Sustainability makes good business sense

Regardless of your views on climate change, having sustainable practices and goals is pretty much essential to a successful customer-facing business.

Customers are demanding good environmental measures through their supply chains and if you are in the business of trying to attract younger workers, they want to work for companies that take protecting the planet seriously.

Transport is responsible for about 18% of New Zealand’s total greenhouse gas emissions each year, and the race is on to reduce that. While plenty of car brands are developing light vehicles to run on “clean and renewable” alternatives to fossil fuels, there has not been the same progress in truck manufacturing, because the fuel alternatives available present some challenges when upping the size scale.

So, it was exciting to attend the launch of New Zealand’s first long-haul, electric-vehicle road freighter this week. Auckland-based laundry business Alsco put the Hino truck on display at Eden Park, with Energy and Resources Minister Dr Megan Woods and Climate Change Minister James Shaw speaking at the event.

Alsco’s Group General Manager Mark Roberts had a great story to tell about the company’s sustainability journey and he spoke about taking the gamble to pioneer intercity electric vehicle freight movement. He said it wasn’t about waiting for the production to be perfect, but on starting today, to focus on three important business aspects – people, planet and prosperity. He outlined Alsco’s “big, bold, meaningful goals” for 2030, including reducing water use by one-third (remembering they are a laundry business); generating zero waste; reducing CO2, including by eliminating coal as an energy source; and converting one-third of the vehicle fleet to electric energy.

It’s important to take a sustainability view across the business and to get staff buy-in. Those companies running heavy vehicles that haven’t thought about sustainability should start, right now. There is quite a bit that can be done, including adopting the current best technology to manage environmental considerations with fuel efficiency and reduced emissions. This will have an immediate positive impact on the environment.

The Energy Efficiency and Conservation Authority (EECA) runs a low emission vehicles contestable fund. This supports projects that encourage innovation and investment in electric and other low emissions vehicles in New Zealand. It offers up to $7 million a year to co-fund projects with private and public sector partners and Alsco sourced some of this funding to start electrifying its fleet.

Alsco’s EV truck will do the Rotorua/Tauranga and Rotorua/Taupo routes, travelling about 286km/day. Fully laden, it will be up to 22.5 tonnes in weight.

It is estimated to save at least 25,000 litres of diesel and 67,610 kilograms of CO2e per year. Roberts said there was in fact, a compelling argument that supported the higher investment for a heavy EV compared to a diesel equivalent, due to a swift payback on operational expense. He said operational savings would justify the higher capital expense by recouping the additional investment in less and six months, thereafter providing a consistent financial advantage over a similarly tasked diesel truck.

Climate Change Minister James Shaw said in his speech that “innovation is a function of constraints”. There is no doubt that the constraints on fossil fuel vehicles are tightening and for the wider heavy vehicle industry, Alsco’s journey will be one to watch.

You can find out more about Alsco’s EVs and sustainability plans here.

– Nick Leggett, CEO, Road Transport Forum

Road trumps rail to meet customer demands

The 2017-18 National Freight Demand Study was released, without fanfare, a couple of weeks ago. This is the first such study in five years and it’s a significant reminder of just how important road transport is to the New Zealand economy.

It’s important to get it straight up front, New Zealand’s freight network works best when there is a balance between rail and road. Each have their benefits, but as the stats show us, road freight is increasing its share because of the flexibility and reliability it offers in getting goods to market.

Most significantly from the report, the growth across the board in our freight task is large; up 18 percent in six years, from 236 million to 278.7 million tonnes per year. This demonstrates the growth New Zealand has enjoyed in our population and economy.

We are guessing that the absence of a trumpeted announcement on the release of the report is because changes to the proportional split across transport modes flies in the face of the rhetoric and indeed, the billions of dollars invested in rail by the Government. I’m talking about the increase in the amount of freight that road transport carries, versus that of rail.

In 2012, road transport was responsible for 215.6 million tonnes or 91 percent of freight movements and 70 percent of tonnes transported per kilometre. Despite a concerted anti-road campaign, and a Government elected in 2017 with an anti-road agenda, road freight’s proportion has increased in the recent study to nearly 93 percent of the freight task, and 75 percent when it comes to tonnes-per-kilometre.

Rail, on the other hand, has retreated from seven to six percent of freight movements. On a tonnes-per-kilometre basis, rail is down from 16 percent down to 12 percent of the freight task. The rationale given by the pro-rail authors of the report is that this drop is down to the Kaikoura earthquake, which knocked out rail in the upper South Island for a long time. But it also reflects a reduction in volume of rail-suitable commodities, such as coal.

Losing a rail line happens far more regularly than people might think. A section of rail line parallel to SH7, the main road linking Reefton and Greymouth, has been closed due to a slip. KiwiRail has been stopping the TranzAlpine at Arthur’s Pass and offering buses for people wanting to continue on to the West Coast. Freight deliveries of coal and milk have been transported by road, instead of rail. Media attention has focused on the corresponding road failure, rather than that of the rail. I guess because if rail fails, there are always other transport options.

The most significant reason for the swing towards road freight is improvement of truck payload efficiency – that means bigger trucks that carry more load, reducing the number of truck trips. Over the past six years, efficiency gains through the uptake of HPMV and 50 MAX have been realised in dairy, logs, livestock, aggregates, and petroleum distribution.

The growth in road freight makes the Government’s decisions to rob the National Land Transport Fund, using road user charges (RUCs) and fuel excise to artificially support rail projects, seem all the more short-sighted. This re-engineering of our transport system to satisfy ideology is not only costly, but flies in the face of economic reality. It is even more short-sighted to turn the tap off on new roads critical to the national freight task, such as the East-West Link, in order to put money into rail projects of dubious economic benefit.

Don’t get me wrong; we support asset renewal in rail as it’s badly overdue for this critical infrastructure. What we don’t support, is the Government continually selling that investment as a way to reduce “dangerous” truck movements on our roads. We also reject this investment in rail over new, safer roads. There should be investment in both road and rail infrastructure.

Roads are more flexible and immediate than rail will ever be. There are 93,000 kms of road in New Zealand and only 4,000 kms of rail track. That split isn’t changing and what’s more, the market is making its choice.

Fewer trucks on the road means fewer jobs, less economic activity and less money in the pockets of all New Zealanders. The National Freight Demand Study proves that people and businesses choose the transport mode that best suits their requirements. In the 21st century economy where timeliness and responsiveness is everything, more often than not, that is delivered via road.

– Nick Leggett, CEO, Road Transport Forum

Diversity the key to future proofing our workforce

I hear a lot about a shortage of drivers in the road freight industry and the Road Transport Forum is looking to nail down where those shortages are, and what future projections are, so we can work on a sustainable workforce.

We also want to ensure our industry’s workforce is ready for whatever the future might bring.

While there is a lot of talk of driverless trucks, we need to focus on the needs for the next five years, as well as the next 20. New Zealand’s roading network is such that it may be some time before a truck can self-guide from Kerikeri to Bluff; but that’s not to say it won’t happen.

Roads have been used to trade goods since the beginning of civilisation, so it is likely there will be some form of road freight transport for some time yet.

Some immediate steps that can be taken to build a better workforce include thinking outside the square and looking at the diverse willing workers available and giving them a chance. Another way to attract workers, and I have seen evidence of this in the industry, is to offer good wages so people can establish a “career” and feel secure.

At our conference on 24 and 25 September, at Wairakei Resort, near Taupo, we have some speakers who might challenge freight operators in their workforce thinking. That’s not to say we don’t have a diverse workforce, but we possibly don’t promote that aspect of the industry well and there’s always room to grow and change.

It is interesting that despite perceptions, many women work in road transport in New Zealand. I enjoyed meeting some from Otago and Southland last Friday night in Cromwell – pictured above. These women are company directors, dispatchers, shareholders, drivers and CEOs.

They see the value of being part of a workforce that underpins the economy. New Zealand is a trading nation and all day, every day, goods are making their way to markets, firstly by truck.

Then there are the essentials of life we need in New Zealand – food, medicines, and all those packages we order on line – they all get delivered by a truck, some direct to your door.

Some of the operators I’ve spoken to are keen to employ women drivers; they think they are careful and secure employees. They’ve had one woman come through the door, and others have followed and they’ve been happy about that.

So, let’s make sure we have the facilities and the culture that make it easy for women, young people, and people from the range of cultures that make up New Zealand, to be part of our industry.

– Nick Leggett, CEO, Road Transport Forum

Delivering the right message on drugs and driving

Governments past have dealt to deaths on New Zealand roads caused by drinking and driving with a comprehensive system of testing, evidence gathering and punishment. This has been backed by extensive, and expensive, advertising campaigns that resonate through all communities. Who doesn’t remember the brilliant “you know I can’t grab your ghost chips” drink-drive campaign of 2011? It became a pop culture phenomenon. Advertising is still centred around “mateship” and a collective responsibility to stop people drinking and driving. No New Zealander can get in a car after drinking too much and not know they are doing something wrong.

It is time for this Government to apply the same principles to the serious issue of drugged drivers. The number of deaths caused by drugged drivers – 71 last year and 88 the year before – means there must be better testing to get these people off our roads. Testing for drugs is not always undertaken and so these figures will be only the tip of the iceberg and they only reflect deaths, not injuries.

The number of people being killed by drug impaired drivers is higher than by drivers above the alcohol limit. Something has got to change.

So far, a soft approach is being taken, possibly because of Government plans to decriminalise marijuana.

If decriminalising marijuana is to be seriously discussed by New Zealanders next year, the Government is going to need to act on a regime that tests road users appropriately. Employers and workers in the safety sensitive industries, such as road transport and handling dangerous goods, need a system by which they can monitor and enforce workplace safety, or they will have WorkSafe to deal with. Without consistency and standards, Kiwis might have little confidence in voting for anything other than the status quo.

It is important to note that truck drivers are in the unique position of sharing their workplace – New Zealand roads – with the public. While the road transport industry follows workplace health and safety laws to ensure drivers are not drug impaired, with extensive testing regimes including pre-employment, random and post incident/accident drug testing, there is no guarantee that those they are sharing the road with won’t be impaired by drugs as there is no adequate testing regime for them. There needs to be a standard approach to testing all drivers for impairment as a result of drug use.

In an accident where a car versus a truck, the car invariably comes off second best. Media headlines focus on the truck, but much of the time, the blame for the accident falls with the car driver. While people in cars have the misconception that trucks are dangerous, truck drivers see every day dangerous car driving.

The Government needs to change its single-minded road safety focus, which is tunnel vision on speed and getting vehicles off the road, and take a holistic look at all the other contributing factors to accidents, one of which is drivers impaired by drugs.

In this area there seems to be more sympathy for the rights of drug-using drivers than on the safety of those who share the road with them, or the rights of those they kill or injure. Time for testing, cost of testing, and “pressure on the system” to come up with any kind of punishment are being put up as barriers to doing anything.

The Road Transport Forum fully supports a comprehensive roadside drug screening policy as a first line tool for early detection of impaired, or potentially impaired, drivers. This should without question, be part of an overall aspiration to mitigate risk on New Zealand roads of injury and death caused by drugged drivers.

Roadside drug testing should include the Compulsory Impairment Test (touch your nose, walk a straight line, stand on one leg), screening with some of the new oral technology and saliva wipes, and where necessary, an evidentiary blood test. This should be backed by the same advertising attention that has been paid to telling all New Zealanders that driving while drug impaired is dangerous and results in loss of lives.

Let’s get serious about road safety.

– Nick Leggett, CEO, Road Transport Forum

Road safety solutions need wider focus

There has been much debate this week about lowering speed limits on roads throughout New Zealand. In talking about the economic impact of such a move, there seems to be some belief that this means not caring about the deaths and injuries on New Zealand roads. Quite the opposite is true – at the Road Transport Forum we want to ensure a safe workplace for truck drivers, a workplace that has a positive impact on their well being, and a workplace that allows them to go home to their families at the end of their work shift. For much of that shift, their workplace is the road.

In New Zealand, debate on significant issues has taken an ugly turn. If you don’t agree chapter and verse with the Green anti-road/anti-motor vehicle movement, all manner of insults come your way, often in shouting capital letters. You are a “car fascist” or part of a “pro-death lobby”, to name just the tip of the iceberg of insults, many personal. This is frankly, ridiculous, and not healthy. It does not allow for progress, or good policy making. And if these people looked up, they would see that much of what they rely on to go about their everyday life travels to them by trucks.

Good policy and law making requires thorough and robust research relevant to the New Zealand context; a look at all contributing factors to a problem and matching the best options to those; stakeholder and public engagement; listening; and accepting opinions and advice that might be contrary to your own. Unfortunately, we are seeing less of this and more reactionary moves with unintended consequences.

To wake up on Wednesday morning and read that the Government wants to crack down on the road toll by dropping speed limits across the country is concerning. The statistics presented don’t give the full picture of what’s happening on New Zealand roads. A desktop mapping tool has been used to determine “safety” of roads. This data needs checking in the real world to make sure that what it is proposing makes sense. If decision-making rests on these maps, we are in trouble.

Of course, safety has to be the number one priority on our roads. But speed isn’t the cause of 75 percent of accidents, according to Government statistics. Let’s focus on the most dangerous 10 percent of roads, as well as all the other causes of accidents, to find the best ways to improve road safety.

To be very clear, the contributing factors to our road toll that need to be considered before hasty decisions are made include:

  • Speed
  • Road conditions and infrastructure
  • Vehicles – age and condition
  • Driver behaviour – including breaking the law by not wearing seat belts, using mobile phones, using drugs and alcohol with resulting impairment, driving without a licence, etc
  • Technology – improvements in vehicle safety; better road surfacing and infrastructure
  • Education, training and licensing
  • Enforcement – more laws and rules require more enforcement

It is concerning to see speed being the sole focus at the expense of what we believe is another critical factor in ensuring road safety – road conditions and infrastructure. This does not mean driving to the conditions. This means the conditions of the road are so poor, the road becomes dangerous even for the most sensible and unimpaired drivers. It means that no matter how well engineered a vehicle is, it hasn’t been engineered for the conditions on some New Zealand roads. It means those roads need to be brought up to a safe standard.

This does not mean the trimmings of median and side barriers, rumble strips and shoulder widening – which the Government is spending $1.4 billion on over three years – will magically make these roads safe. To quote truck driver Antony Alexander in the June issue of New Zealand Trucking magazine: “No driver ever said: ‘A rumble strip and bright white line makes me feel so much safer’.”

The New Zealand Transport Agency’s (NZTA) Speed Management Guide, was a 10-year plan to target five percent of the highest risk roads, now all of a sudden that scope has been increased to 10 percent of roads over three years. The focus was not supposed to be on speed alone, major roads were to be upgraded to make them safe at higher speeds, but we have seen very little of that happening. In fact, in the past couple of years we have seen a de-funding of the roading budget.

In a press release yesterday the Selwyn District Council signalled NZTA funding cuts on local roading improvements could put motorists at risk.

“Vital projects which we were planning to improve the safety and efficiency of roading network, particularly our roads feeding into the Christchurch Southern Motorway, have been halted unexpectedly due to a shortfall in national transport funding. This puts our residents and other motorists at risk on main roads that are in desperate need of safety upgrades,” the Council said.

This is the big picture we should be discussing. New Zealand has 53,425km of sealed roads that are essential to our way of life and that we all share, not matter what mode of transport we choose. Can we grow up New Zealand and have a fruitful discussion about how we use these roads safely, an issue which is clearly on many people’s minds?

  • Nick Leggett, CEO, Road Transport Forum

Professional road users committed to safety

During Road Safety Week 2019, I would like to acknowledge the great work many in the road transport industry are doing to ensure the safety of both their staff and all other road users.

Individual transport companies have staff and vehicles that travel millions of kilometres each year. Safety has to be a top priority when your machinery and people are travelling such vast distances. I got a first-hand run down of what companies are doing when I met with Greg Pert and Jackie Carroll from Tranzliquid (pictured) in Tauranga this week. Theirs is just one example of how companies integrate safety into their operations and their choice of investment in equipment, to ensure their staff get home safely after every trip.

Tranzliquid has combined new technologies and driver training in a commitment to safety. Staff are trained on “observation, anticipation and planning” so that they can manage risks and drive to the conditions.

We know that speed, fatigue and inattention are the big causes of accidents. To combat fatigue, Tranzliquid has designed a system that steps drivers through processes, while driving, to avoid fatigue. This includes a connection with the dispatcher at home base.

Safety features on vehicles now include:

  • Collision avoidance
  • Lane departure
  • Blind spot proximity
  • Disc brakes
  • EBS/ABS
  • Drag torque – anti wheel lock (in snow for instance)
  • Under run – side
  • Under run – front

They know of an incident where the under run on a truck proved life-saving for a car driver who fell asleep and hit a Tranzliquid truck.

Their business aim is to protect their drivers, other road users, their cargo and equipment and they are focused on happy staff and a downwards trend of accidents or incidents.

But they also say, there is only so much businesses can do and road conditions and congestion are impacting on productivity because they cannot move freight around fast enough.

If you can’t maximise the benefits of your clever trucks, there are consequences down the line, including an impact on the wider economy. For example, you might have 30 loads to get to Auckland but you can only manage to get 26 there, due to traffic and road works. The customer and carrier both incur additional costs in delays, and the loss of productivity and efficiency for the transport company reduces their ability and incentive to invest in new equipment and vehicles.

The road transport industry can only do so much to ensure safety. I am constantly being told that drivers are noticing the deteriorating condition of the roads, which will affect the safety of all people using them. Let’s not forget the behavior, skills and attention of all drivers on our roads.

As an economy that relies on goods being transported – to ports and airports for export and around the country for everything that keeps the country ticking – it is essential that the Government invests in more than just median barriers and rumble strips. Shifting the dial and reducing accidents rates and death on the roads involves focusing on many different aspects as outlined above. It will take a long time. It’s a responsibility that falls on all of our shoulders as road users.

– Nick Leggett, CEO, Road Transport Forum

Let’s take a serious look at road safety

April 2019 was the deadliest month on New Zealand roads in 10 years – 45 people dead, and many more lives impacted. It’s tragic and it brings into focus the need for something to be done about New Zealand roads and the way we drive.

It’s equally important that when tragedies occur, we don’t have a knee-jerk reaction. It’s essential to look at the “why?”. Once we understand that, we are best placed to take a strategic, long-term view to provide lasting solutions.

The Government has indicated road safety is a priority and the Road Transport Forum is encouraged by this. We certainly want to be at the table when solutions are designed, as we represent the commercial road users who keep the New Zealand economy moving by getting all the essentials delivered to your door, or your store.

In December last year, Transport Minister Phil Twyford and Associate Transport Minister Julie Anne Genter announced a $1.4 billion, three-year programme to make New Zealand’s highest risk roads safer.

They said, the Safe Network Programme will make 870 kilometres of high volume, high-risk State Highways safer by 2021 with improvements like median and side barriers, rumble strips, and shoulder widening.

Once complete, the improvements are expected to prevent 160 deaths and serious injuries every year.

Absolutely, this is important. But we need to be careful not to think a bit of window dressing will provide long term solutions. The links between road use, driver behaviour, and road safety need to be fully explored.

A strategic look will determine things such as:

  • Statistics – what’s causing these accidents? If it is a drunk driver, no amount of road improvements will matter. If it is road design and increased use, then let’s find the best solution.
  • Is more traffic on the road causing more wear and tear that is not being addressed in time? Where’s the strategy to ensure roads remain fit for purpose, that is, to keep the New Zealand economy moving for commercial road transport users, as well as provide access for tourists and private road users.

Recently, I had the good fortune to spend a couple of hours with John Hickman, of J.D. Hickman in Taranaki. John is a legend in the road transport sector, building up from his original one truck to over 100 trucks today. John is very concerned about the state of New Zealand roads. In a quiet tour of the surrounding highways and local roads, John was able to point out to me their appalling conditions – see the photo above. He’s concerned for his drivers having to drive on sub-standard, poorly constructed roads for hours each day, and for his vehicles and the wear and tear and additional costs that are occurring. Newly built highways, such as the poor quality Kapiti Expressway, demonstrate there is something amiss in our road building. What’s of even greater concern, is a reduction in the highways budget of 15% since the Government took office. Part of the safety equation is well designed, modern highways.

The RTF urges Wellington decision makers to consider long-term strategies for a safe, efficient and sustainable transport network that meets economic realities and business growth plans. There are already many parts of New Zealand where the strain is evident and the economy is impacted by traffic delays.

We are concerned that the ongoing disruption at the New Zealand Transport Agency – currently without a permanent chief executive or a Board Chair – threatens to put the vital issue of roading infrastructure, and with that road safety, out of sights and minds.

– Nick Leggett, CEO, Road Transport Forum