NRC DIALS UP COLLABORATION AS ROAD NETWORK CREAKS
SINCE STARTING AT NATIONAL ROAD CARRIERS (NRC) IN August, I’ve had the pleasure of getting out and meeting many of our members. Talking with them has been an eyeopening – it is seeing the economy in action in real time. Talking to operators is like having a finger on the pulse of economy, seeing where demand is going up, or falling, as it happens and before it hits the headlines.
One of the great things about NRC is we represent the entire industry, from one-truck operators right through to those running a fleet of hundreds, and everything in-between. Driving around the yards and talking to the owners and painted a chequered picture of the challenges being faced. I heard the full gambit, from “we’ve never had demand so strong and are still seeing growth” through to “this is our biggest slowdown since the GFC” (the 2008 global financial crisis). Seasonality of course plays a big part.
As runaway inflation makes its presence felt, there is no question belt-tightening is happening – especially on the discretionary playthings many have got used to. But overall, my sense is that even with high diesel prices and labour shortages, there is resilience in the road transport sector. Goods need to keep moving, no matter what. Many operators talked to me about how FAF (Fuel Adjustment Factor) has helped them manage the fuel price escalations, and how they are taking the opportunity to take a microscope to cost management across their business. NRC has an extensive tool kit to help our members get to grips with their cost base, and I’m pleased to see increasing demand for this since I’ve started.
While the economic impacts may be a mixed bag for operators, one issue that isn’t is roading. Unsurprisingly, everyone I spoke with gave me a passionate earful about how woeful our roading network is, usually in colourful language. And no wonder. They are worried for their drivers, worried for their trucks, and have never experienced such shocking conditions.
Everyone has an opinion on what the cause is, from current or the previous Government raiding the roading budget, to build work being done by the lowest bidder with little council oversight to substandard bitumen product being imported since the refinery closed. My view is there is no silver bullet to get this fixed. New Zealand needs to take a good hard look at how we plan, fund, build and maintain our roads nationwide.
NRC is ramping up our engagement with the roading agencies. We’re providing an expert voice of the industry on what needs to be done. We can do this because we are hearing the pain caused every day from our members.
Since starting I’ve met with several senior officials in
Government and the agencies and I am pleased to see the strong reputation NRC has built with policy makers and regulators in the transport industry. We work hard to be a trusted advisor on road transport, and our direct daily contact with transport operators into what drivers and operators are experiencing give genuine insights that are valued by officials.
Prior to taking the helm at NRC, I spent five years running the equivalent organisation representing all the international airlines flying to New Zealand. When the border closed in March 2020, over two thirds of our vital air freight capacity dried up overnight. That taught a valuable lesson to decision makers about not taking strategic transport and supply chain links for granted – they can grind to a halt very quickly.
The same lesson has been learned in road transport. In conversations with officials and Ministers I’m seeing a marked change in recognition of both the criticality and fragility of our strategic transport networks. They are starting to understand these networks need to be nurtured and looked after.
This presents a golden opportunity for the industry - to work with our decision makers to actively drive policies to build an effective and efficient road transport network for the benefit of all New Zealanders. One year out from the election, NRC will be seizing this opportunity with both hands. T&D