A few weeks ago while out on the job in the wilds of the New Zealand trucking industry, I happened to meet and chat with a truckie who’s been around for some years and will be known to many in the sector. In the course of our chat, I asked him what one aspect of the industry he would change if he were able to.

His response – energy security and having an independent fuel supply, “like we used to.” In his opinion, this is an urgent need.

And the perception that this urgency is increasing is totally understandable. When the announcement was made in November 2021 that the Marsden Point Oil Refinery would be shut down and the facility transitioned into an import, storage and distribution terminal, the world was ‘relatively stable’ geo-politically, if still clawing its way out of the disruption wrought by the Covid-19 pandemic. Even so, there were questions over whether this was the right move for the country.

By the time the shut-down was effected in April 2022, Russia’s invasion of the Ukraine was in full swing, causing concerns about fuel supply from that region of the world. Nearly three years later and today, it’s fair to say, the global geopolitical landscape is in a state of considerable change. What that could mean in the years to come is anyone’s guess, as the nations of the world reevaluate their global positions, policies and allegiances.

The announcement this week by Resources, Regional Development and Associate Energy Minister Shane Jones that Marden Point could become a “special economic zone” for energy, might come as a relief to those who have felt uneasy over New Zealand’s total reliance on imported fuels in the past few years. He said this will both help ensure New Zealand’s fuel and energy resilience and attract overseas investors. The energy precinct concept released in October 2024 indicated both sustainable aviation and biofuel facilities, and suggested an additional 140 million litres of fuel per year for the next ten years (2.5 billion litres) would flow through the facility.

That’s a significant amount considering the fuel security study released by Jones this week (130 pages, but interesting to scan through) indicates that both petrol and diesel demand are likely to decrease in the next ten years – though demand for jet fuel will likely increase. Of course, the decrease in petrol and diesel is predicated on the potential increasing uptake of alternative propulsion technologies … a rollercoaster of a topic in itself. Regardless, the uptake of electric and hydrogen-powered vehicles is seen as one mitigation strategy against fuel supply disruptions, as is investing in biofuels, renewable fuels, or low-carbon refineries.

The special economic zones are to be considered by cabinet in the coming months, and Jones says a fuel security plan is being developed this year. He acknowledges government will have to weigh up the costs and benefits, and that there will be trade-offs. That’s the way with most decisions that impact at a national level, and yes, we’d still be importing raw materials, but I wouldn’t be surprised if most Kiwis were okay with it for that added level of security and independence for a small nation in a big, changing world.

Considering the total economic cost of supply disruption could be as high as NZ$2.4 billion, I see it as good in the main, and I’m confident those in the trucking industry would to.

Take care out there,

Gavin Myers
Editor