Logistics & Transport NZ

Mill closures’ long and winding repercussions

Do we need to rethink how we’re investing in our network infrastructure?

The first of the two DM class prototype locomotives (8012 & 8029, pictured) were unloaded at Lyttelton Port on October 19. As they enter service from 2025, older classes of locomotives being the DC, DF & DX classes will be phased out of service, some already having done over 50 years service for rail in New Zealand. Photo: Chris Gunn

The editorial team welcomes expressions of interest for submitting an article for the March 2025 edition of this journal, especially from young professionals (those under the age of 35). Contributors should in the first instance contact the editorial convenor, Murray King (email murray.king@xtra.co.nz) to discuss their article. Deadline for the March 2025 edition: February 14 2025.

Mill closures’ long and winding repercussions

BY JAMES PAUL

THE CLOSURE OF Winstone Pulp International after 45 years of operation has left a significant void in the Ruapehu District, both economically and socially. The shutdown of the Karioi pulp mill and the Tangiwai sawmill, which resulted in the loss of 230 jobs, has forced the small rural community to grapple with profound challenges while exploring pathways to recovery and growth.

As one of the main employers in a district with a population of just 13,000, former workers had well-established lives in the surrounding areas of Raetihi, Ohakune and Waiouru. For many, it was their first job out of school and for others, it allowed them the financial stability to afford a house. Many have since found employment up and down the country, with some moving to Australia.

Mayor Weston Kirton acknowledges the closure as a severe blow to the region, as finding more than 200 jobs is no small task. The loss of wages has a multiplying effect on the local economy, impacting businesses from retailers to service providers.

The WPI wood processing operations produced a range of timber and pulp products derived from renewable plantations of Radiata pine for both New Zealand and international markets. WPI is a privately owned subsidiary of the Oregon Group.

The Karioi pulp mill – which produced wood pulp for folding boxboard manufacture – had more than doubled its production capacity since it began in 1978, by implementing new plant, processes, and technology.

It had only just upgraded its pulp mill to Rockwell Automation’s PlantPAx DCS in 2023, to take advantage of a standardised Distributed Control System to minimise downtime and enhance plant connectivity.

“The closure is obviously a big hit to our economy. And it’s been an especially challenging time for those who have had to move away from family and friends to find other work. When you consider the wages that these people created within the community, it sort of multiplies fivefold, in most cases, throughout our economy.”

However, Mr Kirton notes that redundancies have softened the immediate blow. “We’re not seeing a lot of closures in areas like retailers or service stations – life goes on. The community is very resilient, but that redundancy money won’t last forever.”

It is estimated between 10–20 per cent of affected individuals are still struggling to find employment, a statistic that underscores the long-term challenges of economic recovery in rural areas.

The closure of WPIl is not the only example of regional vulnerabilities this year: the Oji Fibre Solutions-owned pulp and paper plant near Tokoroa will cease to produce paper in 2025, affecting about 230 jobs.

According to PF Olsen Limited’s Director Sales and Marketing Scott Downs, these closures will have flow-on effects for other mills as sawmills sell their sawdust to Karioi Pulp Mill.

“This volume will now have to be sold at alternative markets that will likely incur more transportation cost.”

Mr Kirton says diversification is critical with industries like forestry and agriculture offering potential growth areas. The pet food factory in Taumarunui, which plans to double its production in 2025 and again the following year, is a testament to the region’s ability to adapt.

“The factory could well become a hub in Taumarunui as it looks to bring ingredients into the district and ship out its products. They’re talking about 10 tonnes an hour, eventually.

“Our figures, the Mayors Taskforce for Jobs, show that they have reached close to 100 jobs including being an above average employer in filling jobs with youth between 18 and 22. That tells us that despite the challenges the district faces, places like the pet factory are working hard to fill vacancies and put young people into work through that system.

“That’s just one industry that’s going to increase its production and also, potentially just about double its workforce. Even though it’s of a different nature to the mill, it’s going to be a high-tech business that needs expertise and that could well be sourced from other parts of the country, if not the world.

“And of course, the agriculture and forestry sectors are other areas that could well be picking up some of the slack.”

Still, challenges remain. Rising energy costs, one factor of many in the mill’s closure, continue to pose risks to local industries. Mr Kirton stresses the importance of long-term energy planning and collaboration between government and businesses to ensure sustainability.

“So, what have we learned from that? Yes, energy is a huge resource that needs to be planned for.

Winstone's Tangiwai Sawmill closed down in October after operating for 45 years in the Ruapehu District, near Ohakune. Photos: James Paul

"From what I understand, because I've asked the same question to the management of the pet food factory, they’re saying that they’ve hedged electricity pricing for a longer period, say, two years or so, and that gives them confidence that they’ve got a window of at least three or four years of certainty that their particular business has a continuity of power.

“Having said that, I think it’s correct to say that – it’s only my personal view – that the electricity system in our country is flawed and allows for the downturn of generation at certain times of the year.”

However, the future, despite some grim obstacles, looks optimistic for the district Mr Kirton says. “There is light at the end of the tunnel. We know that tourism is on the up in our district, that we provide very good products, and we have great plans for cycling, for example, and attracts people by the 1000s.”

Amidst these challenges, the Ruapehu District Council is looking to tourism as a potential driver of growth. One promising project is the expansion of the Mountains to Sea Cycle Trail NZ, which the Council has proposed as part of a regional development initiative. The trail, already a popular attraction for cyclists and hikers, could bring significant economic benefits if expanded.

The proposal includes constructing new infrastructure to enhance the trail’s appeal and accessibility. “We’re aiming to create one of the largest cycleways in New Zealand,” Mr Kirton says, “attracting year-round tourism, generating jobs and boosting local businesses.”

“Another area I’d like to focus on is how we might add value to the pet food factory in the north of the district, how to partner with them to increase their production.”

By focusing on tourism, leveraging partnerships for regional development, and supporting successful local businesses, the Ruapehu District will build back a more resilient and diversified economy.

The closure has also reshaped the region’s transport landscape. Logging trucks are placing significant strain on roads like the Gentle Annie Highway, on their way to Napier Port. The increased traffic on this and other rural roads raises concerns about wear and tear on infrastructure. Mr Kirton emphasised the importance of finding sustainable solutions, including the potential for rail transport, to alleviate the burden on road networks.

“The extra loading on the road is just not sustainable,” Mr Kirton says. “We share the concern that the quality of the roads will

deteriorate with the current volume of truck traffic.”

The closure of the mill has been a seismic shift, particularly in its operations for Raetihibased Lilburn Transport. Owner Robbie Lilburn shared how his company, once heavily reliant on transporting timber and pulp for the mill, has had to downsize its fleet and reconfigure its routes.

“At one point, we ran an eight-truck fleet. Now, we’re down to six trucks and are struggling to maintain efficiencies,” says Mr Lilburn. The mill’s closure not only reduced demand for local freight services but also increased reliance on less profitable hauls. “Without the mill, we’re often forced to run empty for 140 to 200 kilometres just to pick up the next load. That’s a huge hit to our bottom line.”

The rerouting of timber and other goods to Napier Port via the Gentle Annie Highway (the most direct to the port) has further complicated the situation. Described by Mr Lilburn as “a challenging route with sharp corners, steep inclines, and narrow passages,” the road was not designed to handle the volume of heavy trucks it now sees.

“It’s only a matter of time before there’s a major accident or the road falls apart,” Mr Lilburn warns. “The increased weight and frequency of trucks mean it needs significant maintenance, but I don’t see that happening fast enough.”

Mr Lilburn emphasised the broader impact on local transport companies and the community. “We relied on the mill for efficiencies—being able to coordinate inbound and outbound freight. Now, there’s no wool, the timber industry is scattered, and we’re spending more time and fuel to connect the dots.”

Despite the challenges, Lilburn expressed cautious optimism, highlighting the resilience of local businesses and the adaptability of his crew. “We’re finding ways to stay afloat, but it’s not easy.”

Rail implications

The closure of the central North Island pulp and timber mills has significant implications for rail, as does the proposed cessation of paper-making at Kinleith.

Rail carried all the output from the Karioi pulp mill to Napier Port for export, and the export volumes of timber from the adjacent Tangiwai mill, also to Napier. About a quarter of a million tonnes a year of pulp and timber were involved. This was enough for a dedicated daily/weekday train from Palmerston North to Napier return. Nearly half of the traffic on this section was from the two mills.

Ohakune District Mayor Weston Kirton says the WPI closure was a severe blow to the region. The loss of wages impacted businesses, from retailers to service providers.

Two-hundred and thirty people lost their jobs when WPI ceased operation because of low pulp and timber prices and the cost of wholesale power.

On the North Island Main Trunk between Palmerston North and Karioi, there were two trains a day to maintain an optimal wagon turnround. Trains were up to 2, 000 tonne gross load. KiwiRail then restructured its operations in the area, to ensure the services reflect the changing demands of the market. Its operations will now be focussed on Palmerston North.

Nevertheless, KiwiRail has other customers on the line from Palmerston North to Napier and has assured them that it will continue to serve Hawkes Bay by rail. More recently, KiwiRail and the forest owners Ernslaw have agreed to rail 140,000t of logs from Tangiwai to Napier in the coming year, logs that would have otherwise fed the mills – recovering some of the traffic that was lost on the closure.

Interestingly the use of rail for the timber from Tangiwai was the subject of a special contribution from the NZ Transport Agency back in 2009, which enabled the mill to be connected to the rail system, and reduced heavy road traffic, reported at the time as 2,000 trucks a year off the roads. At the time, timber and pulp were railed to Wellington rather than Napier.

Kinleith is also an important contributor to rail traffic, for pulp, paper, and logs to the Port of Tauranga. Closure of the paper mill from mid-2025 will reduce the use of rail in the area unless more pulp is produced. It is too early to predict any consequences for services and staff.

WPI supplied timber and pulp products for export from Napier Port, the majority of which was packed into containers at Napier Port’s on-port Port Pack operation. According to Napier Port, WPI exported between 15k to 19k TEU of containerised timber and pulp from Napier Port on an annual basis.

In a statement published in August 2024, Chief Executive Todd Dawson said: “Our thoughts are with everyone at WPI. They have been a successful New Zealand export business and a long-standing customer of Napier Port since the 1970s. We feel incredibly disappointed they are confronted with no option but to consider ceasing their operations due to current and ongoing challenges related to abnormally high energy costs. These challenges are not isolated to WPI, and we remain concerned for wider NZ industries facing the same issue.

“While we don’t know the final outcome of WPI's process, which could include the retention of some or all of their cargo trade, the loss of WPI’s cargo would be a setback for Napier Port, however, we continue to benefit from our diversity of trade and revenue streams, as well as the resilient nature of our business.”

Do we need to rethink how we’re investing in our network infrastructure?

IN THIS ARTICLE, CHIEF EXECUTIVE GEOFF COOPER PROVIDES AN UPDATE ON SOME OF THE NEW ZEALAND INFRASTRUCTURE COMMISSION’S RECENT WORK.

IN NOVEMBER, the New Zealand Infrastructure Commission released ‘Testing our thinking: Developing an enduring National Infrastructure Plan’ to share how we’re aiming to develop the National Infrastructure Plan.

The Minister for Infrastructure asked the Commission to lead this work, but we’re working across central and local government, the sector and industry, and with the public to ensure the Plan is enduring. And while the final Plan will be delivered to the Minister in December 2025, we’re keen to keep stakeholders and the public informed throughout the process.

A National Infrastructure Plan can give us this long-term view, and answer some key questions:

• What’s needed and what should we be spending over the next 30 years?

• What’s our planned investment over the next 10 years?

• What’s the gap between the long-term infrastructure need and planned investment? And importantly, how do we address that gap?

The National Infrastructure Plan is an opportunity to build broad support for an approach to infrastructure investment that will affordably meet our needs. This isn’t just about projects – this is about how we plan and invest.

research we’ve been doing over the past five years.

I encourage you to engage with the various components of ‘Testing our thinking’ and send through your feedback. This will help us know if we’re on the right path or if there are issues or topics that we need to give more consideration to. In this article, however, I’d like to explore one area that we cover in ‘Testing our thinking’ in more depth – and that’s how we price our infrastructure networks.

We’re particularly interested in this area because New Zealand currently spends more than the average OECD country on infrastructure, but lags on measures of value. That means we need to get creative. If we can build the right infrastructure and use it more efficiently, we’ll be better positioned to meet our current and future infrastructure needs.

All infrastructure services have costs, but how we pay for our infrastructure services varies. Some funding approaches are obvious and connected to how much we use, like monthly electricity bills and mobile phone bills. Other times they are far less visible, like fuel excise that’s included in retail petrol prices or rates and taxes, which pay for many of the infrastructure services that we depend on.

How we pay for infrastructure is something we’ve been giving a lot of thought to at the Commission. In May we published a study on network infrastructure pricing that provided a baseline view of pricing across four sectors – water, transport,

We’re not starting with a clean slate when it comes to our knowledge base for the Plan. Instead, we’re building on the work that the Commission did on Rautaki Hanganga o Aotearoa, the New Zealand Infrastructure Strategy, that was published in May 2022. The Plan will also incorporate much of the Cont. on page 6

telecommunications and energy (electricity). The study identified three best practice goals for how infrastructure networks should be priced:

• Pricing guides infrastructure investment.

• Pricing sends signals to users.

• Pricing is used to share the benefits.

The study found that infrastructure pricing is better aligned with best practice goals in the electricity and telecommunications sectors, and less well aligned in land transport and water.

Specifically, energy and telecommunications rely more on direct-user charges and perform far better against best-practice pricing principles as a result. Like shopping in a supermarket, customers can pick and choose how much they consume and pay accordingly. These are also the sectors that have kept project investment levels in check with population growth over the last three decades. Pricing is also a powerful tool in sending signals to suppliers about where and how they should invest, as well as to users about when, where, and how they can access infrastructure services.

The reality is stark in terms of what we’re paying for infrastructure services. Since 1990, our investment has grown rapidly in water and land transport sectors where the way we charge is less aligned with best practice pricing principles compared to sectors like electricity, gas and telecommunications.

In August, we followed up on the pricing study by looking more closely at the water and land transport sectors. Our research shows how water and transport pricing can help us afford more infrastructure and make better choices about what we build.

In our water pricing report, ‘Valuing water: sustainable water services and the role of volumetric charging’, we found that charging for metered water can significantly reduce the infrastructure we need by moderating household consumption, improving leak detection, and ultimately deferring the need for expensive upgrades.

New Zealand is one of the world’s highest per-capita water users, but in communities where there’s volumetric charging, use and leakage is lower. In Kāpiti, for example, water savings through volumetric charging have allowed its council to defer construction of a proposed $30 million dam by an estimated 40 years.

In our transport pricing report, ‘Buying time: toll roads, congestion charges, and transport investment’, we found that pricing (through ‘time of use’ charging) can reduce peak-time use, and improve the efficiency of our urban

road networks, again deferring or eliminating the need for upgrades. Our research also found that road tolls can help identify the most valuable roading investments. Tolling can also help fund new roads, but full cost recovery is only possible in certain circumstances.

Projects need to benefit large numbers of people, keep costs down and offer meaningful service level improvements to users over the alternative. On these metrics, it is likely that most roading projects, will recover less than 25% of the capital costs –which is a challenge to planners and design teams to think more broadly about the value proposition against competing priorities, as well as thinking carefully about options to value engineering and/or lower the cost base. Through our work on asset management, we also know that pricing matters for the incentives to maintain what we have. When

we earn revenue from an asset, the incentive to look after that asset is arguably stronger. When asset owners are generating revenue streams from other sources, like general taxation, the incentives to look after what we already have might become less clear. We see that in commercially regulated sectors, spend on maintenance is in line with expectations; in contrast, in local and central government, underspend against depreciation is common. If we get pricing right, we can also help maintain the assets we have.

How we pay for our infrastructure is an important piece of the puzzle when it comes to ensuring we’re building and maintaining the right infrastructure, in the right places, at the right time. That’s why it’s an area of focus in the National Infrastructure Plan with the aim of giving New Zealanders greater confidence that the infrastructure we all rely on is well planned, provides value for money, and meets the needs of today and tomorrow.

Testing our thinking –a close-up on land transport’s funding sustainability challenges

Under our current model, the land transport system – our roads, urban public transport and rail – was designed to run on a cost-recovery, user-pays model. Under this model, the money transport users pay through fuel taxes and other fees is ring-fenced and expected to cover the full cost to the Crown of providing transport infrastructure and services. If we adhere to this model, we could only invest as much as we collect from transport users and ratepayers.

But that’s not what’s happening. We’re currently spending or planning to spend

more than we’re collecting from transport users. This funding gap is topped up with loans and grants from the government. We’ve been doing this since the 2010s, but it is expected to increase even more acutely in the future. The New Zealand Transport Agency’s recent projections suggest that, if nothing changes, we’ll be spending around $6 billion more than we collect from transport users each year from the late 2020s onwards.

Land transport prices would need a big increase to cover the full cost of the investment planned for transport. In land transport, user charges currently only cover about half of the costs of personal transport. This means that prices would have to roughly double to fully cover costs.

Measures such as time-of-use charging and tolling of new roads can help, but they are unlikely to fully close the gap. For instance, the most extensive time-of-use pricing option for Auckland would raise around $260 million per annum – less than 5 per cent of the $6 billion annual funding gap outlined by the NZTA. Our research together with recent project experience, suggests that tolling new roads may pay for 10 per cent to 25 per cent of the cost to build those roads, leaving a need to find most of the funding elsewhere – which means competing with other priorities.

Other measures, such as replacing Fuel Excise Duty for petrol vehicles with Road User Charges, will help by making sure we don’t collect less money as cars become more efficient. But this will not raise substantially more money unless user charges are increased from current levels. If it’s not possible to raise more money from transport users, then there will need to be trade-offs between what we spend on transport and other types of public infrastructure.

Learn more and let us know what you think:

Valuing water: Sustainable water services and the role of volumetric charging

Buying time: Toll roads, congestion charges, and transport investment Network infrastructure pricing study

Geoff Cooper

Geoff is the Chief Executive at Te Waihanga. He has a background in global policy having worked for the United States Federal Reserve, the European Bank for Reconstruction & Development and the United Nations. He is a former Chief Economist for both PwC and Auckland Council, where he worked on infrastructure, housing, regulation and financial policy, including business case development for Auckland’s City Rail Link.

Keeping goods moving between the Islands

BY NATHAN BRUTSCH AND CÉCILE L’HERMITTE

FREIGHT MOVES VERY EFFICIENTLY to ensure that goods are available when and where they are needed. However, a major Hikurangi Subduction Zone earthquake and tsunami taking out the Cook Strait ferry terminals for an extended period would bring immediate chaos to the movement of goods between the North and the South Islands. The impact of an 8.9 magnitude Hikurangi Subduction Zone event would be similar to the 2011 Tōhoku earthquake and tsunami in Japan. GNS Scientists have reported a one-in-four chance of such an event occurring in the next 50 years. Given the criticality of the Cook Strait ferries in connecting the North and South Islands and their exposure to natural hazards, we conducted research on how a three-month Cook Strait ferry terminal outage would impact the movement of Fast-Moving Consumer Goods (FMCGs) and what could be done to address subsequent bottlenecks and keep goods moving. To inform our research, 30 industry experts were interviewed across the freight transport sector, enabling a wide range of perspectives to be captured.

Re-routing the ferries

During an extended Cook Strait ferry terminal outage, and provided the ferries

are still operational, the initial response would be to re-route the ferries to alternative seaports. However, Wellington’s CentrePort and Port Marlborough are the only seaports with linkspans connecting the ferries to the land, and the terminals have been purposefully designed to handle rail freight. Furthermore, in the event of a major Hikurangi Subduction Zone earthquake and tsunami, Napier Port and Gisborne’s Eastland Port would be taken out. Because of this, re-routing the ferries to alternative seaports is not without its challenges.

The shortest route to operate would be between Port Nelson and Whanganui Port. However, Whanganui Port lacks the infrastructure and depth to accommodate large vessels like the Cook Strait ferries. The alternative would be to use Port Taranaki, but that seaport can close off for three days out of seven when there are large sea swells. Therefore, the subsequent shortest distance to reliably re-route the ferries would be between Port Nelson and the Port of Tauranga, a distance 10 times as far as the usual route. Although possible, this would be incredibly inefficient as the ferries are designed for a quick transfer and have limited carrying capacity.

Moving freight by alternative modes

Given these challenges, it is likely that most FMCGs will be moved by coastal shipping and higher-value or urgent goods by air. Contrary to the ferries, coastal vessels cannot carry curtain-sider trucks or most rail wagons, so goods would have to be loaded into shipping containers, of which there would be shortages since New Zealand runs at a deficit. Moreover, each curtain-sider truck and trailer unit carrying perishable FMCGs would need about two to three 20-foot refrigerated containers. These containers would also require generators to power them, fuel to run the generators, container trucks and drivers. The demand for all these resources would be significant, given that the ferries move mostly non-containerised goods in about 460 trucks and 200 rail wagons daily.

As for the movement of shipping containers, since July 2024, New Zealand has just one dedicated container vessel and, therefore, depends on international shipping lines for domestic container movements. However, the frequency of service of these vessels is limited, and their schedules are unreliable. They make sudden service changes to meet their international commitments, which often take priority.

New Zealand’s domestic freight system would be unprepared if the ferry terminals were removed. Urgent action should be taken to strengthen the system’s resilience, which could be achieved with two backup linkspans and a barge to facilitate the re-routing of the ferries. Photo: KiwiRail

domestic and international vessels being unable to load and discharge their containers. In the case of the Port of Tauranga, congestion is compounded by an underlying policy constraint. Since 2019, the Port of Tauranga has been waiting for resource consent to increase its berth capacity. The delay has resulted in challenges, such as running out of container berth capacity earlier this year. Another policy constraint relates to the Government's commitment to moving away from fossil fuels like diesel. At this stage, it is unclear what alternative fuel, or fuels, will be supported going forward, and the infrastructure and resources needed to support such a transition are not there. As such, shipping companies are reluctant to invest in new (alternative fuel) or used (diesel) vessels without guidance about the future of alternative marine fuels. Since vessels are typically in operation for some 30 years, a number of alternative fuels might not be supported in the future and diesel vessels might be financially penalised.

The map left recaps some of the constraints identified in our research.

Recommendations

During a Cook Strait ferry terminal outage, these international vessels would unlikely introduce additional services but rather work with the capacity they have already allocated to New Zealand. Fortunately, domestic and international vessels move many empty shipping containers, which, rather than travelling empty, could be loaded with certain freight, such as non-perishables. However, the volume of freight moved by the Cook Strait ferries significantly exceeds the capacity available in the coastal shipping sector.

Critical infrastructure interdependencies

Freight transport is highly reliant on other critical infrastructure, such as fuel and electricity. Adding to the above-mentioned issues, New Zealand has limited onshore fuel holdings, some of which would fail in a major Hikurangi Subduction Zone event. For instance, Wellington’s Kaiwharawhara site, the primary supply for the Cook Strait ferries, is aged and vulnerable and would likely fail. Like Napier Port, the nearby fuel terminal in Napier would be taken out. The absence of these fuel terminals would place further pressure on the remaining sites. Additionally, electricity outages would result in most key service stations and cell towers ceasing

operations in the affected areas, as they do not have backup power sources. As a result, demand for generators and fuel would increase even more.

Information availability

The unavailability of information in the wake of a major disaster would create further complexity in the movement of goods between the North and South Islands. Firstly, information such as the status of critical infrastructures and their outage and restoration times is not available in a single location. Secondly, information about capacity (e.g., carrying capacity of vessels and berth/yard capacity at seaports) may not be immediately available. Finally, the systems used in the freight transport sector are mostly not interoperable and sometimes paper-based, which impedes the flow of information and the swift reconfiguration of freight operations in the wake of a disaster.

Policy constraints

Our research shows the critical role of policy in the building of freight resilience. Ultimately, the effective re-routing of the ferries and the use of coastal shipping depend on the availability of berth/yard capacity and on handling performance at seaports. Seaport congestion can result in

As it stands, New Zealand’s domestic freight system would be unprepared if the ferry terminals were taken out. Therefore, we believe action should be urgently taken to strengthen the resilience of New Zealand’s domestic freight system. This can be achieved by acquiring two backup linkspans and a barge to facilitate the re-routing of the ferries. Granting the Port of Tauranga resource consent would increase the berth and handling capacity, a key requirement from a national resilience perspective. A clear policy on future marine fuels would encourage domestic operators to acquire additional vessels, increasing the domestic carrying capacity and, therefore, reducing the dependence on international shipping lines. Lastly, given the exposure of New Zealand seaports along the East Coast to a Hikurangi Subduction Zone earthquake and tsunami and the fact that Port Taranaki can close off for days, the proposal of Whanganui Port to accommodate the Cook Strait ferries and other larger vessels in an emergency should be reconsidered.

This research was conducted by Nathan Brutsch under the supervision of Cécile L’Hermitte (University of Waikato), Liam Wotherspoon (University of Auckland) and Richard Mowll (Wellington Region Emergency Management Office). It was funded by Te Hiranga Rū QuakeCoRE (the New Zealand Centre for Earthquake Resilience) and supported by the University of Waikato.

Key constraints following an extended Cook Strait ferry terminal outage

Determining the carbon footprint of land transport infrastructure in New Zealand

Determining the carbon footprint of land transport infrastructure in New Zealand

June 2024

LAND TRANSPORT INFRASTRUCTURE is a vital part of modern society, allowing for the movement of goods, services and people.

The research

Michael Tapper, Beca Limited, Tauranga

Ellie Callard, Beca Limited, Auckland

Mat Sycamore, Beca Limited, Auckland

Hannah Bennet, Beca Limited, Tauranga

Dr Theuns Henning, Auckland

However, land transport infrastructure has been identified as a major contributor to climate change through the carbon emissions generated from the infrastructure itself and the use of it. The way we construct, maintain, manage and use infrastructure has a major impact on how we meet our commitment to the Paris Agreement and keep global warming within 1.5 °C.

The research focused on embodied carbon of land transport infrastructure (road and rail) and analysed the whole-of-life emissions of New Zealand’s land transport network, including material and construction, maintenance, operation and end-of-life. It excluded vehicle emissions that arise from the use of the infrastructure.

The objectives of the research were to:

• analyse literature and available data around the quantification of the carbon footprint

• identify the greatest contributors to carbon emissions to inform decisions on where to target reductions

• provide a framework and data, including recommendations for addressing any data gaps, to help the sector develop tools that can assess the greenhouse gas emissions impacts of land transport investments.

Literature review

This research, carried out by Beca, sought to understand the carbon footprint of all land transport infrastructure in Aotearoa New Zealand, which will contribute to wider pieces of work that are taking place within the industry and assist the NZ Transport Agency Waka Kotahi (NZTA) and other transport authorities in targeting emissions reductions.

• identify and determine an appropriate methodology for quantification of the carbon footprint from New Zealand’s land transport infrastructure

NZ Transport Agency Waka Kotahi research report 720 Contracted research organisation – Beca Ltd

• determine a baseline carbon footprint for land transport infrastructure in Aotearoa New Zealand

A literature review was undertaken of research in New Zealand and international contexts to understand if carbon quantification of infrastructure at a similar scale has taken place before. The aims of the review were to:

• establish the context for researching the carbon baseline of land transport infrastructure, including the policy context

• summarise existing standards, frameworks and methodologies that direct

There are significant opportunities to reduce the carbon footprint of all land transport infrastructure in Aotearoa New Zealand by changing how we invest in, design, construct and maintain our current and future assets. Photo: NZ Transport Agency

the approach to carbon emissions quantification and carbon management

• review existing literature to understand how large-scale emissions estimation has occurred in either New Zealand or international contexts, with a particular focus on the methodology undertaken and boundary-setting

• analyse asset data and design information to understand how assets can be organised and standardised.

The review found that embodied carbon in construction and infrastructure is considered a hidden impact, with much more attention in policy and literature being given to vehicle emissions from the use of the infrastructure. The literature review found methodologies for quantifying the carbon emissions for individual infrastructure projects but limited methodologies for undertaking largescale carbon quantification across a whole infrastructure network.

Methodology

The literature available on approaching this task for individual asset types, particularly the quantification of the impacts of roads and rail such as the global standard PAS 2080:2023 Carbon management in buildings and infrastructure, formed the foundations for establishing a methodology at a national network scale.

Profiles representing a ‘typical’ infrastructure asset were developed using the NZTA Project Emissions Estimation Tool (PEET) combined with research and technical knowledge from subject matter experts. Each profile was assigned an emissions factor and asset data was obtained from New Zealand’s Road Assessment and Maintenance Management (RAMM) digital asset and KiwiRail and placed within the emissions framework.

Key findings

This research estimates that the upfront carbon footprint of the road network, which includes state highways, local roads and all associated assets such as footpaths, traffic signals and signage, is 37,250 ktCO₂e (±10%).

Maintenance emissions for the road network have been estimated at 855 ktCO₂e (+10%, -14%) per year with operational emissions estimated at 35 ktCO₂e (+10%, -22%) per year.

The total national upfront carbon footprint for the rail network, including tracks, structures, retaining walls and culverts, is 15,380 ktCO₂e (±15%). Maintenance emissions for the rail network have been estimated at 220 ktCO₂e per year.

Note: for an illustration of scale, New Zealand’s national net emissions for the 2022

year were estimated at 59,100 ktCO2e, of which the total land transport (fuel) emissions comprise an estimated 13,600 ktCO2e.

These are the key findings:

Over decades, investment in infrastructure has produced significant carbon emissions through its construction, maintenance and operation. Much of this is essentially a sunk cost that cannot be recovered or changed, but there are significant opportunities to reduce carbon by changing how we invest in, design, construct and maintain our current and future assets. However, these opportunities can only be realised if we consider whole-of-life carbon (including embodied and enabled emissions) in decision-making about investment in infrastructure.

Maintaining and optimising our current network is better from a carbon perspective than building new, and all new assets will increase carbon through upfront emissions as well as through the maintenance cycles and end-of-life impacts that are created. Optimising our current network can occur in many ways, and in the context of this research, we consider it to be when wholeof-life and whole-of-network considerations are brought to the forefront of investment decision-making, with build nothing and build less being the desired outcome.

Although gains have been made in recent years, there is a lack of information about maintenance activities on the road network and end-of-life impacts and the subsequent carbon emissions from these activities. This presents a risk to New Zealand’s future infrastructure investment, particularly considering increased maintenance requirements due to more heavy vehicles on the roads and impacts from extreme weather events.

This research looked at embodied carbon across the life cycle of infrastructure assets, but embodied carbon is only one piece of a very complex puzzle that should not be analysed alone. Enabled vehicle emissions and embodied emissions are two interrelated elements and must also be considered in conjunction with other impacts, including a just transition, community wellbeing, environmental impacts and climate resilience. There is a significant opportunity to reduce upfront carbon emissions through the innovation of new materials, technologies and processes when new infrastructure assets are required or through maintenance. Although quantifying emissions reduction opportunities was out of the scope of this research, the significance of upfront and maintenance emissions suggests that developing, trialling,

implementing and eventually mandating lowcarbon materials will reduce carbon in future investments.

Recommendations

Through this research report, several recommendations have been identified that will improve understanding of the carbon footprint of land transport infrastructure and identify ways to investigate reducing the impact:

• Future land transport investment decisions should consider whole-of-life carbon (embodied and enabled) in the context of New Zealand’s net-zero by 2050 reduction target. Particular focus should continue on improving information available on maintenance, operations and endof-life activities.

• Future land transport investment decisions should consider the whole transport network and other related horizontal infrastructure. Consideration of optimising existing infrastructure before new construction is important.

• Technological and process innovations that reduce embodied carbon should continue to be researched, trialled and implemented to reduce emissions when new assets are needed or maintenance is occurring.

• Asset databases should be standardised and improved (particularly in how maintenance is recorded).

Definitions

Embodied carbon: Greenhouse gas emissions associated with creation, refurbishment, maintenance and end-of-life treatment of an asset.

Enabled emissions: Greenhouse gas emissions associated with the utilisation of an asset, network or transport system.

Upfront carbon emissions: Greenhouse gas emissions associated with the creation of an asset, network or transport system.

Read the full report at https://www.nzta. govt.nz/assets/resources/research/ reports/720/720-determining-the-carbonfootprint-of-land-transport-infrastructurein-nz.pdf

Healthier, happier, fairer: new research shows major life benefits from decarbonising transport

BY DR CAROLINE SHAW

WITH WALKING AND CYCLING FUNDING HALVED in the government’s recently released National Land Transport Programme1, and a weaker transport emissions reduction plan, the potential health benefits of a lowcarbon transport system have hit a real speed bump.

This is a pity, because one of the great promises of low-carbon transport is the health improvements that can accompany certain policy choices. Health is tangible, while decarbonisation policy is often complex and highly technical. People care deeply about health, both physical and mental.

However, we are now faced with climate and transport policy options that will have radically different implications for health.

To explore this, we looked at two distinct future transport pathways described by the Climate Change Commission. We found the choices New Zealand makes now will be crucial to improving people’s lives in the near future.

Transport and health

We already know transport systems cause a lot of disease and harm2 from air and noise pollution, physical inactivity and injury. Cancer, asthma, heart disease, premature birth, depression and dementia have all been linked to the effects of transport emissions.

It is hard to precisely quantify the health impacts of New Zealand’s current transport system. But we know it has a greater effect than tobacco3, causes thousands of premature deaths each year4 and adds avoidable burdens to strained health services. These impacts do not fall equally on different parts of the population. People with low

incomes, for example, are more likely to die5 from road traffic injury. We also know those who drive the most (and have the most environmental impact) tend to experience the least6 adverse transport-related health outcomes.

Reducing transport emissions involves a series of choices about how we decarbonise. For example, we can emphasise vehicle electrification, change urban design, or pursue combinations of both.

To explore the health implications of this, our new research7 quantifies two possible transport pathways outlined in the Climate Change Commission’s 2021 advice to the government, Ināia tonu nei: a low emissions future for Aotearoa8

Behaviour and technology

Focusing on population health, health system costs, health inequity and transport greenhouse gas emissions, we modelled

household travel under the two most distinct pathways out to 2050. We then compared these to the current transport system (as of 2018).

The two pathways – “further behaviour change” and “further technology change” –both rely on increasing public transport and reducing vehicle travel per person by 2050. The behaviour pathway achieves the most in those areas and includes a large increase in cycling.

Both pathways require a transition to electric cars, but the technology pathway gets to a 100 per cent electric light fleet by 2050 compared to 89 per cent in the behaviour pathway.

Compared to the 2018 transport system, we found both pathways would save lives, reduce health system costs and reduce greenhouse gas emissions. However, the health gains were around two-and-half times greater in the behaviour pathway than the

1 National Land Transport Plan 2024-27: https://www.nzta.govt.nz/planning-and-investment/national-land-transport-programme/2024-27-nltp/

2 Fourteen pathways between urban transportation and health: A conceptual model and literature review: https://www.sciencedirect.com/science/article/pii/S2214140521001006

3 The Impact of Transport on Population Health and Health Equity for Māori in Aotearoa New Zealand: A Prospective Burden of Disease Study: https://www.mdpi.com/1660-4601/19/4/2032

4 Health and air pollution in New Zealand 2016 (HAPINZ 3.0): Findings and implications: https://environment.govt.nz/publications/health-and-air-pollution-in-new-zealand-2016-findings-andimplications/

5 Ethnic, socioeconomic and geographical inequalities in road traffic injury rates in the Auckland region: https://www.sciencedirect.com/science/article/pii/S1326020023005861?via%3Dihub

6 Socioeconomic inequalities in greenhouse gas emissions from household travel in Aotearoa/New Zealand: https://www.sciencedirect.com/science/article/pii/S2214367X24000838

7 Policy approaches to decarbonising the transport sector in Aotearoa New Zealand: modelling equity, population health, and health-system effects: https://www.thelancet.com/journals/lanplh/ article/PIIS2542-5196(24)00171-2/fulltext

8 Ināia tonu nei: a low emissions future for Aotearoa: https://www.climatecommission.govt.nz/our-work/advice-to-government-topic/inaia-tonu-nei-a-low-emissions-future-for-aotearoa/

technology pathway (health savings were three times larger).

This was primarily because of the increased physical activity in this pathway. Lifecycle emissions reductions (for example, from the manufacture and destruction of a car, as well as driving it) were quite similar between the two pathways.

Similar impacts to tobacco reduction

We also modelled how the pathways would affect existing health inequities. We found the behaviour pathway could contribute to reducing healthy life expectancy differences between Māori and non-Māori.

This depended on how policies are implemented: the fairer the transport system, the better it is for health equity.

The potential health benefits of the behaviour pathway are of the same magnitude as those seen from tobacco market interventions such as a 10 per cent tax increase and the creation of a smokefree generation.

These results are quite conservative, too. The Climate Change Commission assumed only minimal changes in walking. However, the policies needed to deliver this pathway are all likely to increase walking substantially. And even the policies needed to achieve the technology pathway would increase walking.

Moreover, our health model itself is conservative. For example, we know the positive impacts of the behaviour pathway on mental health would be considerably larger than we were able to model.

Health and fairness

These findings also relate to the government’s emissions reduction plans, which were published after the Climate Change Commission delivered its advice.

The behaviour change pathway is similar to the approach taken in the first emissions reduction plan9 from 2022, so we can assume there would be comparable health impacts. In contrast, the approach in the draft second emissions reduction plan10, published this year, is radically different.

This newer plan focuses on the emissions trading scheme (a pricing tool), increasing electric car charging infrastructure, and a few public transport projects (mainly in Auckland).

These policies are unlikely to have much impact on land transport emissions. Nor will they achieve the health benefits of even the technology pathway. Other transport policies – speed limit increases, expanded road building and weaker vehicle emissions standards – will likely counteract any potential benefits from the second emissions reduction plan, as well as make health worse.

This research illustrates how the way we choose to decarbonise transport is important. It adds to other local research11 showing that moving to a “planet-friendly” diet would result in large health, health equity and climate benefits.

Collectively these studies demonstrate how we can decarbonise in ways that meaningfully improve lives. And we can build support for climate policy by focusing on the things people truly value, such as health and fairness.

The author gratefully acknowledges her fellow researchers and co-authors on this project: Anja Mizdrak, Ryan Gage and Melissa McLeod, University of Otago; Rhys Jones and Alistair Woodward, University of Auckland; and Linda Cobiac, Griffith University.

Caroline is a Public Health Medicine Specialist and epidemiologist. She teaches the postgraduate paper in Environmental Health and is also involved in undergraduate teaching and curriculum development for the medical degree. Her current research is at the interface of transport, health and climate change, particularly around the health opportunities offered by decarbonising the transport sector. She has undertaken research in the ethnic and socioeconomic determinants of health, cancer control, population screening and obesity prevention.

Dr Caroline Shaw

Investment lacking in asset management equation, new report shows

BY JAMES PAUL

THE NEW ZEALAND INFRASTRUCTURE Commission’s latest report, Taking Care of Tomorrow Today: Asset Management State of Play, shines a spotlight on the challenges and opportunities in managing New Zealand’s aging infrastructure. For professionals in the transport sector, the report offers a compelling case for prioritising proactive asset management to safeguard connectivity, resilience, and sustainability.

New Zealand’s infrastructure landscape is at a crossroads. While 99 per cent of the assets required for the next three decades already exist, underinvestment in maintenance and renewal has left many sectors vulnerable. The report reveals limited awareness of asset management as a strategic discipline, with decision-makers often viewing it narrowly as maintenance or capital projects. This disconnect leads to deferred investments, reactive fixes, and a growing risk of system failures.

In transport, these gaps manifest as deteriorating road conditions, underfunded rail systems, and climate-vulnerable infrastructure. Yet, as the report emphasises, effective asset management offers the tools to not only address these challenges but also unlock long-term efficiencies.

Key findings for the transport sector

1. Maturity with gaps

While transport ranks higher in asset management maturity compared to other sectors, critical issues remain. For example: road maintenance often prioritises reactive over planned interventions, creating higher costs and safety concerns; and rail and port systems face challenges in integrating lifecycle asset management across networks.

2. Resilience under pressure

Recent weather events, such as Cyclone Gabrielle, highlighted the vulnerabilities of transport infrastructure. Flooded roads, impassable rail lines, and isolated communities underscored the need for robust risk planning and climate adaptation strategies.

3. Funding and workforce shortfalls

The transport sector is constrained by budget deficits and a lack of skilled asset managers, limiting its ability to implement best practices and adopt advanced tools like predictive maintenance.

The report outlines actionable strategies to strengthen asset management in transport, categorised under four key themes:

1. Governance

Establish accountable leadership for asset management within organisations. For instance, appoint executive-level roles or committees to oversee long-term planning and implementation.

2. Transparency

Require organisations to publicly report on asset performance and maturity assessments. This fosters accountability and aligns stakeholder expectations.

3. Resilience

Embed climate resilience into all asset renewal cycles. Transport systems, particularly state highways and coastal infrastructure, must be designed to withstand increasingly severe weather.

4. Productivity

Invest in training programs to grow the asset management workforce and leverage technologies to enhance decision-making. By championing better asset management, the transport sector can lead the way in creating resilient, efficient, and sustainable infrastructure that meets the needs of future generations.

Whether it’s advocating for smarter investment strategies, implementing advanced asset monitoring tools, or driving cross-sector collaboration, transport professionals have a crucial role to play. As the report concludes, New Zealand’s future depends on making the most of the infrastructure it already has. Never has there been a greater time to invest in and support, not undermine, asset management capabilities across central

and local governments. So says Āpōpō President Gary Porteous, who welcomes The New Zealand Infrastructure Commission, Te Waihanga’s latest report Taking care of tomorrow today: Asset management state of play.

Setting out a high-level snapshot of New Zealand’s approaches to asset management, the report rates the country’s assets as ‘passable’, but only just.

“Effectively managing the infrastructure around us that enables so much of our quality of life is the endeavour of professionals with specific knowledge and skills in asset management,” Mr Porteous says. “But we struggle to put in place all the capabilities required for effective asset management.”

Investing in training programmes is a key component of Te Waihanga’s eight recommendations, critical to improving infrastructure providers’ asset management capabilities and processes.

It is heartening to hear Te Waihanga echoing this sentiment in its call to take care of tomorrow today,” Mr Porteous says. “We must increase, not decrease, investment in asset management capability development and knowledge sharing so that New Zealand has the skills and expertise required to make the most of the infrastructure we have.”

In a sustained effort to build asset management capacity and competency in New Zealand, Āpōpō has delivered over 6,500 short online Digital Badge courses in asset management and related topics over the past five years.

Yet they are seeing a concerning drop in participation after training and development budgets have been slashed – both in central and local government. The Association offers a no-cost Infrastructure Leadership and Governance Digital Badge to encourage decision-makers to be informed about what constitutes good asset management.

To read the report in full, visit https:// tewaihanga.govt.nz/our-work/researchinsights/taking-care-of-tomorrow-today

7 March 2025 9am - 5pm TRADE DAY

TMC Trailers

SHOW

TRADE DAY - Friday 7th March 2025

(Public Day Saturday 8th March 2025)

Trade customers only. An opportunity to invite customers to attend and host functions on your site.

INDUSTRY NETWORKING EVENTS AND SESSIONS

All

KiwiRail’s new DM class locomotives for the South Island

BY CHRIS GUNN

HISTORICALLY, NEW ZEALAND ACQUIRED LOCOMOTIVES for the national railway network from English builders in the 19th century, followed by a swing in favour of American builders, then proceeding to establish its purpose-built workshops to build steam locomotives and rolling stock, as well as utilising several local engineering firms. The introduction of electric traction in 1923 for the Otira Tunnel saw English-Electric selected as the builder of the EO class, continuing with the EC class for the Christchurch-Lyttelton electrification in 1929 and again for the Wellington suburban service in the mid-1930s (ED and EW classes), followed by the DM/D electric multiple units (EMUs).

Fast-forward to the phasing out of steam traction in the 1950s in favour of diesel, the Government again turned to Englishelectric for its first main-line locomotives – DE, DF and DG/DH classes. The doublecab DFs were expected to establish a fast 12-hour freight schedule between Auckland and Wellington, but did not live up to expectations and were subsequently transferred to the Frankton-Bay of Plenty line to see out their days; the half-units (DG/ DH) were used in both islands, but at a mere 750 horsepower, encountered increasing difficulty with heavier freight trains on the mountainous sections of our main lines, and could not achieve the same speeds as the steam-powered JA class on the South Island Limited (70+ miles per hour) which they were intended to replace.

Consequently, for the North Island, New Zealand Rail Limited (NZR) turned to American builder General Motors (ElectroMotive Division) in the mid-1950s for the 1,400 hp DA class for the North Island Main Trunk (NIMT) to replace the KA class 4-8-4’s, along with the smaller, lighter variant DB class for secondary lines. These were followed by the new EMD-DF class from its Ontario plant, which is still in service today in both islands. The South Island had to “soldier on” with older diesel classes (and steam) until 1968, when NZR turned to Japan to build a new type of diesel-electric locomotive for the South Island, incorporating a high-revving Caterpillar engine built by Mitsubishi Heavy

Industries; they were the last “whole fleet replacement” for “The Mainland”.

Subsequently, NZR turned to a new American builder (General Electric) to supplement the DA class with a more powerful type developing 2,750 hp (DX class). These came online in 1972, all North Island-based. In 1988, with the completion of the NIMT 25KvA electrification between Te Rapa and Palmerston North, Brush Traction was selected for the motive power, producing the smart EF class—at 3,000 hp, New Zealand’s most powerful locomotive at the time.

The final phase of North Island locomotive development to date is the Chinese-built DL class of diesel-electric introduced in 2010. These have had several “issues” since their introduction, so when it came to the South Island’s turn to upgrade its power, KiwiRail turned to European locomotive builders, selecting the tender of Swiss firm Stadler AG. KiwiRail created a functional specification from which Stadler has developed the design and tech specs. These are being built at its facility in Valencia, Spain, and will enter service in 2025.

However, the first two prototypes were unloaded from the heavy-lift cargo ship Eemslift Nadine at Lyttelton on 19 October 2024 and towed to Middleton Yard by DXs 5229 and 5108 for an intensive programme of commissioning and testing over the next six months. The next batch of five locos is virtually ready to be shipped, but this will not occur until after any “bugs” found with the prototypes have been ironed out. They’re expected to ship in June 2025.

Caterpillar engine – technical specifications

Caterpillar manufactures the Cat® C175-16 rail engines at its large engine facility in Lafayette, Indiana, USA. Depending on locomotive configuration, they produce between 2,800 kW (3,725 hp) and 3,000 kW (4,023 hp) at 1800 RPM, with peak torque from 1500 RPM. The model designation C175-16 relates to a cylinder bore size of 175 millimetres and a configuration of 16 cylinders in a V format. Combined with a stroke of 220 millimetres, total engine displacement is 84.7 litres (5,168 cubic inches) or 5.29 litres per cylinder.

The Cat® C175-16 in the DM locomotive is a four-stroke diesel engine with a common rail fuel injection system with twin turbos, and includes a Selective Catalytic Reduction exhaust after-treatment system. Depending on locomotive configuration, they produce between 2,800 kW (3,725 hp) and 3,000 kW (4,023 hp) at 1800 RPM, with peak torque from 1,500 RPM. Photo: Brett Congalton

The Cat® C175-16 in the DM locomotive is a four-stroke diesel engine with a common rail fuel injection system, with twin turbos, and includes a Selective Catalytic Reduction (SCR) exhaust after-treatment system. The engine uses Diesel Exhaust Fluid (DEF/AdBlue) injection and SCR catalyst to meet Euro-V emissions reduction levels.

Available in 16- and 20-cylinder configurations, Cat® C175 diesel engines are used across Caterpillar’s product lines in applications including power generation, mining trucks, locomotives, marine propulsion, and offshore drilling and production. In December 2023, Caterpillar celebrated the production of the 10,000th engine on the Cat® C175 platform, which has been used around the globe since 2009, logging more than 140 million operating hours across numerous industry sectors.

Environmental aspects

New Zealand passed its zero-carbon amendment to the Climate Change Response Act 2002 in 2019, which set a target for all greenhouse gases (except for biogenic methane) to reach net zero by 2050. This is in line with the Paris Agreement, which aims to limit the global average temperature increase to 1.5° Celsius above pre-industrial levels.

Specifications for each new locomotive include:

• Low emissions profile (meeting the EU Stage V emission standard)

• 25 per cent reduction in Nitrous Oxide emissions

• 30 per cent reduction in Particulate Matter emissions

DM locomotives have an advanced filtration system that removes 97 per cent of harmful exhaust emissions – a vast improvement over earlier generation diesel locomotives.

Improved traction system design enables:

• fewer locomotives to do the same work

• potential reduction of 20-25 per cent in carbon dioxide emissions through reduced fuel burn and use of onboard technologies

• futureproofing for longer and heavier trains

• Dual cabs to provide operational flexibility

• Equipped with an auto engine start-stop system which can switch off the engine when the locomotive is idling, saving fuel

• Driver energy reduction and advisory system to support the locomotive and drivers to achieve its optimal energy performance

Remote diagnostic system allows KiwiRail to receive:

• Instantaneous fleet geographical location, speed, fuel tank status and battery main switch status

• Summary indication of mileage and energy consumption for each locomotive

• Fault records automatically logged for each locomotive

• Locomotive condition and trending of key parameters

This alone should ensure that they have a service life of at least as long as the DX class, as transport operators are pressured to reduce their reliance on fossil power. Battery electric locomotives (re-chargeable from overhead catenary) are still some way off (refer https://www.gw.govt.nz/yourregion/news/funding-deal-for-new-trainswelcomed-builders-short-listed/) as are hydrogen fuel cell locomotives.

Unloading at Lyttelton Port

Eemslift Nadine berthed in Lyttelton before midnight on 18 October, and unloading commenced at 7.30 am the following day, being completed at 2.15 pm. This was a complex operation because there are no longer railway tracks connecting the wharves with KiwiRail’s yard, so the locos had to be placed onto a heavy-duty low-loader and moved along the wharf to the nearest siding where two DXs were waiting to marshal them for the move to Middleton.

Commissioning and testing at Middleton

The two locomotives are currently undergoing extended testing at both the

sub-system level and locomotive level. Static testing includes verification, validation and certification of safety-critical functionalities. Interoperability with other rolling stock will also be verified during this stage.

Main line testing programme

This will commence in January 2025 and will include route clearance runs across multiple networks including MNL, MSL and Midland lines. After dynamic testing is complete, the prototypes will enter regular service around mid-2025. DM locomotives are designed to be used for both passenger and freight duties.

Acknowledgements

Chrissy Farago, KiwiRail for information on design concept, commissioning and testing programme. Brett Congalton, Terra Cat Christchurch for engine specifications and pictures.

Author

After discharge from 12 years of army service and 14 years in the insurance industry, Chris joined Pacifica Shipping at their Lyttelton engineering workshop where he introduced a job-costing system, provedored four ships. He then managed cargo claims and purchasing. After a brief retirement, he was appointed Member Services Manager for CILT NZ, of which he is a Life Chartered Member. Chris has been involved with railway preservation for 50 years, being a member of the Diesel Traction Group at Ferrymead. He has a large model railway layout and a particular interest in modern intermodal freight.

DX 5229 preparing to shunt DM 8012 onto DX 5108 at the Port of Lyttelton. Photo Chris Gunn

Driving safety into the future and tackling drowsy drivers

DROWSY DRIVING HAS LONG BEEN a silent threat on the roads, responsible for countless accidents and near-misses worldwide. Studies equate 17 hours of wakefulness to a blood alcohol concentration of 0.05 per cent, impairing reaction times and decision-making abilities significantly.

For the transport sector, where long hours and monotonous tasks are common, this is a pressing issue. Dr Angus McKerral, a Human Factors Research Scientist at safety monitoring experts Seeing Machines, and his team are addressing that risk with drivermonitoring technology.

Guardian, by Seeing Machines, is unique from other driver monitoring systems in that the technology company has its own in-house research team of eight PhD scientists who design and write research projects and papers that shape product development and ensure it is grounded in robust science.

Dr McKerral completed an undergraduate Psychology degree with honours in 2017 and

then a PhD in cognitive psychology, focussing on how humans interact with automated systems like self-driving cars.

Utilising academic research to reduce crashes and save lives, Seeing Machines focuses on implementing their findings directly into safety-critical environments. The Guardian system aims to improve road safety by detecting fatigue and distraction and intervening before disaster strikes.

“The Human Factors team are all people from research backgrounds and a mix of disciplines from psychology and neuroscience to engineering and computer science,” Dr McKerral says. “Human Factors are essentially about interaction with the machine.

“We have input on different aspects of the design. This can be from algorithm development to a specific level, like how bright an LED should be – and right up to the system level, where we look more holistically at how a person will respond to a monitoring system that can do X-Y-Z.

BY JAMES PAUL

“It’s motivating to know our work results in tangible benefits. Our aim is to get everyone home safely; it’s more than a job for us.”

Fatigue impairs drivers’ abilities in subtle but dangerous ways. Behavioural markers, such as prolonged eye closures and microsleeps, are often undetected until it’s too late. Dr McKerral says these physiological signs can escalate rapidly, creating critical safety risks for drivers and other road users.

In the trucking industry, the stakes are particularly high. Long-haul drivers may operate for hours on end, often at night, increasing their vulnerability to fatigue. In 2022-23, Guardian captured 131,806 confirmed fatigue (drowsiness and microsleep) events across Australian and New Zealand fleets. The Guardian Centre contacted fleet managers via phone or email over 100,000 times during the year to initiate Fatigue Intervention Plans. In 24/7 operations, Australian and New Zealand fleets see (on average) over 15 confirmed fatigue events every hour.

Utilising academic research to reduce crashes and save lives, Seeing Machines focuses on implementing their findings directly into safety-critical environments. The Guardian system aims to improve road safety by detecting fatigue and distraction and intervening before disaster strikes. Photos: Seeing Machines

Comparatively, distracted drivers are just as dangerous. In 2022-23, Guardian captured 521,242 distracted driving events in Australian and New Zealand fleets, including 55,260 instances of mobile phone use. In 24/7 operations, Australian and New Zealand fleets see (on average) almost 60 driver distraction events per hour.

Other research conducted by mobility platform Teletrac Navman, found that 70 per cent of fleets worldwide have been impacted by distracted driving incidents, with mobile phone use as the leading cause.

These findings come from the Global Distracted Driving Report 2025, based on responses from 421 fleet professionals across Australia, New Zealand, Mexico, the United Kingdom and the United States.

The research revealed that nearly 49 per cent of respondents said that distracted driving had a direct financial cost on their business; 40 per cent said it caused operational disruptions; 28 per cent said it led to safety and compliance breaches; and 25 per cent experienced reputational damage.

According to the Ministry of Transport, in 2022 trucks were involved in 51 fatal crashes, 166 serious injury crashes, and 539 minor injury crashes across New Zealand. In these crashes, 62 people died, 208 people were seriously injured, and 727 people suffered minor injuries.

The challenge for Dr McKerral and his team was clear: develop a system that could detect these behaviours reliably and intervene effectively.

The Guardian system represents the culmination of years of research and realworld testing. Unlike traditional fatigue detection systems, Guardian integrates multiple alert mechanisms to ensure effectiveness without overwhelming the driver:

• Pulsing lights capture the driver’s attention;

• Specific alarm tones are carefully designed for maximum impact without causing confusion; and

• a vibration motor embedded in the seat provides tactile alerts, leveraging a different sensory channel to reduce distraction.

“Our research shows that haptic feedback is particularly effective because it doesn’t compete with the driver’s visual or auditory attention,” Dr McKerral says. “It’s a perceptual channel that can wake someone without pulling focus from the road.”

Central to the Guardian system’s success is its

iterative design process, which incorporates direct feedback from truck drivers. Dr McKerral and his team conducted extensive trials to ensure the system was intuitive and effective in real-world conditions.

“We tested prototype products with drivers to see which alerts resonated and which ones they ignored,” Dr McKerral says. “What works in theory doesn’t always work in practice.”

Guardian’s deployment has yielded impressive results. Across industries like trucking, mining, and rail, the system has monitored over 18 billion kilometres globally. In one study, trucking companies reported a significant reduction in fatiguerelated incidents after implementing Guardian.

Fleet managers have also embraced the system, not just for its safety benefits but for its cost-saving potential. Fatigue-related accidents can result in damaged cargo, vehicle repairs, and even legal liabilities. Guardian mitigates these risks by ensuring drivers remain alert and responsive.

A particularly effective feature is the video footage captured during fatigue events. Seeing themselves in a vulnerable state – eyes closed for several seconds while driving – has been a wake-up call for many drivers.

“There’s nothing more powerful than seeing your own fatigue in action. It’s a game-changer for awareness and behaviour,” Dr McKerral says.

The transport industry is increasingly recognising the importance of fatiguemonitoring systems like Guardian. Regulatory bodies worldwide are beginning

to mandate such technologies, with the likes of the European Union adopting the General Safety Regulation (GSR) in 2019.

The GSR mandates that safety-centric technologies be included in vehicles. It also lays a framework for the introduction of autonomous vehicles on EU roads. The legislation aims to reduce casualties and improve road safety for all users.

These frameworks are likely to influence policies in countries like Australia and New Zealand, where fleet managers are already adopting proactive measures.

“As the evidence for safety benefits grows, we’re seeing a shift in acceptance,” Dr McKerral says. “Fleet managers understand that these systems aren’t just regulatory box-tickers. They’re essential for protecting drivers, passengers, and cargo.”

Despite its success, Guardian is far from a finished product. Seeing Machines continuously refines its technology to address new challenges and incorporate emerging insights. Recent updates include early drowsiness detection, which alerts drivers before they reach critical fatigue levels.

Looking ahead, Dr McKerral hints at the capabilities of Guardian Generation 3, which includes advanced distraction-detection capabilities. “Human behaviour is complex, and there’s always more to learn,” he says. “Our goal is zero transport fatalities, and we’ll keep innovating until we get there.”

“Knowing that what we do has a real impact is incredibly rewarding. We’re not just researchers; we’re part of a mission to make transport safer for everyone.”

Guardian’s deployment has yielded impressive results. Across industries like trucking, mining, and rail, the system has monitored over 18 billion kilometres globally. In one study, trucking companies reported a significant reduction in fatigue-related incidents after implementing Guardian.

New report says Covid pandemic changed public transport forever

IN SEPTEMBER 2024, industry peak body the Public Transport Association Australia New Zealand (PTAANZ) and global strategy consultancy L.E.K. Consulting released a report that takes a deep dive into how the Covid pandemic changed the way we travel around our cities and towns in Australia and New Zealand.

The Mobility Beyond the Pandemic report says public transport ridership has returned to over 80 per cent of pre-pandemic levels across the region, however when and why we travel has changed, with a decrease in work-related travel and more leisure trips.

The report highlights the urgency of changing the way we travel. Transport is the fastestgrowing source of emissions in the region. In Australia, the transport sector contributes 19 per cent of all emissions, 60 per cent of which are from passenger cars and light commercial vehicles. In New Zealand, 20 per cent of all emissions come from transport, with nearly 70 per cent of all transport CO2 emissions from cars, SUVs, utes, vans, and light trucks.

PTAANZ Chief Executive Lauren Streifer says mode shift, changing how people get around, will have a positive impact on carbon emissions.

“Transport will play a critical role in achieving net zero and assuring a sustainable, liveable, and equitable future.

“We can reduce carbon emissions from transport if more people walk or cycle, which creates no emissions, or take public transport, which is more energy efficient,” Ms Streifer said.

The report authors are calling for dynamic approaches to not just get public transport patronage back to what it was before the pandemic, but to get more people using public transport, more often.

Mark Streeting, Senior Partner at L.E.K. Consulting and Vice Chair of PTAANZ, says the approach must include both incentives to use public transport and disincentives for jumping in the car.

“We are at a critical juncture in history where we must fight for reform and innovation in the

way people move around our communities. We have settled into a ‘new normal’ post the Covid pandemic and must now focus on tackling the climate crisis. Essentially, we must do everything possible to make public and active transport more appealing travel choices,” Mr Streeting says.

The report highlights nine key themes for improving public transport mode share, including service delivery improvements, modal competitiveness and strategies to accelerate net-zero goals.

Governments in New Zealand and Australia have laid a strong foundation for decarbonisation through investments in electrification of bus and rail networks, but also in improving service delivery, reform and innovation, the report says. These initiatives are crucial for achieving long-term climate goals and reducing the carbon footprint of our cities. Overseas, disincentives for private car use, such as London's Ultra Low Emission Zone (ULEZ) have proven successful in increasing public transport mode share. In London, the public transport mode share increased to 65 per cent and this is largely attributed to progressive measures to discourage private car use.

Transport authorities in New Zealand and Australia are investing in service delivery, reform, and innovation to drive mode shifts. According to the report, increasing frequency, coverage, and network integration are top strategies being used to increase mode share, particularly by focusing on off-peak and weekend services. For example, studies found that doubling service frequency can increase patronage by up to 30-40 per cent with higher impacts for off-peak and weekend services. Additionally, on-demand services are addressing first and last-mile issues, making public transport a more flexible option for users. The report notes on-demand services in NSW, like the Ponds service operated by Cooee Busway, delivered over 80,000 rides in nine months, with 55 per cent of passengers previously using private cars. These innovations are key to adapting public transport to shifting travel patterns. Pricing strategies, such as fare caps and discounts,

are also playing a role, but the report suggests that service improvements—such as bus prioritisation and real-time information—are more impactful for increasing patronage in the long run.

The report also highlighted that initiatives such as real-time service updates and better communication on crowding and reliability are essential. For example, Austroads evaluated several case studies where on-road bus priority was installed and found that even low-cost projects can deliver significant travel time improvements for buses and significant patronage uplifts.

The full report is available online at https://shorturl.at/z5aOo and in this video (https://shorturl.at/NUtbz), L.E.K. Consulting Partners, Mark Streeting and Natasha Santha, discuss how public transport systems can embrace service innovation, drive modal shifts and enhance environmental sustainability.

About L.E.K. Consulting

We're L.E.K. Consulting, a global strategy consultancy working with business leaders to seize competitive advantage and amplify growth. Our insights are catalysts that reshape the trajectory of our clients' businesses, uncovering opportunities and empowering them to master their moments of truth. Since 1983, our worldwide practice — spanning the Americas, Asia-Pacific and Europe — has guided leaders across all industries, from global corporations to emerging entrepreneurial businesses and private equity investors. Looking for more? Visit www.lek.com

About PTAANZ

The Public Transport Association Australia New Zealand (PTAANZ) is the peak industry body for all modes of public transport and sustainable mobility options across Australia and New Zealand. Our members include transport authorities, operators, manufacturers, suppliers, advisory firms and research institutes working to build and sustain world-class transport networks that meet the needs of the communities we serve. We partner with our members to drive optimal economic, social and environmental outcomes through transport. For more information, visit www.ptaanz.org