Ken Shirley: Bigger is better for economy and environment

New Zealand's road freight costs are, on average, 30 per cent higher than Australia's. Photo / Mark Mitchell

The fact that it's going to take some time to upgrade parts of the Auckland motorway to take heavier trucks is no surprise and no reason to question the demonstrable economic benefits these vehicles will deliver over time.

The decision to allow heavier payloads under a strictly controlled permit system is the end result of a thorough process that began in mid-2008 when the previous Government approved a trial of 50-tonne trucks.

At the time, the then Minister of Transport, Annette King, noted "the projected doubling of the road freight task by about 2020 means freight needs to be moved as efficiently as possible. An increase in the limits for heavy vehicles is expected to improve vehicle productivity by consolidating loads and reducing the number of vehicle movements required to distribute that freight.

"This in turn will reduce fuel consumption, reduce emissions, improve safety and overall will contribute positively to the Government's sustainability objectives," she said.

The year-long trial proved Ms King right. It found that truck productivity could increase in the range of 10 to 20 per cent. Trip numbers could reduce by 16 per cent and fuel use by 20 per cent.

Based on these conclusions, in the middle of last year the Government proposed changing the dimensions and mass law.

It went through the full consultation process before making a decision. This was hardly a "rush" as the Herald editorial suggests and the reasons for the decision were clearly established.

It was always known that parts of the state highway system as well as regional roads would need upgrading to take heavier vehicles. That was no reason not to make the decision or to question it now.

The Government decided to approve heavier vehicles despite the network limitations for some very sensible reasons. Trucking operator applications for permits would help establish where the greatest demand for suitable routes is. It would also mean that where suitable routes are available, operators can put more productive trucks on the road and reap the benefit for their clients and themselves.

That's what's happening. Meanwhile the New Zealand Transport Agency is prioritising its upgrades and the Road Transport Forum anticipates most routes with the highest demand will be able to handle these heavier vehicles within the next three to five years.

Yes it is taking some time, but the routes most in demand will get attention first and, of course, the heavier vehicles already on the road will be paying substantially more in road user charges towards the cost of these upgrades.

As far as regional roads and the costs to ratepayers are concerned, these trucks can only travel on roads for which they have a permit. It's up to the local councils to decide whether the economic activity and jobs that could be created are worthwhile.

New Zealand's freight volumes will grow by 75 per cent from 154 million tonnes in 2006 to nearly 270 million tonnes in 2031, according to a major 2008 report for Government. The editorial suggests that rail will have to carry this increase in freight in the short term. That's not what the study found. It concluded that "the modal share of rail would remain broadly constant, with the 70 per cent increase in rail tonnage being slightly below the overall increase forecast of a growth of about 75 per cent".

Coastal shipping would increase its percentage, but basically the report concluded most of this extra 100 million or more tonnes of freight will go by truck. The option is more trucks or more on trucks. The Government has taken the long-sighted view and is working to create a network that will require fewer trucks than would otherwise be needed. There are other compelling reasons to have more productive trucks on our roads.

New Zealand road freight costs are on average 30 per cent higher than Australia's. One of the major reasons is that Australian trucks can carry more.

It's not just its minerals that are making the Australian economy and wages grow faster. If New Zealand is to grow its economy and stop the flow of people across the Tasman, then it has to lift its productivity in all sectors and that includes road transport.

It's worth mentioning that it's not just the Australians who have latched on to the benefits of higher payloads. The European Union has been considering the implications of vehicles up to 25.25 metres and weighing up to 60 tonnes already in use in Finland and Sweden.

Its deliberations have been supported by a 2009 study for the Community of European Railway and Infrastructure Companies. It concluded that "the potential impacts of the introduction of longer and heavier vehicles at EU level can be positive in both economic and environmental terms. The increased payloads per vehicle are expected to reduce transport costs and lead to significant savings for operators, industry and consumers. Since fewer trucks would be required to transport the same volume of trade, the environmental and other external costs of freight transport would also be lower."

One final but important benefit will be improved truck safety. Despite the editorial's unsubstantiated claims of an increased threat to road safety from heavier vehicles, the most likely outcome will be fewer fatal accidents.

The Ministry of Transport said in May that fatal accidents involving trucks are now a third of what they were in 1995. Trucks are getting safer.

The worrying statistic is nearly 74 per cent of fatal accidents between a truck and another vehicle in 2008 were caused by the other vehicle. Fewer truck trips should mean less risk.

Former Cabinet minister Ken Shirley is chief executive officer of the Road Transport Forum.