Freight and logistics

The economy depends on the movement of goods from place of production to place of consumption, and/or the efficient re-location of goods when they are no longer needed in their existing location. Infrastructure is required to enable this to happen, alongside policies and regulation to support economic growth. We support our clients to make investments, and develop policies and regulation, based on evidence-lead intervention logic. We can also support operational optimisation and financial analysis and reporting to support improved profitability and better economic outcomes.

While urban transportation focuses on the movement of people, and the wellbeing of communities including liveability, economic growth and the environment, the overall prosperity of New Zealand requires goods to be moved over much longer distances.  Freight is moved by road, rail, sea and air both domestically and internationally.  The infrastructure required is by nature a network, with multiple users and many points of intersection, and providing benefits both to private companies and to the public.  In most cases the infrastructure is funded by payment for services using the infrastructure, or through levies of some description.

Given the importance of these networks to the country as a whole, some of which are monopolies, and the overlap between public and private good, regulation plays an important role in ensuring investment is optimised.  Direct government ownership and/or investment is also required in some cases.  Some projects may have significant economic benefit, but will not proceed without government intervention – for example moving the Cook Strait ferry port from Picton to Clifford Bay did not eventuate despite a strong economic case as both shipping companies operating services across Cook Strait were unwilling to make the necessary multi-generational commitment. The Government of the day did not consider the public good benefit from SH1 travel time savings, and reduced fatalities, to be strong enough to justify intervention.