Getting time of use charging right for road freight will be critical if we are to avoid increasing the cost of domestic goods and exports
Monday kicked off with significant news from Transport Minister, Simeon Brown, that the Government is moving forward with amending legislation to allow for time of use (or congestion charging) to be introduced.
In principle, time of use is a concept NRC supports, with road freight accounting for 93% of goods delivered across New Zealand, getting time-of-use charging right will mean freight will enable goods to be delivered more efficiently, especially in our busiest cities. But if we get the model wrong it will mean the cost to transport goods goes up without any clear efficiency gains. In a cost-of-living crisis, NRC knows this isn’t an option. Realistic, viable alternatives are critical to success, including viable alternative routes, effective public transport, freight corridors and the ability to change the time-of-day roads are used.
We believe the first issue policymakers need to get to grips with is understanding the networks’ challenges. Auckland commuters, for example, have limited options to utilise the network at different times of day because it is nearly always at or over capacity.
Core to this is growing Government’s understanding of road freight movements through robust freight and supply chain data. Accurately interpreting road freight movements is going to require a sophisticated digital capability to be developed. Without it, there is a high risk of unintended consequences to the supply chain. This is why NRC is already working with Government to discuss freight considerations in any proposed time of use legislation.
NRC meet with Minister of Transport Simeon Brown
On the back of Monday’s announcement, it was timely that yesterday, James Smith, our NRC General Manager of Policy and Advocacy, and I, met with Minister of Transport Simeon Brown in Auckland. The first thing I asked in the meeting was what was the OCR announcement, which was due at 2pm – as it happened, the time of our meeting. The Minister got out his phone and gave the good news we now all know – the Reserve Bank announced a reduction of 25 basis points in the official cash rate. While any lift to the economy will take some time to roll through, there is no doubt this is a major turning point. It is a significant marker for businesses to start restoring confidence off.
The meeting with the Minister was positive. It is clear he is focused on improving the productivity and efficiency of the road freight sector and understand the importance of policy changes having those objectives front and centre. I thanked him for the policies announced this year that will drive these improvements, from the investments in roads of national & regional significance, speed limit reinstatements to 24hr and 48hr pothole repair obligations. We talked through a number of initiatives that NRC have underway that will help deliver the productivity lifts to the industry he is looking for, he was very interested and supportive, and I look forward to sharing more as these are ready to deliver.
Freuhauf
Following our meeting with the Minister, I had the pleasure of attending the Freuhauf / Schmitz Cargo launch of the S.KOe fully electric semi-trailer box. Yvette, Jeff and the team at Fruehauf put on a fantastic night, celebrating their people, innovation and the road freight industry. It was uplifting to see the strong German-New Zealand manufacturing partnership, and to see New Zealand at the front end of new technology, the first in the southern hemisphere to launch the game changing electric cool-box trailer. Providing full refrigeration from electric battery only, and an e-axle that regenerates the battery during the drive, the cooling unit is an impressive bit of kit. With the EU and other export markets set to get more stringent on the carbon footprint of imports, this is some of the technology that is going to keep New Zealand on the leading edge of primary produce sales globally. Along with a number of NRC board members there were lots of familiar faces from across the industry were there to celebrate, with a German themed evening providing a great atmosphere. It was wonderful to see everyone enjoying an event that showcased how innovative this great industry of ours is.
Full road closures provide efficiencies that open the door for NZTA to tick off more crucial projects
This week also saw NZTA announce that the 220km section of SH1 between Tirau and Waiouru is about to receive the full road closure treatment to facilitate significant maintenance works might understandably be met with mixed reactions. At first glance rolling road closures and detours doesn’t feel like something to get excited about. But as is often the case, a quick glance doesn’t capture the full story.
Closing stretches of the road will enable NZTA to carry out work on 110 lane kms in less than half the time it would take if the road was kept open. This means condensing an estimated 5 years of works down to just two. Not only will the works happen quicker, delivering efficiencies that will enable the contractors to move onto the next job sooner, as road users we can look forward to more consistent travel times unimpeded by road cones, stop-go management and lane closures.
This is the first of a number of a number of large and ambitious maintenance and rehabilitation projects NZTA are kicking off. We recognise it will take some adjusting to, which is why NRC is committed to working closely with NZTA to ensure the freight detours will work well for the wide range of vehicles our members have in their fleets. NZTA welcomes constructive feedback from members, and we will work closely to any issues that arise are resolved smoothly. Let us know your thoughts.
Z $250 fuel credit campaign launches Mon 19th Aug
Finally, I’m pleased to share that our commercial partner Z Business is offering new fuel card holders the opportunity to win $250 in fuel credit! Simply sign up for a Z Business fuel card before 13 October 2024 and transact at least once in each month of October, November and December: – https://apply.z.co.nz/.;
Important note: To receive the full NRC benefits and the $250 fuel credit, you must reference the member offer code which has been emailed to NRC members within the application form. Application subject to eligibility and credit criteria. Terms and conditions apply.
HARMfree Connect Event for health & safety champions & leaders
In partnership with NZ Trucking Association, NRC is pleased to be supporting a FREE HARMfree Connect Event from 12pm – 1.30pm on Wednesday 28 August at Westfield Manukau, 1 Leyton Way, Auckland.
This event is a great way to connect with your peers, exchange ideas, learn about the benefits of HARMfree Transport & Logistics, and hear from Kelly McLuckie from Success Formula. Armed with over 20 years’ experience within transport, logistics, and construction, Kelly helps organisations understand and develop their team and culture, plan and manage change, leadership training, and much more. Kelly’s talk focuses on good work design and how to effectively bring about behaviour change within teams.
Event includes lunch, refreshments and take-home resources, and spaces are limited so please RSVP and register by Friday 23 August to reserve a spot.
Justin
