Kawakawa shop owner Karam Gill said increased transport costs due to the Brynderwyns closure will affect her business. Photo / Jenny Ling
Northland businesses will have to decide whether to pass extra transport costs associated with the upcoming Brynderwyns closure on to customers or “take them on the chin”.
The Northland Chamber of Commerce has also warned New Zealand Transport Agency Waka Kotahi (NZTA) the closure could have an “inflationary effect” on the region’s economy.
With just 26 days before the vital stretch of SH1 shuts in both directions for nine weeks, owners of small to medium-sized businesses are bracing themselves to “wear” likely price hikes along with frustrating delivery delays as truckies are forced to take lengthy detours.
FreshChoice Ruakākā owner Grant Egan said transport companies will “have to pass costs on”.
“There’s no way they can wear the extra transport costs and wages.
“They’re travelling an extra hour a day, and that’s an extra hour of wages and diesel, and eventually it’ll be passed on to us.
“We won’t be passing on those extra costs to customers ... we’ll wear those ourselves.
“We’ll take it on the chin.”
Egan said transport costs were also passed on to his supermarket business last February, when Cyclone Gabrielle caused numerous slips, closing the Brynderwyns either fully or partially right up until mid-April.
The upcoming work, from February 26 to sometime in May, is to fix more slips and weak areas following that storm damage to get the road back to how it was before the weather events.
Egan said the frequent closures also impacted staffing.
“We have to be careful of the number of staff we employ and how much work we give them.”
And while Egan said he won’t reduce staff hours, “we prepare for it”.
“We’re coming out of the Christmas period, where we’ve employed lots of students and they’re going back to school.
“We’ll be careful about replacing them, because when the Brynderwyns close, we’ll get remarkably quiet.
“We’ll be holding off on employing more people until we find out the real impact of it.”
NZTA is to close the Brynderwyns from February 26 until March 27. SH1 will then reopen for six days over the Easter period before closing again on April 3 until May.
While cars can detour through Mangawhai and Waipu, adding around 30 minutes, freight is likely to be directed through Paparoa Oakleigh Rd, with heavy freight having to drive through Dargaville on SH12 and SH14.
National Road Carriers transport specialist Paula Rogers has previously said the detour routes added an extra two to three hours to drivers’ trips.
That could result in a minimum 10 to 15 per cent cost passed on to consumers at a time when prices are already high, she said.
One truck driver has already warned every truckload coming into Northland will have an extra $200 added on to it.
Northland Chamber of Commerce president Tim Robinson said the issue had been flagged to NZTA as part of ongoing consultation on the road closure.
The chamber had asked the government agency if funds were available to compensate businesses, but it had said no.
Therefore, it was up to businesses to decide whether to pass on those costs or absorb them, he said.
“Some businesses will choose to pass those increased costs through.
“It’s a decision business owners make on a daily basis: ‘If costs rise, is there a way to recoup those, or do I absorb them?’
“We’re already in a cost of living crisis - to then turn around and add more costs and expect them to absorb it, that to us was patently unfair.
“Our advice to NZTA was to brace themselves. There could be an inflationary effect of this unless the agencies responsible assist with the increased costs.”
Karam Gill, who owns JVR Pricecutter Store in Kawakawa, said if transport prices increase, “it will affect my business”, as most of her deliveries come from Auckland.
“We have to put the burden on the customers.
“Some we will absorb ourselves, depending on how much they are charging. If they’re minor, we will ignore it, but if it’s huge, it will make a difference.”
Four Square Kawakawa manager Priyanka Bhikha said she wasn’t looking forward to delayed deliveries.
“[There are] going to be later deliveries, which is frustrating for us because we already have to wait around. It’s going to be late deliveries for nine weeks.
“What can we do? We can’t do much about the situation.”
As for price increases, the store wouldn’t be putting up prices because “our prices come from Foodstuffs, we have to go with that”.
“We’ll still have our locals. We service the community, and they’ll keep shopping here,” Bhikha said.
Egan said he hoped the next lot of work to the Brynderwyns “will be the end of it”.
“If there’s another weather event after the work is done, it’ll possibly close again. Obviously, we’d want to avoid that.
“The solution is a four-lane highway from Auckland to Whangārei - but that’s not going to happen in my lifetime.”
Jenny Ling is a news reporter and features writer for the Northern Advocate. She has a special interest in covering roading, lifestyle, business, and animal welfare issues.