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22nd November 2017

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Government addresses concerns of transport industry

Transport Minister Phil Twyford (file photo).

BRADEN FASTIER
Transport Minister Phil Twyford (file photo).

New and additional sources of funding are needed to help fix Auckland’s traffic congestion and growing pains, Transport Minister Phil Twyford says.

But Twyford believes it is not fair for the rest of New Zealand to pay for its biggest city’s woes.

Rail and coastal shipping will be a focus for both Auckland and elsewhere, he said.

The newly named minister made the comments in his first address at the Road Transport Forum’s annual conference in Hamilton on Saturday. “If we had a decent passenger rail from Auckland to Hamilton paid for out of the Land Transport Fund, then I could have been here much earlier,” he joked, referring to what RTF Chief Executive Ken Shirley had said to him after arriving late to the conference, having got stuck in traffic.

During the conference at Claudelands Event Centre, Twyford outlined the government’s direction on the future of transport throughout the country.

Creating a “resilient and multi-modal transport system, reducing carbon emissions and fixing Auckland’s congestion” were the priorities.

“We know the transport system is about networks and productivity and changes to one mode can have flow-on consequences.”

Transport in New Zealand needs to be resilient in the face of shocks, such as the recent earthquakes that shut down the major north-south highway in the South Island.

To do this, changes to funding is required.

Roading is currently funded through the Land Transport Fund, from road user charges, petrol tax and vehicle registration, which generate $4 billion a year.

“We need to tackle the problem of new and additional funding sources and the challenge of dealing with Auckland’s growth pains is one of the pressures here.”

Decades of under-investment and congestion in Auckland is costing the city $1.3b a year in lost productivity, he said.

Aucklanders want it fixed, but Twyford said it will come at a cost.

“They understand that it costs money to do this.”

The Government is committed to a $15 million, 10-year programme that includes a rapid transport system in Auckland, which will join up with the road and highway system.

“We believe rapid transport should be funded in the same way as state highways and there are benefits for at least part-funding the rapid transport through the Land Transport Fund.

“We need to find additional sources of funding as well and we cannot ask the rest of New Zealand to pay the costs of Auckland’s growth.”

If asked, the Government will pass legislation to allow Auckland Council to levy a regional fuel tax, he said.

“We’ve talked about 10 cents a litre and that would generate about $150 million a year, about 10 per cent of the investment that is needed for the Auckland Transport Plan.

“Aucklanders have to be willing to chip in a bit extra.”

Income from targetted rates on what will be “massive increases” in the value of the land around the light rail network in Auckland could be reinvested in the rapid transport system, he said.

“The Government is going to continue to fund rail above and beyond the national transport fund, but what we want is to generate new and additional sources of revenue.

“In the long term, petrol excise will not be a sustainable way to fund the transport system.”

Previous governments had disproportionately invested the fund into motorway projects, leaving regional roads starved of funds, he said.

“Our coalition partner placed a very high premium on investment in the regions, so that will be a priority.”

Reducing carbon emissions

Another priority would be reducing carbon emissions from the transport industry, which make up 18 per cent of the country’s greenhouse gas emissions, he said.

Exploring coastal shipping is one way of doing this, he said.

“I believe if we level the playing field, coastal shipping can be a cost-effective way to move heavy bulk freight that is not time-dependent.”

He also addressed one of the biggest concerns from the industry – the shortage of top-class drivers.

Attendees said the driver-licensing system had become complicated and expensive.

Twyford said the government wanted to weave driver licensing into the school curriculum.

“When people don’t get their licence or never graduate to a full licence, it has downstream negative consequences for them to get jobs.”

He said stemming migrant numbers would not affect those in the transport industry.

“You’ll know the intention to change the immigration settings, as we believe the open door policy of immigration had quadrupled net migration.

“We think we can combat this by taking out the rorts and the scams in the education sector, where so-called education providers have been giving back-door visas.”

There are genuine skill shortages and regional skill lists will mean a particular regions can attract people in to live and work in that region, he said.

Bethunes shareholders to vote on Transport Investments deal next month

Bethunes Investments shareholders will vote next month on a deal to use its NZX listing as a vehicle for freight and logistics firm Transport Investments Ltd to go public while shifting its remaining assets into a new entity.

The company’s 335 shareholders will meet in Auckland on Dec. 5 to consider the reverse listing which if approved will see them own 0.6 per cent of the transport group, which has an enterprise value of $200 million, and keep their relative stakes in a new holding company – New BIL – which will house Bethunes’ existing investments valued at about $486,000.

Independent adviser Grant Samuel’s report judged the deal’s terms were “fair and reasonable to the shareholders of Bethunes not associated with TIL” and that “the proposed transaction is in the best interests of Bethunes given the options reasonably available to Bethunes at the current time.”

“The board considers that completing the transactions will add value for Bethunes shareholders as it presents them with the opportunity to own a shareholding interest in the transport and logistics business of Transport Investments Limited following the acquisition of that business by Bethunes, while also retaining their interest in the business and assets of Bethunes via BIL 2016 Limited,” chair Chris Swasbrook said in a statement.

“Accordingly, the board unanimously recommends that shareholders vote in favour of the resolutions in the notice of meeting.”

If Bethunes’ shareholders approve the deal, the NZX-listed firm will rename itself TIL Logistics Group and replace the board, with Trevor Janes lined up to chair the new directors. He would be joined by fellow independent directors Lorraine Witten and Danny Chan, executive director Jim Ramsay and non-executive director Greg Kern.

TIL had planned to list through an initial public offering, but gave up on those plans in mid-2017 after being advised “market conditions were not conducive, in part because of the New Zealand general election and likely resulting market uncertainty.” It began discussions with Bethunes in August.

Bethunes had planned an earlier reverse listing with Westgate Power Centre-subsidiary NZ Retail Property Group, however, that fell through when the real estate investor decided it wasn’t a good time to raise capital.

The Grant Samuel report says if the deal isn’t approved, Bethunes will remain a listed shell company seeking investment opportunities, but isn’t likely to try reverse listing another company again. If it is approved, Bethunes plans to relist the new entity.

The documents show TIL expects to report a statutory loss of $10.3 million on revenue of $327.8 million in the year ending June 30, 2018, turning to a profit of $11.1 million on revenue of $335.5 million the following year, when it would expect to pay dividends of 7.4 cents per share, representing a gross yield of 6.8 per cent.

Eden Haulage takes the titles at the Southland Transport Invercargill Truck Parade

Some of the DT Kings transport trucks coming onto Tweed St off the Stead St bridge.

Robyn Edie/Stuff
Some of the DT Kings transport trucks coming onto Tweed St off the Stead St bridge.

Southlanders defied the cold wind and rain to see the finest big rigs from Southland parade through the city.

About 120 trucks took part in Southland’s annual truck parade on Sunday, with people lined up along Tweed and Bond streets to get a glimpse.

The star of the show was the one-of-a-kind “Tex” the Texaco truck from Transport World.

Watching the trucks on Bond St are, from left, Lyall Goodwright, holding Austin Goodwright, 1, Olivia Goodwright, 6, ...

Robyn Edie/Stuff
Watching the trucks on Bond St are, from left, Lyall Goodwright, holding Austin Goodwright, 1, Olivia Goodwright, 6, Jessica Goodwright, Lilly Goodwright, 8, Declyn Cockery, 6, Eelah Cockery, 2, and Chontelle Kamana, all of Wrights Bush.

Parade organiser Mark Purdue said it was the first time the 1940 Dodge Airflow truck had been out of Bill Richardson’s shed

Although the weather conditions were less than favourable, it did not stop the Southland crowd turning out for the event.

“We’re not going to melt,” Purdue said.

Trucks rounding the roundabout onto Tweed St, showing the many spectator cars parked in the centre island.

Robyn Edie/Stuff
Trucks rounding the roundabout onto Tweed St, showing the many spectator cars parked in the centre island.

The turnout of 120 trucks for the parade was pretty good considering how busy the road transport industry was at the moment, Purdue said.

A group of about 20 classic trucks from Christchurch and Timaru travelled down to be a part of the show, Purdue said.

Southland Transport Invercargill Truck Parade 2017 King Rig winner Cole Frew from Eden Haulage did such a good job on his truck he had the judges scratching their head.

The Bill Richardson Transport World Dodge Airflow Texaco truck on it's first ever outing in the city, coming onto Bond St.

Robyn Edie/Stuff
The Bill Richardson Transport World Dodge Airflow Texaco truck on it’s first ever outing in the city, coming onto Bond St.

Purdue said he was impressed at the detailing of the truck and said nothing was missing.

The competition had been tight, with the runner-up Ricky Rodgers from Summerland Express Freight only missing out by points, he said.

Eden Haulage also managed to take out the best fleet by only three points, Purdue said.

Doug Ronald, Esme McCleery, 5, and Natalia Ronald shelter in the back of their car to watch the trucks pass on Bond St.

Robyn Edie/Stuff
Doug Ronald, Esme McCleery, 5, and Natalia Ronald shelter in the back of their car to watch the trucks pass on Bond St.

He had been organising the parade for 15 years now and said the event had been going strong for nearly 35 years because transport operators were loyal to Southland.

It was their dedication that has kept the parade going, he said.

“It’s something that’s always happened.”

Some drivers spent hours working on their rigs to get them show ready for the annual parade, Purdue said.

 

 – Stuff

Transport Investments going public

nona.pelletier@radionz.co.nz

 

New Zealand’s largest private transport and logistics business, Transport Investments (TIL), is going public with a backdoor listing on the NZX.

The investment shell Bethunes Investment said it would buy Transport Investments, with a mix of shares and cash for $200 million.

TIL has a network of branches, depots and warehouses, which made $320m in revenue in the past year ending June.

Its brands included Hooker Pacific, TNL, Roadstar, Pacific Fuel Haul, TIL Freight, McAuley’s, MOVE Logistics and NZL.

TIL chair Jim Ramsay said the company had been looking to take the company public for some time.

“When the opportunity arose to participate in a reverse listing through BIL we decided this would provide existing TIL shareholders with a commercially sensible, viable and timely path to the NZX,” he said.

“We are pleased with the arrangements agreed and look forward to bringing TIL to the public domain with the support of over 300 existing BIL shareholders.”

The deal, which is subject to shareholders’ approval, would see Bethunes change its name to TIL Logistics, with a new board headed by Mr Ramsay.

A special meeting of TIL shareholders was expected to be held early next month, with Bethunes shareholders to meet late November or early December.

Earlier this month, TIL sold nine properties in Auckland to industrial property investment company, PFI, for $70m.

The transport company will lease back seven of the properties. That deal settles at the end of this month. transport and logistics business, Transport Investments, is going public with a backdoor listing on the NZX.

Transport weak link for doing business – ODT

Banked-up traffic near Milburn.

Banked-up traffic near Milburn.
A freight train near Wingatui, both south of Dunedin.

A freight train near Wingatui, both south of Dunedin.

New Zealand’s road and rail  transport networks have been found wanting. ODT senior business reporter Simon Hartley talks to Westpac’s new industry economist Paul Clark about the  country’s road and rail.

Internationally, New Zealand’s roading network is ranked 40th out of 137 countries while the rail network comes in at 47th, the latter behind Poland and Hungary.

The data comes from the World Economic Forum’s recently published global competitiveness index report. It ranks New Zealand’s overall competitiveness as 13th out of the 137 countries.

However, Westpac’s industry economist Paul Clark said the data showed companies were ”dissatisfied” with the state of road and rail.

”The quality of our road and rail networks was identified as one of a number of weak spots in our overall competitiveness,” Mr Clark said.

New Zealand has 95,000km of road, including 11,000km of state highways. Rail is 4100km in length.

New Zealand has for more than a decade been spending $5billion a year in these areas, most of it on road and rail infrastructure.

Firms operating in New Zealand had for 2017-18 rated the quality of the country’s roads as the same as 2009-10, meaning ”no change in quality over the past eight years,” he said.

”This is not a one-off.

”For a number of years an inadequate supply of infrastructure has been seen by firms as being the biggest hurdle for doing business in New Zealand,” Mr Clark said.

He said the importance of having a high-quality land transport network could not be overstated, both for domestic use and getting exports to the rest of the world.

”When working well they can make a significant contribution to New Zealand’s economy . . . but when not, they can constrain the economy’s growth and prosperity,” Mr Clark said.

About 82% of New Zealand’s roads were open to ”high productivity vehicles”, or heavy commercial traffic. They have a capacity to carry from 44 tonnes to a maximum 62 tonnes.

”These vehicles help freight operators move more freight with fewer trucks, at lower cost,” Mr Clark said.

Unsurprisingly, those vehicles account for more than 30% of heavy commercial traffic, he said.

Mr Clark said the capacity of the road network against demand for travel had only ”edged higher” in recent years. The country’s relatively strong domestic economic performance had underpinned the growth in demand.

”Much of this [annual $5billion] spending has been focused on addressing an infrastructural deficit caused by chronic under-investment in the 1980s and 1990s,” Mr Clark said.

The spending had increased the road network capacity and helped to maintain it in ”tip-top” condition. But it had not always been enough to handle some of the large increases in traffic, at least without some deterioration in network performance.

While progress had been made on rail and road public transport, particularly in Auckland, there had only been ”limited progress” on freight – with almost 85% moved around the country by road.

”There’s good reason for this. Road is not only cheaper than rail, it also provides a convenient door-to-door service,” Mr Clark said.

By contrast, rail typically involved road-bridging freight to a public freight yard or container transfer facility, or investing in and servicing customer rail sidings.

”Either of these takes time, money and logistic effort.

”That’s not to say possibilities do not exist – the New Zealand Transport Agency and KiwiRail, together with sector partners, are actively looking at ways to improve road and rail integration, but more needs to be done.”

Earlier this week, Port Otago floated the idea of eventually having State Highway 88, between Dunedin and Port Chalmers, truck-free, but rail would have to be embraced to achieve that end.

Mr Clark said ”the key is to improve the competitiveness of rail freight and until that happens the possibility of a fully integrated transport system seems quite far off.”

While neither the data nor Mr Clark delved into the political scene, whichever government is formed money will still need to be spent on national transport.

National has roads as its priority but Labour, the Greens and New Zealand First all favour upgrading New Zealand’s rail.

Coalition deals

As at 24/10 we have very little detailed information about the nature of the transport related items in the coalition deal Labour/NZ First, and the confidence and supply deal Labour/Greens.

So far the key points relate to:

• Rail: Significant investment in regional rail. – [We’re not sure exactly what this means]

• Auckland Port: Commissioning a feasibility study on moving the Ports of Auckland to Northport – [It’s hard to imagine this flying – Auckland won’t want to lose control of their own destiny in a port/shipping sense, and it’s hard to imagine the Greens being happy with an increase in carbon miles for the transport from Northport to Auckland.  Not to mention the absolutely massive cost to upgrade rail from Northland to Auckland]

• Transport: Investigate a Green Transport Card to reduce the cost of public transport for low-income people and welfare recipients, prioritise National Land Transport Fund towards rail infrastructure as well as cycling and walking, cancel Auckland’s East-West motorway link, work towards light rail from Auckland city to airport [The East-West cancellation is a shame, and we’re surprised that the NZ First preference for heavy rail to the airport wasn’t adopted in the Labour/Green deal]

Limited opportunity for lower freight emissions from coastal shipping and rail, says MoT

Coastal shipping and rail have less potential in the drive to reduce carbon emissions. Photo / 123RF

Coastal shipping and rail have less potential in the drive to reduce carbon emissions from the transport sector than the optimistic view expressed in a Productivity Commission issues paper on decarbonising the New Zealand economy, says the Ministry of Transport in a submission to the commission’s inquiry.

“We concur with your assessment that electric vehicles (EVs) are by the far greatest emissions abatement opportunity New Zealand has to lower transport emissions,” says the two-page response to the issues paper sent on September 4 by Joanna Pohau, the ministry’s acting manager, people and environment.

However, the ministry is less optimistic about the potential for coastal shipping and rail to move freight out of road-based trucking, mainly because so much of New Zealand’s freight ‘task’ involves sending goods over short distances and because customers have come to expect ‘just-in-time’ deliveries that ships and trains struggle to fulfil.

“Much of our freight moves over short distances,” the ministry says. “This is a movement that is typically only economic for road freight. As well, some cargo, for example liquid milk, best suits being moved by road” and “not all locations have access to rail and/or coastal shipping.”

The ministry expects that lower emissions from long-haul freight operations will emerge from a combination of some cargoes shifting to shipping and rail, greater collaboration among cargo owners, more fuel efficient trucks, increased use of bio-fuels and, ultimately, “adopting new fuel and vehicle technologies as they arise”.

This could include electric heavy long-haul trucks “if they become available”.

The submission coincides with the announcement of an EV car-sharing scheme in Christchurch that its backers claim is the largest in the Southern hemisphere.

From late November, some 70 of an eventual fleet of 100 EVs will be available for Canterbury businesses and residents through fleet management company Yoogo, which has been selected by Christchurch City Council to implement the services.

The company’s “electric car sharing model breaks down barriers around cost and charging infrastructure, making pure electric vehicles accessible and affordable,” Kirsten Corson, Yoogo general manager, said in a statement.

The service will be available for the CCC, Ara Institute, engineering firms Aurecon and Beca, the Canterbury District Health Board, law firm Chapman Tripp, Environment Canterbury, Meridian Energy, architects Tonkin and Taylor, and Warren and Mahoney, and, Christchurch Airport, as well as for the general public.

In its submission, MoT agrees with the Productivity Commission’s suggestion that “current policy settings may need to be revisited if we are to achieve a widespread uptake of EVs” and endorses setting fuel efficiency standards as one route to achieve that.

Transport Minister Simon Bridges announced late last month that the government was setting a target of one-in-three of the government’s car fleet being EVs by 2021.

Brian Gaynor: Winston Peters’ port plan fails to make grade

One of the more intriguing aspects of the general election campaign is New Zealand First’s policy “to move all container operations from Ports of Auckland to Northport by the end of 2027”.

According to NZ First leader Winston Peters, “the days of the Ports of Auckland as a container port and as a car yard are numbered”.

He went on to say that “New Zealand First will bring forward legislation to move all operations from Auckland to Northport. This will start with vehicles on Captain Cook Wharf ahead of the America’s Cup. Aucklanders want their harbour back while Northlanders want the jobs and opportunities that would come from Northport’s transformation”.

Peters added that this policy “is a cast iron commitment from New Zealand First but it needs New Zealand First to be in a pivotal position to demand it”.

Not surprisingly, Peters hasn’t released any details on the costs of moving Ports of Auckland to Northport.

There are three ports involved in this proposal, directly or indirectly: Ports of Auckland; Port of Tauranga, which is 220km from Auckland; and Northport, which is 144km north of the main Auckland port.

Auckland

Ports of Auckland (POA) listed on the NZX in October 1993. This followed the sale of 39.8 million shares, or 20 per cent of the company, by the Waikato Regional Council at $1.60 a share. This gave Ports of Auckland a total sharemarket value of $318 million, with the Auckland Regional Services Trust retaining its 80 per cent stake.

In April 2005 Auckland Regional Holdings announced a takeover offer for POA at $8 a share, valuing the company at $848m. This compared with the pre-offer price of $6.44 a share and Grant Samuel’s value of between $7.69 and $8.55 a share.

The $8 a share bid was successful, POA delisted and is now 100 per cent owned by Auckland Council Investments.

POA has been a disappointment under 100 per cent Auckland Council ownership. In the 13 years since 2003-04, its revenue has increased by only 35 per cent, to $222.4m, and net profit after tax by 36 per cent to $60.3m.

Tauranga

Port of Tauranga (POT) was listed in 1992 after issuing 20 million new shares at $1.05 each and the Waikato Regional Council selling all its 12.6 million shares at the same price. After the initial public offering, the company had a sharemarket value of just $80m, based on its $1.05 issue price. The Bay of Plenty Regional Council had a 55.3 per cent holding.

POT, which now has a sharemarket value of $2,960m, has been one of the most successful listed companies over the past 25 years.

For example, since 2003-04 POT’s revenue has increased by 69 per cent to $255.9m, compared with POA’s 35 per cent rise, and POT’s net profit after tax has swelled 148 per cent to $83.4m, compared with POA’s more modest 36 per cent profit increase.

Northland

Northland Port also listed on the sharemarket in 1992, shortly after Port of Tauranga. This followed the sale of 10 million shares, representing 24.1 per cent of the company, for $1.25 a share. This gave Northland Port a sharemarket value of $52m at the $1.25 IPO price, just slightly below POT’s listing value.

The Northland company provided ship handling services to the NZ Refining jetty at Marsden Point and at Port Whangarei.

In 2002 the port activities at Marsden Point and Port Whangarei were transferred to Northport, a 50/50 joint venture between Northland Port and Port of Tauranga. NZX-listed Northland Port subsequently changed its name to Marsden Marine Holdings.

Marsden Marine is now an investment company with a 50 per cent stake in Northport, valued at $46.1m, and investment properties valued at $66.4m. These include freehold land, a marina and a commercial complex adjacent to Northport.

Its largest shareholders are Northland Regional Council, with a 53.6 per cent holding, and Ports of Auckland, with 19.9 per cent stake.

Marsden Marine has been a disappointing listed company, with a sharemarket value of only $215m. The company’s directors received $198,000 for the June 2016 year, a large figure for an investment company with few employees.

Chairman Sir John Goulter, who is also chair of the hugely disappointing Metro Performance Glass, received director’s fees of $54,000 for the June 2016 year and an additional $40,000 as chairman of Northport.

The opportunity to rationalise the port sector, and reduce commercial shipping activity at the Auckland port, was missed when Ports of Auckland withdrew from merger talks with Port of Tauranga in March 2007.

The Mount Manganui based port was clearly disappointed and chief executive Mark Cairns had this to say: “The economic and financial modelling demonstrates that the merger would generate significant financial benefits to be shared with customers and shareholders alike.

“The merger would also generate substantial public benefits: reducing CO2 emissions; facilitating better opportunities for coastal shipping; and making a start on the inevitable port rationalisation that needs to occur in New Zealand in the future with the advent of larger, faster container vessels.”

He went on to say: “In a country with a population of approximately 4 million people (similar to Sydney) New Zealand’s tax base simply cannot sustain the funding of high quality road and rail infrastructure connections to all 13 ports.”

The proposed merger between Ports of Auckland and Port of Tauranga made far more sense than the Ports of Auckland/Northport scheme. There are several reasons for this, including:

• The cost of building an extensive road and rail network from Marsden Point to Auckland would be prohibitive and take decades to complete. Coastal shipping could be an alternative, but these ships would continue to use Ports of Auckland

• Northport is small and would need substantial expenditure on its facilities, particularly container handling facilities

• The move from Ports of Auckland to Northport would put huge pressure on the Marsden Point facility. For example, 673 container ships visited Auckland in the June 2017 year compared with only 36 berthing at Northport. In addition, Auckland had 181 vehicle carrier visits while Marsden Point had none in the same 12-month period. Thus, if Ports of Auckland moved its container ship and vehicle carrier operations to Northland, the Marsden Point facility would have to facilitate 854 of these vessel arrivals every year instead of 36 at present

• There is a mismatch between Northport and Ports of Auckland because the former is a bulk port and the latter is predominantly a container port. Northport had export log volumes of 2,808,000 tonnes for the June 2017 year, representing 77 per cent of its total bulk exports, while Ports of Auckland container volumes were 952,331 TEU (one TEU equals one standard 20-foot container).

The obvious solution to the Ports of Auckland issue is the partial privatisation of the company and a listing on the NZX. There are two main reasons for this.

Port of Tauranga and Auckland International Airport have been great performers as listed companies and are paying large dividends to their council shareholders. By contrast, Ports of Auckland has been a disappointment since the Auckland Council acquired its 100 per cent holding.

Under a sharemarket listing, there is a far better chance of a merger, or a joint venture agreement, between Ports of Auckland and Port of Tauranga. This is because local body politicians, who are usually opposed to these commercial agreements, would have a limited influence.

An Auckland/Tauranga agreement could lead to a sharp reduction in commercial ship visits to Auckland and enable Auckland importers and exporters to switch their business to a well governed and well managed port facility at Mount Manganui.

A merger between Ports of Auckland and Northport doesn’t make sense from a commercial or cost point of view.

• Brian Gaynor is an executive director of Milford Asset Management.

The Big Read: Roads v Rail – political parties at the crossroads on transport

The Big Read: Roads v Rail – political parties at the crossroads on transport – NZ Herald

The wheels are turning in voters’ minds as they consider which party offers the best deal on transport. Photo / Nick Reed

National has returned to a familiar theme with a $10 billion plan to build 10 major highways around the country, while Labour and the Greens have latched onto modern trams in Auckland and long distance trains between Auckland, Hamilton and Tauranga.

Also in the mix is NZ First, with a strong emphasis on upgrading heavy rail, including improved access to Northland and its port at Marsden Pt, trains to Auckland Airport and re-opening the Napier to Gisborne line.

The most visible battleground is Auckland, where congestion is choking the city at a cost of $2b a year and people are flocking to trains, buses and ferries to travel to work. Transport, and the crucial role it plays in housing and growth, is on everyone’s mind – and don’t politicians know it.

National’s record in office dealing with Auckland transport is mixed, from rubbishing the City Rail Link to embracing it, the crazy decision to upgrade the Northwestern Motorway without a busway and completing the $1.4b Waterview tunnel – a huge pre-election success story.

In fact, National is using figures showing the tunnel has halved travel times from the city to the airport to stick with cars and buses to the airport in the foreseeable future, while other parties argue over trains or modern trams along the route.

Trams running on light rail along Dominion Rd to the airport. Source / Auckland Transport

Jacinda Ardern’s first public appearance as Labour leader was to announce the party would spend $3b to build tram lines from the Auckland CBD to the airport and West Auckland within 10 years, and complete the first leg of the airport route to Mt Roskill by 2021.

This would be followed by light rail to the North Shore in the second decade.

The Greens have gone one step further and promised to build the full 21km tram route from the CBD to the airport by 2021. They are also promising light rail from the Wellington railway station to Newtown by 2025 and Kilbirnie and the airport by 2027, and a wholly electric bus fleet for the capital city.

Labour and the Greens would allow Auckland Council to introduce a regional petrol tax – possibly 10 cents a litre to raise $100m a year – to hop on board a more ambitious public transport programme for the city.

The two parties have adopted the tram policy from lobby group Greater Auckland, which has also persuaded them to adopt the first stage of its ‘Regional Rapid Rail’ policy for a $20m trial train service between Auckland, Hamilton and Tauranga.

If it’s a success, Labour and the Greens will invest in stages two and three of Rapid Regional Rail, delivering trains that can travel at 160km/h, new rail lines to Rotorua and Cambridge, and a tunnel through the Bombay Hills to reduce travel times from Auckland to Hamilton to 70 minutes.

Labour’s decision to adopt Greater Auckland’s agenda is blatant pitch into Green territory, but it doesn’t bother Greens transport spokeswoman Julie Anne Genter, who believes voters know who is more committed to implementing the policies, and will vote Green to be sure Labour follows through.

The Greens have also made a pitch for the youth and student vote by promising these groups free public transport costing $70m to $80m a year, which they say is less than 1km of new highways being built by National.

Not everyone is on board Greater Auckland’s agenda, and debate still rages within transport circles over trams versus trains to the airport.

NZ First’s plan is for a 7.5km rail line from Puhinui to provide a 30-minute journey by train from central Auckland to the airport terminal – part of its “Railways of National Importance” programme.

NZ First wants to reopen the Napier to Gisborne rail line.

NZ First wants to reopen the Napier to Gisborne rail line.

The party’s transport spokesman, Denis O’Rourke, says NZ First is not afraid to intervene and invest heavily in rail. The party has 13 immediate investment priorities, including upgrading rail in Northland to allow containers and cars to be moved from Northport to an inland port at Kumeu, and extending commuter rail to Kumeu and Huapai in West Auckland.

The Maori Party has proposed a new “IwiRail” network for freight, tourism and regional employment. The party believes the project has the capacity to add $1b into the regions and will be asking their potential coalition partner to invest $350m.

The plan involves connecting Gisborne to the East Coast Main Trunk Line in Kawerau and bringing back the mothballed Napier to Gisborne rail line to create 1250 jobs on the East Coast.

National’s focus is unashamedly on roads while recognising rail has a role to play. It is centred on extending its “Road of National Significance” – begun in 2009 and largely complete – into a new set of major roading projects.

Motorists would get a four-lane highway from Auckland to Whangarei, the $1.8b east-west link through Auckland’s industrial belt and other highway projects throughout the country.

National has also come up with a $2.6b election transport package for Auckland that includes building a new highway alongside the Southern Motorway costing $955m and $615m for the Ameti transport project in southeast Auckland.

The $1.8 billion east-west link through Auckland's industrial belt. Source / New Zealand Transport Agency

The $1.8 billion east-west link through Auckland’s industrial belt. Source / New Zealand Transport Agency

That’s not to say, National is all about roads and Labour and the Greens are all about public transport and long distance trains.

National has spent $1.7b electrifying rail in Auckland, it is paying half the cost of the $3.4b city rail link, committed $267m to rail over the next three years, a third rail track on the busy southern line between Westfield and Wiri, and $835m for a Northwestern Busway.

Labour has announced it will increase regional transport roading projects from $140m to $280m a year, and will proceed with the east-west link in Auckland, albeit a scaled back version of National’s $1.8b scheme.

One area all the main parties agree on is the need to improve cycling and walking in our cities, with National keen to build on a $333m urban cycleway programme and Labour promising to pay for the $30m SkyPath cycle and walkway over the Auckland Harbour Bridge.

Transport policies

National

A strong focus on roads by extending its “Roads of National Significance” to 10 new projects costing $10b, including a four-lane highway from Wellsford to Whangarei and the $1.8b east-west link through Auckland’s industrial belt.

A $2.6b package for Auckland, including a new highway from Manukau to Drury, $615m for the Ameti transport project in southeast Auckland and a $835m Northwestern busway.

National favours cars and buses to the airport in the foreseeable future.

A $267m rail package includes $130m to electrify rail from Papakura to Pukekohe and $37m for Wellington, including double tracking the Hutt Valley line between Upper Hutt and Trentham.

A target of one in three electric or electric hybrid cars in the Government’s fleet of 15,500 cars by 2021.

Labour

Adopted the policy of lobby group Greater Auckland for a congestion free network in Auckland.

The main focus is $3b to light rail for trams from the Auckland CBD to the airport and West Auckland within 10 years, and complete the first leg of the airport route to Mt Roskill by 2021.

This would be followed by light rail to the North Shore in the second decade.

Allow Auckland Council to introduce a regional petrol tax – possibly 10 cents a litre to raise $100m a year.

Adopted the Greater Auckland policy for Regional Rapid Rail, starting with a $20m trial train service between Auckland, Hamilton and Tauranga.

If successful, invest in stages two and three of Rapid Regional Rail with trains that can travel at 160km/h, new rail lines to Rotorua and Cambridge, and a tunnel through the Bombay Hills to reduce travel times from Auckland to Hamilton to 70 minutes.

Fund the $30m SkyPath cycle and walking path over the Auckland Harbour Bridge.

Auckland is the main battleground for transport at this election. Photo / Peter Meecham

Auckland is the main battleground for transport at this election. Photo / Peter Meecham

Green Party

Free public transport for students and anyone under the age of 19.

Like Labour, adopt the policy of lobby group Greater Auckland for a congestion free network in Auckland, but put it on a faster track.

Build light rail for trams from the Auckland CBD to the airport by 2021, and light rail from Wellington railway station to the airport by 2027.

Light rail towards Helensville and dedicated rapid busways to Howick and Botany.

A new track on the southern line to speed up commuter and freight trains.

Adopt the Greater Auckland policy for Regional Rapid Rail, starting with a $20m trial train service between Auckland, Hamilton and Tauranga.

If successful, invest in stages two and three of Rapid Regional Rail with trains that can travel at 160km/h, new rail lines to Rotorua and Cambridge, and a tunnel through the Bombay Hills to reduce travel times from Auckland to Hamilton to 70 minutes.

Allow Auckland Council to introduce a regional petrol tax – possibly 10 cents a litre to raise $100m a year.

NZ First

Emphasis on rail on “Railways of National Importance” and potential for modern tram routes in Auckland over the long term.

Wants to upgrade Northland rail, including a line from Oakleigh to Northport; reopening the Napier to Gisborne rail line and progressive electrification of the main trunk line for improved freight and passenger trains with extensions to Dunedin and Tauranga.

Build a commuter rail link between Swanson, Kumeu and Huapai; heavy rail to Auckland Airport.

Toll state highways in Auckland. Opposed to a regional petrol tax.

Investigate Northport taking some of Ports of Auckland business at Marsden Pt from an upgraded freight rail link to an inland port at Kumeu.

Maori Party

A new “IwiRail” network for freight, tourism and regional employment with the capacity to add $1b into the regions. Ask a potential coalition partner to invest $350m.

Connect Gisborne to the East Coast Main Trunk Line in Kawerau and bring back the mothballed Napier to Gisborne rail line to create 1250 jobs on the East Coast.

IwiRail would receive $100m a year for regional line upgrades and maintenance.

Act Party

Increase the use of funding options to better reflect the principle of users pay, such as tolls on new and existing roads, congestion charges, peak time charges and preferential lanes.

Revenue from tolls should be offset by cuts in petrol taxes.

Technology and entrepreneurship should be encouraged in transport, including ride-sharing, car-sharing, congestion charging and high occupancy toll lanes.

Encourage private sector investments in roads. Review regulation to ensure the viability of autonomous vehicles.

Opportunities Party

Transport is very simple, says deputy leader Jeff Simmons, “politicians should get their grubby hands off it” and leave it to New Zealand Transport Agency to decide on a cost-benefit basis taking into account carbon emissions and accidents.

New round of RONS will help NZ catch up

Press Release – Road Transport Forum

Road Transport Forum Chief Executive Ken Shirley has welcomed the National Partys announcement of a new round of roads of national significance.21 August 2017

New round of RONS will help NZ catch up
Road Transport Forum Chief Executive Ken Shirley has welcomed the National Party’s announcement of a new round of roads of national significance.

“The fact is that New Zealand still faces a major transport infrastructure deficit,” says Shirley. “These new RONS will go a long way to helping us catch up, while improving resilience and safety.”

“Of course, there will also be the usual detractors to these projects, but it is worth reflecting on the success of the first round of RONS and the positive impact they are already having on communities and the economy.”

“I am glad that both major parties have now made formal commitments to finding an enduring solution to the Manawatu Gorge, it is a vital freight route that links the eastern and western sides of the lower North Island.”

“The East West Link is a similarly critical project to freeing up freight movements around Auckland, says Shirley. “But currently there is a lot of uncertainty with it before in the Environment Court. It is encouraging that the political commitment is there to see it through however.”

“The Katikati to Tauranga project is absolutely necessary from a safety point of view, just recently that road was identified as one of the most dangerous in New Zealand. If we are serious about getting the road toll down we must address such routes.”

“Finally, the extension into Northland with the Wellsford to Whangarei route is a natural progression to further realise the potential of the Northland economy and improve its connectivity to Auckland.”

“The road transport industry looks forward to the certainty of other political parties committing to these projects also, they are far too important to be treated as political footballs,” says Shirley.

RTF is joining with a number of other transport organisations including the AA, the Chartered Institute of Logistics and Transport, New Zealand Shipping Federation and Bus and Coach Association to host the Election 2017 Transport Summit at Te Papa tomorrow. This is a great chance to hear directly from the political parties on their transport policies and quiz them on issues important to the broader transport sector. Information and tickets are available at www.transportsummit.org.nz.

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