Regional Impacts of E-business in Australia

This is the sixth Working Paper from a project designed to consider the impacts of e-business on the Australian transport system together with any constraints that the transport system might place on e-commerce opportunities. E-business impacts on the transport system in any area of the nation, or indeed the world, will vary with the industry mix in the area, the existing transport infrastructures and services, growth profiles, characteristics of the people in the area and the priorities of business and government. Thus, analysis must encompass regional diversity. To consider regional impacts, this paper draws together information from specific document searches, interviews with experts and overseas experiences. Changes arise from increased profitability of existing industries, access to wider markets or entirely new types of industry. While there is always the possibility of better systems lowering costs, Australian farmers, miners and foresters are currently amongst the most efficient in the world and profitability is linked to prices governed by global commodity markets. Therefore, it is the possibilities of access to wider markets, especially export markets and/or the growth of new industries which are likely to have the most significant effect on transport. Suggested Australian niche products range from stud services to tree nurseries and flower seeds. All have in common the need to match the product to end-user. Moreover, producers may discover that " it is not just the product they raise that has value, but also the process used to grow the crop " [Buerskens, 2000]. An export market in expertise should be pursued. Tourism may be the first regional industry in many areas to benefit from e-business. Inbound and interstate tourism should be boosted by opportunities for lower cost air travel and access to wider markets should be even more significant. However, to realise that advantage transport infrastructure and services must be in place. Opportunities and threats for regional Australia due to e-business include: Access works both ways and local suppliers will no longer have captive markets; Opportunities for regional centres for warehousing and freight transfer will require suitable infrastructure. This is equally true of tourism where potential for regional visits by international tourists exists. Business should be encouraged to site both types of activity to limit impacts on transport infrastructure and create regional employment. Finally, e-business allows relocation of business to attractive regional areas if transport and communications infrastructure is available. This paper, addressing regional issues, is the sixth …