High Cost Of Transport

Press, Volume CII, Issue 30289, 15 November 1963, Page 14

High Cost Of Transport

The information that internal transport costs absorb more than a quarter of New Zealand's national income should startle most citizens. If it does, the special report of the Transport Department will serve the useful purpose of encouraging thought on how these high costs can be reduced. Transport will always be expensive in New Zealand because of the geography of the country and because of the unusually high proportion of one-way loading. Another important factor is the willingness of New Zealanders to pay for what they regard as the personal comfort and convenience of driving in their own cars. But even allowing for these influences, the cost is too high. Improved roading systems, including metropolitan motorways, will make valuable savings. So will the Government’s overhaul and modernisation of the railway system, including the closing of uneconomic branch lines accounting for 10 per cent, of track mileage. Further substantial savings could be made on the knowledge now available without waiting for whatever further research the department may be able to do under such headings as “social benefit “ studies *’. The department’s report

rightly says that many private businesses, . including farms, often carry their own freight at a much higher cost than they would pay if they used the services of public carriers. They are not aware of the true costs of “ own account ” transport because of deficiencies in their accounting methods; and a little private research on their part would give many of them a surprise. At the same time, many small public carriers are unable to pay for fork-lift trucks and similar plant for handling goods in pallets and containers or for such equipment as radio-telephone systems. A more economic use of expensive road transport equipment need not mean the end of these small individual businesses, because taxi operators have shown on a smaller scale how individuals can combine in co-operative ventures to provide expensive facilities. Small road transport undertakings Will probably find that if they wish to stay in business in a competitive field they will have to do the same thing. And further use must be made of specially-designed freight containers, which soon earn their capital costs in savings on packaging, handling, and theft and breakage.