Quake-hit SH1 costs truckies millions
The closure of State Highway 1 north of Kaiko¯ura is costing the trucking industry an estimated $2.7 million a week.
The New Zealand Transport Agency (NZTA) claimed in May the earthquake-damaged highway would be open with ‘‘full functionality’’ by Christmas, but last week admitted that goal was months away and work would continue ‘‘well into 2018’’.
The closure of the road following the magnitude-7.8 earthquake in November has forced around 500 trucks – a 13-fold increase on pre-earthquake numbers – each day to take an alternative inland route between Picton and Christchurch.
Analysis found the trucking industry faces a bill of up to $71m to use that route for another six months. Trucking companies have seen daily costs soar by approximately $389,000 for drivers to travel via the Lewis Pass and Murchison rather than use the coastal route. Extra fuel, wages and maintenance bills have triggered an average hike of 18 per cent in journey costs, up to 25 per cent in some cases – a financial burden often being passed on to customers.
Road Transport Association chief executive Dennis Robertson said cost pressures had left many ‘‘stuck between a rock and a hard place’’.
"The margins and profitability that some transport operators were expecting they are now not getting,’’ he said.
‘‘The reality is that transport costs are a percentage of any product and the problem is that the end cost will have to reflect those costs.
‘‘Industry can’t pick that up or otherwise they would be out the back door. It is really tough for some of them, but others have been in a positive situation with customers to broker a new cost system.’’
Robertson said the opening of SH1 during the day by Christmas – but with some unsealed surfaces, lane closures, traffic control and potential temporary closures, NZTA confirmed last week – would create uncertainty for truck drivers, meaning they would avoid it.
‘‘If people think there are going to be more hold-ups and delays on the fixed State Highway [1] they will, even if it is more costly, use the alternative route because they know it’s reliable.
‘‘I just think it would be a much better option to delay it and have it done properly.’’
Mainfreight New Zealand manager Craig Evans said taking the inland route had added ‘‘multi- millions’’ of dollars to costs, including a near-doubling of wage bills from longer journeys and more drivers.
Evans said the partial opening of SH1 was more of a frustration than a benefit, saying: ‘‘It is like going to an airport and not knowing if the plane is going to take off – you can’t make decisive decisions.’’
The opening of the railway along the coast was more critical to reducing road journeys, he added. Its closure had caused a tenfold increase in trucks on the road, he said.
Limited freight services on the railway between Christchurch and Blenheim would resume from today, KiwiRail said.
The company hoped the two return trains running each night would help take up to 2000 trucks a month off the inland road.
Truck journeys on the inland route soared in the wake of November’s earthquake.
Daily heavy truck movements at St Arnaud – the best indicator of changes in traffic volumes – have risen 1200 per cent, from 41 a day in the fortnight before the earthquake to an average of 535 in the months since – an increase of 494 a day, NZTA said.
While trucking expenses varied, the Road Transport Association (RTA) said it cost an average of $3.60 per kilometre for a standard eight-axle truck and trailer to travel on New Zealand’s roads.
The RTA, representing 1400 companies, said its members had reported an 18 per cent cost hike to travel the inland route instead of SH1.
Taking the longer journey – 478km rather than 345km – cost an estimated $2030 per vehicle, compared to $1242 on the coastal highway.
With 494 extra trucks a day, the inland route leaves the industry with an extra daily bill of $389,540 compared to using SH1 – amounting to $2,726,785 a week, or around $71m for six months.