Changes to the vehicle licensing system have been a mixed bag for delivery agents.
In October 2014 as part of the VLR programme, the NZ Transport Agency confirmed certificate of fitness (COF) testing for heavy vehicles would no longer be just in the hands of transport service delivery agents (TSDA).
The agency called for external applicants to provide the service in addition to the TSDAs which include the Automobile Association (AA), Vehicle Inspection New Zealand (VINZ) and Vehicle Testing New Zealand (VTNZ).
More than two years on, DIESELtalk asked the three TSDAs how the move had affected their businesses and what changes they have seen in the marketplace.
Steady as she goes for AA
Back in 2014, AA motoring services manager Stella Stocks said she wanted to wait and see what changes occurred before commenting on modifications to the COF inspection delivery model.
The AA is a small player in the COF market, with two heavy vehicle-orientated testing stations, one in Hornby in Christchurch and the other in Bell Block in New Plymouth.
Stocks told DIESELtalk last month the decline in warrant of fitness (WOF) volumes had led to the consolidation of some of the AA testing stations.
But the Hornby and Bell Block locations remain, and the AA says it has no intention of leaving the COF-B market.
“Demand for our COF-B services remains high and we will continue with our current operations but we have no plans for further or future expansion,” she says.
“We are aware of private operators entering the market but we don’t know how they are performing.”
Stocks also says that when the Government mooted the reforms, there was an assurance that road policing for vehicle safety would be increased.
“We understand the police are currently reviewing their structure and we hope this doesn’t impact on road safety policing, particularly in the heavy vehicle area.”
Future focused VINZ
When the reforms came into effect, VINZ chief executive Gordon Shaw said the changes would create opportunities for new and innovative service delivery models and enhance the company’s existing business.
“We have now become a trusted advisor and partner to many large commercial fleets, we’ve trained their technicians and mechanics to know the top ten list of items which fail a COF, and we’ve helped them understand what’s required to keep the vehicle roadworthy and compliant,” he says.
VINZ now processes around 60,000 COFs a year. Most transport operators are choosing to remain on a six-monthly inspection rather than move to 12 months as the regulations allow, Shaw says.
Its focus for 2017 is the ongoing upgrade of its testing facilities.
“Te Rapa, which is our busiest site in all of New Zealand, has outgrown its capacity. Hence, we are building an all-new station 500 metres up the road from our existing facility.”
Two years on, Shaw believes some of the newer players in the deregulated COF-B sector might be finding it tougher than anticipated and may choose to exit.
“We are always reviewing the market, asking our customers how we can help, and looking at the trends and opportunities around the future of inspections.”
VTNZ embraces change
The number of heavy vehicles presented to VTNZ since the VLR introduction has dropped slightly, chief executive Mike Walsh says.
“It’s natural for some customers to try a new option when competitors enter the market.
“One of the things that safety conscious businesses talk to us about is the importance of independent inspections. At the same time, a segment of customers see the value of combined repairs and inspections under one roof. That’s where VTNZ’s onsite Repairer Programme can help,” he says.
“We’ve partnered with heavy vehicle repairers who have listened to their customers and realised the best option is to partner with an independent inspection company such as VTNZ.
“And with new repairers joining our onsite programme every month, we’re looking to grow this side of the business.
“The response from customers has been so positive, we’re about to launch a new joint marketing programme to maximise our onsite repairers’ businesses further.”
Most transport operators who come to VTNZ are still getting six-monthly COFs, he says.
“The number of vehicles presented to VTNZ for annual inspections is less than 3%. Many customers who’ve been offered annual COFs have chosen to keep to more regular half-year inspections.”
Walsh believes a police proposal to disband the group of 26 vehicle safety officers in the commercial vehicle investigation unit is not supported by the industry.
“Road policing and the commercial vehicle investigation unit play an important role in ensuring heavy vehicle roadworthiness standards are maintained between COF inspections,” he says.
“It is VTNZ’s view that reducing the level of roadside enforcement would be detrimental to the safety of all road users.”
