Logistics & Transport NZ by CILTNZ

Logistics & Transport THE OFFICIAL PUBLICATION OF CILT NEW ZEALAND

The CILT NZ annual awards dinner Shaping the future of New Zealand’s land transport system Withdrawal of proposed service threatens coastal shipping progress

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Volume 22 Issue 2 December 2023

ON THE COVER

LOGISTICS & TRANSPORT NZ IS THE OFFICIAL JOURNAL OF THE CHARTERED INSTITUTE OF LOGISTICS & TRANSPORT NZ

The CILT 2023 Awards Dinner was a great event enjoyed by all, where Rosemarie Dawson (right) was awarded the prestigious Sir Bob Owens Award. Photo: Maddie Graeme

Contents

The CILT NZ annual awards dinner ............................................................................. 3 A rising star in the transport and logistics sector...................................................... 5 CILT Young Achiever of the year.................................................................................... 6 Shaping the future of New Zealand's land transport system................................... 7 Economic cost and performance comparisons ........................................................... 8 Sailing through global shipping changes......................................................................10

Cyclone Gabrielle by the numbers – A review at six months.................................11 Transport Research and Educational Trust Awards.................................................13 Kiwi aeronautical engineers develop aircraft to fight climate change impact.....14 365 Days Of Exposure – For The Cost Of A Coffee..................................................16 Taking te ao Māori to asset management with Āpōpō ...........................................17 Withdrawal of proposed service threatens coastal shipping progress.................19 Challenges require central and local government to do things differently..........20 In the next edition

The editorial team welcomes expressions of interest for submitting an article for the March 2024 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 2024 edition: February 12 2024.

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December 2023

The CILT NZ annual awards dinner THE CILT 2023 AWARDS DINNER featured a newly established international study award as well as a woman winning a top honour. Industry members, award winners, and prominent figures gathered at JetPark Hotel Auckland Airport & Conference Centre to celebrate outstanding achievements in the sector. “The evening was a tremendous success,” says Fiona Knight, the Awards Convenor for CILTNZ. “It provided a valuable opportunity to connect with industry leaders, emerging young professionals and to celebrate our collective industry accomplishments. We extend our gratitude to our sponsors, without whom this event would not have been possible. Special thanks go to the dedicated team from the Northern Section and Napier Port who played a pivotal role in making it all happen.” C3 The Sir Bob Owens' Award – Rosemarie Dawson

B3 Dexion Award for Safety Made Simple – Lyttelton Port

Rosemarie Dawson. Photos: Maddie Graeme

As the first female winner of this award, Rosemarie has joined a long list of people who epitomised Sir Bob Owens' accomplishments within the industry. The list of past winners includes representatives right across the spectrum of the transport and logistics sectors. Rosemarie first joined the NZ Institute of International Freight Forwarders in 1989 and seven years later, became CEO of the Customs Brokers and Freight Forwarders Federation of New Zealand, a position which she held for 27 years. She has been a key figure in addressing challenges and driving success in the logistics, transport, and supply chain sectors. She is dedicated to networking, encouraging professionals to collaborate, and mentoring young individuals for personal development in the workplace. Leading Business Professional Services Limited, an organisation supporting for-purpose organisations, Rosemarie promotes professionalism and excellence in her role.

LPC is the proud recipient CILT's Safety Made Simple Award 2023 for its efforts to reduce the number of tip alarms while operating straddles at the port.

Lyttelton Port’s successful reduction of tip alarms by over 99 per cent has set them apart from a strong field of entries for this award. The Port has prioritised the health and safety of its team in response to tragic incidents in the industry. Eugene Beneke, the Chief Operating Officer at Lyttelton Port Company (LPC), emphasised the significance of learning from past incidents to create a safer workplace, especially following a straddle driver’s death in Auckland and two close calls at other ports. LPC handles up to half a million containers annually and the introduction of a stateof-the-art straddle fleet plays a crucial role in terminal operations, moving containers efficiently and optimising the yard.

The winning initiative focused on reducing tip alarms, a vital aspect given the challenging nature of operating 25 straddle carriers weighing over 70 tonnes each. Facing the challenge of side-on seating and high speeds, the drivers underwent extensive training. The alarming number of tip alarms, reaching 10,200 in one month, prompted LPC to take immediate action. Through a collaborative effort involving health and safety, maintenance, engineering, digital operations management, and the container terminal workforce, the team’s commitment played a pivotal role in achieving this remarkable outcome, transforming a monthly average of 2,400 tip alarms into single digits. Cont. on page 4

Logistics & Transport NZ

The project serves as a model for collaboration, highlighting the importance of addressing safety concerns across various departments. Eugene expressed pride in the team’s achievement, acknowledging the challenging environment they operate in and celebrating the near elimination of tip alarms.

B2 The Napier Port Award for Excellence and Innovation in Transport and Logistics – Dexion

A2 Walter Glass Memorial Scholarship – Mark Bolliard

Dexion was recognised for its game-changing Friction Slipper baseplate.

Dexion has clinched the B2 The Napier Port Award for Excellence and Innovation in Transport and Logistics, thanks to its game-changing Friction Slipper baseplate. This design tackles issues like vertical lift and lateral movement in racking.

Tessa Glass (left) with Mark Bolliard who received the new scholarship, named after Walter Glass.

Academy Global has paid tribute to the remarkable contributions made by the late Walter Glass to the international logistics, supply chain, and transport professions by establishing a new scholarship. Intended for individuals looking to pursue the CILT International qualifications with Academy Global, the inaugural honour was awarded to Mark Bolliard. The 27-year-old’s career in the industry began four years ago, after completing his bachelor’s degree in environmental science and commerce with a sustainability focus at Victoria University of Wellington. Upon graduation, he was given an opportunity to work at Sandfield, a tech company that delivers cutting-edge software solutions. “This award offers me the chance for further development in strategic thinking and also opens doors,” says Mark, who’s recently moved to Sydney, where several of his Sandfield clients are. Mark describes the scholarship as a legacy and an opportunity to add to Walter’s work.

The baseplate-upright connections strike a good balance of rigidity, avoiding system failure during seismic events. It proved resilient when tested at 2.3 times the design-level earthquake, surpassing the typical earthquake resistance. In seismic design, Dexion prioritises the horizontal earthquake component, but the Friction Slipper baseplates provide added support against the vertical component, reducing potential damage. The market response has been impressive. Widely adopted in high seismic areas like Christchurch and Wellington and favoured by risk-aware clients, the Friction Slipper baseplate now represents about one-third of all racks sold. While this year’s Awards Dinner saw the transport and logistic sectors’ assiduous players recognised as some of the best, we cannot forget the CILT Forum. Organised by Jean-Paul Thull, the Forum was dedicated to learning about ‘New Knowledge’, ‘New Solutions’, ‘New Policies’, ‘New Enablers’, ‘New Motivation’, with ‘New Evidence’. As posited by Forum Chair, Chris Kissling, Emeritus Professor of Transport Studies, the consideration of transport and logistics choices means there is a need to think about integration and consider holistic solutions. As such, the Forum encouraged the sharing of ideas and solutions for a sector with “systems of systems and uncertainty”.

December 2023

A rising star in the transport and logistics sector AT THE 2023 Annual Forum & Awards Dinner, an array of exceptional Kiwis in the industry received recognition. Among this year’s recipients, one name stood out: Tayla Le Quesne, a talented young woman who earned the title of Rising Star: Young Employee of the Year. The Rising Star Award honours young talents, under the age of 35 who work in the transport and logistics industry. With a high level of talent submitted for the awards, it was hard for judges to decide on just one winner but Tayla’s accomplishments as Port Logistics Operations Coordinator at Oji Fibre Solutions (OjiFS) stood out above the rest. “Tayla’s educational background provided the foundation for her nomination, and her hard work since then is what earned her this welldeserved title,” says Fiona Knight, the Awards Convenor for CILTNZ. The ambition to succeed has always been a cornerstone of Tayla’s personality. In her final year of high school at Taradale, she was deputy head girl and served as a peer support leader. Her drive was apparent not only in her achievements but also in her passion for technology, where she placed runner-up in the 2017 National App Invention Competition. The competition aims to encourage girls to get involved in the typically male-dominated fields of technology, science, and coding by making apps. “Being recognised as runner-up reminded me that even the smallest ideas can have a big impact,” says Tayla. “It was the last push I needed before jumping into university. The now-24-year-old then went on to complete her studies at the University of Waikato earning a Bachelor of Management Studies (Hons), majoring in digital business and strategic management. After an internship at the Port of Tauranga during her studies, Tayla joined the OjiFS team in November 2021. OjiFS stands as a leading manufacturer in Australasia, with a specialisation in pulp, paper, and wood-fibre packaging solutions. In her role, she manages operations over multiple facilities across New Zealand including C3 Pulp Marshalling Operation in Tauranga, the Netlogix Neales Road marshalling facility in Auckland, and the Direct Logistics marshalling facility in Christchurch.

Tayla Le Quesne received the coveted Rising Star: Young Employee of the Year award at this year's CILT Annual Awards Dinner. Photo: Maddie Graeme

“Her rapid progression from a university graduate to a respected team member only furthers her talent,” says Port Logistics Operations Manager Dave Stewart. “Typically, positions like hers require years of experience but from day one, she had a natural ability to grasp the complexities of a multinational supply chain. “Companies can only dream of hiring employees like Tayla, and we are lucky to have her.” She’s not just about technical know-how; she understands the ins and outs of safety in logistics and warehousing. Tayla’s role on the Lodestar Health and Safety Committee and hands-on involvement in investigating incidents are just a few examples of the things she is excelling at. Denise Glover, Health and Safety Administrator at OjiFS Corporate, commended Tayla’s corrective actions during the transition of their driver induction process. “She took charge of reviewing and updating the process for our contractors, making sure they understood OjiFS requirements for site access. Beyond that she is incredibly attentive to detail, always wears a smile, goes about her work quietly, and is refreshingly unpretentious—a quality not often seen in someone of her age.” Just like many nominees at the CILT Awards, Tayla remained unaware of her nomination until the award evening.

“It was a complete surprise,” says Tayla. “I had no idea that anything was going on. My team did a great job of keeping it under wraps.” Her nomination came in the form of personalised recommendation letters from her colleagues, who gave a glimpse as to why she deserved this title and what sets her apart in her field. Tayla thinks that for any young Kiwi looking to make a real impact on New Zealand’s economy, logistics is the way forward. “It’s a field full of variety, no two days are the same and multifaceted talents are highly appreciated.” Undoubtedly, earning the title of Rising Star Employee of the Year is just the beginning of what will be a long and brilliant career for Tayla.

Highly Commended Operations supervisor at C3 Forestry Logistics, Natalia Darling, also received acknowledgment. In response to a Safety Lockout Cones' issue with wind, Natalia worked to enhance it. She made several changes, making it sturdier, more manageable, and highly visible to plant operators. All while handling her regular duties.

6 Logistics & Transport NZ

CILT Young Achiever of the year SUCCESS IS MEASURED by hard work, perseverance, and dedication, so it comes as no surprise that Abbey Clapp has been awarded the 2023 Young Achiever of the Year by CILT (sponsored by C3) in recognition of her outstanding accomplishments. Abbey began her journey in the industry at 18, and now, in her early-30s, she’s the Head of Cargo Coordination at Lyttelton Port Company (LPC) with years of valuable experience, building a promising career in management. Six years ago, Abbey returned to LPC to take on the challenge of implementing a vehicle booking system after a five-year stint with NZ Express. “When I was at NZ Express, it was common for drivers to be queuing for one to three hours. As a dispatch manager, I would often start work feeling defeated,” says Abbey. To mitigate this, she implemented a system that now allows transport vehicles to schedule their cargo deliveries and pickups at the port. “In the past, trucks would show up without a scheduled plan, resulting in prolonged waiting periods. However, with the new system, the average turnaround time is down to approximately 30 minutes. When you consider the time-saving impact across the 1,200-1,600 trucks passing through the depot and port each week, there are substantial efficiency gains seen in the new process.” Abbey, who currently oversees a team of up to ten staff, finds that working with people is one of the most fulfilling aspects of her job. “When it comes down to it, working with people is something I’m passionate about, and I see it as the most rewarding yet challenging part of my job. Watching people grow and evolve at LPC is amazing, and being a part of that journey is what keeps me going.” For Abbey, the nomination from Sean Bradley, the Group Manager at Inland Ports & Supply Chain, and the subsequent award came as a pleasant surprise. “It’s fantastic to be recognised for my work, especially as a young woman in a maledominated industry.”

Abbey Clapp has been awarded the 2023 Young Achiever of the Year in recognition of her outstanding accomplishments. Photo: Maddie Graeme

Abbey who currently oversees a team of up to ten staff finds that working with people is one of the most fulfilling aspects of her job. Abbey was a member of Women in Road Transport NZ (WiRT), an organisation that played a crucial role in introducing flexible work options, such as shift sharing, to make it more accessible for women with family commitments. “It’s becoming increasingly challenging to find drivers, so encouraging women and young people is key. Some women might struggle with confidence, so WiRTNZ was all about women and young people supporting and empowering each other,” Abbey emphasises. Her perspective on being a part of this industry is quite clear.

“What truly matters is your expertise and dedication, above all else. Any woman looking to enter should keep this in mind,” Abbey affirms. With the 2023 Young Achiever Award now where it rightfully belongs in Abbey’s home, she is set to continue to making moves in the transport and logistics sector. Beyond her professional endeavours, Abbey enjoys spending quality time with her partner and daughter. It’s a balancing act that mirrors her organisational skills and leadership abilities, qualities that have clearly contributed to her well-deserved recognition this year.

December 2023

Shaping the future of New Zealand's land transport system BY TIM SHORE PRINCIPAL PLANNING ADVISOR, LONG-TERM SYSTEMS PLANNING SYSTEM LEADERSHIP – WAKA KOTAHI NZ TRANSPORT AGENCY

IMAGINE TRYING TO BUILD a house without a plan. It’d be a disaster. Building a transport network is no different, except that it’s bigger. Much, much bigger. And the plan to support a piece of work that size needs to be equally big. It needs to be detailed, thorough, and robust. It needs to be good. We call it Arataki. Arataki provides a plan for how we – as a country – will plan, develop, and invest in the land transport system over the next 30 years. As the national land transport agency, Waka Kotahi leads this work. But it’s not our plan – it’s everyone’s. Arataki is a plan for how we can work together and deliver a land transport system that’ll keep Aotearoa New Zealand moving well into the future. It’s an ongoing, iterative process, and we want to further refine and develop Arataki alongside our partners – Ma-ori, local government, central government, and the wider transport sector. And a key task is identifying what’s required to support strategic freight networks throughout the Upper North Island, Lower North Island and South Island. We need to transition to a safer, more reliable and more resilient freight system that not only moves goods effectively, but does so with low emissions. A system that considers population

growth, changing consumer preferences, climate change, and shifts in New Zealand's economic structure.

Arataki emphasises the importance of an integrated freight system where road, rail, and coastal shipping each play to their strengths.

So, what are some of the issues we need to address?

In the short-to-medium term, shifting to options such as rail or coastal shipping will help us reduce carbon emissions, improve road safety and reduce road maintenance costs. Of course, road freight still has a place – it can accommodate shifting demands and move time-critical goods to almost any location in the country.

Urban freight is expected to grow because of the increasing population, more demand for mixed-use neighbourhoods, and growing consumer expectations for more and faster deliveries. That means not only will increasing noise and vibration impacts need to be managed, but freight vehicles will also be competing for space with other users. Road freight accounts for almost a quarter of New Zealand’s existing transport emissions, so a priority is the transition to zero-emission heavy vehicles. Between 2017-18 there were almost 280 million tonnes of freight moved about New Zealand – and the vast bulk of that transportation was done by road. With nearly 93 per cent of the total tonnes and 75 per cent of the total tonne-kilometres done by road, the heavy freight vehicle fleet accounts for 23 per cent of our transport carbon dioxide emissions, but only 6 per cent of the annual vehicle kilometres travelled. For some goods, there are benefits to moving more freight by rail and coastal shipping, and

Rail is an attractive alternative for longdistance freight transport, and is best suited for moving bulk commodities such as coal, milk, and steel. While coastal shipping of domestic cargo is best suited to bulk products such as cement, containerised goods, and trucks and trains using roll-on-rolloff ships. It’s all about finding the right mode for the right load. Road, rail and coastal shipping all have a part to play. But rail’s ability to play a larger role in moving freight is limited by the condition and the capacity of the rail network, its comparatively small size, and a limited number of terminals for transferring freight. Cont. on page 8

8 Logistics & Transport NZ

Inland freight hubs play an important role in sorting and distributing freight away from seaports, freeing up valuable port land for maritime activities. These also influence the mode of transport for how that freight gets there, so it’s vital that inland freight hubs are in the right place to support different transport modes – road freight, rail, or air. Through Arataki, we’ve identified key networks that are critical to economic success, including road and rail links to seaports, airports, and inland freight hubs. While these routes make up a relatively small proportion of the overall transport network, they carry a significant amount of the country’s people and freight. Environmental sustainability, resilience, safety, and economic prosperity are central to how our freight network will operate in future, and there are other issues emerging. How will we service growing freight demand on urban networks, particularly in Ta-maki Makaurau, ensure our networks are more resilient to extreme weather events and climate change, and maintain locomotives and rolling stock – some of which require significant maintenance? Arataki seeks to address all of these. While potential conflicts between freight and passenger services need to be worked through, the potential of rail is enormous. It would boost the resilience of the transport network, and having additional capacity on key routes would provide growth opportunities. As an island nation, coastal shipping and ports are vital to our transport system, and there’s an opportunity for a much greater role in moving freight. A coastal shipping network would add resilience to supply chains, connect smaller ports and regions with markets, support the reprioritisation and relocation of existing ports, and maximise existing freight networks. Arataki is rightfully ambitious. It will require investment, vision, and commitment, shaped by high-quality evidence and data, and Waka Kotahi needs your help. Whether it’s expanding and upgrading the rail network, preparing our road freight for the coming century, or creating a greater role for shipping to move goods, there are big decisions to be made. These are decisions that must be informed by expert opinions and professional input – and by a great plan. You can see the full plan at nzta.govt.nz/Arataki. And if you would like to help us refine Arataki and deliver a freight network fit for the future, please contact arataki@nzta.govt.nz.

Economic cost and performance comparisons BY IAN WALLIS Overview This article follows on from the one on the 2018/19 Domestic Costs and Charges Study (September 2023 issue) and compares some of its findings with those of the Surface Transport Costs and Charges study of 2001/02. While the DTCC study was not fully consistent with the (much earlier) STCC study, some comparisons of findings between the two studies were possible with a relatively high degree of consistency and confidence. The article summarises the findings for two major market segments for which comparisons between the two studies were both reasonably consistent and of considerable interest, i.e.: • Road sector performance, in terms of the total road transport task by cars/ light vehicles (vehicle kilometres travelled) and trucks (net tonne kilometres), total economic costs (user costs, public agency costs and environmental/social costs), user charges and their relationship to public costs. • Rail freight sector performance, in terms of the size of the freight task, revenue rates and total revenues, total costs (operating costs and economic capital charges) and overall financial (deficit and cost recovery) estimates.

Road sector – key findings Table 1 (on page 9) compares key aspects of the NZ road network in terms of its economic and financial performance in 2001/02 (STCC) and 2018/19 (DTCC), i.e. 17 years apart. The key findings are all in 2018/2019 dollars: • The size of the car/light vehicle transport task (measured in vehicle km) increased some 12.3 per cent between the two years, i.e. by rather less than 1 per cent per year (row 2). • By comparison, the size of the road truck transport task increased by

151 per cent in terms of vehicle kilometres and 118 per cent in terms of net tonne kilometres (rows 2,3). • The total economic costs of car and truck movements on the road system increased from some $48 billion in 2001/02 to $106 billion in 2018/19, i.e. a 120 per cent increase (rows 5+8). • The major proportion of these figures is the economic costs of user time and vehicle operations (including vehicle capital charges). The remaining component of public costs (including environmental and social costs) increased from $8.4 billion to $14.2 billion, i.e. a 69 per cent increase (row 8). • By comparison, the charges paid by road users (through Fuel Excise Duty, Road User Charges, etc) recovered only 39 per cent of the public economic costs (including environmental and social components) in 2001/02, falling slightly to 36 per cent in 2018/19 (row 10). • In 2001/02 the user charges (row 9) more than covered the public agency costs associated with the road network (i.e. row 6, including network operations, maintenance and capital charges); whereas by 2018/19 the user charge revenues had fallen to less than the public agency road network costs.

Rail freight – key findings Table 2 (on page 9) compares key aspects of the NZ rail freight market, costs and financial performance in the two studies. While both studies covered all the rail markets, this article focuses on the largest, rail freight. The key findings are all in 2018/19 dollars: • The size of the rail freight transport task (measured in tonnes or tonne-km) was similar in the two years (rows 1,2). • The total revenues earned from rail freight fell by 21 per cent (real terms) over the 17-year period (row 3), resulting in average revenues (per net tonne km) falling by 23 per cent (row 4). • KiwiRail’s total freight sector costs, including capital charges on an economic cost basis (but excluding environmental costs),

December 2023

Table 1: ROAD SYSTEM SUMMARY: STCC (2001/02) & DTCC (2018/19) All costs in $billion @2018/19 prices: STCC (2001/02) financial figures adjusted to 2018/19 prices (based on CPI movements). Item

STCC (2001/02)

(A) (1)

DTCC (2018/19)

(B)

(‘C)

(D)

(‘E)

(F)

(G)

Cars

Trucks

Total

Cars

Trucks

Total

(2)

Vehicle km (bill)

31782

3989

35771

35700

10031

45731

(3)

Tonne km (bill)

n.a.

14031

n.a.

30643

(5)

Econ costs - users (time, VOC)

39.48

91.43

(6)

Econ costs - public agency

2.67

6.72

(7)

Econ costs - environmental/social

5.74

7.46

(8)

Econ costs -total public

8.41

14.18

(9)

User charges (FED, RUC, other)

3.32

5.10

(10)

User charges/Public costs

39%

36%

Source: DTCC Main Report Tables A4.1, A4.2.

increased by $268 million (35 per cent in real terms (row 8). • As a result, the deficit on economic costs (i.e. economic costs minus revenues earned) increased by 139 per cent, from $267m to $639m (row 9). The corresponding economic cost recovery ratio (freight revenues/freight operator costs) fell from 65.5 per cent to 38.7 per cent (row 10). The key factor driving these trends has been the competitive nature of the NZ freight transport market. While the rail freight volumes have shown little change in aggregate over the 17-year period (up to 2018/19), rail’s share of the overall market has fallen as have the rates it has been able to charge, with a reduction in the cost recovery ratio and an increase in the KiwiRail deficit being the inevitable outcomes. Major factors contributing to the greater competition from the road trucking sector faced over this period have been increases in allowable truck weights, dimensions and speed limits, together with improvements in the NZ road network and road conditions overall.

Table 2: RAIL FREIGHT SUMMARY: STCC (2001/02) & DTCC (2018/19) All STCC (2001/02) financial figures adjusted to 2018/19 prices (based on CPI movements). Item

STCC (2001/02)

DTCC (2018/19)

Difference (no.)

Difference (% )

(A)

(B)

(‘C)

(D)

(‘E)

(1)

Tonnes (mill)

16.6

17.3

0.7

+4%

(2)

Tonne km (bill)

3739

3847

108

+3%

(3)

User revenues ($mill)

507

403

-104

-21%

(4)

Rev/Net tonne km (cents)

13.6

10.5

-3.1

-23%

(5)

Recurrent costs ($mill)

367

(6)

Cap charges - rollingstock ($mill)

(7)

Cap charges - infrastructure ($mill)

365

(8)

Total operator costs ($mill)

774

1042

268

35%

(9)

Tot costs - Revenue (Deficit, $mill)

267

639

372

139%

(10)

Revenue/Operator costs %

65.5%

38.7%

Note: All figures in this table exclude accident and envl costs (which are relatively small) Source: DTCC Main Report Tables A5.2, A5.4.

Logistics & Transport NZ

Sailing through global shipping changes SHIPPING COSTS ARE on the decline, offering respite to importers and exporters in a landscape marked by persistent and farreaching inflation. It's some of the first good news since the early stages of the COVID-19 pandemic, when officials threw everything at the crisis. The Government used a dual approach, injecting billions into the economy to stimulate demand. This, coupled with monetary policies, restrictions on travel, and people turning to online shopping, resulted in a surge in consumer goods demand. The disruptions, compounded by lockdowns and port congestions, strained global shipping capabilities. As a result, shipping costs surged, exerting pressure on supply chains and resulting in extended delivery times. In just a matter of months, the strain on supply chains became evident, with many failing to cope with the heightened demand. Simultaneously, workforce reductions, coupled with the spike in goods demand, further contributed to disruptions. Mike Knowles, Chair of the NZ Council of Cargo Owners (NZCCO), emphasises the global nature of the demand, stating: “The demand was a global phenomenon, and importers had to shift from a ‘just in time’ inventory system to a ‘just in case’ approach. Unfortunately, increasing capacity at the port is a lengthy process; it couldn't happen within the few months we had.” He further highlights the workforce challenges, noting: “Our workforce was already stretched, and as everything piled up, congestion became more pronounced.”

While shipping costs are declining, the ongoing inflation battle is a concern for shippers, importers, and exporters.

The latest consumer price index report shows inflation in tradable goods has shot up to 8.7 per cent. Fortunately it’s expected that this might be the peak signalling smoother operations for supply chains.

The latest consumer price index report shows inflation in tradable goods has shot up to 8.7 per cent. Fortunately, it’s expected that this might be the peak, signalling smoother operations for supply chains.

The ongoing battle against inflation is a concern for shippers, importers, and exporters. On the home front, Mr Knowles says non-tradable inflation is causing some concern.

The Baltic Dry Index and the Shanghai Shipping Containerized Freight Index are on the decline, partly due to more ships being under construction, creating additional shipping space. Importers and exporters are also enjoying lower costs and quicker deliveries, which is a step in the right direction.

“It’s been running high at 6.3 per cent annually due to increased housing-related costs and a whopping 18 per cent jump in new dwelling construction. Also, rising wages are a bit of a headache when it comes to controlling domestic inflation, which might stick around for a while."

However, New Zealand ports haven’t fully recovered to pre-COVID levels of productivity.

Looking to 2024, Mr Knowles says the expectation is that challenges will persist

and efforts to improve productivity, invest in infrastructure, and streamline regulatory processes are crucial. “Long-term partnerships with carriers and collaboration among shippers and exporters proved beneficial during the COVID-19 years. There’s a need for more infrastructure, including roads, rail, and port expansions, and delays in obtaining consent are a big obstacle.” He says addressing workforce shortages is also critical and sees a huge benefit in the New Zealand government's collaboration with international workers to expedite projects.

December 2023

Cyclone Gabrielle by the numbers – A review at six months BY PROFESSOR NICK WILSON, ADELE BROADBENT & DR JOHN KERR. All authors are based at the Public Health Communication Centre (http://www.phcc.org.nz/) and Department of Public Health, University of Otago, Wellington.

There has been no national inquiry into the Cyclone Gabrielle disaster despite its major human well-being and economic impacts. Although there has been an inquiry into slash and land use, and an ongoing review of the Hawke’s Bay Civil Defence response, central government has not committed to a full examination of the Cyclone’s impact. This matters. Without a detailed examination of the ‘big picture’, we cannot appropriately prepare for the next extreme weather event caused by climate disruption. In this Briefing, provided by the Public Health Communication Centre Aotearoa, we aim to provide at least a brief overview of this major disaster by identifying key quantifiable impacts. We collate key statistics from media reports, government statements, Official Information Act Requests, and data provided by private companies.

Many regions impacted A National State of Emergency was declared on 14 February, applying to the six regions most impacted by the cyclone: Northland, Auckland, Tairāwhiti, Bay of Plenty, Waikato, Hawke’s Bay and Tararua District. This was only the third time in New Zealand's history the Government has declared a National State of Emergency. It ended in Northland, Auckland, Waikato and Tararua on 3 March, and Hawke’s Bay and Tairāwhiti on 14 March.

The high human and economic cost Cyclone Gabrielle joined the list of New Zealand’s mass fatality events with 11 people losing their lives. Nearly 2000 people were injured during the cyclone according to ACC claims data (mainly soft tissue injuries – but also more serious fractures and concussions. Some of these injuries, such as concussions, can result in months of poor health. These reported injuries do not take account of the mental stress faced by people with damaged or written-off homes and livelihoods.

The Treasury has estimated the economic cost of this cyclone could be up to $14.5 billion. But this estimate could increase as initial repair work gets washed away by ongoing weather events. The cost estimates for Auckland have recently risen taking into account the need for resilient infrastructure. We know low-income and disadvantaged households suffer disproportionately from the impact of flooding and natural disasters which exacerbate poverty and inequities. These households often live in low-cost housing rentals in areas prone to floods and without the income to pay for insurance. Vulnerable groups include recent migrants, the elderly, people with disabilities and Māori. Of the almost 800 marae situated across Aotearoa, 80 per cent are built on low-lying coastal land or flood-prone rivers and Māori are expected to face unique impacts from risks to sites of cultural significance.

Major damage to housing More than 300 houses were red-placarded (stickered) following Cyclone Gabrielle, with two-thirds of these houses in Auckland, according to data provided by the Ministry of Business, Innovation and Employment. To date, some 700 properties at risk of future

severe weather damage have received Government and council buyout offers. The Insurance Council of NZ says the Auckland Anniversary Weekend floods and Cyclone Gabrielle combined have resulted in more than 100,000 claims with an estimated cost to date of over $3.18 billion. New research estimates that 12 per cent of New Zealand’s housing value is in flood hazard areas.

Extensive damage to roads When the National State of Emergency was declared on 14 February, more than 30 sections of state highway were completely closed to traffic, according to data provided by transport agency Waka Kotahi (supplied 21 June 2023). This included a significant proportion of the state highways serving Northland, Auckland, Coromandel, Manawatu, the Central Plateau, Tairāwhiti and Hawke’s Bay. State Highway 2 between Wairoa and Napier was the longest State Highway closure resulting from Cyclone Gabrielle.

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Access was restored three months postcyclone following the completion of a single-lane Bailey bridge, meaning work is still needed on a completely new bridge.

Widespread loss of electrical power The five lines companies covering Northland, Auckland, Gisborne/Wairoa, Hawke’s Bay and Taupō/Rotorua reported to us that 332,000 households lost power during the storm with 200,000 without power at the peak. According to correspondence from Northpower, which covers Northland but not the Far North, it was “the most significant event in staff memory” (supplied, 28 May 2023). Electricity providers we contacted were at pains to point out there has been a lot done to strengthen the resilience of the network. Based on the numbers provided, 60 per cent of the customers disconnected were reconnected within minutes to a day. The 1 per cent who were without power longer than two weeks were mostly in areas where major damage impeded access for repair crews.

Major water infrastructure damage Water infrastructure groaned under the impact of the cyclone. Water supply damage in the North Island resulted in at least eight boil water notices, lasting an average of 19 days (ranging from five to 45 days) for the seven notices with complete data. Some wastewater plants were inundated including Napier’s which meant raw sewage was pumped into the sea for two months while repairs were underway. In summary, it is clear that New Zealand lacks resilient infrastructure, making us particularly vulnerable to climate change super-charged storms (and various other types of disaster

events). Cyclone Gabrielle laid this deficiency out in sharp relief leaving many communities devastated. The Government announced $6 billion for a National Resilience Plan in this year’s Budget with $100 million for a new infrastructure delivery agency. It is also consulting on options for delivering a more resilient critical infrastructure system. Nevertheless, there is still an urgent need for both central and local governments to strengthen infrastructure while planning for more disruptive weather events. The impetus for this critical long-term thinking should not be lost through the election cycle and any potential change of government.

Summary map of landsliding in cyclone Gabrielle 2023

Extensive loss of cellphone connectivity The breaks in power caused another problem as thousands of people lost cellphone coverage and landlines, and EFTPOS went offline. The NZ Telecommunications Forum activated its Emergency Forum the weekend before the cyclone hit. The damage wasn’t to the mobile towers but to the power sources needed to run them. Only two cell phone towers out of more than 1600 in the main regions were actually damaged by the storm. “More than 660 mobile towers were knocked offline nationwide, but actual damage to the cell sites was minimal,” the Forum reported in a statement. “[…]in fact, 96 hours after we started our response work more than 90% of the towers were back online”. According to the Forum, 20 per cent of towers were offline in affected regions on 14 February. However, in the worst-hit region of Tairāwhiti, about 90 per cent of mobile towers were offline over the 14-15 February period. While emergency calls were able to be connected across most of the networks, there were instances where 111 calls were unable to be logged. Academics have questioned whether communications systems vulnerable to single points of failure are “fit for purpose”.

Summary map of landsliding. Colours show the proportion of land in each square kilometre mappedmap as bare (either landslide scarshow or debris tail). Figure 2. Summary of landsliding. Colours the proportion of land in each square kilometre mapped as bare (either landslide scar or debris tail).

December 2023

Transport Research and Educational Trust Awards The CILT's Transport Research and Educational Trust is calling for applications for two personal development grants of up to $5,000 each. The Trust is a registered charity and makes grants to individuals and organisation involving or relating to transport and logistics. The Trust aims are to promote, encourage and coordinate the study and advancement of the science of transport within New Zealand. Provided these aims are met, and the grants are within the educational and charitable purpose of the Trust, there is no limit on the nature of the grant, or the industry branch or discipline the applicant is involved with. Grants are available to people of all ages and all levels of experience in logistics and transport. The grant is to help increase and improve the professional skills and expertise through education, training and development. For example the Trust can make grants towards the cost of mentoring, a leadership course, or other training courses or conferences. As transport touches on many aspects of New Zealand society and economy, the Trustees encourage applications from all disciplines and individuals with an interest in this sector. Applications are now open and will close on Thursday 29 February 2024. We expect to advise applicants of the decision by Thursday 21 March 2024. The application form is available at: https://cilt.co.nz/transport-researchand-educational-trust/ – as is the Inspire brochure. Transport Research and Educational Trust – Vacancy for a Trustee The Trustees are Glen-Marie, Jon Butler, Jon Kelly, Cormac McBride, and Murray King,but currently have a vacancy to fill. Trustees must be a member of CILT NZ and meet the requirements for officer certification under S36B of the Charities Act 2005 – see www.charities.govt.nz/ for information. If interested in being a Trustee, please contact the Chair, Glen-Marie Burns, at gm90000@gmail.com.

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Kiwi aeronautical engineers develop aircraft to fight climate change impact A new multi-million-dollar aircraft designed by Kiwi aeronautical engineers is set to help governments and humanitarian organisations save lives during natural disasters and fight the impact of climate change in some of the world’s most inaccessible regions. The SuperPac XSTOL (Extremely Short Take-Off and Landing) aircraft, does not require a sealed runway and is capable of taking off in as little as 200 metres and landing on a wide variety of rugged terrains, including hillsides. The new aircraft, which cost over $10 million and took seven years to develop, is a next-generation, more powerful and fuelefficient version of the global best-seller 750XL, the world’s first commercial XSTOL aircraft. The ability of the aircraft to land in remote locations on only semi-prepared airstrips and rapidly take off with up to nine passengers or 2,000kg cargo has seen it sold into 28 countries, including Africa with the United Nations World Food Programme. Closer to home, the aircraft also plays a vital role in the Pacific Islands where it is used in lifesaving medivac transports, humanitarian aid, disaster relief, border patrol and maritime surveillance. Stephen Burrows, CEO of NZAero, the country’s only commercial aircraft maker, says the design adaption of the aircraft to New Zealand’s variable terrain and weather conditions has made it suitable for a wide range of applications to help mitigate the impact of climate change. He says their engineers have developed a series of modular accessories for the utility aircraft that allows it to be rapidly converted within minutes to disperse fire retardant during wildfires or release rainmaking silver iodide particles above drought-stricken areas. “Increasingly the fight against [climate change] is being fought by nations around the world from the skies. In the case of wildfires, historically the focus has been on

The SuperPac XSTOL, which cost over $10 million and took seven years to develop, was the work of Kiwi aeronautical engineers. Photos: NZAero

using larger aircraft to deliver payloads of fire retardant across a wider area. “The difficulty has been that by the time a forest fire is identified and an aircraft outfitted and relocated, the fire is already well established. “With the growing frequency of these events, governments are looking to a new paradigm and it is now possible to have smaller fleets of lower-cost SuperPacs strategically deployed in areas where forest fires are common. “The smaller aircraft requires less training to fly and less time to refuel and take on more retardant. It can also climb to altitude significantly faster and requires a landing strip that is a fraction of the length of larger planes - but is still capable of dispersing a 2,500-litre payload across 12,330m2 of forest in 10 seconds. Under this model, wildfires can be brought under control while they are still relatively small. Mr Burrows says the aircraft is also designed to be used for other environmental applications including reducing the size of locust populations, and pollution control. He says the aircraft can also be used to

transport passengers and freight into otherwise inaccessible locations, as well as for geophysical surveying - allowing it to be used to detect minute variations in the earth’s magnetic field or measure concentrations of greenhouse gases in the troposphere. “The predecessors to the SuperPac have formed a critical part of New Zealand’s agricultural sector for the past five decades, spreading fertiliser and pesticides. “With climate change set to dramatically increase the intensity of locust swarms this technology is also playing a role in protecting crops in other nations around the world. “The planes can now be equipped with Lidar, which scientists are using to map New Zealand in 3D to help with flood modelling, measuring post-climatic event land movements, as well as identifying the optimal location for forestry tracks, rail and our power industry. This equipment is also used by researchers in other nations to detect the remains of ancient civilisations. “For countries which are heavily impacted by drought, natural disaster or are geographically isolated such as Papua New Guinea or Indonesia, this utility aircraft can lift more

December 2023

than its own weight - bringing hundreds of kilograms of supplies to remote villages and leave with a cargo hold full of perishable produce - providing a critical economic lifeline. “The humanitarian aid agencies we work with across the globe tell us our aircraft saves lives every day it is operating,” he says. Mr Burrows says the local production of the SuperPac is also set to be a multi-million dollar boost for New Zealand’s aviation sector exports, with each aircraft valued at over $5m plus parts and accessories. He says the aircraft are manufactured at the 5ha Waikato site which was first used by the RNZAF in 1942. “New Zealand’s commercial aircraft manufacturing industry is relatively small by world standards but to date over 700 aircraft have been produced at our facility and the new model can trace its lineage back 70 years. “There is significant global potential for versatile utility aircraft like the SuperPac 750XLII and we expect to manufacture five of this model for our international customer base in 2024. “This equates to $25m in aircraft sales for the first year, however, this could increase to $60m by 2026 if full capacity was realised. We have enquiries for firefighting for the purchase of up to 30 aircraft - which suggests there is significant interest from this market segment alone,” he says. Mr Burrows says the business has the potential to grow this number to 12 aircraft per year along with the ongoing aftermarket support of spares and training. He says to support this growth NZAero plans to increase their current staff numbers by 30 per cent to 80 full-time employees by mid-next year.

While the aircraft is capable of taking off in as little as 200 metres (as shown above by its predecessor), it’s designed to be used in lifesaving medivac transports and humanitarian aid.

SuperPac XSTOL configuration: • The aircraft has a basic empty weight of 1,636kg. The aircraft has a certified Max All Up Weight of 3,402kg, giving it a useful load of 1,772kg. • The 750XL-II is predominately manufactured from 2024 aluminium including Alclad sheet and machined billet. Also used is 4130N and 4140 chromoly – an ultrahigh strength steel, containing carbon fibre components. • The 750XL-II uses a Pratt & Whitney Canada PT6A-140A free turbine turboprop engine that is capable of 900 horsepower. • The aircraft holds 1,250 litres of Jet A1 fuel and has a range of 2,183 km at 16,000 feet, with a cruising speed of 303 kph.

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December 2023

Taking te ao Māori to asset management with Āpōpō ĀPŌPŌ IS THE LEAD ASSOCIATION for infrastructure asset management professionals in Aotearoa New Zealand. Āpōpō recently celebrated 75 years of representing, developing and enhancing the infrastructure asset management profession for Aotearoa.

The Challenge In mid-2023 Āpōpō rebranded from IPWEA (Institute of Public Works Engineering Australasia New Zealand Division)) to better reflect the asset management profession and to reinstate its focus on Aotearoa New Zealand. Taking the opportunity to reassess all its activities, Āpōpō identified that: • Existing guidelines for infrastructure asset managers described a generic international standard, without reflecting the unique cultural context of Aotearoa New Zealand; • Existing asset management practices had insufficient recognition of both partners in the Treaty of Waitangi; and • There were limited realisable benefits of membership for its 900+ members. While there were existing resources on infrastructure asset management practices, there was no resource that wove together the principles of te ao Māori (the Māori worldview) and recognised principles of asset management. In response, Āpōpō rapidly developed the Āpōpō Guide as an online resource for members to recognise good infrastructure asset management practice and the value of both Treaty partners.

The Solution The solution involved five key elements: 1. Articulating Principles The internationally recognised ISO 55000:2014 standards for asset management are well-established and widely recognised. Articulating these standards as principles in the Āpōpō Guide involved slightly adapting existing material. Key new material was developed with expert support to articulate the principles of te ao Māori.

The Āpōpō Guide weaves these two sets of principles together both explicitly and implicitly throughout and demonstrates the principles using real case studies from around Aotearoa New Zealand.

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2. Utilising Existing Resources There was a lot of material available to Āpōpō on various aspects of infrastructure asset management, including from its own professional development material, other publicly sourced guidelines, and Āpōpō Excellence Awards submissions. To avoid reinventing the wheel, these resources were consolidated and harnessed to add value to the Āpōpō Guide. Āpōpō’s online course material in particular provided a sound base of peer-reviewed information with which to work. 3. Making the Most of Technology Throughout the process of developing the Āpōpō Guide technology such as ChatGPT was applied to produce an early draft that was then reviewed and improved by subject matter experts. This process enabled a substantial step-up in producing something quickly that allowed a first draft to be prepared for further development in weeks instead of months. 4. Uniting the Industry for a Common Outcome The subject matter experts involved came from a range of New Zealand and global organisations of differing sizes, perspectives, and areas of expertise. Development of the Āpōpō Guide united respected leaders of the asset management profession as they worked collaboratively to achieve a valuable common outcome: authoritative guidance for people in infrastructure asset management in the unique cultural context of Aotearoa New Zealand. The efforts of subject matter experts – often voluntary – turned the Āpōpō Guide into something that provides real value to readers through the sharing of lived experience. 5. Bringing in the Voices of Users Another aspect that sets the Āpōpō Guide apart is the process for readers to actively contribute to its content. The suggested content is then reviewed by an expert panel in a streamlined approach to ensure that the time from submission to inclusion in the Guide is as prompt as possible. The voices of the users are essential to build a sense of community through involvement in the constant improvement of the Āpōpō Guide, turning it from a static resource into something that lives and breathes, and reflects the reality of current asset management practice in Aotearoa New Zealand. To encourage this active community further, the Āpōpō Guide includes an online discussion forum, with prompts throughout the Guide to encourage participation.

Āpōpō has developed an online resource for its members to recognise good infrastructure asset management practice and the value of both Treaty partners. Photos: Āpōpō

The Result Following a rapid three-month development programme, the Āpōpō Guide launched in October 2023, and is now serving infrastructure asset managers in Aotearoa New Zealand. User’s feedback has included comments such as “The Guide is looking great, awesome mahi [work]!” and “We are really impressed with the quality of the guide, and believe

it will provide a lot of value for the asset management community members in Aotearoa New Zealand.” An annualised subscription to Āpōpō provides full online access to the Āpōpō Guide. Multiple subscriptions for corporate user groups can be self-managed online. Subscription options and pricing can be found at www.apopo.co.nz/apopo-guide.

Murray Pugh – CEO of Āpōpō Mr Pugh came to Āpōpō from FairWay Resolution Limited, where he was Chief Financial Officer. Prior roles have included Head of Marketing and Strategy at NZ Post, Chief Executive at Stephenson & Turner Architects, alongside consulting positions in Meridian and Deloitte. Mr Pugh holds degrees in both law and commerce, is a Chartered Accountant and Chartered Member of the Institute of Directors

December 2023

Withdrawal of proposed service threatens coastal shipping progress It was touted as Waka Kotahi NZ Transport Agency’s answer to improving the competitiveness of domestic coastal shipping, reducing freight sector greenhouse gas emissions and enhancing resilience. But the cancellation of a proposed MOVE Logistics roll-on-roll-off (RoRo) ship, due to technical issues, is now being seen as a step backwards for New Zealand coastal shipping. So says the Maritime Union of New Zealand National Secretary Craig Harrison, who is concerned coastal shipping progress is stalling after the cancellation the new shipping service linking regional New Zealand ports was revealed in October. MOVE Logistics Group (MOVE) secured $10 million in Waka Kotahi funding in 2022 to commission a new US$12 million ($20m) RoRo, methanol-capable freight vessel, that was to be designed by a naval architect and built in Vietnam. Initially, the new vessel was to be brought into service towards the end of 2023 and would be able to service regional New Zealand ports in both islands. It was hoped the vessel would operate three sailings a week between Nelson and New Plymouth and provide an additional sea bridge between the North and South Islands. “Waka Kotahi has endorsed the proposal by MOVE for its roll-on, roll-off vessel design that includes a methanol tank and pipework installation during construction,” MOVE announced last year. “This ensures the new vessel is ready for the swap-in of carbon-friendly methanol powered engines as they become available.” However, Move Logistics Chief Executive Craig Evans told shareholders at the company’s October shareholder meeting it had cancelled its order after it was discovered the designers could not address issues with the tidal differences on the New Zealand coast, with ports like New Plymouth and Nelson having “significant differences” between high and low tides.

“The ramps by design couldn’t meet the discharge or loading of the vessel outside a one-and-a-half-hour window, and you can’t run a regular inter-islander service based on that,” Mr Evans said. Mr Harrison says New Zealand desperately needs to develop coastal shipping capacity in the regional supply chain. “New Zealand coastal shipping provides redundancy and resilience in our supply chain in a volatile global environment.” Waka Kotahi allocated $30 million to coastal shipping from the 2021-24 National Land Transport Programme after the 2021 Government Policy Statement on land transport (GPS) introduced it as a new activity class. Its funding was focused on investments in activities that give effect to the GPS objectives such as enhancing domestic shipping services, reducing shipping emissions, improving efficiency and upgrading maritime infrastructure. At the time, Waka Kotahi worked with the wider freight industry to select four successful applicants for co-investment in new and enhanced coastal shipping services through the NLTP – MOVE being one of them. Collectively, each successful applicant was to invest over $60 million to deliver their respective projects, resulting in combined investment in the coastal shipping sector of over $90 million. According to Waka Kotahi, MOVE’s project would have increased the use of coastal shipping through an additional 150 sailings per year. Additionally, it was estimated the new vessel service would reduce emissions of around 2.4 million kgs of CO2 a year, increase resilience through establishing a new crossing point between the North and South Island, and create a minimum of 12 new seafaring jobs.

Mr Harrison says there have been some hard lessons learned about the vulnerability of our transport system in recent years and the importance of the ‘blue highway’ of coastal shipping. Currently, the only options available for moving rolling stock between the North and South Island are on the Cook Strait ferries. “What happened during COVID was that international shipping disruption put our entire supply chain in jeopardy. This could easily happen again with another pandemic or war.” Another threat was land transport links being disrupted by climate change weather events, such as Cyclone Gabrielle, or earthquakes, both of which had taken out road and rail links. In both cases, New Zealand coastal shipping offered redundancy in the system and provided an essential role, he says. Mr Harrison says a narrow focus on roading by the new Government would increase dependency on vulnerable land-based motorway links. “It’s going to be a very expensive exercise to find those motorways out of action if we have not got our coastal shipping capability in place.” While the other three applicants of Waka Kotahi’s $30 million have found success and resulted in several new coastal shipping services – or are in the process of coming online – MOVE’s cancelled vessel means services had been lost. In March 2023, the short-lived New Zealand ‘Coastal Connect’ domestic service was pulled after less than a year by Maersk. New Zealand fuel tankers that connected the Marsden Point refinery with fuel depots in New Zealand ports were taken off the coast in 2022 following the closure of the refinery by its owner. “It is essential the current modest growth we have seen in New Zealand coastal shipping does not stall.

Logistics & Transport NZ

Challenges require central and local government to do things differently The local–central government relationship must be reset: so says The future for local government report, recently published by the Future for Local Government Review Panel – described by former Taituarā President, Sanchia Jacobs, as “a burning platform for change”. Following the publication of two others over the past two years, this final report presents findings and a package of recommendations to address problems plaguing a local government system unequipped for future success. Adverse and fatal events like the Auckland floods and Cyclone Gabrielle, as well as the ongoing disruptiveness from COVID-19, highlighted the importance of local leadership and the need for local government to adapt to meet the complex challenges of the future. “Decisions by successive governments have marginalised local government and left it in a precarious position in terms of focus, resourcing, and viability. We don’t see either the mature relationship or the mechanisms and systems necessary to deal with these challenges between central and local government,” the report reads. “People in councils around the country are doing innovative and impactful work in their communities. However, day-to-day pressures deplete the bandwidth to think and operate more strategically to adapt and create sustainable change. Laid out under five different themes are 17 recommendations that would see “a fundamental reset of the system”, by developing better partnerships with hapū/ iwi; strengthening local democracy and leadership; increasing funding; and giving certainty to local government’s mandate. “Multiple simultaneous reforms have left both central and local government stressed and struggling to implement major change. Advancing the recommendations in this Review will require a reorientation of effort and strong commitment from both local and central government to re-examine operating models and build a new culture of working together.”

The Review was established by the Labour Government and the then Minister of Local Government in 2021 at the request of the local government sector. Its overall purpose was to identify how our system of local democracy and governance needs to evolve over the next 30 years, to improve the wellbeing of New Zealand communities and the environment, and actively embody Treaty partnership. The 135-page report, with over 800 pages of supporting material, says a requirement for councils, terms should be extended to four years, and the voting age for local government lowered to 16. It also wanted to establish a dedicated Crown department to facilitate a more effective working relationship between local and central government. The current local government funding and finance system is already under pressure and is not sustainable, the report states. While taxation as a percentage of GDP has risen over time, local government’s share has stayed at around 2 per cent of GDP – even as it has increasing responsibility for delivering the public good. “Rates should remain the main funding mechanism for councils, along with a range of new tools to raise revenue locally,” the Panel writes. This must be accompanied by significant central government funding to support locally specific wellbeing outcomes. The Panel believes this will lead to a fundamental reset of the funding and commissioning relationships between central and local government. “In addition to central government paying rates on its property, there should also be an annual transfer of revenue to local government equivalent to the annual GST charged on rates (currently around $1 billion). “Councils should use this transfer to build their capability and capacity and deliver more for their communities. A significant fund is also needed to support climate change adaptation activities.” Additionally, the report recommends: • Central government develops an intergenerational fund for climate change, with the application of the fund requiring appropriate regional and local decisionmaking.

• Cabinet is required to consider the funding impact on local government of proposed policy decisions. • Central government commits to enabling the future transition with funding to: – resource a transition unit to support the change and system renewal of local government; and – supplement local government capacity funding to enable hapū/iwi and Māori to partner with councils. Local Government New Zealand says the recommendations “takes a common-sense approach – especially to funding, system sustainability and other challenges facing councils”. New Zealand is out of step with the rest of the world, its President Stuart Crosby says. “Local government in other parts of the developed world is responsible for almost half of public spending, but in New Zealand, it’s less than 10 per cent.” “The panel has spent two years talking to local government and the communities they serve, looking at best practice and considering all the trade-offs. They have made it clear, in no uncertain terms, that while there is a real need to transfer resources and level up funding between central and local government, it must come with a commitment to do things differently and change the system to be more responsive to local needs. “Central government cannot solve the issues communities face on its own. If we look at the big issues such as climate change, dealing with regional inequalities, building social cohesion, and planning for growth, local government is best placed to take a leadership role. “It’s time to face into the future. With a roadmap to a brighter, more sustainable future now delivered by the panel, it is time for local government to pick up the mantle.” Read the full report at https://www.dia. govt.nz/diawebsite.nsf/Files/Future-forLocal-Government/$file/Te-Arotake_Finalreport.pdf