Transport Forum

New Zealand’s current electricity generation capacity will not meet future demand, particularly with an increasing number of EVs

Low-emissions projects go hand-in-hand with good roads

by Nick Leggett Chief Executive

Road Transport Forum NZ

THE LACK OF CHARGING FACILITIES AND

support infrastructure is one of the biggest barriers to the adoption of electric vehicles – in particular electric trucks – in New Zealand.

So I was pleased to see a battery-swapping station gain Government and industry support as part of the push to find solutions to heavy transport emissions.

The concept is pretty exciting: Etruck’s director Ross Linton plans to import a semi-robotic gantry from China that will be able to lift out and replace a two-and-a-half-tonne truck battery while you wait.

This will not only result in electric trucks being able to keep running with minimal downtime, but also allow the batteries to be charged at a time when demand for electricity is lower.

The Road Transport Forum (RTF) supports the ongoing development of alternative technologies that move us towards a low-carbon future. But to gain acceptance, the technology needs to be as simple and convenient as the status quo, and that means driving into a fuel station, filling up and driving off. Which is why this project sounds like it’s on the right track.

We know the infrastructure required to support EVs and other alternative transport fuels is challenging. It will require a massive amount of energy on top of what our current generation capacity is now, which is presenting the Government with some problems.

One solution being looked at is what is called the NZ Battery Project – an investigation into whether places like Lake Onslow in Otago can be developed into pumped hydro schemes.

It was also recently announced that energy companies Meridian and Contact are co-funding a $2million feasibility study to investigate the potential of a large-scale, renewable hydrogen production facility in the lower South Island that would basically replace the energy usage from the soon-to-close Tiwai Point Aluminium Smelter.

If the project ever gets up and running it would provide major decarbonisation possibilities for heavy transport, with hydrogen trucks becoming a much more realistic option.

The RTF has stressed the need for electricity generation to match future demand; distribution infrastructure to match alternative fuel sources; and connectivity to support both technology in trucks and communications with customers as part of our recent submission to the NZ Infrastructure Commission.

We have commented in our submission that the Government’s approach to encouraging and supporting transport innovation has so far lacked tangible action and coherence, and has an anti-

ETruck’s battery-swap system is an exciting concept, Leggett reckons

road building bias that will have perverse impacts on our economy and the efficiency and uptake of alternative vehicle technologies.

NZ is largely a technology taker, and the vast majority of expertise on the feasibility and viability of transport innovation lies within the market and transport sector leadership groups, not with Government.

Just as we believe the Government should not dictate how and when individuals and businesses choose to move their freight and household goods, we also consider that Government officials do not have the expertise to examine payload efficiencies, nor to interfere in normal market forces that will inherently drive efficiencies and new technologies.

If Government continues to arbitrate over transport modes, consumer costs will unavoidably increase and those cost impacts will disproportionally affect low-income and vulnerable NZers. We recommend that decisionmakers be much more realistic on the likely impacts of their policies on society and that they substantiate those with an evidence base of costs versus benefits.

The freight market is customer driven and ultimately, the customer – whether in NZ or in our export markets – will decide on price, convenience and/or time, and what is the best mode of transport for their goods.

Interventions to advantage one transport mode over another – in this case trying to force freight onto rail – inevitably creates unnecessary additional costs and lowers overall economic prosperity, because it removes the choice to use the most cost-efficient freight solution.

A flaw in the present approach to infrastructure policy is a misplaced ideological position that rail freight is a competent competitor to road freight, instead of being seen as a complementary service. This position is based on an assumption that rail can flourish without road transport support. In reality, the opposite is true.

Competition between both road freight companies and other modes of transport (rail and coastal shipping) has served NZ’s economy well and certainly produces greater efficiencies than policies that favour one transport mode over another.

Continued investment is required in the infrastructure that supports road freight, given its dominance in the NZ freight task. The Ministry of Transport’s continued discussion about modal share and shifting freight to rail or coastal shipping at the expense of our roads just doesn’t make sense. Wellington does not understand the transport business and should not be making decisions on how things should be moved from point A to point B.

A further example of the muddled thinking around modal change is the purchase of two new roll-on, roll-off rail ferries to replace the existing Interislander fleet.

Transport Minister Michael Wood said the two new ferries, which will cost more than half-a-billion dollars, will triple the rail capacity of the current fleet and encourage more freight onto trains and off roads.

Anything that increases the amount of freight capacity over the Cook Strait has got to be a positive thing, but I don’t think there’s anywhere else in the world that’s building rail ferries at the moment. It’s another example of the Government spending taxpayers’ money to make our freight system less efficient….and just doesn’t make sense.

When it comes to emissions reductions, there are a number of approaches – particularly around different fuel types and driving – that could be implemented in the short term to reduce emissions. The industry has suggested these in numerous discussion papers and we are getting increasingly frustrated that, rather than pursue these tangible returns, the Government appears to continue with their fundamentally flawed policy idealisms and search for an unobtainable nirvana.

Government climate-change policies will have an impact on the cost competitiveness of new fuels through excise taxes, licensing costs, and the Emission Trading Scheme (ETS). Our view is that the Government should not pick a technology for its support prematurely, but instead allow technological developments and industry response to find the best solutions.

No matter what powers future heavy vehicles, we need to optimise existing roading infrastructure and ensure it continues to be fit for purpose. As much as policymakers may wish to steer away from road freight, there is little doubt that roads will be critical to all other infrastructure builds, including the provision of EV charging stations and hydrogen-based transport.

As international research shows, improving road quality increases both economic and environmental efficiencies.

Regardless of one’s political ideologies, it is an unavoidable truth that there are some pressing infrastructure needs that must be met for NZ to remain competitive.

Given our geographical and natural hazard profile as well as the fact that we are an export-led economy that relies on getting things to and from the farm gate as quickly and efficiently as possible, these solutions must include highperforming roads. T&D

Registration still open for Conference

TIME IS RUNNING OUT TO

register and organise your trip to The Road Ahead – 2021 Transporting New Zealand Conference in Invercargill on September 25 and 26.

“Registration will remain open right until the last minute as we understand how difficult the COVID-19 environment makes planning ahead,” says RTF’s Nick Leggett.

“The disruption caused by recent weather events and local disasters is also making life challenging for the industry so we want to give everyone the best opportunity possible to attend.

“We can guarantee those who make it to Invercargill will get great value from the diverse lineup of speakers and events we have organised. Like the rest of the world, we need to begin planning for the challenges that will come as we move out of COVID and we believe the Conference will assist delegates to do that.”

This year’s conference MC is doyen of the Parliamentary Press Gallery and current Newstalk ZB political commentator Barry Soper. He joined the Press Gallery in 1980 and has seen it all: From the infamous ‘schnapps election’ to foreshore and seabed, Corngate and the rise and fall of political parties, his knowledge of what goes on in Wellington is second-to-none.

Soper has been named Individual Radio Journalist of the Year at the NZ Radio Awards several times – most recently this year.

We are privileged to have Datacom’s head of supply chain David Ffowcs Williams come and discuss some of the latest enhancements to logistics systems that have been deployed in NZ and globally. He has spent the past 27 years developing and delivering game-changing technology for major logistics businesses worldwide, including the world’s first GPRSbased sign-on-glass system.

Dallas Seymour is a name that will be familiar to many delegates, having played more than 100 provincial and Super Rugby games for Canterbury, Wellington, the Hurricanes and Crusaders.

He is probably best known as the former NZ Sevens captain and one of the longest serving sevens players in world rugby. He is a 1998 Commonwealth Games gold medallist, a former All Black and NZ Māori representative.

He will talk to us about Tokona te Raki – the Māori Future Collective and how that is helping rangatahi Māori reach their potential.

It is always interesting to hear perspectives from other industries, so we are grateful that Potatoes NZ chief executive Chris Claridge will join us to discuss his passion for adding value to NZ’s primary produce.

Possessing a masters degree in biotechnology, Claridge has an extensive business and academic background. He founded Carrickmore, a dairy export company specialising in marketing infant formula, helped establish the NZ Infant Formula Exporters Association to maintain and protect the reputation of NZ infant formula, set up ID Digital Media – a full service advertising agency

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Registration still open for Conference

specialising in marketing communications – and began Claridges Organics, one of our first organic food exporting businesses.

If we think COVID-19 has made transport difficult….then just spare a thought for the travel industry. Founder of House of Travel, Tony Laker, will share the secrets behind how a small Invercargill travel agency became one of the largest travel companies in NZ.

He will also discuss how they are rebuilding from COVID-19 destroying 95% of its business, and how anyone can apply these same principles of resilience to their own business and life.

Says Leggett: “These fantastic speakers, along with Minister of Transport Michael Wood, Judith Collins, Greg Murphy, Cameron Bagrie, Waka Kotahi NZTA’s Nicole Rosie and social entrepreneur Alexia Hilbertidou, mean there really should be something for everybody.”

You can register and get more information about Conference, the speakers and social events at https://www.rtfconference.co.nz T&D Above left: The founders of House of Travel, Tony and Tracey Laker Above right: Datacom’s David Ffowcs Williams will outline recent enhancements to logistics systems, both in NZ and globally

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Creating a sustainable workforce for our industry

Fiona McDonagh is project coordinator for Te ara ki tua Road to success

COVID-19 HAS TAUGHT BUSINESSES THE WORLD

over the need for an open mind and agility…

And it’s clear that while many things will be forced to change, things are already returning to the way they were on the employment front for our industry.

New Zealand has a chronic shortage of workers. Partly this is because of the indefinitely closed border and aggressive immigration settings.

However, there are also other factors at play, says Te ara ki tua Road to success coordinator Fiona McDonagh: “Younger workers have a different set of expectations than what many of us are used to. Younger people entering the job market have different expectations from their parents – more options – and can therefore afford to be selective about what they go and do.

“Employers need to change quickly if they don’t want their businesses to be crippled by a shortage of workers. The first step is to make the decision to take on trainees to ensure sustainability of their workforce. For that they need to have some basics in place.

“First of all, a trainee needs training. Some of that can and will be provided externally, but employers need someone in the company to train and/or mentor those new to the industry and wanting to learn all they can.”

Through the Te ara ki tua Road to success traineeship, RTF is doing all it can to get enthusiastic new people into the road freight transport industry and place them with transport companies.

Since the programme launched in April, 36 transport businesses have signed up to it and are either already working with their trainee(s) or awaiting an appropriate match. The really good news is that 184 applicants have already signed up to become a trainee.

More than 80% of the businesses involved are located in the North Island, along with two-thirds of the trainees. The businesses operate in a wide range of sectors, covering Hiabs, containers, bulk goods, petroleum, logging, livestock, fresh produce, vehicle transport, waste and gas.

The trainees vary in age and experience: Some are young and new to the workforce, while others are more mature, with a few more transferable skills.

In three months, 17 trainees have been placed into jobs – two with a Class 5 (licence), eight a Class 2, four with a Class 1 and three with a Class 4. Seven have come in off an MSD benefit and in eight cases the operators have brought in someone they want to start on a traineeship. The average age is 29 – with the youngest just 19 and the oldest 53 – and more than a third of the trainees are women.

Says McDonagh: “We’re well aware the industry isn’t interested in a band-aid approach to the supply of drivers, so our focus is on creating a sustainable career pathway that begins to address some of the underlying issues with the shortage. “We’re interested in quality trainees placed in the right companies that have a really good chance of working out.”

Something that has been identified is the lack of structure many businesses have in bringing through new staff and training them up. Too often the industry has relied on hiring drivers with Class 5 licences and extensive experience, she says.

“Our aim is to provide transport businesses with the skills to train their next generation of drivers and create a more sustainable model, based on loyalty and good business culture.

“We recently created the first stage of our trainee workbook and guide, designed to help create that structure and assist businesses to get the most out of trainees. Over the next two years we will be building a complete curriculum and guide for the industry. This can be adopted into businesses so they can alter their operations to meet the needs of trainees and new employees.”

If you want to find out more or register your business to take on a trainee, check out the website www.roadtosuccess.nz or contact us by email at success@rtf.nz or phone (04) 471 8283. T&D Trainees and operators at a workshop to discuss development of the new trainee workbook and guide

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 James Smith, Chief Operating Officer 09 636 2951 021 667 131 james.smith@natroad.co.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 Steve Chapple, Commercial Transport Specialist – Lower NI. 027 244 9557 steve.chapple@natroad.nz Ian Roberts, Commercial Transport Specialist – Waikato/Bay of Plenty 021 193 3555 Ian.roberts@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 Contact RTANZ Christchurch head office for assistance 03 3669854 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 Contact RTANZ Christchurch head office for assistance 03 3669854 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