Auckland Congestion Costing Freight Companies And Customers Millions

National road freight association Ia Ara Aotearoa Transporting New Zealand says a report from EY and ARUP for Auckland Transport on the $2.6 billion cost of traffic congestion emphasises the need for time of use charging that takes freight considerations into account.

Transporting New Zealand Chief Executive Dom Kalasih says reducing congestion will have big benefits for freight efficiency, labour productivity, and emissions reduction.

"The report estimates that congestion in Auckland is costing our trucking members $130 million dollars per year - costs that end up impacting businesses and consumers across the country.

"Congestion reduces the number of trips that freight operators can complete, puts pressure on drivers who are only legally permitted to work a certain number of hours per day, and pressures freight companies to put more, less efficient vehicles on the road."

Kalasih hopes there will broad cross-party support for sending the Government’s Time of Use Charging Bill to the select committee stage so it can consider improvements to the proposed legislation around freight and supply chain implications and exemptions.

"Getting congestion charging settings right is really challenging, and essential to getting enduring schemes put in place. Only a handful of cities operate comprehensive congestion charging schemes, and there have been many proposals that haven’t gone ahead due to concerns about cost implications and implementation."

The latest New York time-of-use scheme is currently subject to legal action by the Trucking Association of New York, alleging that trucks are being disproportionately charged.

Kalasih says that Transporting New Zealand would like to see exemptions for freight and goods vehicles permitted by the legislation.

"Transporting New Zealand is concerned that the proposed legislation limits exemptions to emergency vehicles. This is bad news for bus users and road freight businesses who will have to pass costs on to consumers. Overseas schemes allow for wider exemptions that maximise savings for consumers and businesses."

"Around half of all vehicles in the London charge area are exempt or qualify for a discount."

Kalasih says ruling exemptions out entirely will prevent an evidence-based assessment being done where schemes operate on key freight routes or around freight or passenger hubs.

He says that Transporting New Zealand will be consulting with its membership on the legislation and making a major submission at any select committee considering the legislation.

About Ia Ara Aotearoa Transporting New Zealand

Ia Ara Aotearoa Transporting New Zealand is the peak national membership association representing the road freight transport industry. Our members operate urban, rural and inter- regional commercial freight transport services throughout the country.

Road is the dominant freight mode in New Zealand, transporting 92.8% of the freight task on a tonnage basis, and 75.1% on a tonne-km basis. The road freight transport industry employs over 34,000 people across more than 4700 businesses, with an annual turnover of $6 billion.

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