Speed and productivity
In my opinion the challenge in balancing competing demands could not have been better demonstrated by some work done at the International Monetary Fund (IMF) that came hard on the heels of NZTA announcing consultation on the reversal of a number of speed limits. We understand that higher speeds bring challenges – you cover more distance when reacting and it takes longer to stop – but on the other hand the IMF analysis Where Are the World’s Fastest Roads? shows high-speed roads boost productivity, reduce poverty, and contribute to economic developments by connecting markets efficiently.
The world’s fastest roads are found in richer economies including the United States, Portugal, Saudi Arabia and Canada. The slowest roads are found in the poorest countries -another obstacle to inclusive growth.
We want a safe, well-performing economy and we believe there is a need to create greater awareness of the trade-offs made when things get in the way of moving people and freight.
The impact of detours
A case in point is the closure of the Desert Road.
We supported NZTA using a block road-closure for this project as it enables the work to be done safer and not drag on for months and years with stop-go management. We also accepted that, based on NZTA information about the additional detour time and traffic data, there would be an estimated extra freight cost in the order of $100,000 per day. Our members have no choice but to pass on those costs to their customers and that shows up as higher prices for consumers. This was the best option to balance the competing demands of safety and economic impact.
Substantive detours also lead to a loss in labour productivity and can have a big impact on local businesses in the affected area. According to some business owners, it appears the latter issue has been exacerbated by an electronic sign confusing motorists and leading some to unnecessarily by-pass a number of businesses earlier than they normally would. This is another good demonstration on how much communities can be impacted by changes in travel.
We’ve sought an update from NZTA on how the project is tracking to schedule and we will be keeping members regularly updated.
By the way, for those travellers that are feeling aggrieved by the additional 35 to 40 minutes required to detour the Desert Road, spare a thought for travellers in North Queensland and Far North Queensland that suffered torrential rain in and around Townsville earlier this week.
The region’s roading authority, Transport and Main Roads, developed a contingency plan which identified a solitary alternative route for heavy vehicles to get around the floods. It advised the freight industry “Please note, this adds an additional 1200 km detour which equates almost to the distance from Brisbane to Townsville.”
Understanding our Workforce
One of the biggest challenges our industry faces is uncertainty with our workforce. We know our workforce is aging, driver demographics are changing, and driver shortages vary around the country. However, as a fragmented industry, we haven’t had high quality data available to help businesses make good recruitment decisions.
Adding to that problem is a lack of quality data about driver demographics including age, gender, ethnicity and income. To address this gap, we’re producing a workforce report using data from the last three censuses that will provide a much clearer picture of how the workforce is changing.
We have engaged an That’s why With support from Teletrac Navman, we have commissioned some research using data from the last two censuses and from some early snapshots I’ve seen, I anticipate the findings and the insights will be invaluable to our members and enable us to develop strategies that are much more likely to be successful.
Dom Kalasih, chief executive officer, Ia Ara Aotearoa Transporting New Zealand
