Business of Trucking, Feb 2022

108 Moving Metrics 116 Vipal’s Knowing Your Retreads 118 Industry Comment 120 Truckers’ Health 122 Health & Safety 124 Legal Lines 126 NZ Trucking Association 128 Transporting New Zealand 130 The Last Mile BROU GH T TO YOU B Y

MOVING METRICS

THE SALES

NUMBERS New Zealand Trucking reveals how the economy is travelling via key metrics from the road transport industry. From time to time, we’ll be asking experts their opinion on what the numbers mean.

Summary of heavy trucks and trailers first registered in 2021

First registration of NB and NC class vehicles for October by major manufacturer

This information is compiled from information provided by the NZ Transport Agency statistical analysis team and through the Open Data Portal.

The data used in this information reflects any amendments to the data previously reported.

Vehicle type This summary includes data from two heavytruck classes and one heavy-trailer class.

A goods vehicle is a motor vehicle that: (a) is constructed primarily for the carriage of goods; and (b) either: (i) has at least four wheels; or (ii) has three wheels and a gross vehicle mass exceeding one tonne.

Vehicle class

Description

NB

A goods vehicle that has a gross vehicle mass exceeding 3.5 tonnes but not exceeding 12 tonnes.

(mediumgoods vehicle)

NC (heavy-goods vehicle)

TD (heavy trailer)

First registration of class TD trailers for 2021 by suppiler

A goods vehicle that has a gross vehicle mass exceeding 12 tonnes.

A trailer that has a gross vehicle mass exceeding 10 tonnes.

A table of all vehicle classes can be found in Table A of the Land Transport Rule Vehicle Dimensions and Mass 2016 Rule 41001/2016 https://www. nzta.govt.nz/assets/resources/rules/docs/vehicledimensions-and-mass-2016-as-at-1-june-2019.pdf Note: Vehicle classes are not the same as RUC vehicle types or driver licence classes.

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February 2022

“Others” include Make

Units sold

Market share

Fiat

500

15.3%

Foton

171

5.2%

Volkswagen

195

6.0%

First registration in New Zealand classes NB, NC and TD

Total first registration for NC class vehicles by year by supplier

First registration of class TD heavy trailers by year by suppiler

New Zealand Trucking

February 2022 109

This information is put together from information provided by the NZ Transport Agency. New Zealand Trucking acknowledges the assistance of the media team at NZTA for providing this information to us.

ROAD USER CHARGES Total value and distance of road user charges purchased between 01 January 2018 and 31 December 2021 by purchase year

RUC purchase for 2021, all RUC types A description of RUC vehicle types is available at https://www.nzta.govt.nz/vehicles/licensing-rego/ road-user-charges/ruc-rates-and-transaction-fees/ Please note data may differ slightly from that reported for the same period previously due to adjustments being made to the base data.

In 2021 there were 49 different types of RUC purchased for a total distance of 16,046,928,628km at a value of $2,232,551,444.

A note on electric vehicles: The Ministry of Transport website says that at the end of November 2021 there were 35,565 electric vehicles registered in New Zealand. It is not possible to determine the impact of these on the value or distance of Road User Chargers purchased. An electric vehicle is one that is powered by an electric motor from an on-board battery which can be charged from an external source. A hybrid vehicle that has no provision for external charging is not an electric vehicle.

Purchase period

Distance purchased (km)

Value of purchases

1 Jan 2018 – 31 Dec 2018

15,736,558,458

$1,875,364,397

1 Jan 2019 – 31 Dec 2019

16,166,434,103

$2,041,939,272

1 Jan 2020 – 31 Dec 2020

15,421,400,378

$2,069,615,049

1 Jan 2021 – 31 Dec 2021

16,046,928,628

$2,232,551,444

RUC distance purchased for RUC type 1 vehicles

Purchase period

Distance purchased (km)

Average monthly distance (km)

1 Jan 2019 – 31 Dec 2019

11,502,905,782

958,575,482

1 Jan 2020 – 31 Dec 2020

10,952,303,565

912,691,964

1 Jan 2021 – 31 Dec 2021

11,427,917,860

952,326,488

RUC type 1 vehicles are powered vehicles with two axles (except type 2 or type 299 vehicles. Type 299 are mobile cranes). Cars, vans and light trucks that use fuel not taxed at source (i.e. diesel fuel) are generally in this RUC type.

RUC purchases all RUC types

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February 2022

The top eight RUC type purchases, other than type 1 in descending order RUC Type Description 2

Powered vehicles with one single-tyred spaced axle and one twin-tyred spaced axle

6

Powered vehicles with three axles, (except type 308, 309, 311, 399 or 413 vehicles)

43

Unpowered vehicles with four axles

14

Powered vehicles with four axles (except type 408, 414 or type 499 vehicles)

951

Unpowered vehicles with five or more axles

H94

Towing vehicle that is part of an overweight combination vehicle consisting of a type 14 RUC vehicle towing a type 951 RUC vehicle with a permit weight of not more than 50,000kg

33

Unpowered vehicles with three twin-tyred, or single large-tyred, close axles (except vehicle type 939)

408

Towing vehicles with four axles that are part of a combination vehicle with a total of at least eight axles

By comparing distance purchased during 2021 with previous years’, trends in changes to activity by RUC type vehicles will become clear.

Average monthly RUC purchases by year (all RUC types)

RUC distance purchased year to date for selected RUC types

New Zealand Trucking

February 2022 111

INCOMING CARGO

Tanks mounted over the rear of the chassis for transportation purposes.

HYUNDAI’S

HYDROGEN HEAVY IS HERE Story by Gavin Myers and Carl Kirkbeck

It’s a reflection of New Zealand’s commitment to alternative fuels that our tiny market has the distinction of being just the third, after Switzerland and Hyundai’s homeland of South Korea, to get the hydrogen-powered Hyundai Xcient FCEV. We got to see it up close and learn of Hyundai’s plans.

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or the past 22 years, Hyundai has invested in and developed its hydrogen technology and roadmap-to-the-future portfolio of environmentally friendly vehicle solutions.

Since 1998, it has invested more than US$9.8 billion (about $14.5 billion) in technology, talent, design and business partnerships.

The result has been numerous battery and hydrogen fuel-cell-powered electric vehicles across its passenger car and commercial vehicle range. The company’s first commercially available truck is this, the Xcient FCEV. Andy Sinclair, CEO of Hyundai Motors New Zealand, says Hyundai has

decided to start its largescale commercialisation of hydrogen vehicles with commercial vehicles. Hyundai plans to be the first global manufacturer to apply fuelcell technology across all its commercial vehicles by 2028, he says.

“These are large emitters of CO2. Hyundai believes using hydrogen and electric vehicles across all forms of transport will make the biggest impact in the shortest time. Vehicles move more freight and cargo than they do people, so by concentrating on vehicles that carry freight or move lots of people at once, we can do the most good in the shortest

Photos by Carl Kirkbeck

time as the technology continues to evolve.

“In New Zealand, heavy transport makes up 4% of the national fleet and is responsible for 25% of transport emissions, so for us, it’s a great place to start,” Sinclair says. “We will partner with other businesses that share a similar vision and help accelerate the uptake of FCEV technology in New Zealand.”

To make the trial happen, Hyundai New Zealand has partnered with EECA and the New Zealand Hydrogen Council.

In April 2022, five Xcient FCEVs will likely be in service.

Nexo passenger car, just upscaled for commercial output (180kW total).

Behind tanks in between the chassis rails is the highoutput 350kW, 2237Nm electric motor. Young says a direct conversion would place it equivalent to a 470hp truck. “However, power delivery is totally linear and very different to diesel.” It drives a six-speed Allison automatic transmission and a conventional differential.

Either side of the chassis sits the high-voltage 72kWh battery pack (consisting of three batteries), weighing roughly 220kg. Again, these batteries are about the same size as those for an EV. In the FCEV, the batteries are used to collect surplus energy from the fuel cell and regenerative braking (see sidebar).

Compressed air for the trucks’ suspension and brake systems is supplied by an auxiliary air compressor, while conventional 24V batteries take care of the usual electrical needs. These are charged by the high-voltage system though low-voltage DC converters.

An engine? No, the hydrogen fuel-cell stack.

How does it go?

The electric motor is paired with a six-speed Allison autobox.

Hyundai will kick off the programme with Swiss-spec trucks, converted to New Zealand spec. “It’s our full intention to commercialise hydrogen trucks in New Zealand following the trial,” Sinclair adds.

How does it work?

This trial could run for as long as eight to 10 years, says Grant Doull, hydrogen and eco-commercial vehicles manager at Hyundai New Zealand. “We’ll be looking at data for several years to come. Initial learnings from overseas show that maintenance costs are significantly less and

maintenance schedules are few, compared with diesel vehicles.”

Doull says that hydrogen is “really the only option for heavy transport, with very fast refuelling, good range and comparatively lightweight (compared with battery electric vehicles) – meaning there’s space for more payload”.

Gavin Young, technical manager at Hyundai New Zealand, adds that it is a great energy carrier once hydrogen is extracted and stored. “It can be used as an energy source and a fuel due to its high energy content based on its weight.”

Like all internal combustion vehicles, all hydrogen FCEVs share the same basic components. The most noticeable are the tanks – seven on the Xcient positioned vertically behind the cab. These hold 31kg of hydrogen at 350 bar. Young explains that there is a series of systems and fail-safes to monitor for leaks. “As soon as a leak is detected, the system will shut down and alert the driver.”

Directly below the cab, where a diesel engine would go, are the two 90kW fuel-cell stacks. These are approximately the same size and output as a Hyundai

The Swiss-spec Xcients are a typical Euro-type rigid configuration – that is, 6x2 with a steering rear tag axle.

As they stand, a 28,000kg GVM and 42,000kg GCM are the workable numbers, though in New Zealand, these figures will be lower due to local road regulations.

“This is a seriously heavyduty truck,” says Doull. “It has an awful lot of power. As it sits, there is the potential to go on-road at 39 tonnes combined mass.”

Different body configurations will be available, depending on the customer trialling the individual trucks. Doull says Hyundai New Zealand is targeting the freight sector for its high mileage and usage.

The 31kg of hydrogen gives

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February 2022 113

CREATING ENERGY FROM HYDROGEN

A

s detailed in the main story, FCEVs require certain components to work together to create, store and convert electrical energy into kinetic energy.

The fuel cell is the heart of any FCEV. It generates electricity through an electrochemical reaction involving hydrogen and oxygen.

There is no combustion.

“Fuel-cell stacks feature a collection of up to 400 waferthin fuel-cell plates stacked together. Any size of fuel cell can produce an electrical current – one fuel cell can generate 1V of electricity,” says Young.

A single fuel cell is composed of an anode and cathode separated by a proton-exchange membrane.

Hydrogen gas enters on the negative anode side, where the negatively charged electron of the hydrogen molecule separates, forced through the circuit to create the electricity to power the motor or be stored in the lithium-polymer battery. The positive hydrogen proton moves through the membrane to the positive cathode, where it recombines with the electron and added oxygen from the ambient air, creating water molecules and vapour. These are the only by-products of the process.

“There are no moving parts or combustion – just reliable, safe, silent operation,” Young says.

In the Xcient, the batteries act as a buffer to ensure a constant electricity supply to the motor. They’re kept charged up by the fuel cell and the regenerative braking effect of the motor.

“The systems are modular; for more power, add more stacks; for more range, add more tanks,” says Young.

Xcient FCEV gets some differentiating aesthetic treatment. the Xcient FCEV a claimed 400km range, meaning it could do Auckland to Palmerston North in one trip.

Hyundai claims refuelling time at eight to 20 minutes.

“They’re very quietrunning and vibration- and emission-free… 50-tonnes of CO2 will be saved per unit per year on 80,000km of use.”

After the formalities, we were able to look over the Xcient FCEV, but unfortunately not drive it yet.

At first glance, we could not help but be reacquainted with our previous excellent experiences with the Xcient – our September 2019 test unit, operated by Corey and Mel Randall out of Napier on

their PBT contract, and the big yellow February 2021 Top Truck of Foodstuffs contractors Bruce and Linda Hornell.

Stepping up into the cab and getting comfy in the hot seat, the well-appointed environs are extremely familiar. But things become a little more intriguing and foreign when you look at the carbon fibre-reinforced hydrogen fuel tanks bolted to the chassis and the extensive plumbing and layout of electrical components between the rails.

Just how revolutionary this technology is to the transport industry became more vividly apparent when

Young jumped into the cab, activated the electrons, and drove the virtually silent Xcient in front of the delegation.

There certainly were a few raised eyebrows and excited smiles, probably akin to the facial expressions of the crowd that had gathered to witness the live trials of engineer Robert Stephenson’s mighty Rocket locomotive in 1829.

We certainly were left asking ourselves: have we just witnessed a similar event? One thing is for sure, this Hyundai New Zealand trial of the Xcient FCEV will profoundly impact how future transportation is executed.

And so it begins. Right: The seven carbon fibre tanks hold 31kg of hydrogen at 350 bar.

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TYRE SAFETY AND COST SAVINGS FOR FLEETS The Vipal VT540 tread had its quality and durability proven in tests carried out on the South Island.

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he technology and quality of Vipal Rubber products have conquered more and more transport operators from all continents, and in New Zealand, it’s no different. The safety, durability, and cost reduction offered by the brand’s products have led to major gains for New Zealand fleets.

The leader in Latin America and one of the main manufacturers of products

for tyre retreading in the world, Vipal has a complete lineup of treads for all roads surfaces and applications.

With exclusive tread designs and high-quality rubber compounds, Vipal treads also bring innovations such as the Eye Control technology (New Zealand Trucking, November 2021), which indicates the tread-wear status and the suggested time for tyre removal, allowing for greater safety and protecting the

tyre’s retreadabilty.

One of Vipal’s retreading partners, located in the South Island, has proven the durability and strength of Vipal treads through detailed testing on an Iveco Powerstar 6-wheeler running 295/80 R22.5 tyres retreaded with the Vipal VT540 tread.

After covering 45,317km, the VT540 tread presented a 4.2% higher result when tested on the same truck with retreaded tyres of the same

Caption

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KNOWING YOUR RETREADS

size and similar tread design from one of the main market rivals.

The VT540 tread was also tested against another very efficient tread from Vipal, the VT500 and exceeded the latter by more than 10,000km until reaching the minimum tread depth for safety as indicated by tread-wear indicators. The VT540 covered 103,833km until reaching a tread depth of about 2.5mm, while the VT500 reached mileage of 92,089km until reaching about 2.5mm tread depth.

The VT540 is a tread with outstanding traction power, suitable for all New Zealand road conditions, including

regional roads, mixed surfaces and on/off-road applications. The design has features that allow the tread to be self-cleaning in mud and sand, and reduces stone build-up, maintaining the traction and safety of trucks on any ground or in any climate. Its design is non-directional for easy fitting with 22mm of tread depth.

The VT540 is equipped with Eye Control technology and has the Alpine Symbol, or 3PMSF marking, that certifies when the tyre is designed for severe snow conditions. To earn this qualification, the treads underwent rigorous testing

at a laboratory in Finland accredited by the European authorities, according to standard ECE R117. In Europe, all tyres, including retreaded tyres, must have this certification.

For Dijan Rigo, Vipal’s commercial coordinator in the Oceana region, the VT540 proved its superior quality and durability compared with treads from competing brands. In addition, he also commented on the comparison between Vipal’s treads, confirming that both VT540 and VT500 are great options for transport operators.

“These are two designs

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that have the characteristic of facing any terrain and climate situation. Especially for the South Island, where winter conditions generate a lot of snow and mud on the roads, both products offer the necessary security for the fleets,” said Rigo.

“Retreading tyres with quality treads such as those from Vipal Rubber still provides a considerable reduction in costs to the transport industry, in addition to reducing the volume of new tyres put on New Zealand’s roads and highways, a factor that favours the environment and the circular economy.”

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CARRIERS’ CORNER

SHORT-TERM SOLUTIONS TO LONG-TERM PROBLEMS I’m sure I’m not alone in my frustration and disbelief at what seems like the permanent disposition of our public leaders to constantly underwhelm in the delivery (or frequently severely delayed delivery) of what should be long-term assets for our country.

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hy are we fixated on applying short-term fixes to current issues rather than taking that courageous deep-dive and getting to the crux of what will genuinely deliver longterm benefit for our communities?

Roading and transport-related infrastructure is an obvious choice for me to discuss, given the nature of this publication and my own livelihood.

However, think for a minute how great it would be if we could ringfence the current short-sightedness concerning transport infrastructure. Unfortunately, we’d have to overlook hospitals, schools, and the chronic housing supply for a start, and before long, we’d have a lengthy list. And how will we address the (stable) supply of electricity required to power our electric future without remaining reliant on that convenient supply of coal Indonesia’s so happy to keep us stocked up on?

Returning to the subject of transport… there appears a giant chasm between concept and reality, or government agency and government itself. There is no better example of this than in my own neck of the woods (Warkworth, north of Auckland), where we have a glaring example of this about to hit us head-on (hopefully, not literally). By the middle of this year, all going to plan, the NX2 Puhoi to Warkworth motorway will open, bringing with it a modern, four-lane expressway designed with the best intentions and safety in mind, albeit without any provision for a truck/ trailer combination to stop safely. This section will be superb, and I excitedly look forward to the benefits the road will bring from a transit time and efficiency perspective.

What I’m not looking forward to,

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however, is the fact that the next section of this NX2 project, cutely coined the ‘Holiday Highway’ (belittling the immense economic value traversing its asphalt daily to/from Northland), and having become somewhat of a political pawn, remains but a glimmer in a transport planner’s eye. The current government put the kybosh on the project early in its tenure. In the past four weeks alone, this Dome Valley section of State Highway 1 has been closed no less than four times due to major traffic accidents, grinding to a halt any big vehicles. But of greater concern is the carnage likely about to rear its head as Joe Public leaves the confines of the soon-to-be-opened first section of NX2 and finds his way onto what can politely be described as a glorified goat track.

Given the immense infrastructure, skill, personnel, and general resource in place in completing the current section of the expressway, surely there’s never going to be a more logical, cost-effective, or safe time to box on and finish the road in its entirety? But why deprive us of the opportunity to battle the road out politically and legally and add a casual 10-year delay (at best) into the mix?

I ask the questions, ‘Why must we always be playing catchup?’ And not

Dec 2021 2022 February / Jan 2022

by weeks or months, but years and decades?

Elsewhere, we see a mass media campaign (including what sure sounds a lot like the fictitious use of a ‘truck driver’ to add some substance to the message) to reduce speed limits en masse to magically solve a safety issue within our roading network, particularly pronounced on the likes of the well-trodden stretch of SH5 joining Napier and Taupo. It seems almost unfathomable that, rather than get to the heart of the issue and take a long-term approach to resolving the construction and format of a key national highway, the powers that be instead opt for the most underwhelming of techniques to try and bring the nation to a halt in the hope of preventing the need to fix the underlying issue.

As if New Zealand’s productivity needed a further helping hand to slow it down, taking a 20% haircut off the speed limit is a sure-fire way to give it a sturdy shove in the wrong direction!

To my mind, it’s time for us to take key infrastructure beyond the realms of political chess and apply truly long-term thinking to long-term assets without fear of the next incoming council or government being able to take its eraser to the plan and wipe projects carte blanche, replacing them with poorly constructed pet projects (the Auckland Harbour Bridge cycleway ‘dream’ comes to mind).

As a nation, we simply can’t prosper without truly visionary leadership from leaders prepared to make courageous plans, with both the strength and support to execute them… now!

Do you agree with Blake or want to engage with his comment? He’d love to hear from you.

Contact Blake at: blake@transcon.co.nz.

Blake Noble, managing director, Transcon

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TRUCKERS’ HEALTH

A CHALLENGE FOR SUCCESS

5

Here are some simple tips for setting challengingyet-achievable goals for yourself in 2022.

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•

A

•

s each new year begins, we often feel full of hope, promise and ham. Naturally, we want to embrace this renewed energy and enthusiasm and aim it towards what we would like to achieve in the next 365 days. But I think it’s also important to be realistic and to avoid the temptation of setting lofty goals that will inevitably leave us feeling disheartened and disappointed.

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1. Is it important to YOU? Before you set a goal, you need to establish who you are doing it for. If you are trying to lose weight or get healthier to please others, you are already on the back foot. Being ‘forced’ into a healthy lifestyle already has negative connotations and will encourage the desire to rebel and go against what everyone else wants you to do.

Whereas, if you set a goal knowing from the outset that you are doing it largely for yourself and what you think is best for you and your happiness, you are setting yourself up for success.

or anything in between – you need to be honest with yourself about how realistic it is for you to achieve. Things you need to keep in mind include other commitments, timeframe, lifestyle, family life and work schedule.

I’m not discouraging dreaming big and setting yourself amazing challenges. But you do need to weigh up your current workload and what is already on your plate and whether you can realistically tackle another big undertaking.

2. Is your goal measurable?

4. Do you have a good support network?

The vaguer you are in setting your goal, the more difficult it will be for you to know if you’ve achieved it or not. Telling yourself you will ‘get fit’ this year is extremely vague. What being fit means to you may be entirely different to what being fit means to others. It is all relative.

For example, if Susan is already running 5km comfortably and by the end of the year is running 7km comfortably, that is a small achievement. But if Sally has never run a day in her life and is running 7km comfortably by the end of the year, that is a sizeable achievement.

So you have to be realistic about where you are currently and where you would like to realistically see yourself in a year – be specific.

Typically, if you set yourself a personal goal, it is mostly up to you to put in the work to achieve it. But as the saying goes, ‘It takes an army’. When you are under pressure, stress or time constraints, it can directly impact your nearest and dearest so, in turn, it becomes their journey too.

It would help immensely if you had the support and encouragement of partners, friends and family to aid you along the way and push you through the more challenging days. I can say that my loved ones got me through many of my endurance events both on event day and in the months of training leading up to the event. Make sure you share the ins and outs of your goal and give your loved ones a good understanding of where you are and where you’re headed (unless, of course, it is a private and personal journey).

3. Is your goal realistic?

Whenever you’re setting a goal, whether it be about your health and fitness, career

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Dec 2021 2022 February / Jan 2022

5. Celebrate your successes and achievements It seems to be the Kiwi way to downplay our achievements. There’s nothing wrong with being humble, but it is also very important to celebrate personal progress and successes. It’s very easy to set a goal, achieve it and then think, ‘what’s next?’ without properly celebrating the fact that you’ve reached your first milestone.

Setting mini-milestone goals is also important because it keeps you excited and encouraged along the way, especially if your goal is fairly lofty. For example, if you set yourself the purpose of running a half marathon, make sure to pat yourself on the back when you’ve done a 10km run – you’re halfway, and that’s awesome.

Dare to try something new, challenge yourself and get outside of your comfort zone. I’ll leave you with one of my favourite quotes: “If it doesn’t challenge you, it doesn’t change you.”

Laura Peacock Personal trainer TCA Fitness Club

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HEALTH AND SAFETY

WHAT WILL THE YEAR BRING? The new year is here at last. This time last year, we were happily looking forward to 2021, thinking it could not be a more challenging year than 2020. What will 2022 look like?

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’ve been listening to and reading a lot of expert opinions. The consensus is that 2022 will also likely be a roller coaster year with more uncertainty.

We are getting better at managing uncertainty, but it can still surprise us.

What can we do to prepare?

This is a good time to review how things went last year, with wider work issues and with the impacts of Covid19. Some of the things to consider will include: How did you know what was happening? Was one person in the team delegated with keeping abreast of the information, reviewing it, deciding what was relevant, and sharing it with those who needed to know?

How did you remain in contact with your team? How did you keep them

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informed, how did you maintain morale and the team ethos?

How well prepared were you with the resources you needed? This might include the equipment required to work from home, internet connections, and items that were hard to get during the lockdowns.

How did you cope when products you needed weren’t available?

How did you communicate with your customers?

Reviewing what went well and what didn’t will enable you to face the year with more confidence. In my workplace, after the first lockdown in 2020, we identified who needed what equipment and listed it. The list was updated when staff left or started so that it was current.

This meant that, when we went into lockdown with a few hours’ notice, we could adapt very quickly.

We also agreed on a time when we would all meet virtually and what platform that would take. Occasionally, someone missed a meeting, but they had to be in touch with one of the team, so we knew they were okay.

Reviewing, planning and preparation are the keys to making uncertainty less traumatic. It’s sensible to start early.

3:12:58 PM

Tracey Murphy is the owner and director of Safewise Ltd, a health and safety consultancy. She has more than 12 years’ experience working with organisations from many different industries.

Tracey holds a diploma in health and safety management and a graduate diploma in occupational safety and health. She is a professional member of the New Zealand Institute of Safety Management and is on the HASANZ register.

How can Safewise help?

We work with organisations that need more health and safety knowledge or more time to address these issues than they have in-house. We also have free Covid-19 resources available.

For more information, check the website safewise.co.nz.

Danielle L. Beston Barrister At Law Log Book & Driving Hours Transport Specialist Work Licences Nationwide Road User Charges Contributor to New Zealand Trucking ‘Legal Lines’ Column Telephone: 64 9 379 7658 mobile: 021 326 642 danielle.beston@hobsonchambers.co.nz Referral Through Solicitor Required and Arranged

122 New Zealand Trucking

Dec 2021 2022 February / Jan 2022

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LEGAL LINES

COVID-19 AND THE WORKPLACE New Zealand has now moved to the Covid-19 Protection Framework, otherwise known as the traffic light system.

Given this change, I thought it timely to provide general guidance for businesses and their employees about employment rights and responsibilities in the current Covid19 workplace environment.

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he key concept is that employment and health and safety laws still apply in the traffic light system. Employers cannot reduce their employees’ legal minimum employment rights. This includes the minimum wage, annual and sick leave and a written employment agreement. Contractual rights as agreed in employment agreements still apply.

Contractual rights are those that have been negotiated, such as for better leave or pay.

Employers and employees need to work together to contain the spread of Covid-19 and keep each other safe. That means that the normal obligations to act in good faith, be open, honest and communicative with each other are more important than ever.

Varying working arrangements An employer cannot unilaterally alter employees’ terms and conditions of employment. If there is an existing employment agreement, an employer can only change it if the employee agrees.

An employer may want to change to an employee’s employment arrangements due to their financial circumstances.

When making changes to their terms and conditions of employment, including redundancy or reduced hours or wages, an employer must follow certain processes which include: • Undertaking a ‘workplace change’ process. Employers must consider other options first and follow a fair and proper process. This includes consulting with employees and their union (if there is one).

• Paying redundancy compensation if it’s noted in the employee’s employment agreement or has been negotiated with the employee and

124 New Zealand Trucking

agreed by both parties.

• Recording in writing any agreed changes to the terms and conditions of employment.

Returning to the workplace Employers need to consider public health guidance from the Ministry of Health and assess whether work performed by their business is covered under the current Government Public Health order. The general rule is: if the traffic light setting you are in allows it, and in the absence of an agreement to alternative working arrangements, the employer can require employees to return to the workplace.

Employers should discuss any return to work with their employees in good faith first. The return must be subject to conditions, such as the employer following health and safety rules and any agreements that were made between the parties.

Unvaccinated workers Businesses cannot require any individual to be vaccinated. But they can require that certain types of work, roles or positions must only be done by vaccinated workers if there is a high risk of contracting and transmitting Covid-19 to others. To do so, businesses must do a proper risk assessment to determine this. Government Public Health Orders can also require that certain types of work must be done by vaccinated

Dec 2021 2022 February / Jan 2022

workers, such as border workers, health and disability sector workers and certain workers in the education sector.

Annual leave An employer can only require an employee to take annual leave if the employee agrees to it after a discussion in good faith. If the parties cannot reach an agreement, the employer can decide when annual leave will be taken, if they give their employee at least 14 days’ notice. An employer can agree to a request for advanced annual leave, but they don’t have to, and an employer cannot force or make an employee take advanced annual leave. An employer cannot make an employee take sick leave unless they are sick.

Employees & self-isolation If a worker is sick with Covid-19 or required to self-isolate, the first consideration for an employer should be to look after their workers, contain Covid19 and protect public health. Employers should not knowingly allow workers to come to a workplace when they are sick with Covid-19 or required to self-isolate under public health guidelines. If they do, they are likely to be in breach of their duties under the Health and Safety at Work Act 2015.

Employers and employees can access the Covid-19 financial support tool at covid19.govt.nz to see what support they are eligible for if their work is impacted

by Covid-19. Employees can also contact the Ministry of Social Development via the Work and Income website if, for example, they have been made redundant or are in financial distress.

The Employment New Zealand website is updated regularly with the latest Covid19 information, and further guidance can be found at employment.govt.nz.

Please note that this article is not a substitute for legal advice, and if you have a particular matter that needs to be addressed, you should consult a lawyer.

Danielle Beston is a barrister who specialises in transport law.

Contact her on (09) 379 7658 or 021 326 642

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Carol McGeady general manager NZ Trucking Association

IT’S 2022

– LET’S GET STARTED!

I

n the two years since Covid-19 hit our shores, we have had to reimage, restructure, and roll with constant alert-level changes and health rules.

And those that own and run a business have also had to manage and implement all those changes, counsel staff, and create a business culture that can still be productive while this pandemic shows no signs of ending any time soon.

Meanwhile, workplace accidents are still happening. Truck drivers and staff are fatigued, and the ongoing mental health and wellbeing of staff is concerning.

While the pandemic carries on, we must not lose sight that everyone you employ must get home safely after work.

A new year is a great time to review your workplace health and safety plans.

According to WorkSafe NZ, in 2021, nine people died while at work, there were 159 injuries, illness, and serious harm incidents, and 2340 people had injuries that required them to have more than one week off work.

These figures are eyewatering. The statistics represent valued staff members, friends or key people who went to work and either never came home or suffered a major injury or illness that will probably affect them for the rest of their lives. The sad part is the incident that caused it was probably preventable.

Ensuring health and safety by good

work design is essential to maintaining your safety record. Things such as workflow, broken equipment, or people doing the wrong job can all contribute to bad work design. This can cause stress and – potentially – accidents. Creating a culture where staff are involved in the decision-making on how to make a business safe is a way you can engage and encourage ideas. Reporting nearmisses is not enough. You must think outside the square and work through a couple of possible scenarios if things go wrong. Look for situations with the potential to cause injury. Engage with your team and get their ideas on how workflows can be improved.

A good dispatcher knows and understands the drivers and the end customer’s expectations. If they make a mistake, it impacts on all parties. Drivers and customers can get very frustrated with schedules at times. So, a close watch on this aspect of your business is vital. Getting the drivers and dispatchers together to discuss ways of improving the workflow is a great way to start. A minor change in the schedule can sometimes be easy to implement and can have a massively improved safety outcome for everyone.

One company told us they had not realised the danger they put kids in while they did normal deliveries past a

school when all the kids were leaving.

Once the school and company engaged, a new route was established to avoid peak times when kids were around. This turned out to be more productive for the company and meant that the trucks arrived back at the depot on time. There had been several near-misses with children crossing the road in front of the trucks, so it was only a matter of time, and someone would have been injured or killed. This situation was mitigated due to an old-fashion conversation.

We have also been told by one of our members that once they engaged with their staff and encouraged ideas on how to improve things, it changed the company’s culture. The staff took ownership of the needed changes to create a safer working environment and the company was more productive.

No employer wants to go to their employee’s family and tell them their father/mother/daughter/son is not coming home because the accident resulted from their company’s bad work design.

So, get your teams together and have the conversations now. Ask them to tell you what they think. You can even do it anonymously. Remember to make sure you share the ideas to get feedback from the wider group.

Once they engaged with their staff and encouraged ideas on how to improve things, it changed the company’s culture.

126 New Zealand Trucking

Dec 2021 2022 February / Jan 2022

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THE WAIT CONTINUES FOR TRANSMISSION GULLY

T

he words “Transmission Gully” once meant a promising solution to Wellington’s squeezed northern corridor. They are now the bywords of failure. When uttered at this year’s summer barbecues, they elicit a knowing shake of the head from Wellingtonians used to years of bad news about the project.

Transporting New Zealand attended a meeting before Christmas where Waka Kotahi NZ Transport Agency advised us, before it hit the media, that Transmission Gully would not open in time for Christmas. We were told that the builder contracted to deliver the Transmission Gully project ran out of time to complete all of the compliance tasks necessary to have the road open.

Out of the 100 safety and quality assurance tests that need to be met before the road can safely and legally open, only 34 had been accepted by the independent reviewer as meeting the required specifications before Christmas. We were also informed that as at 3 December 2021, only 17 of the 45 consent tasks that needed to be fulfilled for the road to open also had been achieved.

Reports of flawed chipseal, ‘flushing’, and water seepage through the road’s surface are also of major concern.

Repairs over the past few months have apparently been unsuccessful, which indicates that the long-term resilience of the road is, at best, uncertain. Flushing is a serious safety hazard as it results in a smooth and sticky surface texture due to an excess of bitumen, which can become very slippery in wet conditions.

None of this was any surprise to us at Transporting New Zealand. If I’m not mistaken, the latest delay was the fifth projected opening date that has come and gone. Pretty much as soon as the building of the route began, rumours, many of which were later confirmed, started circling of issues between Waka

128 New Zealand Trucking

Kotahi, the Greater Wellington Regional Council, the Wellington Gateway Partnership and the road builders, CPB HEB. Scepticism the budget would be adequate and the programme realistic was largely born from Waka Kotahi having to pour at least another $400 million in on top of the initial $850 million estimate.

From the start, Transmission Gully suffered from a classic case of overpromising a world-class road on a significantly less than world-class budget. The previous government can take a good deal of responsibility for that. However, it is also obvious that the present government is a reluctant inheritor of the project and sees itself as having little political skin in the game.

government institutions prove that we do not have the bureaucratic competence or political steadiness to effectively manage big transport projects. This is a massive problem, not only for our sector but for the whole economy, because we desperately need a lot more modern infrastructure to satisfy the growing demand for the movement of people and freight.

The fact that Transmission Gully will at least one day be open, unlike the mythical East-West Link, is, I guess, some comfort to Wellingtonians and the lower North Island freight sector.

At this point, it is natural to want to cut corners to get the road open, but we want, and deserve, for it to be as safe

From the start, Transmission Gully suffered from a classic case of over-promising a world-class road on a significantly less than world-class budget.

Ministers and even local Labour MPs have stayed pretty quiet on the whole debacle, except to criticise National over the public-private-partnership model that Labour ideologically opposes. In some ways, the more the project falls behind, the more they can hold it up as a failure of the private sector in infrastructure provision.

Depressingly, Transmission Gully is just the headline act in a series of nationally significant strategic roading projects beset with problems. North Island transport operators will remember the emergency repairs needed to the Kapiti and Waikato expressways not long after opening due to road surface and subsidence problems. Then, of course, there are the much-needed new roads that, despite going through expensive planning and consenting processes, have never even see the light of day – most notably the East-West Link in Auckland.

Unfortunately, time and time again our

Dec 2021 2022 February / Jan 2022

and as durable as possible. For now, we will just have to wait a little longer, put up with the appalling traffic on the coastal route, and complain about it over those barbecues.

Finally, just a reminder to operators that as of 1 February, Waka Kotahi NZ Transport Agency is imposing a new condition for all heavy-vehicle permit applications that the operator must be in full compliance with their RUC obligations. This means that transport operators must keep up with their RUC payments to make sure future permit applications are not declined, the permitted period shortened or the permit revoked.

No additional charges are being imposed on operators through this policy change; it is just part of Waka Kotahi’s push to make sure all eligible road users are paying their fair share. For operators already paying the correct amount of RUC, nothing will change.

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THE LAST MILE

WAS IT BAD TIMING, BAD PLANNING OR JUST WISHFUL THINKING?

I

n terms of industry representation, the 8 October 2021 press release from Transporting New Zealand, headed “Can someone steer the ship?” nicely sums up the events of the previous couple of weeks. The first line, “It’s starting to feel like we are on a rudderless ship drifting further and further away from the rest of the world,” fits perfectly.

The writer of that release seems unaware that the only way to drift in a ship is when you lose power to its engines. Rudders only set the direction and are useless unless there is forward or rearward momentum. That’s why you must look after the engines and the people who make them work. In the transport world, the engines are the industry associations, and they are broke and in need of a major overhaul. Changing the engineer’s name does not fix the fundamental cause of the engines failing to provide the necessary momentum.

As already noted by New Zealand Trucking’s Dave McCoid, on the eve of Tony Friedlander’s retirement in 2010, the thenCEO of the Road Transport Forum said: “The forum has tried to merge trucking associations” and that he saw the failure to do this as his “greatest failure as CEO, but the objective remains”.

In his presentation, Tony also said that it was “not hard to design structure” but warned that implementation would not be easy and cited fiefdoms, parochial interests and personalities as barriers that had to be overcome. He asked this question: “Do the leaders have the courage?” Events last year suggest they don’t. Eleven years on, and we see the divide between the

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And the roads?

Despite its financial woes, the New Zealand Transport Agency was able to find enough money for somebody to turn on the lights and come to the realisation that the income they get from fuel tax is drying up and, unless an alternative funding source is found, there would be less money available to spend on new roads and road maintenance and safety.

Perhaps the exemptions given to electric vehicles from paying road-user charges has something to do with it. So, too, maybe the blind obsession with creating dedicated cycle and walking ways in the forlorn hope that people will use these as ways of getting around instead of cars, vans, and trucks.

Despite this problem being obvious for some time, at last they have seen the light and are now reviewing the situation to identify a more equitable system.

Memo to the NZTA: what is wrong with the electronic options now available to purchase RuC? I am sure the providers of these systems would only be too pleased to demonstrate how these could work across a wider range of vehicles. But then we should never forget that any fool can make a system more complicated – it takes a brave person and a lot of courage to do the opposite. Unfortunately, that may be the direction we head towards – a more complicated system.

industry associations is even greater now than it was back in Tony’s day – which I suppose proves that rudders work even when going backwards.

After the announcements were made, and as to be expected, the spin took over. Transporting NZ came out and said that it still represented the interest of four of the five industry associations – regions 2, 3, 4 and 5 of the Road Transport Association (RTA).

This is a curious statement given that, until recently, the Road Transport Forum was claiming to represent the three industry associations in the country – the National Road Carriers (NRC), the RTA and the NZ Trucking Association (NZT). But, suddenly, NRC and NZT are now only one organisation, the Owner Carriers Association of New Zealand (OCANZ). NRC and NZT have been joined at the hip for many years through OCANZ, so why OCANZ should suddenly become identified as a single representative organisation beats me.

While this was going on, OCANZ was saying that between them, NRC and NZT have 64% of the membership of organisations. If this is so, it is hard to see how Transporting NZ and RTA can survive. No doubt there will be some wellmeaning attempts at member poaching, but it is hard to see how this will achieve long-term benefits for the industry. Only by presenting a single united front to the government will the industry receive the recognition and credibility it deserves. To pick up on another of Tony’s comments from 2010, beware of trinket salesmen.

I do not know who decided to rebrand the forum nor why this went ahead when it did, considering what was smouldering away in the background, but it is fair to say somebody did not read the room. If there are repercussions for what happened, it remains to be seen where this leads and, most importantly, who ends up leading it. Maybe it will be the members who will ultimately decide.

The Accidental Trucker

130 New Zealand Trucking

DecFebruary 2021 / Jan 2022 2022