Driving the economy
ROAD’S THE MODE WHEN IT COMES TO FREIGHT
The Road and rail – delivering for New Zealand report estimates only 12 percent of New Zealand’s freight movements are contestable by rail.
B by Nick Leggett Chief Executive Ia Ara Aotearoa Transporting New Zealand
ACK IN FEBRUARY, IA ARA AOTEAROA Transporting New Zealand released a report on behalf of the road transport industry that effectively buried the myth that rail can be a serious competitor to road transport across New Zealand’s freight network. The report, Road and rail – delivering for New Zealand, which includes contributions from economists David Greig and Dave Heatley, is not intended to be a self-serving anti-rail hit-job, rather it is a rational evidence-based look at the true value of rail freight to New Zealand. Transporting New Zealand fully supports investment in rail where it makes sense and it must be acknowledged that the road freight transport industry is one of the largest users of rail. Rail has its advantages – it is extremely good at carrying the likes of coal, chemicals and other bulk non timesensitive goods over long distances. What it lacks though is the flexibility and dexterity to compete with road transport for the vast majority of more time-sensitive, lower volume freight. Our report sets this out and counters the prevailing rhetoric that freight can simply be forced onto rail at the stroke of a Government Minister’s pen with little to no impact on the country. Our aim was to bring far more balance to the debate and use informed views of how the freight system works to scrutinise Government decision-making about rail investment
where it is clearly detrimental to New Zealand’s interests and comes at the expense of vital investment in roads. Transporting New Zealand remains firmly of the view that Government should not endeavour to artificially manipulate the freight market. Whether it comes down to economic efficiency, timeliness, environmental factors, safety, international comparisons or intermodal compatibility, the report illustrates there is no justification other than pure ideology for the view that trains are ‘better’ than trucks. The fact is we have a rail freight network that costs New Zealand billions of dollars to maintain yet there is little-tono scrutiny over much of that spending. Just last year the Government committed $5 billion to be invested as part of the New Zealand Rail Plan 2021. We are concerned that this money, primarily taken from road users, which should be used to maintain, repair and build roads, is simply being siphoned off to satisfy misguided ideology and nostalgia for a transport mode that can only ever have a minor role in transporting New Zealand’s freight. When we consider modal contestability, as of today 93 percent of New Zealand’s goods are moved by road. The expressed desire by the Government to shift freight off roads and onto rail implies that the modal share at the moment is incorrect. It also implies that there is an ideal share of the Truck & Driver | 41