The head of the Road User Charges Review Group Tony Gibson says rail and coastal shipping could potentially lose market share to road if the proposal to raise maximum truck weights to 53 tonnes is approved by the Govt. But local Govt influence over the permit system controlling the use of heavier vehicles could provide a lifeline to the other modes. Gibson says although consideration of the proposal to increase truck weights has not included analysis of its impact on other modes, he is certain it will be negative on sea and rail. ” The impact of more efficient heavy vehicles is likely to further erode the competitiveness of these two modes.” Gibson adds this outcome would be counter to recent general transport policy direction of trying to encourage greater use of other modes. Countering this at a broader level, any adverse consequences will be offset by the claimed benefits of $250m to $500m per annum from allowing trucks to carry heavier loads.

However, Gibson believes the adoption of electronic monitoring of heavy vehicles could create an opportunity to develop designated arterial routes which could help boost intermodal freight movement. “Under this model the pattern of road freight would be electronically managed via the permit process to enhance the viability of coastal shipping and rail.” He adds local authorities which are expected to have a pivotal role in the permit allocation process are likely to support moves to improve the use of coastal shipping and rail freight movement to reduce local truck movements. “This is the key opportunity for the interests aligned to coastal shipping and rail.”

 Copyright © Media Information Ltd
NZ Transport Intelligence Briefing