National road freight association, Ia Ara Aotearoa Transporting New Zealand, says the upcoming decision about replacement Cook Strait ferries will provide welcome certainty for the freight sector.
The Government has confirmed the public can expect an announcement on replacement ferries to be made by Wednesday – almost a year on from the cancellation of the iReX mega-ferry project following multiple cost blowouts.
Transporting New Zealand Policy and Advocacy Lead, Billy Clemens says Cook Strait is a vital extension of State Highway 1, and it is essential to have a safe and resilient connection between the islands.
It is particularly vital for carriers who carry livestock and other time-sensitive freight, he said.
“Approximately $30 billion in freight crosses the Strait each year, equal to 7 percent of New Zealand’s GDP. Our members need to be able to transport this freight safely and reliably, or consumers and businesses across the country end up facing delays and cost increases. Our members have been waiting for an announcement about the future of the service since the Government cancelled the previous two-ship deal,” said Mr Clemens.
“The Government made the right decision to terminate the iReX mega-ferries, after a series of cost blowouts, and Treasury and Ministry of Transport raising concerns about KiwiRail’s ability to manage and deliver the project. Our members were also concerned about the project only delivering two vessels, given the enormous cost. The iReX project would have also bucked the international trend away from rail enabled ferries.
“We’re pleased the Government took some time following the cancellation to obtain advice from an independent ferry service advisory group and getting Ministry of Transport to complete an assessment of the Long-Term Requirements for a Resilient Cook Strait Connection. Now it’s time for certainty and a plan of action.”
He said Transporting New Zealand had made it clear to Ministry of Transport, during consultation, that there was considerable value in maintaining competition on the Cook Strait connection.
“This isn’t just about replacement vessels, but the viability of the Interislander service in the medium to long term. Having KiwiRail exit the Cook Strait market without another resilient competitor present could see service levels decline, and freight rates increase.”
“Regardless of the decision, we’ll be working constructively with the Government, KiwiRail and supply chain partners to support a resilient connection,” said Mr Clemens.
