Economics Subjective With Transport Infrastructure
August 21st, 2008
National’s Transport Spokesman, Maurice Williamson, when talking in Gisborne recently raised some issues relating to the economics of various transport modes in the District. His views highlight again the varying treatment different modes of transport have when it comes to economics. Williamson says Gisborne, and presumably most other smaller provincial regions, will never be able to attract private sector funding to assist with building roads as traffic volumes are too small to make toll roads commercial propositions. This is an entirely realistic and rational comment but he also claims the Napier-Gisborne railway line may not be viable and as a result it could be closed down with more money invested in the parallel State Highway instead.
Roads Treated Differently. Williamson’s position regarding the two transport modes is another example of a double standard applying when it comes to viability. On the one hand he claims the roads in the region are not economically viable but are worthy of greater investment. But the rail line which still has potential to move greater volumes of timber is not worthy of greater investment due to its poor economic viability. He does not make clear as to why one unviable transport route should receive investment but another should not.
Shipping Support Unclear. He also appears to support greater use of coastal shipping too, which is another more fuel-efficient alternative mode to road transport. However, it is unlikely he will be providing any Govt funding to help cover set up or running costs of a shipping service either. It, like rail, will have to prove commercial viability but road won’t. The playing field it seems is destined to remain distorted against rail and coastal shipping.
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