Rail and coastal shipping have been highlighted as suitable alternatives to avoid disrupting New Zealand's fuel supply further.
The Maritime Union of New Zealand (MUNZ) has released a new report on national fuel security, revealing that shifting long-distance freight from road to coastal shipping and rail would help insulate New Zealand from fuel supply disruptions.
Its findings reveal that shifting suitable inter-regional road freight to coastal shipping and rail would save up to 147 million litres of fuel annually, which is equivalent to a 16-day buffer of national diesel demand.
Maritime Union of New Zealand National Secretary Carl Findlay said reliance on international “spot-market” fuel tankers has left the country dangerously exposed.
The new report, Improving Fuel Security By Moving Long-Distance Road Freight To Coastal Shipping And Rail, is being brought before the Parliamentary Transport and Infrastructure Committee.
Findlay said the new report quantifies massive inefficiencies in the current transport model.
Coastal shipping and rail use approximately one-quarter of the fuel per tonne-kilometre required by road transport, he said.
“Moving the identified freight to sea and rail would save up to NZD 350 million in annual fuel import costs.”
Shifting freight creates a 16-day reduction in diesel demand each year: a buffer against oil supply disruptions delivered through structural supply chain changes rather than vulnerable emergency reserves, he said.
The Maritime Union has identified three policy levers as key to achieving its goal of fuel security through coastal shipping.
- Transport networks must be organised around a “hub and spoke” port model
- Support measures must be introduced to develop New Zealand coastal shipping, and
- A shift to “mode-blind” infrastructure funding was implemented to overcome systematic funding bias towards road transport projects.
The new report finds that nearly half of all inter-regional road freight movements are suitable for conversion to sea or rail.
“Shifting this freight would not only secure the fuel supply but also lower transport emissions and reduce the just-in-time commercial risks that have left our economy exposed.”
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