Transport Forum

RTF supports upgrading urban passenger rail and its infrastructure

Customers drive just-in-time realities of 21st Century freight

by Nick Leggett Chief Executive

Road Transport Forum NZ

IN MAY, THE GOVERNMENT RELEASED THE

New Zealand Rail Plan, with State Owned Enterprises Minister David Clark saying that the plan – “and the Government’s commitment to rail – is designed to set the right conditions to balance our transport system and create options for NZers.”

My question is: How can this balance NZ’s transport system and create options, when rail currently shifts so little of our freight task…and the opportunity to increase this share is so small?

Said Clark: “We’re making sure that KiwiRail has the trains it needs to carry more freight around the country, and that the tracks in our cities and regions are up to standard to support freight and commuter growth.”

Having enough trains does not automatically mean customers will choose rail over road, especially with timesensitive freight, or freight that needs to be delivered doorto-door.

Increasing the number of trains won’t reduce the number of trucks on the road – if anything, more trucks will be needed to move freight from the source to the railhead and from the railhead to the end customer.

The NZ Rail Plan is essentially a plan to have a plan, to make rail a contender for a greater share of the freight task and bump trucks off the road. It totally misses the mark of what is happening in freight movement globally.

Freight is customer-driven: The customers get to choose the best way to have their goods delivered. The Government cannot direct the movement of freight just because it wants to – unless, of course, we annul all the progress made through the deregulation of the 1980s.

Currently, 93% of the freight moved in NZ is moved by road. That is projected to grow, given increased customer demands.

But the Government will now take the money road users pay into the National Land Transport Fund (NLTF) to further subsidise KiwiRail, with some fantastical notion that rail can take a considerable amount of freight off roads.

We think the user-pays model means the money collected for roads should go to fixing dangerous roads and building some new ones – which will benefit the economy and the environment.

A 2019 study found that preventative maintenance of road pavements could reduce greenhouse gas (GHG) emissions by up to 2%, even after adopting a life-cycle perspective and taking into account pollution generated during road construction.

Wouldn’t it be great if this Government put its money where its mouth is and maintained the roads – something we

Increasing the number of trains won’t reduce the number of trucks on the road – if anything, more trucks will be needed to move freight from the source to the railhead and from the railhead to the end customer

have long been lobbying for, and which operators pay a fortune towards through road user charges?

The Government has said it would implement track user charges (like road user charges) to add a contribution from rail to the NLTF. There were no details on how much track user charges would generate, or how they would work. My suspicion is that this will be a token charge, raising little more than a drop in the bucket when it comes to what we will spend on rail.

There is no doubt that NZ requires a well-maintained, first-world rail network and must replace old and tired assets, and we’re supportive of upgrading urban passenger rail and its infrastructure.

However, if funding to rail is justified by a promise that you will be shifting freight from road to rail, then that is, at best, extremely misleading.

We don’t support pouring billions more dollars into rail freight when it may only shift about 1% of the freight task from road. In the recent Budget, another $1.3billion was thrown rail’s way. We think that money could have been put to better use.

There are some 93,000 kilometres of roads in NZ – about 10% of which are state highways – and only about 4000kms of rail track. The split isn’t going to change significantly and freight customers will continue to make business-based choices.

Another Government report – the Transport Emissions: Pathways to Net Zero by 2050 Green Paper – confirms this, saying that online shopping and increasing demand for just-in-time delivery has influenced how freight companies operate.

The report outlines a number of ways to reduce emissions from the freight industry, including convincing consumers to accept longer delivery times, something the report says would be “challenging.”

That’s one way of putting it. I doubt many people used to ordering something today and having it delivered tomorrow will choose sustainability over speed. Even if they do, the logistics of increasing efficiency in the supply chain, along with centralised manufacturing, and switching to lower emission modes of transport, are not easily achievable in NZ due to our geography and population spread – which encourages a reliance on roads for its system.

Most of our consumption occurs in the upper North Island, whereas many exports are generated in the South Island’s rural regions, which poses challenges for freight load optimisation.

The report has a number of key actions for improving the efficiency of NZ’s overall freight supply chain, such as optimising freight routes, supply chain nodes, equipment and vehicles, and examining opportunities for the collection and better use of data to improve efficiencies in the freight system. We have no issue with these recommendations – the industry is already implementing many of them.

When it comes to key actions for decarbonising freight modes however, we do have some concerns: The industry is keen to do what it can, but the Government needs to remember NZ is a technology taker – we do not have the size to have any influence over what truck manufacturers make, and therefore there isn’t a lot we can do to speed up the transition to electric or hydrogen trucks.

Under consideration is whether the current RUC exemption for heavy electric trucks should be expanded to other low emission fuels used by heavy trucks, a move we would support.

We are concerned with some of the other options, such as the viability of introducing a penalty or financial disincentives system for high GHGemitting heavy trucks, phasing out the registration of diesel heavy vehicles beyond a certain date, and banning diesel trucks in certain cities or zones.

The Government needs to work with the transport industry to help it meet the emission targets, not penalise us for things that are beyond our control. The report contains recommendations that indicate this could be a possibility. These include investing in a domestic industry to refurbish diesel trucks with zero emissions options, expanding the scope of the existing low emissions vehicles technology funding to accelerate the uptake of proven low emissions vehicle technology, and investigating the viability of providing upfront grants or other incentives for low emissions and zero emissions trucks. T&D

The time has come for mandatory e-logbooks

IN MAY, STUFF RAN A STORY ABOUT TRUCK

drivers illegally working up to 120 hours a week. The three anonymous drivers said they were being put in an impossible situation by their employers.

Road Transport Forum chief executive Nick Leggett says the industry must stand up for measures that maximise and improve safety for its workers and for all road users, and the RTF supports the introduction of electronic logbooks, over time.

“We want all drivers to return home safely at the end of their work day, and we believe the gradual introduction of electronic logbooks with GPS will eliminate opportunities for logbook discrepancies of drivers’ hours.

“The technology already exists to ensure drivers don’t exceed their legal work time. Drivers working longer than they should compromise their safety, as well as the safety of other road users.

“The RTF promotes an industry that enforces high safety standards. We do not condone nor defend truck operators and drivers who are deliberately or negligently non-compliant with transport and safety laws,” says Leggett.

“The industry must protect the work hours currently allowed by law and a big part of that is ensuring ongoing compliance with them.”

In New Zealand, work-time includes all time spent working, regardless of whether it is time spent driving or doing other work such as loading and unloading, maintenance, or cleaning of vehicles. The rules apply to everyone tasked with managing driving hours, including both drivers and transport operators, and allows for very few exemptions.

In any work day, a driver can work a maximum of 13 hours and then must take a continuous break of at least 10 hours, as well as the standard 30-minute breaks every 5.5 hours. A driver can work a maximum of 70 hours’ work time, known as a “cumulative work period,” before having to take a continuous break of at least 24 hours.

The RTF recognises that it will take a number of years to implement full use of the appropriate tracking technology and that dispensations would have to be considered for some rarely-used commercial vehicles.

“The time has come to begin the rollout and freight businesses who don’t already use e-logbooks should be planning to do so,” says Leggett.

“We understand the growing concern about the customer and supply chain pressures that drivers face,” he adds.

“We believe this is linked to many of the instances of non-compliance and that is why we have raised with the Minister of Transport the need for an industry accord. We need to consider all the major challenges in the industry and create a safer operating environment.” T&D

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Politicians headline RTF Conference speakers

Alexia Hilbertidou, the founder of GirlBoss NZ, is helping to break down career barriers for women

TRANSPORT MINISTER MICHAEL WOOD WILL

head an exciting and diverse lineup of speakers at the Road Transport Forum’s The Road Ahead - 2021 Transporting New Zealand Conference.

The speakers will entertain, challenge and inform delegates on the significant issues facing our industry and the country as the world begins to look beyond COVID-19.

Opposition Leader Judith Collins will provide the National Party’s view on the state of the economy and the Government’s decisions in the wake of COVID. This will provide delegates with the opportunity to contrast and compare the visions of our two major parties a year into Labour’s second term in office.

Former V8 Supercars fan favourite and now commentator Greg Murphy is well-known for his advocacy on the power of driver skills training as an investment in safety. He will present his road safety message and discuss why New Zealand continues to focus on the ambulance at the bottom of the road safety cliff rather than the fence at the top.

Speaker, activist, and entrepreneur Alexia Hilbertidou will tell us about her mission to get young women around the boardroom table and into roles they’ve previously been absent from, such as truck driving.

Alexia is the founder of GirlBoss NZ. Her passion for STEAM (Science, Technology, Engineering, Arts and Maths) led her to create GirlBoss NZ when she was just 16. It has now become a 13,500-strong network for ambitious young NZ women.

Now 22, Hilbertidou is a great example of how Gen Zers are making their mark on the world: A Deloitte Global Scholar, National Geographic Explorer and a Facebook Leadership Fellow, she is currently studying for her Masters in Emerging and Disruptive Technology. She believes that the decisions made at a young age are crucial in paving the way for women to get into leadership.

We are also looking forward to the contribution of Nicole Rosie, chief executive of Waka Kotahi NZ Transport Agency. Prior to her appointment as CE in February 2020, Rosie led WorkSafe NZ for three years.

She has more than two decades of senior executive experience across the public and private sectors. This includes a range of industries and functions, such as transport and commercial firms – Toll NZ and Fonterra among them.

Rosie sees the land transport system and the critical role the NZTA plays across infrastructure, regulation and safety as being at the heart of building a successful future for NZ.

There will be dinners and social events at which conference attendees will be able to mix and mingle, and there’s an interesting partners’ programme for those who don’t want to talk about transport and trucks all day! Partners can take a trip to beautiful Stewart Island, and there are visits to Te Hikoi Museum, Gemstone Beach, the Seriously Good Chocolate Company, and He Waka Tuia, as well as lunches and shopping trips.

Make your conference booking by July 31 to take advantage of the earlybird discount price of $675 for both days. Special rates are also available for accommodation at the Ascot Park Hotel and other accommodation providers in the city.

You can register and get more information about the conference on the dedicated website, https://www.rtfconference.co.nz T&D

Many commentators believe FPAs could see an increase in strike action. Credit: “Unemployed Workers’ Movement protest at Parliament Grounds, 16 September 1931 [1],” by Archives NZ, is licensed under CC BY 2.0

Unions push through Fair Pay Agreements

THE GOVERNMENT SAYS FAIR PAY AGREEMENTS

(FPAs) will be on the legislative table this year, and will be law by 2022.

Fair Pay Agreements are basically “national awards” rebranded, says Road Transport Forum chief executive Nick Leggett – and the Forum is “strongly opposed to any form of centralised wage bargaining, such as FPAs, or any other forms of labour market regulation that pre-sets the remuneration and work conditions of professional drivers.

“We support the need for road freight businesses to have flexibility when it comes to labour costs in a changing marketplace with everchanging technologies.”

The Australian Fair Work Act, on which these FPAs are based, gives significant political power to unions, which flows through to the Australian federal and state Labor parties.

“The same idea is very much behind our Government’s intentions to push forward with what results in a turning back of the clock on labour

relations in this country,” says Leggett.

“Unions are a lot less interested in the individual worker these days than they are in raising funds to back the Labour Party.

“It’s clear what this move is about – politics, and money for politics. While not wanting to be critical of that in itself – it takes money to pay for campaigns and each side of politics takes money from respective support bases – there should be transparency and public debate about these things.”

New Zealand’s minimum wage is among the highest in the OECD, he says: “Generally, workers have good, safe working conditions, all covered by existing laws. Compulsory unionism ended in NZ in 1991 and since then, outside of a few key industries, unions have struggled to stay relevant.

“The trucking industry is not heavily unionised, with good reason: Drivers want choices about how and when they work. Trucking varies tremendously between different companies, regions, freight types and vehicles used.

“National, or even regional, awards are not going to be flexible enough to allow for that variation, or to meet driver needs. With driver shortages, good drivers have flexibility and should see continued increases in their pay as a result.

“A road transport industry FPA will not alleviate our worker shortage. Quite the opposite will occur,” says Leggett.

“It will make the road freight industry less attractive to those who want flexibility in their working lives.”

Former Act Party leader (and previously a Labour Government Cabinet minister) Richard Prebble published a scathing opinion piece recently, saying the FPAs are compulsory unionism by stealth. He says the changes will do enormous economic damage and that no one who experienced compulsory arbitration would advocate for its return.

The Labour Party has the numbers to push this law through Parliament, and will likely ignore submissions that oppose any aspects of it. But the RTF backs BusinessNZ in suggesting that a voluntary approach to achieving the desired goals – minimum standards for all employees and employers in an industry or occupation – would be at least more consistent with NZ’s obligations under international labour law, as well as being far more effective.

Interestingly, in Australia the relationship between unions and the Labor Party seems to be crumbling, with a dispute over donations and affiliation fees threatening the vice-like grip that unions have over the party. However, with unions being the major contributor to Australian Labor’s political campaigns, perhaps our own Labour Party needs to be careful about just how beholden to them it becomes. T&D

Road Transport Forum was established in 1997 to represent the combined interests of all members as a single organisation at a national level. Members of Road Transport Forum’s regionally focused member associations are automatically affiliated to the Forum.

Road Transport Forum NZ PO Box 1778, Wellington 04 472 3877 forum@rtf.nz www.rtfnz.co.nz Nick Leggett, Chief Executive 04 472 3877 021 248 2175 nick@rtf.nz

National Road Carriers (NRC) PO Box 12-100, Penrose, Auckland 0800 686 777 09 622 2529 (Fax) enquiries@natroad.nz www.natroad.co.nz David Aitken, Chief Executive 09 636 2951 021 771 911 david.aitken@natroad.nz Paula Rogers, Commercial Transport Specialist 09 636 2957 021 771 951 paula.rogers@natroad.nz Jason Heather, Commercial Transport Specialist 09 636 2950 021 771 946 jason.heather@natroad.nz Richie Arber, Commercial Transport Specialist 021 193 3555 richie.arber@natroad.nz Road Transport Association of NZ (RTANZ) National Office, PO Box 7392, Christchurch 8240 03 366 9854 admin@rtanz.co.nz www.rtanz.co.nz Simon Carson, Chief Operating Officer 027 556 6099 scarson@rtanz.co.nz

Northland/Auckland/Waikato/ Thames-Coromandel/Bay of Plenty/North Taupo/King Country Simon Vincent, Senior Industry Advisor 027 445 5785 svincent@rtanz.co.nz

South Taupo/Turangi/Gisborne/Taranaki/ Manawatu/Horowhenua/Wellington Sandy Walker, Senior Industry Advisor 027 485 6038 swalker@rtanz.co.nz

Northern West Coast/Nelson/ Marlborough/North Canterbury/West Coast John Bond, Senior Industry Advisor 027 444 8136 jbond@rtanz.co.nz Otago Southland, South Canterbury , Mid Canterbury Lisa Shaw, Senior Industry Advisor 027 261 0953 lshaw@rtanz.co.nz

NZ Trucking Association (NZTA) PO Box 16905, Hornby, Christchurch 8441 0800 338 338 03 349 0135 (Fax) info@nztruckingassn.co.nz www.nztruckingassn.co.nz David Boyce, Chief Executive 03 344 6257 021 754 137 dave.boyce@nztruckingassn.co.nz Carol McGeady, Executive Officer 03 349 8070 021 252 7252 carol.mcgeady@nztruckingassn.co.nz

Women in Road Transport (WiRT) www.rtfnz.co.nz/womeninroadtransport wirtnz@gmail.com