SEA AND RAIL.

Auckland Star, Volume LXV, Issue 149, 26 June 1934, Page 9

SEA AND RAIL.

COST OF TRANSPORT.

EFFECT OF COMPETITION.

HARBOUR DUES INCREASED.

(By Telegraph.—Own Correspondent.)

WHANGABEI, Monday.

The Transport Co-ordination Board recently wrote to the Whangarei Harbour Board forwarding a questionnaire setting out the principal headings under which information was sought in respect of the harbour boards in the Dominion.

The most important question was in regard to the effect of competition between the coastal shipping services and the railways in the harbour's business.

The Harbour Board, in its reply, stated that it was generally understood that the cost of transport by rail throughout the Dominion was approximately 2kl per ton per mile, which worked out at 26/ per ton between Whangarei and Auckland. On this section of the railway, the current published classification rates on general goods, showed an average of 51/ pej ton. The ruling sea freights on the goods enumerated ill tho railway classification averaged 13/0 per ton, which included cost of loading and discharging, and by adding the Harbour Board charges at Auckland and Whangarei, the cost was brought up to approximately 20/ per. ton. Harbour Improvements. About 13 years ago, when there seemed little prospect of Auckland and Whangarei bein? connected by railway for many years, the Whaußarei Harbour Board borrowed the sum of £120.000 for the purpose of carrying out harbour improvements which were then considered necessary. Under a scale of harbour charges— probably tho lowest in the Dominion — the revenue of the port was more than sufficient to meet the cost of all interest, maintenance, and general port services. Whangarei became linked with the main railway system in 1925, and the railway immediately took from the shipping the carriage of passengers, minerals, livestock, manures, etc., but did not for some years actively compete for the carriage of general goods. Recently, however, a system had been introduced, it was understood, whereby any individual could hire a 12-ton railway truck at Auckland, load it with any class of goods, and have it railed to Whangarei for the sum of £7. It was stated that in this way a truck could be loaded with 15 tons (ship measurement), which brought the cost of transport to 9/4 per ton, as against 20/ by water, and the ordinary railway classification rate stood at 51/.

Cargoes Fall Off. As a result the cargoes of coastal shipping were steadily falling off, with a consequent reduction in the number- of men employed on the waterfront. The Harbour Board, in order to meet its liabilities and maintain essential services, had been obliged to increase its harbour dues, and to levy and collect a rate of Jd in the £ over its district. It could be shown that the local ratepayers, who were not called upon to make up the deficiency in the board's revenue, were not receiving benefit from the cheap truck rate arrangement.