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Home / Business / Companies / Freight and logistics

'It reduces choice': Reduced speed limit could impact Napier Port

By Doug Laing
Hawkes Bay Today·
1 Mar, 2022 12:27 AM5 mins to read

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Napier Port chief executive Todd Dawson said the impact on freight movement will depend how transport operators, exporters and importers respond to the reduced speed limit. Photo NZME

Napier Port chief executive Todd Dawson said the impact on freight movement will depend how transport operators, exporters and importers respond to the reduced speed limit. Photo NZME

Napier Port Co is bracing itself for possible disruption to cargo flow through the port as a result of the lowering of the Napier-Taupo highway speed limit.

The change, as part of national highway's manager Waka Kotahi NZTA's Road to Zero national strategy for eliminating road fatalities, came into effect last Friday.

The speed limit on a 76km Eskdale-to-Rangitaiki Plains sector of State Highway 5 has been cut from 100km/h to 80km/h, which could impact the capability of the road transport industry.

Port chief executive Todd Dawson said the impact on freight movement will depend on how transport operators, exporters and importers respond to the reduced speed limit.

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"At this stage, we haven't noticed any difference and operators aren't indicating plans to change the volumes coming through Napier Port," he said.

But he said the "immediate impact" is more likely to be on the number of trucks on the road to maintain volumes and turnaround times.

 Log exporting in action at Napier Port. Highway speed limits may impact how and when the logs get there. Photo / NZME
Log exporting in action at Napier Port. Highway speed limits may impact how and when the logs get there. Photo / NZME

"There will be vehicle productivity erosion, meaning more trucks deployed to complete the same task for operators on this routing, adding cost, more congestion, road wear, vehicles and inefficiency to an already stretched national supply chain, which currently has a record shortage of divers," he said.

"It reduces choice and options for cargo owners and ultimately their supply chain cost will increase due to fuel costs and reduced asset utilisation (i.e. truck turns). It's likely consumers will end up paying for this."

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He said Hawke's Bay is a growing, thriving region "and has been for over a decade".

"The port is investing in critical infrastructure to support this regional growth," he said, adding the current situation with SH5 "reflects the overall lack of co-ordinated infrastructure design and spend across road, rail and ports throughout New Zealand."

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Napier-Taupo road speed reduction kicks in midnight Thursday

16 Feb 03:53 AM

"It's not unreasonable to expect central government to also invest in adequate roading infrastructure for safety and much-needed improvements to our national supply chain," he said. "There has been systemic underinvestment in roading infrastructure."

He said the port believes there should be an investment in network design led by industry and cargo owners that follows the natural concentration and flow of cargo across New Zealand. A freight-capable road and rail network, integrated across regions and that there should be central government intervention and planning enabled for better infrastructure design across ports, road and rail connections.

National highways management agency Waka Kotahi NZTA has confirmed it will evaluate the State Highway 5 speed-limit change at the end of the first year.

The announcement is seen as some sort of step-down from the original stance of determining the lowering of the speed on the Eskdale to Rangitaiki sector (76km) from 100km/h to 80km/h from February 18 was "permanent" and that future upgrading of the highway would be with the lower limit in mind.

But, asked to respond to the port's concerns, the NZTA said that after 12 months it would carry out an evaluation considering "the safety, economic and social impacts of the 80km/h speed limit being introduced on 76km of this 122km section of SH5 between Napier and Taupō."

Meanwhile, trucking firms are watching their movements on the highway closely, with projections that the log transporting industry could be impacted by lost time in its unladen segments of two to three return trips to the port each day.

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NZTA Central North Island regional relationships manager said: Linda Stewart, "Reducing unsafe speed limits is the most effective and immediate way we can dramatically improve safety for everyone who uses this road."

"There are many reasons crashes happen and we need a mix of solutions that all work together to keep people safe," she said. "We need everyone making safe choices, in safe vehicles, on safe roads and travelling at safe speeds. Improving people's skills and deterring risk-taking behaviour are still critical, but this alone will not fix the problem.

Stewart said safe and appropriate speed limits "are just one part of a larger programme of work to make SH5 safer for everyone who uses it."

"Waka Kotahi is also looking at investments in safety improvements, such as shoulder widening, wide centrelines, side barriers and some intersection improvements, as well as the annual maintenance programme to repair and renew the highway," she said.

"In addition to the safety improvements, Waka Kotahi will be working with partners on a programme Business Case, which will develop a long-term improvement strategy for SH5," she said.

A business pushed for by MPs and mayors will set out a long-term vision for SH5 and inform future improvements to the corridor. The feedback we received during the speed review process will be a key part of shaping this direction, Stewart said.

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