Cook Strait ferries have a vital role to play

In August 2024, Ia Ara Aotearoa Transporting New Zealand6 MinutesBy Dom KalasihSeptember 5, 2024

KiwiRail’s Interislander ferry Kaiarahi was back in service on time after its planned maintenance outage, and Maritime NZ cleared the Aratere to return to service. Many people will have been engaged in getting these ferries back and I suspect they will have been working under considerable added pressure, so well done to all involved.

I use both ferry operators, KiwiRail and Bluebridge, and happened to be on the Strait Feronia recently. I loved seeing the crew specifically reserve food for freight drivers in their kitchen/restaurant.

Last, but not least, to the transport operators, their drivers, planners and customers who have no doubt suffered considerable inconvenience and delays with the reduced capacity and needed to put in considerable extra effort arranging workarounds to manage the reduced capacity of vessels – well done to all.

It is not surprising that the grounding of the Aratere ramped up interest in investment in rail and ferry infrastructure, and it’s been impossible to escape the media interest. There have been a variety of opinions and claims about what the road freight industry wants.

It has been claimed that the road freight industry has called for the government to get out of the ferries and that its decision to downgrade the ferry purchase was designed to provide the trucking industry with an advantage over rail transport. It has also been claimed that the bulk of the cost of New Zealand’s roads and their maintenance is due to the cost of trucks, which don’t pay for their proper share.

I think it is timely that we restate our position.

The request from the trucking industry for the government to get out of rail was not made by Transporting New Zealand. Our members include the largest New Zealand-owned transport companies, and we have never advocated for any government to close down rail or hobble it to make it uncompetitive. In fact, a few months ago, we joined one of our members, Wareing Group, to celebrate the opening of the intermodal road-rail Fairfield Freight Hub.

We do not believe that the current debate should focus on company structure or, more particularly, whether the government should have a financial interest in KiwiRail and the Interislander.

The discussion needs to focus on what is required to ensure there is a safe, regular, resilient and competitive service for moving people and freight across the Cook Strait. Equally important, those service providers must be commercially sustainable.

If there’s a strong focus on what’s needed to deliver those outcomes, then details like what the system looks like and what the appropriate company and governance structures underpinning the service providers are, will come out of that. So far, there’s been a lot of speculation but no definitive decisions by the government on replacing the KiwiRail ferries.

I would be more worried about the impact to service levels and resilience if the Interislander vessels were reduced from three to two, rather than what the corporate company structures of the respective service providers look like.

Regarding cost recovery of the road network, the Domestic Transport Costs and Charges Study was completed in April last year. That study was commissioned by the Ministry of Transport and undertaken by an independent consultant. Its key finding was that no road users pay their full share of the respective costs they impose on the network – however, the category of larger-sized trucks pays more of its share of the costs than any other category of road user.

The road/rail debate will continue, so I’ll leave you with some other numbers to put more context around the freight task modal share: Road freight transport accounts for 93% of the total tonnage of freight moved in New Zealand (MoT National Freight Demands Study 2018). Air, rail and coastal shipping move the balance. Not all that travels on rail goes across the Cook Strait, and currently only one of the five vessels that ply their trade has roll-on roll-off rail.

We believe that each of the transport modes has an important role to play in moving people and freight and keeping the economy going.

Our members operate in a very competitive market, and they, more than most, appreciate that their customers and clients want value-for-money, reliable and resilient transport solutions. Our members are routinely challenged to provide the best solutions, regardless of mode. I can assure you of this because in my previous role in the fuel sector, I was directly involved in assessing the feasibility and viability of railing bulk fuel.

In 2021, our association rebranded from RTF (Road Transport Forum) NZ to Ia Ara Aotearoa Transporting New Zealand because our board and leadership team at the time recognised that to keep up, we need to think about much more than just roads and trucks.