Full Throttle News In Brief
Bite-sized summaries affecting transport across infrastructure, the workforce and just transition – the pathway to decarbonisation.
Infrastructure
Record roading investment boost to industry
September saw the government making good on earlier announcements on roads of national and regional significance (RoNS and RoRS) with the launch of the National Land Transport Plan (2024-2027) by NZTA. The NLTP is an important step in the machinations of government, locking in the record $32.9 billion of investment in New Zealand’s transport network, including the much-needed RoNS and RoRS.
There is a long way to go before rubber hits the road, assigning and allocating the dollars is the easy bit. The hard yards involve getting contractors locked in, workforce recruited, consents approved, and properties acquired.
On the run into the election NRC consistently called for increased investment in roading, ramped up maintenance and resilience work, and a 50-year road investment plan. We’ve seen record investment in roading announced, a thirty-year plan and a ten-year pipeline for commercial certainty, which we will take as a win. Now we will be calling for confirmed start dates and delivery timeframes for NZTA to be measured by.
Read more here.
Regions also a winner with roading spend
September 2 saw a raft of announcements detailing the roading spend for regional New Zealand. As a strong advocate for the regions, NRC was delighted to see the billions of dollars of spend earmarked for up and down the country.
Many councils and road controlling authorities have wasted no time getting into gear with planning how this allocated spend will be delivered. This has seen the team at NRC busy with local, district and regional councils consulting on their Long-Term Transport Plans. We want to see that road freight efficiency, productivity, safety and resilience are front and centre in transport plans. That is why NRC have submitted on many of the transport plans up and down the country, including appearing before council committees either in person or via video link.
We’d like to hear from any members that see any regional transport plans that may be out of step with delivering a high-productivity network.
Click here for more detail on regional roading spend
How we pay for roads set for overhaul
allocating dollars may be easy, getting them in the first place less so. How we are going to pay for our roads is set to change. The government highlighted in the Government Policy Statement (GPS) on Land Transport that it would be rapidly advancing reforms to the National Land Transport Fund (NLTF).
We are using our roads more, with vehicle kilometres travelled going up, while fuel litres used decline. In short, the fuel-excise duty based-system is no longer paying for all the roads we need. This needs to be fixed, and fast. True to its promise in the GPS, work is now underway.
So, what might this mean for road transport operators? It is too early to tell, but with Road User Charges (RUC) well established in our sector, structural changes may be minimal. Over time we expect to see more of a move towards electronic RUC, which has been signaled by the government.
NRC has significant expertise in the RUC system, and we look forward to continuing our work with the Ministry of Transport on this important reform.
Full HPMV Network Map now released by NZTA
A one stop shop website is now available for the nationwide HPMV network, a major leap forward in simplifying journey planning for permit holders.
The High-Productivity Motor Vehicle (HPMV) network is a critical piece of our roading system which allows approved vehicles to carry heavier weights, delivering a productivity boost to our supply chaing. Approved State Highways and Local Authority roads combine to provide a network where transport operators with HPMV Higher Mass permits are approved to travel with specified heavier loads.
Up until now, transport operators have had to visit multiple websites across NZTA and local RCAs to piece together the approved network. Those days are now over.
NZTA has combined databases with other road controlling authorities to combine the various HPMV networks onto a single interactive map.Full HPMV Network Map (arcgis.com)
More permitting improvements in the NZTA pipeline
Other improvements to the permitting process are also underway. Work is continues on streamlining the existing process for obtaining and renewing HPMV permits. The new Heavy Vehicle Permit Portal for HPMV is progressing well and members should receive comms in October as it goes live.
Running alongside this project the NZTA permit team has been adjusting the permit process. Earlier this year the need for vehicle attribute sheets was removed and the number of combinations on a single permit was increased. NRC commends NZTA for the continued focus on improving a key part of the road freight system which underpins productivity improvements.
More changes are being worked through and members can expect updates as they are signed off.
Auckland Transport out of the starting blocks with Time of Use
It is no secret that Mayor Wayne Brown is a big fan of congestion charging. With Auckland traffic regularly snarled, finding a way to use the city’s road network more effectively is critical to lifting productivity. Not wasting any time, Auckland Transport (AT) is already turning its mind to how Time of Use could work in our largest city.
NRC works closely with AT and we expect to provide expertise on how to lift road freight productivity for the city using Time of Use. NRC supports time of use as an important tool for road freight efficiency. It has been proven to work overseas. But with two harbours, low population density and a low-frequency public transport network, Auckland is not an ideal candidate for congestion charging. We will be calling for (and assisting) sophisticated traffic modelling and analytics, so that congestion charging doesn’t simply drive congestion into arterials and other parts of the network.
As New Zealand’s largest economy and gateway to the country, Auckland is dependent on a highly efficient road freight supply chain. NRC will be working to ensure that any time of use option put in place in Auckland delivers that goal.
City-rail link level crossings set to cause long delays
It may be hard to believe, but we are little more than a year away from the long-anticipated City Rail Link (CRL) loop being completed in 2026. What does a passenger train network upgrade have to do with road freight? Plenty as it turns out.
The CRL is set to enable a near doubling of passenger trains into the city, a well overdue capacity shot in the arm. To ensure that it gets the regulatory approval to run these increased train services, level crossings are going to have to be removed. With increased services, some crossings will be closed for up to 45 minutes in the hour.
Naturally, NRC is concerned about the impacts these closures will have on road freight. Some south Auckland level-crossings are in industry-intensive areas with high road-freight volumes. Takanini is adjacent to both the Southern Motorway and the North Island main trunk railway. Access to industry is via three level crossings, which will have barriers down for 78% of the time once the CRL is running at full capacity (which may be some years away).
NRC is urgently calling for traffic modelling and analytics to be completed by AT to confirm the scale of disruption and congestion. It is critical that grade separation (over or underpasses) at these crossings is built before double the train volume causes extended delays at level crossings.
NZTA set to change how heavy vehicles are screened for RUC compliance
NZTA has notified that some changes are on the way for how it screens heavy vehicles for RUC compliance. These are important changes that all operators of heavy transport should make themselves familiar with – you can find them here.
New Zealanders deserve a high-quality roading network, which means all users have to pay their fair share. NRC advocates for a fair, proportional and efficient RUC system that is simple to understand, easy to pay for and which funds looking after our existing roads and building the new roads we need.
Workforce
Green light for work on the pathway to residency Green List
Immigration NZ is kicking off work to revisit which skillsets need to be added to the pathway to residency Green List. Earlier this year the government pressed pause on work visa migration while they worked to get Immigration NZ backlogs under control. Unfortunately, this included the pathway to citizenship for truck drivers and technicians who were added to the list under the previous government.
NRC is working to ensure that the skillsets our sector needs are included in the Green List. It may not feel like it right now in the middle of a recession, but the road freight industry continues to have a very shallow pool of people to draw on. And too many of them have left for Australia and beyond over the last two years. Attracting people from overseas to work in this great sector will be key to filling the workforce gap that will open the minute our economy starts recovering.
But the transport sector has work to do to lift standards. NRC has been advised there have been far too many examples in the transport industry of bad practice under the Accredited Employer Work Visa scheme. Immigration New Zealand is still processing complaints so if you are aware of any exploitation of immigrant workers or bad practices, please contact the Immigration New Zealand exploitation team on 0800 200 088.
Untangling the tangled web of industry training reform
NRC has joined with other motor vehicle industry associations in putting forward our views on the future of vocational educational reform. Why is yet another area of massive change for our industry underway? The government is unequivocal in its view, put succinctly by Tertiary Education and Skills Minister Penny Simmonds, “After four years and hundreds of millions of wasted taxpayer dollars, the previous government’s Te Pūkenga mega-merger has been nothing but an abject disaster,” Ms Simmonds says.
People are the lifeblood of the transport industry. How we train and prepare them to be productive, effective and safe workers is of critical importance. That’s why NRC attended several workshops with other associations in our sector and MITO, the Motor Industry Training Organisation, to discuss what good should look like. We joined them in calling for industry training to be put back in the hands of industry. Each sector knows intimately what skillsets are needed and how to get them far better than any external training institute.
Feedback was sought on three areas:
- A redesigned Institute of Technology and Polytechnic network that retains access to tertiary training in our regions, through a combination of stand-alone and federated ITPs.
- Options for an industry-led system for standards-setting and industry training.
- Changes to vocational education funding from 2026 to better support the reformed system.
MITO scholarships up for grabs for road freight industry
the Motor Industry Training Organisation (MITO) has teamed up with “Road to Success” consortium of Transporting NZ, National Road Carriers, New Zealand Trucking Association, Log Transport Safety Council and in partnership with the Inspiring Future Foundation to provide scholarships for truck drivers to gain a formal qualification.
Designed to support employees as they actively learn new skills on-the-job, the scholarships aim to assist individuals in advancing their careers and achieving national qualifications within the industry. Through a combination of practical experience and structured learning, learners can broaden their skill set and contribute to the growth and sustainability of the sector.
Already some fast-moving NRC members have staff who are successful recipients of the scholarship – don’t miss out.
For more information and to apply for the 2024 Commercial Road Transport scholarships, please visit mito.nz/CRTScholarships
Transport operators driving the wrong kind of traffic
The transport sector is generating too many calls to the Employment NZ complaints line, the Ministry of Business, Innovation and Enterprise has advised. This is not a leaderboard we want to top, and disappointingly we are advised that most of the complaints are caused by employers not complying with the basics of New Zealand employment law.
NRC as an industry association provides guidance, resources and advice on how to be a good employer. Every day we receive queries from members wanting advice on how to meet employment law and look after their staff. Often, we find the main offenders driving the complaints are the same ones that don’t belong to an industry association.
If your company uses subcontractors, NRC recommends running a compliance check to ensure that they understand their obligations. There are multiple language versions on the Employment NZ website.
You can help too – spread the word on how joining National Road Carriers lifts your business performance, and let’s work together to raise the bar of how our industry looks after its most important asset, its people.
You can find NRC’s submission here.
Just Transition - the pathway to decarbonisation
Low Emissions Heavy Vehicle Fund the leg up to learnings the industry needs
The government has launched a Low Emissions Heavy Vehicle Fund (LEHVF) in September, earmarking $27.5 million to help offset the purchase price of low and zero-emission heavy vehicles. The new fund will be available to the heavy vehicle sector on a first-come first-serve basis.
NRC has supported the fund getting put in place, which will help transport operators to overcome the cost hurdle that exists with the new technology vehicles. Whilst a modest amount in the context of a fleet of 168,000 heavy vehicles, it will play an important role in developing real world learnings about how various vehicles perform in a New Zealand environment. Growing data for a broad range of technologies, including how far they can travel, what loads they can carry, energy replenishment times, asset utilization and much more is critical for building transport operator confidence in the zero-emissions market.
NRC will be working with the government to ensure that this data informs setting appropriate goal posts for policies which incentivize uptake and provide an affordable pathway for operators when the time comes to replace their vehicles.
Emissions Reduction Plan 2
NRC has provided its submission on EPR2 to the Ministry of Environment (MfE) in August. You can find the NRC submission here.
The EPR2 will outline the actions that New Zealand intends to take to reduce emissions during the second emissions budget period (2026 – 2030). This is of critical importance to the road freight industry. Exactly how road freight transport will decarbonize is still far from clear, and a realistic, affordable and effective plan will be needed to ensure that transport operators are incentivised to continue to provide supply chain capacity.
NRC are working with the Ministry of Transport (MOT) to understand how they intend to develop this plan with the MfE in order to meet the transport component of ERP2 targets.
Inside Wellington
Report card out for the Ministry of Transport
Ask any Olympic athlete what is the secret to their success, and they will nearly always mention three ingredients: hard work, a great support team…and measuring performance. The same applies to successful businesses, and government departments. So it was pleasing to learn that the Public Services Commission has reinstated Performance Improvement Reviews for government departments, or PIRs as they are known in the trade.
Government departments of course play a critical role in the success of New Zealand overall. We pay for them, they are there as public servants to perform a service on behalf of all New Zealanders. So it is important that how well they are doing their job is measured, and that in turn we support them to be successful.
In September the Ministry of Transport performance improvement review was released. It is a comprehensive report, setting out the role and responsibly of MOT, the challenges it faces in the transport system, and makes recommendations for the future focus areas. While highlighting what is being done well, it also indicates where there is room for improvement, including deepening capability.
The report acknowledges the challenges MOT faces, noting “…the Ministry will need to maintain its focus on delivering on the Government’s priorities, leverage opportunities in its core functions to support its leadership role in the transport system and build or source the capability it needs as an organisation.”
It is well worth a read – you can find it here.
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