Spotlight on industry issues
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The 2022 EROAD Fleet Day on 20 July at Hamilton’s Claudlands Events Centre shone the spotlight on heavy transport – undoubtedly a positive move. The content was more targeted and covered the main industry issues. Here are some highlights.
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Ia Ara Aotearoa Transporting New Zealand CEO Nick Leggett kicked off the heavy-transport stage by giving an overview of the industry’s significant issues and what the association is doing about them.
He started with a comment on the recent Grant Thornton Cost Index, which revealed a 23% increase in CPK over the past year. “One in five operators can’t pass on their increases to their customers. This is serious – if truckers can’t pass on the costs, they could go broke.”
Another finding was that 80% of businesses had increased wages, and the median for drivers has risen from $26 two years ago to more than $31. “That’s important because we’ve been regarded as being a low-wage industry. Operators have realised it’s needed in order to attract people. It’s a good story to tell.”
In relation, Leggett alluded to the association’s Road to Success traineeship. “It’s not necessarily 16-year-olds we need to appeal to. It could be people in their 30s or 40s. We have to take all comers and diversities. Recognition of that is dawning for operators.”
Leggett said that the industry needed to confront its responsibilities with emissions. Transporting New Zealand has adopted a Green Compact, laying out what industry can start doing now. “Demands around our emissions footprint are changing. It will not come all at once, and it will be expensive. But we have to face it positively and be open.”
On the subject of roads, Leggett commented: “We’re feeling the lack of maintenance. The wear and tear on gear is appalling – we have evidence of that. It’s a health and safety issue as well – with tyres blowing on really bad roads. There’s going to be more of it unless we continue to stand up.”
Leggett warned against the government’s Fair Pay Agreement Bill. “This is going to reduce the flexibility of the industry to respond to its requirements. We’re going ‘back to the future’ like we did things over 30 years ago. We don’t have the resources for it, and the legislation doesn’t provide for it. Transport might be affected early on, and the industry needs to be as prepared as possible. The reality will be stark. Strong and consistent advocacy is needed.”
…and more issues
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With a shrinking workforce, degrading infrastructure, rising costs, regulatory uncertainty and a lumpy global supply chain, operators need to realise things aren’t going to get back to normal… that was the sentiment of James Smith, National Road Carriers Association COO.
Smith used the platform to offer delegates guidance on navigating some of the most pressing issues – starting with understanding their own businesses. “Know what your costs are and what you must watch out for. Know your fleet – trucks have been able to talk to us for years, the problem is we’re not listening. Know and understand your drivers – lots of companies don’t engage often enough. Know your customers and understand their goals. The sooner you find out, the sooner you can plan. Finally, start thinking and planning for the longer term.”
Regarding decarbonisation, Smith suggested operators pragmatically adjust their businesses and squeeze value from existing ecosystems. “Don’t wait until your customer demands it – have a plan for when the conversation happens,” he said.
“We’ve still got people who won’t wear seatbelts,” Smith said as he spoke about road safety, adding that trucks were highly visible and the industry needed to reduce its exposure.
He said distractions needed to be eliminated. “We need to be careful with what we put in the cabs because we’re adding to the distraction task. There’s no need to ring drivers to see where they are – look at the map. Stop annoying the driver, stop distracting them.”
Regarding fatigue, Smith commented much of it was caused outside the workplace. “It’s not about logbooks and work time. Much fatigue has nothing to do with the job – that goes back to understanding your drivers.
“The industry is under lots of pressure to optimise, but allow enough time in your schedules for slippage.”
Smith suggested driver training was another area for consideration. “There are huge differences between trucks and between old and new; experience on old trucks can mean little on new trucks. Slow down the onboarding process to get drivers up to speed.”
Finally, Smith updated delegates on what the NRC was currently lobbying for. “We’re pushing for safer roads. People will always make mistakes, and we can’t just drop speed limits; we need more passing lanes, centre barriers, and so on.
“Early adopters need appropriate incentives. We’re also discussing changes to VDAM limits and pushing for productivity improvements. Transport is more expensive and we’re running out of drivers. But what can the network cope with?
“There’s lots happening in career development. Every sector of the economy is currently struggling for staff. It’s a global problem.
“Fair and consistent regulation and enforcement is a constant battle. We need a level playing field.
“Finally, diesel will still be around for a long time. So what can be done for it while we undertake alternative fuel development and testing?”
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Low carbon learnings
Genesis Energy fleet engineering and reliability manager Brad Phillips imparted some of the lessons learnt by the company in a year of operating an electric truck (New Zealand Trucking August 2021).
“We have two now, but it’s not been easy,” Phillips said. “For us, it’s about energising New Zealand’s sustainable future. Dangerous goods are really difficult for EVs – if we can do it, anyone can. It’s been a rapid learning journey, providing us with a solid understanding on what is required for a LPG-fleet EV transition.”
“When we put the first one on the road, I listed what I thought would go really well and what I thought would be a challenge… and I was 100% wrong,” Phillips quipped.
Useable range has been one area of learning. “The range as advertised was 150km but the actual range in our operation is 90km. However, we’re operating at max weight.”
The EV also has a tare weight penalty of 500kg over a diesel equivalent. “We’ve had to drop the number of cylinders we can carry on the truck,” said Phillips.
Despite the EV’s strong torque, gradeability has proved to be only half that of a diesel equivalent’s 40% to 50%. “That caught us out, and we removed a further 500kg and changed routes to manage this.”
The inability to charge with the LPG onboard is a challenge specific to the Genesis operation. “We’ve had to change depot processes, but the team has been excellent. Moulding the business around it is painful but the right thing to do. We need to consider what our infrastructure looks like going forward.”
Phillips said there had been positives, too. In the year of operation, Genesis saved 25.5 tonnes of CO 2 emissions. “It’s not a big number, but we’re on the board,” he said.
“There’s also been huge value for us and information sharing with intercompany engagement. Driver feedback has otherwise been positive, and it’s a conversation starter with our clients.”
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