Infrastructure Minister Shane Jones launches the New Zealand Infrastructure Commission

The Government has launched a new independent Crown entity tasked with addressing New Zealand’s “unprecedented infrastructure deficit”.

The New Zealand Infrastructure Commission – Te Waihanga – would look at ways of fixing and further funding areas where infrastructure investment is needed.

Transport projects and urban infrastructure issues would likely be the focus of the new commission.

Infrastructure Minister Shane Jones said New Zealand has an “unprecedented infrastructure deficit” and the commission was tasked with addressing that.

He said New Zealand’s transport and urban infrastructure was struggling to keep up with population growth.

“This infrastructure deficit is manifesting in housing unaffordability, congestion, poor-quality drinking water and lost productivity.”

“That’s simply not good enough,” he said.

The Treasury has estimated the total infrastructure spend over the next five years would be $42 billion – more than double that of the past five years.

Jones said this showed why the establishment of the Infrastructure Commission was needed.

Overall strategy and planning would be the focus of the new body.

In a Cabinet paper, Jones said the Infrastructure Commission would also act as a “shop front” for private companies looking to invest in New Zealand.

He pointed the finger at the previous Government, accusing National of focusing on short-term projects and under-investing in infrastructure projects.

Local Government New Zealand president Dave Cull said unprecedented population growth and the need to adapt for climate change, as well as a low-emissions economy, means that New Zealand was “behind the eight ball in terms of infrastructure investment”.

“Having a central agency to act as a shop front that the private sector can interact with, and having an ability to buy goods and services in bulk will be a massive benefit to regional development projects,” he said.

The Cabinet has approved just over $4 million to establish the commission and legislation establishing the body would go before Parliament in April.

The creation of the Infrastructure Commission has been well flagged – in August last year Jones announced work had begun on establishing the body.

He said Treasury had been unable to properly quantify the value of the infrastructure deficit New Zealand was facing which he said “was not good enough”.

The new body would work to quantify the level of the deficit, as well as figuring out how to fix it.

The Government received 130 submissions on what the body should look like.

“We have heard that message, and we have delivered.”

Ministers will retain final decisions on infrastructure investments, but the Commission will have an independent board and the autonomy it needs to provide robust, impartial advice.

“It will help hold this Government, and future governments, to account and we welcome that,” Jones said.

Hydrogen opportunity for NZ transport hubs

Hydrogen could play a key role reducing emissions from heavy trucks using the country’s major transport hubs, Refining NZ chief executive Mike Fuge says.

Hydrogen is challenging to store and transport, he says. Establishing a national distribution network would be difficult, just as it would be for heavy electric trucks.

But he says there is an opportunity to use hydrogen at transport hubs around the country, like at Northport – the refinery’s neighbour at Marsden Point – which has fleets of very heavy trucks travelling to and from it daily.

“There’s an opportunity, with the right sort of assistance, to turn those trucks to hydrogen,” he told BusinessDesk.

The Marsden Point oil refinery is the country’s biggest maker of pure hydrogen and has just completed a major upgrade of that capacity. It has 40 years’ experience making and using hydrogen and wants to use that as the country works to reduce emissions from the transport fleet.

Refining NZ has spent several months working on a new long-term strategy which it plans to lay out mid-year.

Fuge told investors today that the company is committed to a profitable refining business remaining at its core.

But he said the company is also looking at how it can leverage its existing assets and technical skills to play a part in the country’s energy transition.

“We see ourselves having a very active role to play.”

Many New Zealand firms are trying to assess the potential of hydrogen as a low-emission fuel for transport or industry.

Ports of Auckland has hired global energy consultancy Arup for a hydrogen pilot to test its suitability as a fuel for its straddle carriers and tugs. Hiringa Energy is working with TIL Logistics to test its potential in trucking and warehousing, while Pouakai NZ last year sought a loan of up to $20 million from the Provincial Growth Fund to test the feasibility of a combined power, hydrogen and fertiliser plant in Taranaki.

Earlier this month, Concept Consulting said hydrogen could be a good fit for return-to-base trucking operations, or for never-leave-base applications like forklifts and port cranes.

But it doubted hydrogen would be economic for industrial processing due to the volume of power needed to split it from water – in the case of electrolysis – or the high cost of capturing and storing the carbon emitted when it is made conventionally from hydrocarbons such as natural gas.

The high cost of public infrastructure also made hydrogen problematic as a fuel for long-distance trucking, Concept said.

Fuge said converting the refinery’s hydrogen-making to a clean process over time could provide a material reduction in emissions and the firm would be interested in working with the government to help make that happen.

Fuge says New Zealand’s fuel standards are already high, so offer relatively little scope for further emissions reduction.

Electric vehicles will replace more of the petrol fleet and that is less of an issue for the refinery, given its production is biased towards diesel and jet fuel, he said.

Biofuel currently needs a carbon price of about $400 a tonne to be viable, he said, but long-term the firm could bring its expertise into that sphere, particularly wood-based processes making fuel from cellulose.

KiwiRail pleased with early Northland studies

KiwiRail says it is pleased with work undertaken to date on a potential extension of its rail network to Northport at Marsden Point.

The firm began geotechnical work in late October on a route for a 20-kilometre spur line from Oakleigh, running east toward Marsden Point.

The final drilling was completed today and further exploration work will continue this year, acting chief executive Todd Moyle said in a statement.

“Our investigations have focused on areas where the most significant engineering works would be needed,” he said.

“Concurrently we are looking at how we can upgrade the North Auckland Line between Auckland and Oakleigh. The tunnels on that line are old, low and narrow. We have had two significant derailments on the line in recent months due to a lack of funding for maintenance. It has been unable to carry passengers for the past year and freight options are restricted.”

Deputy Prime Minister Winston Peters and Regional Economic Development Minister Shane Jones visited the drilling site today.

New Zealand First has driven an investigation into the feasibility of relocating Ports of Auckland to Northport. That is being considered by a five-member working group tasked with developing a broader strategy to better integrate transport logistics chains in the upper North Island.

The cost of the new spur line was estimated at $100 million a decade ago. Bringing the Auckland to Northland line up to standard to handle major freight volumes has previously been estimated at more than $2 billion.

Jones, a list MP, lives in Northland and is a fan of rail. Tourism and freight projects of state-owned KiwiRail have so far received close to $90 million from the Provincial Growth Fund he oversees, including funding for the Northland spur study.

KiwiRail chair Greg Miller says significant agricultural and horticultural investment going into Northland will require an efficient supply chain.

The Provincial Growth Fund will allow a renewal of regional rail and there is a growing acceptance of the wider benefits rail brings by taking trucks off roads, reducing road maintenance costs and improving road safety, he says.

“There is a long way to go in Northland but we are heartened by what we have found so far.”

Will new rail freight hub attract $200m in new business?

A freight train stops traffic at a level crossing.

A new freight centre in Palmerston North is expected to provide spinoffs for Manawatū, bringing more business to the region.

The Provincial Growth Fund’s $40 million investment in KiwiRail for planning and buying land for the freight centre might be just the beginning, unlocking growth.

Spearhead Manawatū chief Craig Nash said the development would attract another $200m in investment into the facility, and create new business opportunities.

“It will have four times the productivity of the current site.

“The goal is to be the fastest and lowest-cost freight hub in New Zealand, that meets or exceeds best-in-the-world standards.”

A more efficient transport network, including a planned ring road around Palmerston North and replacement for the closed Manawatū Gorge route, would tie in with the freight centre as part of a broader transport hub.

Palmerston North's railway yards, viewed from the Milson Line overbridge.
MURRAY WILSON/STUFF
Palmerston North’s railway yards, viewed from the Milson Line overbridge.

There are already about 12,000 freight train services operating to, from, or through Palmerston North each year.

They carry a variety of freight, with pulp and timber accounting for 24 per cent of the 2.5 million tonnes that pass through.

Finished dairy products account for 19 per cent of the tonnage, with bulk wine, milk, meat and other produce making up the balance.

​KiwiRail’s sales and commercial group manager Alan Piper said freight volumes were expected to increase by 60 per cent over the next three decades, and KiwiRail wants to secure or improve its share of the market.

Rail was two-thirds more fuel-efficient than road, with every wagon on the rails meaning one less long-distance truck on the roads.

But Piper said KiwiRail would work with the trucking firms on the project, as freight arriving or being loaded on the railway still needed to be delivered by road.

“We are not competing with trucks. It’s about how we work with road transport to create the most efficient distribution centre we can.”

Palmerston North's rail freight yards are expected to move to land near the airport.
MURRAY WILSON/STUFF
Palmerston North’s rail freight yards are expected to move to land near the airport.

Piper said moving from Tremaine Ave to a location near the airport would create new opportunities for businesses and industries that relied on a quick and efficient network for moving goods around New Zealand, and the lower North Island in particular.

The northeast industrial area was ideal as it was on the main trunk railway line and near the airport.

He said the Government’s injection would pay for planning and buying land.

“And then it’s up to us. Although it might not be us paying for the buildings.”

Palmerston North's rail freight yards are on the move.
MURRAY WILSON/STUFF
Palmerston North’s rail freight yards are on the move.

Nash said having KiwiRail and the New Zealand Transport Agency working together on distribution plans was vital to ensuring the planned regional freight ring road connected well to the new site.

It would make Palmerston North more attractive for a range of industries and manufacturers.

“It will be a major change for central New Zealand, and will unlock potential for companies to move here. It will be bringing the world closer to where we are.”

 

Ports of Auckland to build hydrogen production and refuelling facility

In a first for Auckland, Ports of Auckland has committed to build a hydrogen production and refuelling facility at its Waitemata port. The company, and project partners Auckland Council, Auckland Transport and KiwiRail, will invest in hydrogen fuel cell vehicles including port equipment, buses and cars as part of the project.

Ports of Auckland Chief Executive Tony Gibson said “We have an ambitious target to be a zero emission port by 2040. In order to meet that target we need a new renewable and resilient power source for heavy equipment like tugs and straddle carriers, which are difficult to power with batteries. Hydrogen could be the solution for us as it can be produced and stored on site, allows rapid refuelling, and provides greater range than batteries.”

Ports of Auckland will fund the construction of a facility which will produce hydrogen from tap water. The process uses electrolysis to split water into hydrogen (which is then stored for later use) and oxygen, which is released into the air. Demonstration vehicles will be able to fill up with hydrogen at the facility, which will be just like filling up a car with CNG or LPG. Hydrogen is used in the fuel cell to create electricity which powers the car. The only by-product of the process is water.

“If this trial is successful”, said Mr Gibson, “the technology would have a very wide application. It could help Auckland and New Zealand towards energy self-sufficiency and our emission reduction goals. Trucks, trains and ferries could also run on hydrogen – something which is already being done overseas – which would be a significant benefit for the community. Hydrogen powered vehicles are quieter and emit nothing more than clean water.”

The project partners will provide technical support and will purchase hydrogen fuel cell vehicles for the project. Global hydrogen experts Arup are also helping support this project through the development, design and delivery phases.

Mayor Phil Goff said, “I welcome this trial. It is a first for New Zealand and shows Auckland’s desire to lead on climate change action and meet our ambitious emissions reduction targets.

“With 40 per cent of emissions in Auckland coming from our transport system, alternative energy sources to power vehicles, such as electric and hydrogen, are critical to meeting the target of global warming to 1.5 degrees.

“With infrastructure in place, hydrogen has the potential to power our buses and other parts of our vehicle fleet both reducing global emissions and cutting back on air pollution in Auckland such as in Queen Street where carbon levels are very high,” says Mayor Phil Goff.

Auckland Council’s Chief Executive, Stephen Town, says, “We’re proud to collaborate with the Ports of Auckland, Auckland Transport and KiwiRail on this innovative hydrogen project – a first for New Zealand. It is important for organisations like ours, as signatories to the Climate Leaders Coalition, to continue leading on climate change action; it’s also important for us to push the boundaries with ambitious projects that demonstrate leadership here in Auckland. Trialling new technology to reduce emissions and signalling a smarter economic future is important for our city’s people, places and prosperity.”

KiwiRail Acting CEO Todd Moyle says KiwiRail is delighted to be part of this ground-breaking project. “KiwiRail is committed to a sustainable future and has set a goal to be carbon neutral by 2050. While rail is an inherently sustainable form of transport with 66% fewer carbon emissions than heavy road freight, new fuel sources like hydrogen have enormous potential for the future of transport in New Zealand.

“Just weeks ago, two hydrogen-powered trains with a range of 1000km per tank began operating commercial services in Germany. If successful with passengers, there is no reason why the next development could not be hydrogen-powered freight trains.

“Joining forces with Ports of Auckland in this project will allow us to explore how KiwiRail could use this new technology as we deliver stronger connections for New Zealand.”

Auckland Transport Chief Executive Shane Ellison says AT is committed to clean technology and is very interested in the possibilities of hydrogen power. “This could be part of the answer for our fleet of buses and harbour ferries. The idea of a vehicle which only produces water as a by-product is very exciting.”

The project is currently in the planning phase, and Ports of Auckland is about to start stakeholder engagement before applying for resource consent in early 2019. The facility is planned to be operational by the end of 2019.

An aerial view of Ports of Auckland from the west.
SUPPLIED
An aerial view of Ports of Auckland from the west.

A rift has opened up between Auckland Council and the Government over how the future of the city’s port will be decided.

Mayor Phil Goff says there’s a risk that a Government-appointed working group looking at the upper North Island ports might have pre-determined whether Auckland’s council-owned port could move, and if so where.

Goff said he put a “robust” view to the working group’s chair, former Far North mayor Wayne Brown, in a private meeting last week.

A council commissioned study found shifting the vehicle import trade, could lose Auckland $1 billion
BEVAN READ/STUFF
A council commissioned study found shifting the vehicle import trade, could lose Auckland $1 billion

He said Brown’s public rejection of two potential locations identified by a council study didn’t give confidence, and the group didn’t appear to have enough time or resources to do a proper job.

The council on Tuesday approved a blunt letter to be sent to Brown, ahead of the council’s first formal meeting with the working group in just over a fortnight.

Goff favoured the eventual shift of the port from its current location on the downtown waterfront, but was unhappy with the approach being taken by the working group.

The council will tell the group that its priorities include protecting the value of Ports of Auckland, which last year paid it a $51.1 million dividend.

It is also telling the working group it wants a transparent, objective and evidence-based approach to reviewing the future of the ports in Auckland, Tauranga and Whangarei.

Auckland Council has conducted the most detailed work so far on the future of its port.

Previous mayor Len Brown funded out of his office budget the Port Future Study, which in 2016 found the port might not outgrow its current site in 50 years, but that work should begin on identifying alternatives, in case it did.

Before the 2017 elections New Zealand First advocated an early shift of the vehicle-import trade from Auckland to Northland’s port.

The coalition government including New Zealand First took a bigger picture approach, setting up the Upper North Island Supply Chain Strategy working group, in line with a request from Auckland Council.

New Zealand First MP and Regional Economic Development Minister Shane Jones who oversees the working group, has since been vocal on matters relating to the future of Auckland’s port.

At the start of November Jones said he would do all he could to head-off a planned multi-storey carpark building planned by Ports of Auckland, to house vehicles arriving in the port.

“Public statements have created the impression of pre-determination,” said the council in a letter to the chair of the working group Wayne Brown.

Brown has made public comment favouring a move to Northland, including an opinion column published in November 2017 before being appointed to chair the group.

“Imagine the Auckland waterfront without used cars getting the best views,” Brown wrote.

“Watch for self-justifying job-saving promises from Ports of Auckland to fend off any sensible moves like Sydney has made keeping the harbour just for cruise liners and sending cargo to Wollongong and Newcastle.”

The council’s letter pointed to comments by Brown.

“Indicating a strong preference for relocation of some or all of POAL activities to Northport prior to any analysis is unhelpful,” said the letter which Goff will sign.

“Any plans to move all or some of the Port’s functions requires the concurrence of its owners, the people of Auckland, through Auckland Council,” said the letter.

“I’ve already said to the chair, we’ve put a lot of work into two future options (Manukau Harbour and Firth of Thames) and you’ve dismissed this out of hand, which gives us no confidence,” Goff told today’s planning committee meeting.

The council has spelled out 10 areas it wants the working group to examine closely.

These include the feasible capacity of all upper North Island ports, as well as the climate change impacts of moving freight to and from the ports.

It wanted work done on the social and community impacts of any change, and how and when a future new port would be funded.

The council will have its first meeting with the government’s working group on December 13.

 

Twyford reassures Kiwis on road safety after NZTA revelations

Transport Minister Phil Twyford made a ministerial statement in Parliament reassuring the public about the NZ Transport Agency and road safety, and revealing some more detail about investigations.

It comes after he announced last week that he was initiating a regulatory review of the agency which was set up 10 years ago to combine three functions as the transport funder and builder, and safety regulator.

Twyford said there had been systemic failures by the agency to properly check operators who certified vehicles as safe for the road – Stuff has reported on one death, cracked truck towbars, and suspension of certifiers.

Phil Twyford has been dealing with the crisis at the NZ Transport Agency.

ANDY JACKSON/STUFF
Phil Twyford has been dealing with the crisis at the NZ Transport Agency.

Out of the 850 “open files”, or unresolved safety problems, the worst had been resolved but there were still 28 that were being urgently investigated, Twyford said.

There had been 157 files considered high priority, 370 classed as “orange”, and 345 “yellow”.

Twyford said he has been assured the highest priority cases had been dealt with by formal compliance action either completed or under way.

“Injuries on our roads are not the price we pay to travel. They are unacceptable and preventable,” he said.

“I’m disappointed that NZTA has failed to carry out its regulatory functions.”

He had appointed the Ministry of Transport  to review those functions, and given what the public and Government now knew, it was appropriate to appoint external advice, he said.

Law firm Meredith Connell took up the job near the end of September to review the files and the agency was moving quickly to rectify lapses. The cost of engaging the law firm so far was $400,000

The agency had failed to properly check operators who certified vehicles or operators, as safe for the road, and when problems were identified there was often no follow up, Twyford said.

Staff had been redeployed with reduced focus on the regulatory role over the past decade with an emphasis on education and encouragement rather than enforcement, made worse in 2014 when it lost staff from its heavy vehicle compliance team.

Twyford said the systemic failure of one of the government’s most important agencies over several years was unacceptable

As previously reported, the failures of the agency have led to one fatality in a car, and cases of metal fatigue in truck towbars.

Automation and capacity update from Ports of Auckland

22 November 2018

Operational Update

Automation and Capacity Project – Update

Our project to transform Fergusson Terminal which will provide future capacity is well underway and visitors to the port will have seen a lot of activity and changes including civil works, construction workers and sections of tarmac undergoing renewal.  What has been happening recently:

A-Strads

Visitors will have seen the new blue “A Strads” now assembled on the north end of the terminal, undergoing a comprehensive range of testing in readiness for Go-Live next year.

 

 

 

 

Road Exchange

The work to upgrade the truck lanes has been completed and the next stage is installing the gates and fences required to keep truck drivers and A Strads separated.

Pre-gate Kiosk Screens

These have been updated. Drivers now need to complete some additional steps at the kiosk.  This means that when automation goes live, the drivers will already be familiar with the new system.

Reefer Gantries

The large shiny frames of the new reefer gantries at the southern end of the Fergusson terminal are now complete and sign-off for the reefer operation is expected before the end of this year.  In the meantime, we have been able to use the area as valuable stacking space for dry containers.

New Container Cranes

There was a lot of media interest and celebration with the arrival of our three new container cranes on the specialised delivery vessel Zhen Hua 25.

It was a great sight to see them sail into the harbour in the early morning. These cranes, which have quad-lift capacity (they can lift four containers at once), are now in place on Fergusson North Berth and will be commissioned early 2019, after a range of testing required to integrate them into our current systems.

 

Hatch Platforms have now been installed on all container cranes – these allow the ship’s hatch covers to be stored above the ground, freeing up space around the cranes for container handling.

Lash Platforms In a first for New Zealand, we’re installing lash platforms on all our cranes and our new cranes have them already fitted.  This will make stevedores’ job safer, as they can work above ground away from moving straddles.

Rail OCR (Optical Character Recognition)

A frame, fitted with multiple cameras, has been placed over the rail line to capture images and recognise container numbers arriving and leaving by rail. This system provides a high degree of accuracy and enables rail planners to quickly check on any “exceptions”.

Supply Chain Challenges

There are a range of challenges being experienced throughout the supply chain. We are automating Fergusson Terminal to increase capacity and productivity, whilst at the same time experiencing unprecedented volume demand. It is a bit like having heart surgery while playing rugby!

While we’re carrying out the automation work our terminal capacity is actually reduced, putting pressure on our operations especially during peak import season.

We are undertaking this transformation to ensure we are ready to accommodate Auckland’s rapid growth in freight demand.  We’ll be able to handle more containers on the same land, but it also means some changes in the way cargo owners and trucking companies interact with the port.

Greater planning and different ways of operating are needed throughout the freight supply chain. The port operates 24/7 and yet the wider supply chain largely works 24/5 at best, and often 9 to 5 Monday to Friday.

Extended operational hours are needed at distribution centres, empty depots and importers’ and exporters’ premises to maximise the capacity of the whole supply chain.  It is much the same as an internet connection – you’re currently on dial-up and want to upgrade to fibre, but you only get the best speed if you’ve got fibre end-to-end.

We have been engaging with importers, exporters, trucking companies and freight forwarders to discuss the changes and welcome you to make contact to discuss any issues you may have.

Further Progress

Our automation go-live date is late 2019.  There are a number of civil, operational, engineering and I.T. projects being undertaken, some of which need to be completed in a specific order and others are more flexible.  This means that we are continually adjusting the timing of work.  We will keep you updated on progress and changes.

Please contact us if you have any questions or would like to discuss any ideas or concerns, at any stage.

For more information contact

Customer Service

P: +64 9 348 5100 Ext. 1

E: customerservice@poal.co.nz

 

For VBS queries contact

Transport Co-ordinators

P: +64 9 348 5100 Ext.2

E: driversassist@poal.co.nz

 

 

Ports of Auckland have joined the Climate Leaders Coalitiona collection of business leaders who have each committed to act on climate change.

Ports of Auckland is the first port in the world to make this commitment and the first port in New Zealand to be CEMARS® certified. Joining the coalition contributes to the ports promise to become zero emissions by 2040.

More information on the Climate Leaders Coalition can be found here. Read the CEO Climate Change Statement here.

 

Auckland’s supply chain complications

Media release – POAL and NRC 14/11/19

Auckland’s supply chain complications

National Road Carriers Association and the Ports of Auckland are combining forces to promote change in the supply chain to improve delivery times and prevent delays.

This initiative has come about because of supply chain capacity issues which were highlighted following an accident at Ports of Auckland in August. Imported freight has taken longer to deliver and exporters have encountered delays getting their goods away, leading to frustration all round.

“The supply chain is running at capacity, so unexpected problems can have a domino effect,” says David Aitken, National Road Carriers CEO.
“At its heart, the problem is Auckland’s growth. The supply chain needs to evolve and we’re all going to have to change the way we work to prevent future problems. Better planning and coordination are the key.”

“We’re letting stakeholders know what causes hold-ups and we’re working with partners to improve our end-to-end processes,” he added.
Situations contributing to delays can arise at any stage in the supply chain, sometimes occurring thousands of kilometres away from New Zealand.
“In the last 12 months over half of all container ships arrived at Auckland late (often as a result of bad weather), causing congestion,” says Craig Sain, Ports of Auckland’s General Manager Commercial Relationships. “This makes it hard for us to staff the terminal properly, causing delays.”

Labour scheduling issues at the port are made worse by a shortage of labour in Auckland, which also affects the trucking industry.

The port is currently installing an automated container handling system to address this problem, but the work required to install the system has reduced terminal capacity by about 20%, adding to congestion. This situation will remain until late 2019 when the project will be completed.
“With reduced space in the terminal and more containers coming in due to growing Auckland demand for freight, it is taking us longer to service trucks visiting the port,” says Mr Sain.

Another problem is that getting containers off the port can be delayed because there is nowhere for the containers to go. The port works 24/7 and has capacity at nights and weekends, but often distribution centres, importers warehouses and empty container depots are closed at these times.
“In the past working 9-5, Monday to Friday was fine, but now Auckland has over 1.5 million people it is no longer feasible,” says Mr Sain. “The whole industry needs to be able to work 24/7, not just the port and carriers, and this means distribution centres and importers need to be open nights and weekends to receive imports.”

The road freight transport industry is caught in the middle says David Aitken.  “Importers don’t want to pay for weekend or afterhours work but they also don’t want to pay to hold containers at the port or container depots as a result of their limited business hours.”

“We are storing containers at freight hubs longer, which adds costs for double handling, or are delivering goods later than originally expected because of holdups. We’re also facing higher costs because of Auckland’s congestion, costs which could be avoided by working 24/7,” he added.

The solution is going to come through a combination of technology, greater co-ordination and a move to 24/7 working throughout the supply chain.
As well as investing in automated container handling, Ports of Auckland is working with National Road Carriers Association to update its processes and business rules to minimise manual intervention and incentivise off-peak container movements. Last minute freight moves will become a thing of the past, with all movements having to be planned in advance.

“As a port we have a key role to play and we are trying to educate other players in the supply chain so that they understand the need for change and what they can do to make the process more efficient,” said Craig Sain. “Ultimately, these changes will benefit New Zealand through the fast, efficient and cost-effective delivery of freight.”

New Zealand needs to decarbonise transport to get on track with climate goals

The best way to reduce carbon emissions from the transport sector in New Zealand is to switch to alternative fuels and decarbonise the electricity grid. Personal behaviour change will have an impact, but not enough, a new study has found.

According to the chief executive of Infrastructure New Zealand Stephen Selwood, a new report from thinkstep has found that activities such as car sharing, teleworking, home deliveries and using more public transport will save around 15 per cent of carbon emission compared to the near 90 per cent reductions needed to meet climate targets.

“Many people think that enabling alternatives to the car is the best way to reduce carbon emissions in New Zealand,” Selwood said.

But thinkstep’s report calculates that a shift to electric, biofuel and hydrogen-powered vehicles has potential to reduce carbon emissions from consumption by up to 88 per cent by 2050. The Creating a positive drive: Decarbonisation of New Zealand’s transport sector by 2050 was launched on Thursday.

A shift to electric, biofuel and hydrogen-powered vehicles “has the potential to reduce carbon emissions from consumption by up to 88 per cent by 2050,” the report says.

In order to achieve this shift, renewable energy generation would have to double in capacity, and the country would have to see the conversion of five per cent of agricultural land to the production of biofuels.

Encouraging ride-sharing and the use of public transport would have benefits that are more achievable in a short space of time than a complete switch to zero emission transport, but they would only change a small proportion, up to 29 per cent, of total journeys,  the report says.

Everything helps

The government could encourage people to share rides by establishing carpool lanes, and create a pricing model to encourage electric vehicles.

Transport scenarios for New Zealand in the report for 2050 relative to 2015 (savings include domestic greenhouse gas emissions only)

“The role of government and business, as we see it, is to make these low-carbon choices easy and convenient,” says the report.

“While we still depend on fossil fuels, ride-sharing has the potential to be a quick win for New Zealand on climate change,” Dr Jeff Vickers, technical director of thinkstep and lead author of the report said.

“It reduces carbon emissions and road congestion immediately, and the carbon story gets even better as we move to electric vehicles. This is something that could happen virtually overnight, as all you need is a smartphone.”

A year ago Prime Minister Jacinda Ardern set out a plan for New Zealand to transition its electricity grid to renewables by 2035. Between 50 to 60 per cent is already delivered by hydroelectric power. Ms Ardern’s long-term goal is for New Zealand to achieve zero carbon emissions by 2050.

Currently, according to climate action tracker website, New Zealand’s Nationally Determined Contribution target under the Paris Agreement of a 30 per cent reduction from 2005 levels by 2030 is rated as “insufficient”. In other words, it is not consistent with holding warming to below 2°C, let alone limiting it to 1.5°C, as required, and is instead consistent with warming between 2°C and 3°C.

Part of the reason is that transport contributed 19 per cent of all greenhouse gases emitted in New Zealand in 2015. A reduction in transport emissions by 90 per cent would reduce New Zealand’s total gross GHG emissions by 17 per cent.

But the road to decarbonising transport is harder than that. “When considering the carbon footprint of products and services that New Zealanders consume – rather than including those that are destined for offshore markets – transport’s contribution jumps to over 40 per cent,” Dr Vickers said.

The government is currently considering a Zero Carbon Bill. The target of net zero emissions by 2050 is supported by 91 per cent of respondents to a consultation for the bill, while even more, 96 per cent, support the establishment of an independent watchdog, a Climate Change Commission, like the UK’s.

The government realises that it’s cheaper to take action sooner rather than later.

Light commercial and heavy vehicles are assumed in the report to run on hydrogen in the future, yielding a 64 per cent drop in emissions using today’s electricity grid, or 91 per cent for a fully renewable grid.

In this future, biofuels would be used to power ships and planes because of their higher energy density. But biofuels have their own social and environmental impacts: air pollution, displacing crops, and a reduction of biodiversity.

See the full report here.