Submissions on the new Government supply chain paper close on June 3.
Submissions on the new Government supply chain paper close on June 3.
A new Government discussion paper on freight and supply chain issues is "more waffle and wasteful consultation" and it's doubtful the advice of business will be listened to anyway, says Mainfreight managing director Don Braid.
"Another discussion paper. Oh my goodness how many do we need? Will the Government listenand act on advice from the business sector?
"We would be doubtful after the many examples during the Covid crisis and the more recent example around commercial diesel pricing/road user charges solutions proffered by the industry and totally ignored by government officials, including the minister," said Braid, who heads a listed New Zealand transport and logistics company with operations throughout the world.
"This is more waffle and wasteful consultation and likely less action. Think of (all) the port reviews over the past 10 years."
Mainfreight managing director Don Braid. Photo / Supplied
Braid said future-proofing supply chains after recent events was more a matter for the global sector and its participants to consider and resolve, than a government to fix.
"Allow the market to sort it out, other than investing in good transport infrastructure resources like rail and satisfactory roading infrastructure. Then allow the market and transport operators to sort."
Braid isn't the only sector player to question the merits of the discussion paper, intended as a prelude to a freight and supply chain strategy, which the Ministry of Transport intends to prepare the system "to face substantial challenges, including decarbonisation".
However, the New Zealand Shipping Federation was "delighted" the paper recognised the importance of developing coastal shipping to reduce freight carbon emissions.
Customs Brokers and Freight Forwarders' Federation (CBFFF) president Chris Edwards said while he was pleased to see many of the operational and policy issues for "those of us on the ground" recognised, the paper made decarbonisation a primary focus when there were far more pressing problems facing the sector.
"The paper does not offer solutions but to be fair, nor does it set out to, yet, either. I note the driving ideology in many discussion papers is decarbonisation of the supply chain and emissions in general.
"Indeed it ranks as the number one issue in this paper. However I suspect if you interviewed most in the supply chain at the moment this would not be amongst the top three issues we are facing now.
"There are far more pressing needs around competition, reliability of services, labour and certainty of supply that need to rank at least as highly."
Edwards said it was good the Government recognised that vertical integration in shipping consortiums would likely lead to less choice for NZ Inc. Also good was the suggestion of Government investment in the supply chain - however "not specifically in the freight area where the biggest issues are".
But Transport NZ chief executive Nick Leggett wasn't a fan of a suggestion the Government may wish to involve itself in the direction of the supply chain.
"We are concerned that the Government may wish to involve itself as a director of the supply chain, rather than just as the regulator. We believe this would be a mistake, given the fluidity and global forces that are at work in ensuring the successful and efficient movement of goods.
"Every actor in the chain does what is required to ensure the chain works and while clearly there have been global challenges, our Government would be far better to listen to concerns and observe challenges here around regulation or a lack of infrastructure, rather than seeing itself as a player. No good will come of such intervention."
Leggett said it was positive the Government was taking time to inform itself of how the supply chain works and its challenges.
"It's good that the work acknowledges the fact that 93.8 per cent of freight is transported by truck."
CBFFF's Edwards said he would have liked to see discussion in the paper around an Australasian-owned shipping line "that better serves the needs of New Zealand and Australia".
It could be argued international shipping lines were "dictating to NZ Inc who are the winners and losers - both in terms of company size and scale and geography, where they will and won't go", he said.
"If you're in the top 20 companies in New Zealand you've been least affected in the supply chain. But most of New Zealand's importers and exporters are SMEs and their voice does not register with most of the traditional shipping lines now who only want the blue chip, big end of town.
"This could potentially change the business landscape forever in New Zealand. I am very pleased the Government has recognised this in the paper. It is a significant problem for many companies' futures ... "
The Government is investing more than $6b in KiwiRail. Photo / File
Edwards said the paper noted more than $6 billion had been committed (by the Government) to rail development, but only $30m to coastal shipping.
"In my view that illustrates a lack of a more cohesive plan for the total NZ Inc supply chain ... rail has been the clear winner in funding but the Government needs to expands its view as many freight clients can't utilise rail to its full capacity and would welcome a New Zealand-owned coastal option, integrated with a safe transport network not hindered by poor roads and speed restrictions."
Edwards doubted the paper's mention of congestion pricing would be welcomed by Auckland importers and exporters "already facing significant inflation pressure".
Shipping Federation executive director John Harbord said the paper's "explicit statements" on coastal shipping development and its part in significantly reducing carbon emissions was "very positive".
"The onus is now on us to work with the Government ... now we need to get on our thinking hats to make it work."
