The government should stick to its supply chain
The government is right to look at New Zealand’s tenuous supply chain, but it shouldn’t seek to intervene there beyond being a regulator and infrastructure provider, says the top body. the road transport industry, Ia Ara Aotearoa Transporting New Zealand.
The Department for Transport recently consulted on New Zealand’s freight and supply chain issues, with Transporting New Zealand providing extensive comments on behalf of the trucking industry.
“There is a real risk that the government will try to game the supply chain, which is essentially a market instrument,” said Nick Leggett, managing director of Transporting New Zealand. “The government must use light regulation and should instead focus on major infrastructure investment to facilitate better transport links.”
Transporting New Zealand supports the government’s approach of taking a longer-term view of the supply chain, particularly as it relates to decarbonising the transport sector.
“Better and safer roads lead to more efficient driving, shorter journey times and reduced congestion. These factors all contribute to reducing emissions and that is why we call on the government to commit to new road projects as a matter of urgency.
93% of freight is transported by road, so more investment in road maintenance is vital.
“Nor would the road transport industry be opposed to investing in projects such as a dry dock which would reduce the time our vessels have to spend in Australia for maintenance. We also support cooperation around an offshore freight forwarding hub to handle major freight entering the country, which would pave the way for greater use of cabotage, thereby reducing some reliance on liner road transport”.
“Such a hub would also reduce our reliance on international shipping companies that may choose not to call at New Zealand,” Leggett said. “As the report reveals, we represent only 4% of the global shipping market and we are at the end of the chain. This represents a real risk for New Zealand and this is where the government should focus its efforts. .”
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