drinking alcohol — when we’re told no amount is safe?

For generations, alcohol has occupied a strange, almost sacred place in Australian culture. It marks celebrations, lubricates social gatherings, and — whether we admit it or not — often serves...

Effective Pest Control Solutions in Ballarat: What You Need to Know

Living in Ballarat means enjoying a beautiful regional lifestyle, but it also comes with its share of challenges—one of which is managing pests. From termites threatening your home’s structure to...

Essential Packaging Materials That Support Business Efficiency in Melbourne

Reliable access to packaging materials is a key factor in how smoothly businesses operate across storage, shipping, and distribution processes. Companies that depend on packaging supplies Melbourne understand that packaging is...