The Victorian Transport Association’s (VTA) recent Alternative Fuel Summit brought together industry leaders, operators, policymakers, and innovators to confront one of the most pressing challenges facing our sector: the transition away from carbon-based energy sources.
The summit, proudly supported by Viva Energy Australia, CMV Truck & Bus, Change Fuel Technologies was a timely reminder that while the road to decarbonisation is inevitable, it is also complex – especially for freight and logistics operators.
Unlike other sectors of the economy that are already making significant strides in adopting low or zero-emission technologies, freight transport remains one of the most energy-intensive industries.
Heavy vehicles, long-haul operations, and the sheer scale of freight movement mean that transitioning to alternative fuels will take longer, cost more, and require far greater support.
That support must come from government and regulators – not in the form of penalties for not acting sooner, but through incentives and compensation for those who are beginning the journey now.
Operators who invest in alternative fuels, electric vehicles, or hybrid technologies should be rewarded for their leadership, not burdened by unrealistic expectations or punitive measures.
The summit made clear that the industry is willing to change. Case studies from operators already trialling biodiesel, hydrogen, and electrification showed that innovation is happening.
But it also highlighted the barriers: infrastructure gaps, regulatory uncertainty, and the high upfront costs of new technology.
These costs will inevitably flow through the supply chain. Freight and logistics operators already operate on thin margins.
As they begin to absorb the costs of transition – whether through vehicle upgrades, fuel changes, or compliance requirements – those costs will be passed on to customers and, ultimately, consumers.
This means that living costs will continue to rise as the transition progresses. It’s a reality we must acknowledge, and it underscores the need for a sensible mix of policies and regulations that balance environmental goals with economic sustainability.
The last thing our economy needs is for essential freight services to be priced out of viability, or for operators to be forced out of business due to unmanageable transition costs.
Freight and logistics are not optional extras – they are the backbone of our communities and economies.
Every product on a shelf, every parcel delivered, every construction site supplied depends on the movement of goods.
If we fail to support this industry through the energy transition, we risk undermining the very systems that sustain our way of life.
That’s why the VTA continues to advocate for a national freight decarbonisation strategy that includes transitional funding, infrastructure investment, and regulatory clarity.
We need a roadmap that recognises the unique challenges of freight, sets realistic timelines, and ensures that operators are not penalised for the pace of change.
The transition to alternative fuels is not just a technological shift – it’s a cultural and economic one.
It requires operators to rethink their business models, retrain their workforce, and retool their fleets. These are not small undertakings, and they cannot be achieved overnight.
The freight industry is ready to embrace change, but it must be given the time, resources, and policy certainty to do so responsibly.
Rushing the transition without adequate support risks creating disruption, not progress.
Moreover, collaboration across the supply chain will be essential. Manufacturers, fuel providers, infrastructure developers, and government agencies must work together to ensure that alternative fuel solutions are scalable, accessible, and affordable.
Only through coordinated action can we ensure that the freight industry continues to deliver for Australia – efficiently, sustainably, and equitably.
We must all recognise that the cost of transition is a shared responsibility. Operators cannot carry it alone.
If we want a cleaner, more sustainable freight future, we must invest in it with fairness, foresight, and a deep understanding of the essential role freight plays in our lives.
- Peter Anderson is the CEO of the Victorian Transport Association.