New Zealand’s road transport industry body says it’s “sick of the unsubstantiated rhetoric against trucks” and has released a report on why it reckons road freight trumps rail.
The report, Road and rail – delivering for New Zealand, has been produced by Ia Ara Aotearoa Transporting New Zealand and aims to counter arguments supporting the Government’s recent multi-billion dollar investment into rail.
The organisation estimates around 12% of freight movement is contestable by rail and points out that 93% of New Zealand’s goods are moved on trucks by road.
It says this is because trucks are “faster, more efficient and more reliable than rail” and deliver door-to-door.
Transporting NZ chief executive Nick Leggett says the Government is spending billions of dollars on rail “at the expense of the much more valuable road network”.
“We don’t believe the Government should try to manipulate the market for no apparent reason other than some ideological view that trains are ‘better’ than trucks.
“We are sick of the unsubstantiated rhetoric against trucks and believe this is a strange view-point for a trading nation to take given our vast distance from our nearest market and our need to get goods moved as quickly and efficiently as possible, in the most cost-effective way.
“Evidence and independent research point to the bulk of future freight growth being accommodated by trucks, both in New Zealand and internationally, even where there are excellent rail networks,” he says.
In May last year, the Government released a 10-year strategy for rail investment throughout the country. It includes legislative changes which allows KiwiRail to be funded directly via the National Land Transport Fund (NLTF) for the first time.
Crown funding to rail will continue both via the NLTF for the rail network, and directly to KiwiRail for its commercial assets.
It has recently committed more than $5 billion towards rail which included $1b through Budget 2019, $1.2b from Budget 2020 and a further $1.3b allocated in Budget 2021.
Speaking at the time of the last Budget announcement, transport minister Michael Wood says the investment would support 4000 jobs at KiwiRail and also help reduce carbon emissions.
“On average, every tonne of freight moved by rail produces at least 70% less carbon emissions compared with heavy road freight. This helps with New Zealand’s crucial transition to a low carbon economy,” Wood said.
However, the road freight industry reckons the environmental arguments “don’t stack up”.
“If the Government was serious about the environmental concerns presented by trucks, they would start taking some of the steps available now, rather than wait for some yet to be developed viable alternative to diesel-powered trucks, and trains for that matter,” Leggett says.
“The Government seems to ignore the steps that have been taken for the truck fleet to reduce emissions. Trains have not been required to meet the same standards in New Zealand. Older trains, which are still in the fleet, are likely to be emitting nitric oxides and particulate matter at levels four and 18 times greater, respectively, than Euro 5 trucks.
“Progress won’t be driven by ideologically captivated politicians or government officials; it will be driven by tried and tested technology.
“Rail has never been able to run as a profitable business in New Zealand. Even with all the Government control and subsidies, customers still prefer to send their goods by road,” he says.
“We are not anti-rail and support Government investment in rail where it makes good sense because rail has a role to play in the movement of goods through the supply chain. In fact, the road freight transport industry is one of the largest consumers of rail. It is particularly good for moving the likes of coal, chemicals and other bulk goods over a long distance, with little if any, pressure on urgency of delivery.
“We want to bring evidence, balance and informed views to decision-making about rail investment where it is clearly detrimental to vital investment in roads.
“There is much at stake, primarily the well-being of people in communities all over New Zealand who depend on a strong economy and efficient, customer-driven freight systems for their lives and livelihoods,” Leggett says.
