Regional freight strategy seeks balanced approach

22 January 2007

A new regional strategy released today reflects the freight industry's importance to the Auckland region and New Zealand.

Around a quarter of the country's freight traffic is within the Auckland region and more than a tonne of freight is moved each day for every household in the region.

Regional forecasts suggest that strong population and economic growth will continue over the next 50 years, and the region needs to plan a sustainable freight management system for the long term.

Announcing the strategy's release, ARC Transport Policy Committee chairman Joel Cayford says it provides a strong mandate for change and call to action to help facilitate the sustainable long-term development of the region.

"The freight strategy highlights the action we can take to relieve traffic congestion, encourage rail and sea freight and also sustainably manage our freight network."

"Business productivity depends on a good quality transport system. While we expect road freight to continue to be the backbone of the industry, we also want to encourage alternative modes like rail and sea."

The overriding challenge is to achieve the right balance between promoting economic development through freight movement, and ensuring that it is done in a sustainable way that minimises harm to the environment," says Mr Cayford.

The Auckland Regional Freight Strategy is a valuable tool for enabling Auckland to achieve that balance."

The ARC prepared the Auckland Regional Freight Strategy in consultation with the public and representatives from the freight industry, local councils and Transit New Zealand.

The strategy is designed to help the long-term sustainable development of the region. It underpins and expands on the freight policies set out in the 2005 Regional Land Transport Strategy, and contributes towards the outcomes sought by the Regional Growth Strategy.

Its purpose is to ensure that freight movement is recognised as an essential contributor to Auckland's economic, social and cultural well-being. The term 'freight' can apply to anything from a small parcel delivered by courier, to large and bulk items transported by truck, train or ship.

Key issues highlighted in the strategy

* Congestion is the key issue for the regional freight transport industry and is the main stumbling block to operating efficiency

* Congestion imposes significant costs on the freight industry. The direct financial impact of road congestion on the profitability of our regional manufacturing and distribution sectors has been estimated at around NZ$100 million p.a. due to delays and inefficiencies in the delivery of good and services, resulting in a $185 million impact on our wider local economy (Ernst & Young 1997).

* Rail struggles to be commercially viable over short distances as transfer of cargo from rail to truck results in double-handling costs. However, rail is better able to compete for longer distance inter-regional freight traffic, especially for the movement of containers and bulk traffic

* Potentially, rail could move large volumes of containers efficiently between the Port of Auckland and freight hubs served by rail as well as road, avoiding congested roads

* Road freight, however, is expected to dominate for the foreseeable future regardless of efforts to increase freight transport by rail or sea

* Freight and land-use planning need to be better integrated. Future population growth and densification of the urban area will only add to environmental pressures facing the region, with increasing road congestion and conflict between residential and business activity

* There is a lack of reliable data and knowledge about the nature and extent of the regional freight issues. Good decision-making requires good data; more information is required to help policy development

ENDS

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