Transporting New Zealand says that a Ministry
of Transport proposal to set congestion charges for
trucks at four times the rate of cars will increase costs
for businesses and consumers, while being out of step with
comparable overseas schemes.
Under the proposal, if a
base time-of-use charge for a car was set at $4.50 for
entering a charging area, a motorcycle would be charged
$2.25 and a truck $18.00. Subject to any maximum charge, the
fee could apply each time a vehicle entered, exited, or
travelled within the area during charging
hours.
Transporting New Zealand Head of Policy &
Advocacy Billy Clemens says the proposed ratio is unlikely
to meaningfully reduce congestion, while placing cost
pressure on freight users and consumers.
“This
proposal applies a higher relative charge to freight than
most time-of-use schemes internationally. In cities such as
Stockholm, London, and Gothenburg, vehicles are charged at a
flat rate. Even schemes that do set different charges in
Singapore and New York City set their ratios considerably
lower than this Ministry of Transport proposal.”
“We
would expect any price settings to reflect whether travel
demand can realistically move off-peak, rather than relying
on a simple multiplier based on vehicle type.”
Clemens
says available evidence suggests freight operators already
avoid peak travel where possible due to the high hourly cost
of running truck fleets.
Advertisement – scroll to continue reading
“Auckland traffic data shows
that heavy vehicles largely avoid peak periods (6-9am and
4-7pm). Where trucks are operating in congestion, this is
driven by customer constraints.”
“For example, freight
movements are tied to fixed shipping windows, freighting
perishable or time sensitive cargo, or the times at which
businesses are staffed to safely load and unload goods.
These constraints limit the ability to shift demand in
response to pricing signals.”
“Setting a quadruple
charging ratio for large freight vehicles seems very high
and appears like less of a demand-shift measure and more of
a cash-grab that will ultimately be met by freight customers
and consumers.”
“At this level, any travel time
savings achieved through reduced congestion are likely to be
offset by the additional charges faced by freight operators.
Those costs are then passed through the supply
chain.”
“We have seen similar outcomes where variable
access charges have been introduced at ports, including in
Auckland and Tauranga, where increased costs have ultimately
flowed through to customers.”
“At a time where
increased transport costs are driving inflation up, we would
expect Ministry of Transport to be carefully considering
freight cost implications of their proposals. Particularly
as the road freight industry has raised these concerns
previously.”
Transporting New Zealand will be urging
Ministry of Transport to cap heavy vehicle charges at no
more than 2 times the rate for other vehicles, in line with
its submission
on the time of use charging enabling legislation.
Details on how to make a submission can be found here:
https://www.transport.govt.nz/assets/Uploads/Consultation/Consultation-proposal-time-of-use-charging-regulations.pdf