A new report from the Maritime Union of New Zealand says shifting long-distance freight from road to coastal shipping and rail could significantly improve the country’s fuel security.
The report, Improving Fuel Security By Moving Long-Distance Road Freight To Coastal Shipping And Rail, has been presented to the Parliamentary Transport and Infrastructure Committee.
It finds that moving suitable inter-regional road freight to coastal shipping and rail could save up to 147 million litres of fuel annually — equivalent to a 16-day buffer of national diesel demand.
Maritime Union of New Zealand national secretary Carl Findlay says New Zealand’s reliance on international “spot-market” fuel tankers has left it exposed to supply disruptions.
Findlay says the report highlights inefficiencies in the current transport system, noting that coastal shipping and rail use about a quarter of the fuel per tonne-kilometre compared with road transport.
“Moving the identified freight to sea and rail would save up to $350 million in annual fuel import costs,” he says.
He says the shift would effectively reduce diesel demand by 16 days each year, providing a buffer against oil supply disruptions through structural changes rather than reliance on emergency reserves.
The report identifies three key policy measures to support the transition: adopting a “hub and spoke” port model, introducing support measures to develop coastal shipping, and implementing “mode-blind” infrastructure funding to address what it describes as a bias towards road transport investment.
It also finds that nearly half of all inter-regional road freight movements could be shifted to sea or rail.
“Shifting this freight would not only secure the fuel supply but also lower transport emissions and reduce the just-in-time commercial risks that have left our economy exposed,” Findlay says.
