Desert Road Closure Costing Freight Businesses An Estimated $100,000 Per Day

National road freight association Transporting New Zealand has emphasised the importance of getting the Desert Road on State Highway 1 reopened as soon as possible, estimating that the closure is increasing freight costs for businesses and consumers by $100,000 per day.

Chief executive Dom Kalasih says that while using block road closures allows NZTA to work more efficiently and safely on roading projects, it is essential that these are well managed and keep to schedule.

"Transporting New Zealand supported the block road closure approach for the Desert Road project, rather than operating stop-go for months and years on end. However, taking this approach means that NZTA needs to be providing regular comms updates and completing these works on time.

"If there are any delays with the Desert Road opening, it is critical that NZTA provides notice well in advance so that transport companies can readjust their plans to manage the extra demands."

Kalasih says that having the closure extended would be bad news for businesses and consumers across the country.

"Based on NZTA information about the additional detour time and traffic data, we estimate the additional freight cost is in the order of $100,000 per day, due to approximately 800 trucks per day having to travel for an additional 35-40 minutes. Our members have no choice but to pass those costs on to their customers, and that shows up as higher prices for consumers.

"There’s also the loss in labour productivity and the significant impact on local businesses in the affected area to consider.

"The closure also increases risk to the resilience of the network. If SH4 between National Park and Tohunga Junction was to become blocked for any significant period, then inter-regional travel across the Central Plateau would be severely impacted."

Transporting New Zealand sought an update from NZTA on how the project was tracking to schedule on Monday, and will be keeping their members regularly updated.

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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