Source: Ia Ara Aotearoa Transporting New Zealand
The Ministry of Transport’s surprise cancellation of a long-anticipated freight study has been slammed by national freight body Transporting New Zealand, who says it will leave policymakers guessing when it comes to investing in road, rail and coastal shipping.
The Ministry of Transport has decided not to proceed with a new iteration of the National Freight Demand Study, despite having already sunk $164,000 on external advice relating to the project.
Previous Demand Studies looked at total changes in freight movement by mode (road, rail and coastal shipping), commodities transported, and the origin and destination of freight across different regions, and freight forecasts.
This included the insight that in tonnage terms, road freight accounted for 92.8% of the freight task, with rail and coastal shipping at 5.6% and 1.6% respectively as at 2017/2018.
Transporting New Zealand Chief Executive Dom Kalasih said that the cancellation of the project came at a critical time for New Zealand’s supply chain and transport system.
“At a time when we’re seeing reduced freight capacity across the Cook Strait, serious international trade uncertainty, falling rail volumes, and huge pressure on the National Land Transport Fund, we need to be making well-evidenced investment decisions.”
“The Government is not going to meet its goal of doubling the value of exports in 10 years if they don’t have a productive multi-modal supply chain to move freight across the country.”
“With increasing pressure on the National Land Transport Fund, the Government needs to be targeting transport investment to where it will be most effective.”
Kalasih says while he understands there is pressure on the Ministry of Transport to make operational savings, he says that poorly evidenced transport investments will cost the Government far more than any costs of the National Freight Demand Study.
“Transporting New Zealand has consistently emphasised the importance of good quality freight data when we meet with the Ministry of Transport. We highlighted the importance of an updated National Freight Demand Study in particular.”
“We’ve raised our concerns directly with the Ministry, and hope that the decision will be urgently reconsidered.”
About Ia Ara Aotearoa Transporting New Zealand
Ia Ara Aotearoa Transporting New Zealand is the peak national membership association representing the road freight transport industry. Our members operate urban, rural and inter- regional commercial freight transport services throughout the country.
Road is the dominant freight mode in New Zealand, transporting 92.8% of the freight task on a tonnage basis, and 75.1% on a tonne-km basis. The road freight transport industry employs over 34,000 people across more than 4700 businesses, with an annual turnover of $6 billion.
