A personal view of the year by Membership Manager Odette Geyer:
In my first year at Ia Ara Aotearoa Transporting New Zealand in 2024, I encountered a mix of exciting opportunities and challenges that gave me valuable insight into the transport industry.
Highs:
Infrastructure investment and growth potential: I was fortunate to see the vital role that transport plays in supporting sectors like agriculture, construction, retail and manufacturing. Although road freight demand was flat on an annual basis, the Government’s infrastructure programme, including road upgrades and a focus on rail improvement in the Golden Triangle of Auckland, Tauranga and Hamilton, will put us in a good position for growth next year.
One key example is the re-start of the Roads of National Significance (RoNS) program. The improvements to highways and regional roads will boost the efficient movement of goods, particularly for agriculture, construction and retail freight, reducing transit times and boosting productivity for businesses in these sectors.
The infrastructure investments by ports, including Port of Auckland and Tauranga, will increase capacity for handling exports and imports, and smooth trade flows. This expansion will play a critical role in supporting the retail sector, enabling efficient distribution of goods.
Technological Advancements: Learning about the integration of digital tools in transport, such as AI and telematics, was a major highlight for me. These innovations were very evident in several New Zealand-based initiatives. The use of telematics, particularly by our medium and large companies, allows for real-time monitoring of vehicle performance, improving route optimisation and safety by providing data on fuel efficiency, driver behaviour, and vehicle diagnostics.
In addition, KiwiRail made strides in incorporating AI-powered predictive maintenance for its trains and rail infrastructure, reducing breakdowns, and improving service reliability. I am excited to see how technology will continue to reshape the industry.
Sustainability Efforts: It was great to see the growing focus on sustainability with the transport sector this year. I watched as companies piloted hydrogen-powered trucks, and embraced advances in fuel-efficiency technologies, contributing to New Zealand’s green transport goals.
And the Lows:
Driver shortages: One of the pressing challenges I witnessed this year was the stubborn shortage of skilled heavy vehicle drivers. Despite the temporary residence pathway for migrant truck drivers, and, softer freight demand, 30% of our members still have vacancies for experienced heavy vehicle drivers. This is particularly notable in specialist areas like livestock and bulk, and those in rural areas.
I firmly believe the industry needs to be supporting initiatives like the Road to Success MITO qualifications that will help attract and retain local talent.
Rising Fuel Costs: Volatile fuel prices were a constant concern this year, adding to financial pressure to business sectors. Diesel prices are up 6.5% over the past year. Many of our members have taken steps to manage the impact of volatile fuel prices. They’ve invested in fuel-efficient vehicles and closely monitored their fuel use. In the medium to long term, there are exciting opportunities to explore alternative fuel sources, including electric and hybrid trucks, to lower operational costs in the long term.
Regulatory Challenges: Complexity and delays in applying for high productivity motor vehicle permits caused frustration for many of our members. NZTA’s new permitting portal is an improvement, but we need to see a less burdensome regulatory regime for getting more efficient larger trucks on our network.
Weather Disruptions: New Zealand’s extreme weather events, storms and floods disrupted transport networks at times. These events under-scored the need for resilience and better infrastructure to handle such unpredictable challenges.
Liquidations: I also witnessed a number of companies in the transport sector facing financial difficulties and ultimately liquidating. Low freight volumes and the pressures from rising costs in fuel, insurance and repair and maintenance took their toll, particularly on our smaller operators.
More to come!
While my first year in commercial road transport had its challenges, it also offered numerous opportunities to learn and grow within a dynamic industry. The advancements in technology, the shift towards sustainability, and the resilience of businesses adapting to change left me feeling optimistic about the future.
I’m excited for the year ahead, knowing that with continued innovation and collaboration, the transport sector in New Zealand will continue to evolve and thrive.
Odette Geyer, Membership Manager. Odette@transporting.nz
