Time-of-use charging will enable more efficient goods delivery and free up traffic at key times, according the country’s major road freight bodies.
Both Transporting NZ and National Road Carriers Association (NRC) are supporting the Government’s move to introduce legislation this year to enable time-of-use schemes (a form of congestion charging) to be developed on our busiest roads.
Transporting NZ interim chief executive Dom Kalasih says congestion charging has proven highly useful in reducing traffic snarl-ups in many cities when used properly, and can lift productivity by allowing vital transport operators to operate more effectively.
“Freight transport is a vital part of our economy, and anything that lets truckies get deliveries done more efficiently is good for them, good for their customers and good for the economy.”
Kalasih says congestion charging helps reduce low-value trips into cities which aren’t required at certain times.
“We don’t want people stopped from driving; we just want to ensure that people prioritise their travel times.”
Exempting freight
Kalasih says it is important that the government considers exempting freight operators from time of use schemes.
“All the travel our operators do is vital. We don’t travel anywhere unless we have to, and what we have to do is get goods picked up and delivered as efficiently as possible.
“We appreciate that transport will make large productivity gains from having less traffic to deal with, and that alone will be a win for everyone, for our members, and for NZ Inc.
“In addition to the productivity gains from freeing up the network, we can also avoid the need to invest in increasing road capacity.
“We are also pleased to see the coalition Government proposing to ring-fence any revenue from congestion charges so it has to be reinvested back into improving infrastructure.
“There are a lot of projects that need funding, and dedicated revenue streams will help keep New Zealand moving,” Kalasih says.
Congestion ‘must be tackled’
NRC chief executive Justin Tighe-Umbers agrees and says getting time of use charging right for road freight is critical.
“Getting it wrong will mean yet another increase to the cost to transport goods goes up without any clear efficiency gain,” Tighe-Umbers says.
“At a time where there is a cost-of-living crisis, this isn’t an option. Realistic, viable alternatives are critical to success, such as viable alternative routes, effective public transport and ability to change the time of day roads are used.
“There’s no question congestion must be tackled. Clogged cities can’t grow more land or add more roads. But we need to make sure the time-of-use charging tools we choose are deployed appropriately to drive productivity and efficiencies.
“Understanding the networks’ challenges is the first issue policymakers need to grapple with. Auckland commuters, for example, have limited options to utilise the network at different times of day because it is nearly always at or over capacity.
Supply chain data
Tighe-Umbers says to understand road freight movements, the Government needs a freight and supply chain data capability. Currently there is none.
“Unlike other countries, New Zealand has a very limited view of what road freight is moving where, when and why. Accurately understanding road freight movements is going to require a sophisticated digital capability to be developed. Without it, there is a high risk of unintended consequences to the supply chain.”
Tighe-Umbers says to develop time-of-use charging strong government-industry-public collaboration will be needed to strike the balance between efficiency and increasing the cost of domestic goods and our exports.
“This is where time-of-use charging, high occupancy tolls, express and freight lanes need to be considered in conjunction with a workable bus and train network that gives people viable alternatives to move around the city.
“Good policy should be about helping people and freight move around as easily as possible. Whatever tool is chosen will require a significant investment in up-front technology, general upkeep and maintenance, alongside the people needed to run it.”
