Response to MOT Future Freight Scenarios Study

December 5, 2014

Response to MOT Future Freight Scenarios Study

It can be expected that all export ports, will over time handle larger ships than is presently the case, but only some ports will have the largest ships servicing New Zealand.

How it all plays out involves far too many variables for anyone to model outcomes with accuracy. There are always tradeoffs between price and service, which only the market can resolve.

The Government has a major role as owner of the road and rail system in ensuring that freight owners can move their products around the country, and to and from ports, in a cost efficient manner. It should be noted that non-container export freight weighs substantially more than container freight, but was excluded from this study.

The ports’ role is to provide a cost effective service to the international lines and the owners of freight. Competition in the sector will continue to provide the best result for New Zealand business, as was found by the Productivity Commission’s study into international freight services.

ENDS

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