More pieces of the road building puzzle fall into place
I’ve been in the media recently supporting concrete roads and that they have a part to play in road building in this country. Over their lifetime concrete roads cost less than asphalt roads (in the right terrain) when you factor in lifetime pavement rehabilitation and repairs.
But it is a case of horses for courses. And for New Zealand there’s no doubt the lion’s share of roads into the foreseeable future will continue to be built with asphalt and yes, sadly, chip seal. We just can’t afford the upfront costs of concrete roads across the board, and no one is suggesting that.
So this week I read with interest the announcement that Fletcher Building has signed a 15 year contract to partner with Channel Infrastructure to build a new bitumen terminal at Marsden Point. The investment is expected to cost up to $21m and forecast to bring in $45m revenue for Channel Infrastructure over the 15 years.
This is yet another positive sign that roading infrastructure is being taken seriously again, and importantly the private sector has the confidence to invest now.
Supply chain resilience for road construction is critical. More than a few concerns were voiced when the oil refinery at Marsden Point was permanently shut down in 2021 – it produced 70% of the country’s bitumen as a byproduct. When it comes online in 2026 the new import terminal will supplement Fletcher’s bitumen operation at the Port of Napier.
So the pieces of the puzzle are starting to fall into place.
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the government has announced the roads of national and regional significance (the RONS and RORS) as well as the pavement rehabilitation programme
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NZTA is working at pace on designs as well as maintenance programmes, and pleasingly revisiting work already done and parked where possible
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changes for how roads are paid for are also gaining momentum, with MOT sending out a Request for Information (RFI) earlier this month for developing retail services for the transition of the petrol light vehicle fleet into road user charges
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build partners are now starting to invest in plant, materials and supply chain capabilities (as evidenced by the bitumen terminal) now they have the confidence of a 30-year plan for roading infrastructure
The announcement of the bitumen terminal is a much needed boost to Northlanders’ confidence after being hit with the pandemic, cyclone Gabrielle and the economy crashing. With the Mangamuka highway due to re-open next month, the Brynderwyns up and running, it is starting to look like things are finally turning for the better for Northland.
Long may that continue.
Justin
Justin Tighe-Umbers
Chief Executive | National Road Carriers Assn
DDI: +64 9 636 2951
