Upper North Island

Freight Accord

Background
Developing a shared pathway that moves
freight efficiently and improves safety across
Northland, Auckland, Waikato, the Bay of
Plenty and beyond
Improving the freight system
Moving freight safely and efficiently is vital for a small, exporting country
like New Zealand. A better freight system will help grow the economy
and improve the well-being of all New Zealanders.
The Upper North Island Freight Accord has been developed as part of a
process to improve coordination and decision-making across the freight
system. To do this the Accord sets out a shared view across the freight
system outlining:
shared principles that drive our work together on improving freight
efficiency and safety of the system
key cross-regional and national action areas, and
emerging critical questions, challenges and opportunities that need
to be better understood.
The Accord builds on the information and insight gathered from
the development of the Upper North Island Freight Story, which was
developed by the Upper North Island Strategic Alliance (UNISA) comprising Northland, Waikato and Bay of Plenty regional councils,
Whangarei District Council, Auckland Council, and Hamilton and
Tauranga city councils - in collaboration with Auckland Transport,
KiwiRail and the NZ Transport Agency.

Moving freight in the upper North Island

impacts all of New Zealand
Northland, Auckland, Waikato and the Bay of Plenty
together generate 52 per cent of New Zealands gross
domestic product (GDP) and contain just over half
the population. Around 56 per cent of New Zealands
freight is moved within the upper North Island,
meaning that freight efficiency in the upper North
Island affects the prosperity of the whole country.

FIVE critical action areas for moving freight forward in the upper North Island
1. Deliver a high-performing strategic freight network
The strategic freight network is made up of the most critical road,
highway and rail routes in the upper North Island where significant
volumes, and values, of freight journeys converge. The network provides
access for high volumes and values of freight to, from, through and
around our busiest cities, regions and to the rest of New Zealand. The
network is particularly important for providing access to significant
places-for-freight, including first and last mile local road links to these
important freight locations. For our freight system to be efficient, the
strategic freight network needs to provide efficient, resilient, safe and
reliable access across the upper North Island and to the rest of the
country.

2. Identify and plan for significant places for freight

Integrate land use and network planning for future freight efficiency and
liveability
The Upper North Island Freight Story found that there was a lack of
strategic, integrated land use and transport planning and investment.
Given the significant pressures on land use, network capacity and the
growing freight demand in the upper North Island there is a need to
develop a more comprehensive, integrated approach to current and
future freight-related land use and transport planning and investment
for both road and rail. This includes ensuring better connections
between the strategic freight network and significant places-for-freight,
including first and last mile local road links. Significant placesfor-freight include major seaports, Auckland International Airport,
intermodal terminals (such as road/rail transfer points), significant
production areas, distribution/consolidation and warehousing centres. A
more strategic approach would increase certainty for industry and public
sector agencies and support effective industry, local government and
central government planning and investment.

3. Moving more freight on fewer trucks

Maximising vehicle and network productivity
The introduction of high productivity motor vehicles (HPMVs) in 2010
has allowed for a range of new vehicle designs that can carry more
freight with each trip. Using these safer and more efficient freight
vehicles can improve productivity by between 14-20 per cent. HPMVs
are also safer than the standard big trucks they replace, as most are
newer vehicles with more advanced safety features built in. HPMVs also

have additional safety requirements such as higher vehicle stability than

standard trucks and better lighting and visibility. Also having fewer truck
trips to move the upper North Islands freight means there are fewer
trucks on the road.

4. A future-fit freight workforce

People make the whole freight system work and it is their skills and
experience that determine how safe and productive the system is
The transport, postal and warehousing sector employs around 95,000
people, but as our population and economy changes many New Zealand
freight businesses are finding it harder to attract and retain the skilled
people they need. To ensure we are internationally competitive, New
Zealand businesses will need to train, attract and retain enough good,
skilled people to manage the future freight task. While skill-shortages
are a reality in many parts of the freight system, the feedback received
through the engagement process is that the labour and skills shortage
has become an acute problem for road transport. As the freight task
increases, particularly in the upper North Island, there will be a need
for more drivers. There is also an opportunity to increase the skill levels
of truck drivers to deliver safety and efficiency outcomes that have
commercial and public benefits. This is a New Zealand wide question.

5. Smarter regulation plus smart technology for safer,

more efficient freight movements
Regulation is an important component of the transport system, but
opportunities are available to reduce costs, improve outcomes and
reward compliance
New Zealand has around 270 pieces of legislation that relate to
transport, by way of regulations and rules, as well as primary legislation.
In general, these regulations are designed to ensure that the transport
system is safe, infrastructure is protected from damage or excessive
wear, there is a level playing field for businesses to trade fairly and
users pay for the benefits they derive from the system. The government
has been working to make regulation more effective to achieve these
outcomes, while at the same time reducing the complexity of regulation
and reducing unnecessary compliance costs. There is scope to continue
this regulatory review work to reduce the cost of compliance, while also
improving safety both for those who work in the industry and other
road users. This is a New Zealand wide question.

People make
the whole
freight system
work and it is
their skills and
experience
that determine
how safe and
productive
the system is.

Proposed actions
1. Deliver a high-performing strategic freight network
Deliver improved inter-regional and intra-regional connectivity
through the delivery of the Roads of National Significance and
connections to areas of significant economic activity. UNDERWAY
Finalise the preferred scope for the East/West Connections
Transport Project in Auckland. UNDERWAY
Explore and develop package of additional urban freight initiatives
that enhances efficiency and liveability. PROPOSED

2. Identify and plan for significant places-for-freight

The strategic freight network needs to be consistently identified
in key strategic planning documents such as regional growth
strategies or transport plans, regional policy statements, district
plans, and regional land transport plans. UNDERWAY
Include the strategic road and rail network constraints identified
in the Upper North Island Freight Story: Shared Evidence Base into
the development of the appropriate Regional Land Transport Plans
(Regional Transport Committees). UNDERWAY
Include freight planning feedback into refresh of KiwiRails
Strategic Plan. UNDERWAY
Develop and include with the port and maritime sectors a
common set of scenarios for the future of international shipping
services to New Zealand. PROPOSED
Look at how major freight facilities can be better recognised to
ensure their freight function is planned for. PROPOSED
Investigate the value of research into the economic value of
greater predictability for freight movements. PROPOSED
Explore the value of producing in the future a regular shared
freight evidence base, outlining key data and assumptions across
the regions. PROPOSED
Establish urban freight reliability measures for Aucklands strategic
freight network. PROPOSED

3. Move more freight on fewer trucks

Complete the upgrades for the first tranche of HPMV routes by
2015. COMPLETE
Identify second tranche of HPMV investments for the 2015 to
2018 National Land Transport Programme. COMPLETE

Look at options to develop a new HPMV permit system that

provides more certainty and simplicity for industry. UNDERWAY
Establish clear guidelines on allowable HPMV design criteria and
process that might be used if these are amended in the future.
UNDERWAY

Aim to have 90 per cent of local councils signed onto a single

50MAX permit system by 2016. UNDERWAY
Weigh-in-motion site proposals are considered for inclusion in the
2015 to 2018 National Land Transport Programme. UNDERWAY
Prepare and implement a communications plan that promotes the
benefits of HPMVs. COMPLETE

4. A future-fit freight workforce

Industry to establish a working group to undertake further analysis
to determine the scope of the workforce capacity and capability
problem. UNDERWAY
Depending on the above, establish a cross-sector working group
to look at actions to address the problems, along similar lines as
the work underway in the Women in Road Transport initiative.
PROPOSED

Look at the impact of the Graduated Driver Licensing System on

heavy vehicle driver training as part of the upcoming review of the
Driver Licensing Rule. UNDERWAY
Smarter regulation plus smart technology for safer, more efficient
freight movements. UNDERWAY
Continue to reform the regulatory environment to reduce the cost
of doing business and reduce the complexity of regulations while
improving the safety of the freight system. Firstly through the
review of the Vehicle Dimension and Mass Rule. UNDERWAY
Continue work to halve truck roll-over rate. UNDERWAY
Identify freight safety initiatives for industry/government action
during 2016. PROPOSED
Ensure a freight industry view is developed and included in the
work ahead to develop the Intelligent Transport Systems action
plan. PROPOSED

FOUR shared freight principles to

guide our work
A set of common principles has emerged
which will guide and challenge our work
1. Freight efficiency benefits everyone
As an exporting nation, improving the efficiency of New Zealands
freight supply chain and reducing the cost of what we buy and sell is
vital for building a more productive and competitive economy.

2. Freight movements should be safe and responsible

While the movement of freight is critical to our way of life, it should
not compromise the wellbeing of people or communities. We must
work to ensure the movement of freight is increasingly free of death
and serious injury, and minimise other negative effects.

3. The freight system is complex

The transport and storage of freight requires different modes,
networks, infrastructure and vehicles. To be effective the system relies
on a diverse range of public and private sector decision-makers.

4. The freight task is substantial and increasing

As our economy and population grow so will the volume of freight
and the journeys needed to move it. In 2012 freight volumes
nationally were estimated at 236 million tonnes (or 26.3 billion
tonnes/kilometres), which by 2042 is forecast to rise to 373 million
tonnes (40 billion tonnes/kilometres*).
*Ministry of Transport, National Freight Demands Study 2014

Critical success factors

Continuing the dialogue and working together
To ensure improving coordination and dialogue across the freight system and
to monitor the progress of the proposed actions, there needs to be an ongoing
forum for public and private sector decision-makers to consider significant
freight and logistics questions.

All the organisations involved share the view that to

invest smarter and deliver better certainty for industry
and investors, we need to understand the picture at an
upper North Island scale and work together, with the
sector, on the critical issues that will add the most value.

Freight perspectives should be developed for inclusion in

land-use and network planning
To add value to planning processes, there should be facilitated discussions
to document the insights of owners and operators of major freight facilities.
These facilitated discussions could assist industry engagement in district and
regional planning.

Rail needs to be brought fully into a freight network

planning process
KiwiRail operates an important component of the freight system and it does
so as a state-owned enterprise. In the upper North Island more work needs to
be done to ensure the rail network and services are considered as part of the
wider freight system.

Supported by:

Links:
Upper North Island Freight Story: www.nzta.govt.nz/planning/process/doc/upper-north-island-freight-story-highlights.pdf
Summary of Critical Issues: www.nzta.govt.nz/planning/process/doc/upper-ni-freight-story-summary-of-critical-issues.pdf
The Upper North Island Shared Evidence Base: www.nzta.govt.nz/planning/process/doc/upper-ni-freight-story-shared-evidence-base.pdf

Upper North Island

Freight Accord
October 2015