Improving transport systems to meet increasing demand and support prosperity and wellbeing for New Zealanders is the driving force behind the Ministry of Transport‘s future strategy. Peter Mersi, CEO Ministry of Transport, covered three topics in his address to RTF delegates.

Improving driver licensing and road safety
Mersi began by saying University of Otago research suggested about 25% of road fatalities involve a person driving for work, making road crashes by far the single largest cause of work fatalities. While trucks are not involved in significantly more crashes per kilometre than any other type of vehicle, these crashes are far more likely to be fatal, accounting for over 20% of road deaths. This is why the Road to Zero draft road safety strategy has been developed, which philosophically says ‘it is ethically unacceptable for anyone to be injured or to die due to road crashes‘. “The Road to Zero philosophy proposes that while driver education and safer vehicles remain vitally important, we also need to acknowledge that people make mistakes and we need a roading network that is forgiving of driver error,” said Mersi. He noted the strategy proposes a number of immediate actions relating to the road transport industry, and that the government is developing a package of initiatives to ensure organisations are aware of road safety related risks and their obligations, and to build an understanding of best practice for different sectors. Also proposed is the strengthening of commercial transport regulation with a focus on opportunities to improve fatigue management. “This includes reviewing logbook and worktime requirements as part of the 2019/2020 rules programme; ensuring that the regulatory system under the Land Transport Act 1998 is fit for purpose, including examining the roles and powers of the regulators; ensuring effective coordination between NZTA and WorkSafe, including examining the boundary between their roles; and implementing the outcomes of the review of the NZTA‘s regulatory functions,” Mersi explained. The ministry is also progressing changes to the heavy vehicle driver licensing system.

The review proposes a range of changes that would remove some special type vehicle endorsements, allow easier renewal for some endorsement holders, and improve oversight of course providers. “Feedback from the consultation process raised concerns about the current licensing system and how it might be contributing to a current shortage of drivers. We heard your concerns about the complexity of the heavy vehicle licensing system and that the cost of progressing from a class two to a class five licence acts as a disincentive for drivers and transport companies to invest in obtaining higher licence classes,” Mersi noted. Trucks move 91% of New Zealand‘s freight tonnage and freight movements are projected to increase by over 50% in the next 25 years. Mersi said changes need to be made to manage the planned increase and enable growth. That means making the system easier to understand, reducing costs and improving compliance without compromising road safety outcomes. “The goal is to deliver an enhanced licensing system, one that maintains an appropriate focus on the regulatory outcome but saves users time and money,” he continued. Mersi expects the rule changes to be progressed within this financial year (by June 2020).

Photo: Positive changes are on the cards at the Ministry of Transport, says CEO Peter Mersi.

Shaping future transport investment
“Transport in New Zealand is part of an ecosystem. So how do we hammer out transport priorities in a way that takes into account the things that really matter?” asked Mersi. The answer was the 2018 Government Policy Statement on Land Transport (GPS), an outcomes framework for New Zealand‘s transport system. “The framework is designed to be enduring and to look at the impact of the transport system holistically and over the long term. This supports consistency in the decision-making process. The outcomes framework defines the overall purpose of delivering a transport system that improves wellbeing and liveability,” said Mersi. “The GPS provides guidance on how around $4 billion is spent through the national land transport fund each year. It also provides signals for spending of a further $1 billion on land transport through local government investment and over $500 million dollars of crown investment.” GPS 2018, said Mersi, represented a significant shift, with ‘safety‘ and ‘access‘ identified as the top priorities.

However, the next GPS for 2021 is in development and that, said Mersi, will focus on getting the best from all modes of transport and ensure over time that each mode can effectively and efficiently make an appropriate contribution to transporting people and freight nationwide. “As that transport system continues to evolve, we will also need to consider the future of transport infrastructure funding. Our focus is to ensure New Zealand enjoys an efficient, multimodal transport system where all forms of transport can play their part and their potential contribution to the whole system can be realised. “We know that the transport system is not straightforward, it‘s a system that‘s very interconnected where changes in one mode can affect the way another operates. A resilient transport system is one where the different modes of transport are well integrated and supported to play their role well. New Zealand‘s transport system also needs to be resilient in the face of shocks and challenges and able to adapt quickly when needed,” he said.

Driving investment in the transport network
As it stands, revenue from fuel excise duty, road user charges, and motor vehicle registration and licensing are the primary source of funding for land transport. However, said Mersi, over the coming years this revenue stream will face a number of challenges. Issues such as higher levels of fuel efficiency and greater use of alternative fuels, potential double taxation for vehicles that use a mix of fuels, each subject to different charging systems, and increased ride sharing and use of public transport are all currently encouraging a shift in thinking. “Over time we expect to see fewer single-occupancy vehicles on our roads. This could quickly lead to a debate about the fairness of the charging regime,” said Mersi. “Incorporating costs would enable externalities – the costs imposed on others by those using the road – to be paid for by those using the road.” For instance, new vehicle technology such as hybrid, electric or alternative fuel could be charged on a per kilometre basis through the existing RUC system. This could also replace the excise duties for petrol vehicles. “Moving the entire fleet onto the RUC system creates the possibility of a more sophisticated charging system to recognise factors other than just kilometres travelled.

These could include location, time of day, vehicle weight and other characteristics like the amount of emissions from a vehicle, real-time congestion levels and the type of roads used,” Mersi said. Research into the effects of pricing travel behaviours shows the benefits could include shifting some vehicle trips from peak to off-peak periods, reducing vehicle trips and distances, increasing mode shift, increasing reliability and providing information for better traffic management and investment. But there are some challenges. “If one of the objectives is to ultimately influence behaviour, we must ensure users know what they‘re paying at any point in time. We don‘t know what transport investments we‘ll need to fund in the next 20 to 40 years, so a future revenue system needs to also be flexible enough to adapt to changing behaviour and evolving technology. “To better understand the future challenges and opportunities, the ministry is currently undertaking a project that takes a fundamental look at the land transport revenue system and how it will need to adapt for the future. Reforming the land transport revenue system is, however, a complex policy issue. For this reason, it‘s important the debate is methodical, thorough and transparent,” he said.