Road

Overall outcome*:
A road transport system that moves people and freight more efficiently, safely and cost effectively.


The roading network is central to the function of New Zealand – our economy, communities and our way of life. It carries 70 percent of New Zealand’s freight movements, while 84 percent of journeys to work are by car, truck, van or motorcycle. Almost half of all kilometres driven each year by New Zealanders are on the State highway network, although it makes up only 11.6 percent of the total road network.

Investment in roading, particularly in and around major cities and on State highways, is an immediate priority to support the government’s economic growth and productivity goals. There are also significant safety benefits from infrastructure improvements. Rebalancing of the approach to planning and investment, improvements to the road user charges system (RUC), and better value for money in public transport are required. Longer term, there is also a need to develop and support effective alternatives to private car travel,
especially in our major centres, including making better use of existing infrastructure.

Significant reductions in the number of fatalities on our roads have been made in recent years, but more needs to be done. While the number of fatalities has reduced, the number of serious injuries has not. The cost to society of these fatalities and serious injuries is still too high. Young and novice drivers are over-represented in fatal and serious injury crashes.
Each year the social cost of crashes involving young and novice drivers is $1.1 billion. The annual social cost of crashes involving speed, alcohol and drugs is $1.73 billion. Continued investment in road safety to improve productivity and reduce costs to society is a priority.

Improving the fuel efficiency of vehicles over time will provide productivity gains while also leading to reductions in the overall level of greenhouse gas emissions. Diversity of energy sources will help to build resilience in the transport sector to potential future oil supply constraints and also contribute to lowering greenhouse gas emissions from the transport sector.

What will we do to achieve this and how will we demonstrate succes
in achieving this?

Planned actions       Contribution to outcomes       Likely indicators of success 
Examine ways to improve the operation of the National Land Transport Fund (NLTF) through simplification, efficiency improvements and other changes that will deliver value for money. Changes to the land transport funding and planning system and road user charging system enable a more rational, economical and efficient gathering and allocation of funds. Targt: Increased value for money from the NLTF. 
Investigate barriers to improve performance in public transport, including the degree of regulation required to improve competition and achieve better value for money.  The public transport system achieves optimal productivity and value for money, and there is healthy and fair competition for contracted public transport services. 
Target: Increased competition for contracted public transport services. 
Review road safety initiatives and agree the key areas of focus to improve road safety over the next decade.  Key road safety priorities will improve the safety of the roading network and reduce the costs to the economy and society.  Target: Reduced number of road crashes and fatalities in the roading network by 2012. 
Investigate options for reducing harmful exhaust and greenhouse gas emissions.  The efficient use of existing technologies and identification of technological advances will help improve the peformance and impact of the transport system.  Target: Ensure New Zealand's international obligations are met as far as is practicable by 2012. 
Facilitate effective governance, performance and capability of the NZ Transport Agency. Effective governance and peformance of the NZ Transport Agency is critical to the operation of the land transport system as it manages $2.7 billion of public investment. Target: Achievement of key performance targets of the NZ Transport Agency by end of 2012.

Rail

Overall outcome*:
A rail system that moves people and freight more efficiently, safely and cost effectively.


Rail is an effective mode of transport for high volume and heavy freight and carries approximately 15 percent of freight moved in New Zealand. It carries large numbers of urban commuters in Auckland and Wellington with more than 18 million boardings in 2008. The rail system also reduces the pressure on New Zealand’s roads and can provide safety, health and
environmental benefits.

For these reasons it is important that the rail system operates as efficiently as possible. The government, through KiwiRail, now owns and controls not only the rail tracks and associated infrastructure, but also the majority of the rolling stock. The government wants rail to compete on a commercial basis with other freight and passenger transport modes, with services funded from customer revenue as far as possible and rail investments providing a rate of return. There may be some circumstances where the benefits to road users or society in general may justify public funding. Where this occurs it is
important that both the level of subsidy and services being bought are transparent.

It is proposed that the ownership of Metro Rail Auckland and Metro Rail Wellington will be placed with KiwiRail. This will achieve further integration in the operation of the rail service and should improve efficiency.

The Ministry's focus over the short to medium term is to work to establish the appropriate governance, institutional, funding and legislative frameworks that will position rail to contribute positively to the transport system in the future.

The Ministry aims to make the New Zealand rail industry progressively safer and reduce the distress and trauma arising from death and injury in the rail sector.

What will we do to achieve this and how will we demonstrate succes
in achieving this?

Planned Actions       Contribution to outcomes       Likely indicators of success 
Establish a transparent funding framework for commercial and subsidised rail activities.  Transparency in funding for rail supports the efficiency of the transport system as a whole and provides value for money from government investment in rail.  Target: Increased transparency of level of government subsidy and services that subsidies are applied to by end of 2011. 
Establish appropriate governance, institutional and legislative frameworks for rail.  The establishment of a modernised long-term structure and governance regime for KiwiRail will help create a more efficient rail network and transport system. Target: Amended institutional arrangements are in place by 2011.  
Implement new arrangements for metro rail services in Auckland and Wellington, and complete rail infrastructure upgrades. Streamlined ownership and operating arrangements will improve efficiency and risk management for the significant public investment in urban passenger rail services.  Target: The new arrangements are in place and upgrades completed by the deadlines set. 
Develop rail safety initiatives to improve the safety of those who operate on or near the rail system.  Improved rail safety will enable the rail system to operate more efficiently.  Target: Reduced number of accidents and fatalities in the rail network by 2012.

Aviation

Overall outcome*:
New Zealand has an aviation system that is safe, secure and compliant with international requirements.

Aviation is an innovative industry that contributes heavily to economic and social progress. It connects New Zealand and New Zealanders to the world, provides access to global markets, and generates trade and tourism.

Each year around 2.5 million visitors arrive in New Zealand, contributing nearly nine billion dollars to the New Zealand economy. The vast majority of those passengers arrive by air.

Aviation is also essential to the export of time sensitive goods which include fresh horticulture and seafood products. Effective air services allow firms to shorten delivery times, minimise inventory costs and limit interruptions to production.

International aviation is governed by the United Nations Convention on International Civil Aviation. As a signatory to the Convention, New Zealand has very clear obligations including being bound to have a comprehensive set of safety and security regulations based on the principles prescribed
by the International Civil Aviation Organization (ICAO). Non-compliance with these obligations risks exclusion or restriction on operating in the international aviation system and the consequential economic impact on trade, travel and tourism.

Inadequate safety regulation risks inconsistent standards and consequential damage to the reputation of the industry, tourism and the country itself. Equally, operators need to have a level of assurance that the reputation and viability of their businesses are not going to be adversely affected by the actions of operators that do not establish and maintain accepted levels of safety.

What will we do to achieve this and how will we demonstrate succes
in achieving this?

Planned actions       Contribution to outcomes       Likely indicators of success 
Maintain and enhance international air traffic rights to support passenger travel and freight movement.  Necessary air rights are available to New Zealand to support international passenger and freight links.  Target: International air traffic rights are enhanced to support passenger travel and freight movements. 
Manage the Crown's interests in charging and capital expenditure initiatives at joint venture airports. Increasing effectiveness in the management of the Crown interest in aviation infrastructure. Target: Crown obligations are met.
Ensure levels of aviation safety and security support national and international air travel, freight movement and general aviation activity. A safe, secure aviation industry is critical to our international reputation as a tourism destination and to the efficient operation of many aspects of our domestic economy. Target: Compliance with international standards and treaties is maintained.

Target: Reduced number of accidents and fatalities in aviation by 2012.
Facilitate effective governance, performance and capability of the Civil Aviation Authority and the Aviation Security Service. Effective governance of the Civil Aviation Authority and Aviation Security Service is critical as they are responsible for the provision of aviation safety and security services that enable New Zealand to comply with many international requirements. Target: Key performance targets of the Civil Aviation Authority and the Aviation Security Service are met.

Maritime

Overall outcome*:
New Zealand has a maritime system that is safe, secure and compliant with international requirements.

International shipping carries the vast majority of New Zealand’s
import and export goods and the cruise industry plays an increasing role in our tourism market. With sea freight accounting for 99.5 percent of our exports and 99.4 percent of imports, New Zealand is economically dependant on quality, timely, safe and cost effective international shipping services.

These services in turn rely on efficient and competitive sea ports as the critical nodes that represent the land-sea interface, or gateways, for both our exports and imports. Our port sector needs to be able to anticipate and respond to changing shipping patterns, vessel capacity, advances in freight handling technology and predicted future freight demands.

Domestically, shipping is also a part of our transport system for bulk commodities and inter-island ferry services and could potentially play a much bigger role.

An effective and productive coastal shipping sector relies on a sufficiently skilled and experienced workforce. Globally these skills and experience are in short supply. New Zealand must ensure that it has the best regulatory framework possible to support the sector to attract, train and qualify the necessary personnel for shipping and freight related occupations.

International shipping is governed by the United Nation Convention for the Safety of Life at Sea (SOLAS). As a signatory to the Convention, New Zealand has very clear obligations including being bound to have a comprehensive set of safety and security regulations based on the principles prescribed by the International Maritime Organisation.

Non-compliance with these obligations risks exclusion or restriction on operating in the international maritime system and the consequential economic impact on trade, travel and tourism.

Inadequate safety regulation risks inconsistent standards and consequential damage to the reputation of the industry, tourism and the country itself. Equally, operators need to have a level of assurance that the reputation and viability of their businesses are not going to be adversely affected by the actions of operators that do not establish and maintain accepted levels of safety.

What will we do to achieve this and how will we demonstrate succes
in achieving this?

Planned Actions       Contribution to outcomes       Likely indicators of success 
Address workforce shortages in shipping and related industries.    Workforce shortages are resolved, creating a more efficient maritime sector.  Target: Increased number of appropriately qualified New Zealanders employed in shipping and freight-related occupations. 
Facilitate improved port and harbour navigational safety.   A safer maritime system. Target: Reduced number of maritime accidents and fatalities.
Review transport policy priorities to enable investment in port facilities and shipping services. More effective investment in maritime infrastructure. Target: Increased level of investment in maritime infrastructure.
Examine barriers to competition , market entry and performance of shipping. The efficiency of the maritime sector is improved. Target: Barriers to competition, market entry and performance of shipping are identified and, where possible, reduced.
Facilitate effective governance, performance and capability of Maritime New Zealand. Effective governance and performance of Maritime New Zealand is critical to the operation of a safe maritime system. Target: Key performance targets of Maritime New Zealand are met.


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