13 minute read
Transporting New Zealand
Transmission Gully, as it was when Transporting New Zealand visited it a year ago
COVID must not hold up essential infrastructure developments
by Nick Leggett Chief Executive
Ia Ara Aotearoa Transporting New Zealand
CYNICALLY RELEASED ON A SATURDAY
morning and buried amongst blanket news coverage of Auckland’s Delta outbreak was the Government’s announcement that they had scrapped the bike bridge over the Waitemata Harbour as part of Auckland’s Northern Pathway Project.
Despite already spending an almost unbelievable $51million on planning for the bridge, I guess it is good news that, at last, the Government has listened to public feedback and abandoned what was little more than a $800m vanity project. Remaining funding will instead be reallocated to other transport projects in the city that reduce emissions and traffic congestion. When it comes to Auckland’s transport woes, there is no shortage of projects urgently in need of funding, including important freight projects, such as the Mill Road Highway and East-West Link.
Speaking of urgent projects, Transmission Gully, the $1.25billion motorway into and out of Wellington, originally planned to open in 2020, then delayed until September 2021, is now not even guaranteed to open by Christmas.
Admittedly alert Level 3 and Level 4 restrictions, and supply chain constraints associated with Auckland’s lockdown have delayed the project, but there is significant public interest in when Transmission Gully will be open for business.
Despite repeated requests, Waka Kotahi New Zealand Transport Agency won’t provide any indication as to when the road will actually be open to traffic. Waka Kotahi says it is still in negotiations with the builder to understand the full impact of COVID-19.
This sounds like typical bureaucratic obfuscating to me. Waka Kotahi will almost certainly know if a Christmas opening is achievable or not, so why can’t they release the information they do have and inform Wellingtonians about what to expect.
A year ago, Ia Ara Aotearoa Transporting NZ hosted a Zoom presentation with economist Cameron Bagrie, who gave a rundown on the current state of affairs in a COVID-inflicted environment.
Bagrie told the industry that one of the things that worried him the most was “the ridiculousness of how Government thinks about infrastructure investment.
The abandoned bike bridge was to run right alongside the existing Auckland Harbour Bridge
“What’s good policy in infrastructure? Analysing what we need so we have a rough idea from year to year what those needs will be 10 years out. In NZ, it’s an absolute lottery from year to year.”
He said there was a need to come up with a bit of certainty regarding a proper framework for infrastructure so businesses know they have a commitment down the track.
“We’ve been through this with the roading contractors; all the Roads of National Importance stuff was coming to an end and they had uncertainty as to the next stages. This is going on across the board and needs fixing.
“If the Government using its balance sheet creates more debt in the near term, then so be it, we’ll sort that out. Hopefully the Infrastructure Commission under Alan Bollard really gets turbocharged over the coming four to five months. Now’s the time to do it,” Bagrie added.
To be honest, even a year later I don’t think we are any further towards solving these issues. Policymakers seem more determined to appease the environmentalists, cyclists and anti-road lobby than futureproofing our infrastructure for a growing population and economy.
We can’t use COVID as an excuse not to upgrade and maintain our roading network, because as we can now see by the reopening of overseas economies, the world does not stand still. What we need is proper planning for infrastructure that looks well into the future and investment that matches that. If you build a road, it is no good that being at capacity the day it is built – it needs to be planned on a 20 to 30-year horizon.
Finally, I just want to address the recent departure of OCANZ (Owner Carriers Association of NZ) members National Road Carriers and the NZ Trucking Association (formerly the Canterbury Owner Drivers Association) from Ia Ara Aotearoa Transporting NZ.
As a national organisation, the Road Transport Association NZ, which represented four of the five regional groups within Transporting NZ, was conscious of a desire from operators to have one voice represent the industry at a national level and avoid the ongoing duplication across the associations.
They proposed a new structure to OCANZ members NRC and NZ Trucking. In the end, those two organisations decided to go their own way. That was their choice and I respect that.
Despite this reorganisation, Transporting NZ remains committed to advocating for transport operators’ interests in Wellington. We continue to proactively engage with ministers, MPs and government officials as rules, regulations and laws that affect road freight transport are developed and implemented.
Transporting NZ also holds ownership of Te ara ki tua Road to success and will continue operating this essential industry traineeship scheme, in partnership with government and transport operators up and down the country. The traineeship remains accessible to all suitable transport operators.
I know so many in our industry, like me, had hoped for greater consolidation of industry leadership and will be disappointed at the current situation.
I can, however, reassure them that my priority is to make sure Transporting NZ evolves to be even more effective in advocating on behalf of transport operators as we look to an uncertain post-COVID future. T&D
Unfortunately, due to the heightened COVID-19 alert levels since August, Transporting New Zealand was forced to cancel our 2021 national industry conference. A highlight of the conference programme was to be an opportunity to engage with both major political parties on their transport plans for NZ. In lieu of that we asked Minister of Transport Michael Wood and National Party transport spokesperson David Bennett to set out what their parties’ future plans were for the transport sector, particularly with regards to road transport and the provision of roading infrastructure.
The road ahead
By Minister of Transport Michael Wood
SINCE MARCH 2020, COVID-19,
lockdowns and supply chain pressures have caused unprecedented disruption for the road freight transport industry here in Aotearoa.
During this time, drivers have stepped up and ensured the delivery of essential goods across the country – vital supplies to keep our supermarkets, petrol stations, businesses and hospitals fully stocked.
Workers in the road freight transport industry do the hard mahi every day, placing themselves on the front line to keep the supply chain moving and support our economic recovery. I know the recent Delta outbreak has put even more pressure on and I would like to thank everyone in the sector who is continuing to deliver for New Zealand.
COVID has also highlighted how important it is to have a national supply chain strategy to help bring together players from across the industry during times of disruption and improve resilience. This is something that Australia, and many other countries, have undertaken to better understand how their supply chains operate and to inform investment decisions.
We’re committed to forming a strategy and it will involve all players in the freight system, including ports, logistics, coastal shipping, roading, and rail. I expect this to take around 18 months once the work formally kicks off at the end of 2021 and I encourage everyone in the road transport industry to help shape it.
Our Government is committed to creating a safer, more sustainable and resilient land transport system. Ensuring freight can get around safely and with minimal disruption is a key a part of that, which is why we’re significantly boosting investment into road maintenance.
As you’re aware, COVID has impacted on revenue to fund land transport initiatives and there were concerns raised that road maintenance investment wouldn’t be enough to keep our country moving. We heard the calls from your sector, local government and communities and we have stepped in to provide $2billion of financing to Waka Kotahi to boost road maintenance and other initiatives. We couldn’t accept our roads deteriorating.
This was reflected in the 2021-‘24 National Land Transport Programme (NLTP), where Waka Kotahi was able to boost the investment in the state highway maintenance activity class by 30%, to a record $2.8bn. This investment over the next three years will focus on high- priority maintenance and renewal work on 7000 lane kilometres of high-volume and vulnerable state highways.
Climate change disruption and more intense and frequent weather events also have the potential to compromise the resilience of our state highway network. This investment will include an estimated $240million for emergency works, to help our state highway networks get up and running as efficiently as possible in emergency situations.
Importantly, Waka Kotahi will be investing a record $4.2bn in local road maintenance over the next years to help support local government keep our roads up to scratch. This is an almost 20% increase over the previous three years. This will deliver 18,000 lane kilometres of sealed road renewals, more than three million cubic metres of metalling on unsealed roads and more than 1900kms of drain renewals.
All in all, almost $7bn will be invested in local road and state highway maintenance over the next three years. The previous government flatlined road maintenance spending and our record investments mean it’s been boosted by nearly 50%, to help bring our roads back up to
Transport Minister Michael Wood
standard. Increasing our investment in both state highway and local road maintenance means we can ensure our transport network continues to be both reliable and resilient.
On top of this, over the next three years, significant state highway projects will be completed including Te Ahu a Turanga; Manawatū Tararua Highway and the Hamilton section of the Waikato Expressway, which will provide better freight connections across the country.
I know you all will be interested in what’s next for Road User Charges (RUCs). Our RUC system is a world-leading distance and weight-based charge for both diesel and heavy vehicles. It was established in the 1970s and since then has only required one major review, which ended with a new RUC Act in 2012.
Much has changed in the decade since the RUC Act was amended. Technologies, both inside and outside of vehicles, have developed enormously, new fuels such as electricity and hydrogen have become more common and issues like addressing climate change are now front and centre. We also realise that there are some issues, such as the heavy vehicle overweight permit regime, that require attention to make them work more efficiently for everyone.
The Government recently released Driving Change: Reviewing the Road User Charges System, a discussion document that seeks your feedback on possible changes to RUC. I encourage everyone in the road freight transport industry to take time to read the discussion document and make a submission.
The road freight transport industry plays an integral role in our transport system. I thank you for your mahi and for your advocacy to promote safer transport infrastructure, well-maintained roads and professional development for the industry.
I hope you all have a safe and happy holidays. May 2022 be better than the last couple of years! T&D
Transport fit for our future
David Bennett
TRANSPORT SHOULD BE ABOUT WHAT IS IN
the best interests of connecting people and enabling freight to get to desired destinations. In theory, much of the transport investment is for inter-generational assets.
In recent years it has become deeply politicised, and we are losing integrity in the decisionmaking process. This has resulted in investment decisions being for political purposes, and many of these projects never come to fruition.
A modern transport system can mould together road transport needs, commuter movements, supply chains, advances in technology, economic growth and environmental concerns.
The challenge ahead
New Zealand is a young country that has yet to develop its infrastructure fully. Some key transport issues arise in our situation.
First, in providing connectivity and reducing congestion. Public transport investment will be necessary, especially in Auckland, as that population continues to increase.
Secondly, in delivering the products and raw materials that are integral to our rural and provincial economy. We have a spread-out provincial population that relies on the roads to connect.
Thirdly, supply chains are under pressure to become more resilient, with multi-modal solutions being important.
Fourthly, business is changing, with the development of industrial hubs and the rise of new industries.
Finally, the impact of emissions legislation, vehicle technology advances and new funding mechanisms.
These pressures create the opportunity to build a transport system that delivers the infrastructure for a growing country.
A strategic direction
To meet the challenge, we need to be strategic in our investment in the transport sector.
Connectivity will drive growth through the supply lines of our ports, rail and industrial hubs. The golden triangle of Auckland, Hamilton and Tauranga is an excellent example of how the connections spur economic activity.
Both road and rail have the ability to unlock this economic growth, and it’s about the power of each to provide that connectivity in the most effective manner. Strategic solutions that deliver as simply, timely and efficiently as possible.
Our unique rural road network is part of our transport backbone. As a primary industry exporting country, this has been our base and will be an important part of our future. There are serious maintenance costs within this network, and these roads cannot be neglected.
If we look at what NZ requires in 2040, not 2023, we can make the right investment decisions. This will give certainty to contractors in the construction sector, with a pipeline of work.
The right model
In achieving the strategic direction, government agencies must be committed to this approach. A wider perspective of infrastructure, like through the Infrastructure Commission, can help integrate transport into a more
comprehensive investment programme.
The existing planning structures have served NZ well to ensure regional and national priorities. However, Waka Kotahi and the Ministry of Transport are becoming symbols of a Government’s priorities rather than evaluating the strategic priority of a project.
Politicisation leads to the non-delivery of projects. Examples include the Auckland walking and cycling bridge, the Auckland Light Rail project and the here-now-and-gone-later NZ Upgrade Programme.
Projects that have some objective evaluation criteria are more likely to be delivered.
A changing world
Climate change and emissions policies will have a huge bearing on adaption in our transport system. The recent Clean Car Standards Bill illustrates how changes are imminent.
There will be changes in technology, vehicles, freight connections, fuels and market demands. There will be inflationary pressures on the costs of construction.
We have time to make these changes in a step by step process and by setting realistic goals. Network connectivity will influence the uptake of technology, and we can plan for the longterm needs. There is room to match both environmental and economic drivers.
These changes will challenge the existing Government funding models of fuel taxes and excise charges. Waka Kotahi is undertaking a review of these funding mechanisms.
This review must not be skewed to the political urban mode shift desires of this Government. With large-scale costs for public and road transport projects, any change in the funding model must enable us to achieve strategic transport infrastructure still.
Conclusion
Our road transport industry has shown how invaluable it is to our country in this pandemic. It has demonstrated its strategic importance, keeping vital supply lines moving. Transport operators have had to evolve to changing circumstances in the midst of shutdowns.
Thankyou for this commitment to the country.
The country now needs to ensure that, when it comes to our transport expenditure, it is equally as strategic, in the best interests of the country and evolves to the changes we will face. T&D
Ia Ara Aotearoa – Transporting New Zealand PO Box 1778, Wellington 04 472 3877 info@transporting.nz
www.transporting.nz
Nick Leggett, Chief Executive 04 472 3877 021 248 2175 nick@transporting.nz
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