Desert Road closure costing freight businesses $100,000 a day
Transporting New Zealand is raising concerns over the continued closure of Desert Road SH1, saying it is increasing freight costs for businesses and consumers by $100,000 per day.
Transporting New Zealand chief executive Dom Kalasih saidwhile using block road closures allows NZTA Waka Kotahi to work more efficiently and safely, it is essential that these projects are well managed and kept 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,” he said.
“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 said 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.”
Kalasih said 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,” he said.
Transporting New Zealand sought an update from NZTA Waka Kotahi on how the project was tracking to schedule on Monday, and will be keeping their members regularly updated.