State Transport Services v. Coastal Shipping

Northern Advocate, 10 May 1939, Page 6

State Transport Services v. Coastal Shipping

Uneconomic Rail Dues Threaten Stability of Harbour Boards

WITHDRAWAL OF THE TRUCK SERVICE WOULD RESULT IN ; TRAFFIC TO THE TOWN- WHARF BEING INCREASED BY 50 PER CENT. AND ENABLE! A DAILY STEAMER SERVICE, SAID MR. J. A. FINLAYSON AT THE NORTHLAND HARBOUR BOARD CONFERENCE. GIVING AN INDICATION OF THE EXTENT TO WHICH THE WHANGAEEI HARBOUR BOARD WAS AFFECTED. Promises Not Fulfilled “About five years ago, the Dominion was promised a co-ordinated transport arrangement whereby the various classes of goods would be carried by the most economical means available, that is to say, road, rail and sea would each have allotted to it the business it was most capable of handling.” he said. “At that time the cost of transportation of goods by the various systems per ton per mile was stated to be —by road lorry, 6d to 1/-; by rail, if kept fully employed, 3d; and by sea coastwise, Id to 2d according to class of cargo. ; . The combined- Auckland- Whangarei harbour dues on the AuckdandWhangarei cargoes carried by sea would not exceed fd per ton per mile. “It is found,' however, that in place of co-ordination we have in Northland intensive competition by Government road lorry and railway, combined against coastal shipping,” Mr.. Finlayson said. “As showing the impossibility of shipping being able to stand up to the contest, the following examples of inconsistency and uneconomic competition on the part of the State services . may be mentioned. “The published classified railway rates for general merchandise A. B. C. and D. for the distance between Auckland and Whangarei, average 65/10 per ton, but under what is known as the truck system’ now operating to Whangarei and northward, these goods are being railed to Whangarei at a cost to the consignee of about 12/10 per torf. Getting The Business “Auckland to Hikurangi is 141 miles and the special truck rate is £B/16/-, equal to 14/8 psr ton, as compared with an average classified rate of 68/11 per ton. “Butter from Whangarei to Auckland is railed 130 miles for about 18/- ' per ton, while the Maungaturoto Dairy Co. pays 31/4 to rail its butter 91 miles to Auckland. “It costs 55/- per ton to rail goods from Auckland to Te Kuiti, a distance of 126 miles, while the same class of goods is railed 130 miles to Whangarei for 12/10. 1 “Further, it is stated to be a common practice in Whangarei district for • railway agents to call on the farmers during shearing time, and, having ascertained the shipping and harbour rates on wool, to quote a lower figure in order to get the business. To Fight Coastai Ships . “In an attempt to meet the competition the board’s dues were lowered and its services curtailed, while it is understood the shipping freights are now forced down below payable rates, and, with a continuance of the system the end of organised and regular shipping in the northern ports seems well . in sight. With it will go the ships’ crews, wharf labourers and clerical staffs, etc., to further burden the country. “If the truck rates are payable rates, then there is no need for the higher classified railway rates and these latter should be abolished and all goods carried throughout the railway system at the cheaper rate. “Otherwise the truck rates are simply competitive ones designed to fight coastal shipping while water carriage throughout the world is known to be the cheapest transportation system yet discovered. “In Great Britain there is in force the Imperial Road and Rail Act, 1933, which prevents railway ■ companies from taking the ■ business that rightly and economically belongs to the shipping. “Coastal shipping in Britain is protected by the nation, because it is essential not only for the economic carriage of goods, but for the training of seamen for purposes of defence, etc., and surely what is good for Britain should be equally good for the rest of the Empire, and particularly for an insular country such as New Zealand. £6270 To Be Paid Yearly “In 1921 the ratepayers voted money to develop the Whangarei Harbour, the annual interest and sinking fund on which amounted to £B7OO (now reduced to £6270). At that time the whole of 'the goods ‘traffic between Auckland'and-the North went by sea, but later, upon Auckland, Opua and Okaihau being linked by rail, the carriage of passengers, live stock, timber, fertilisers and other bulky goods was diverted to the railway. However, as harbour dues on these items were low, the board’s revenue did not suffer. any heavy reduction. “About six years ago, motor lorries commenced operating between Auckland and Whangarei, with the result that both the railway and the steamers lost a large percentage of their parcels traffic, and as this class of goods paid the highest harbour dues, the board was a considerable loser, and it joined with the Railway Department in opposing the granting of licenses to these road operators. Fight Between Rail And Water “With the recent taking over of the road lorries by the Railway Department, the fight for the,business is now between the State and the shipping companies, and as an indication of the extent to ‘which the Whangarei Harbour Board is affected, it can be shown that if the truck system were withdrawn, the traffic to the Town Wharf would increase by 50 per cent, and would mean a daily steamer service.” Striking Of Land Rate May Ensue “It is recognised throughout the world that goocis can be carried cheaper by water than by rail no matter what the distance may be,” said Mr, Finlayson. “Auckland to Whangarei is 130 miles by rail and 75 miles by . .‘‘water, yet the competition of the railway against shipping for the carriage of the goods between these two points is such that shipping is being forced . to give way. “The Whangarei Harbour Board reduced its charges and the shipowners lowered their freight rates in. an. endeavour to maintain, their share of the trade, but apparently to no avail. “The cost of maintaining the harbour services and the payment of interest and redemption instalments on the Board’s loans are at present met / out of the dues paid by shipping. With the decline in revenue from this source as a result of the present railway truck rate system, the Harbour Board will be obliged to call upon the borough and county councils and the town boards in the district to collect the land rate which was pledged as security for the Board’s loans. “The matter has gone beyond the control of the Harbour Board, and the remedy seems to be in the hands of the people."

The railway truck system, whereby goods are railed to certain stations at a special low charge is a matter of considerable concern to Northland. Repercussions are most felt where the railway and sea transport are in competition, and Northland Harbour Boards recently met to consider the threat to their future commercial stability. The Chairman of the Whangarei Board, Mr. J. A. Finlayson, stated that: “If shipping continues to be starved as it is at present, then, in place of the Board's revenue being sufficient to meet interest and principal on loan money the Board will be obliged to collect the land rate, which is pledged as security for the loans." With the object of co-ordinating transport arrangements it was decided to form an association of Northland harbour boards and to invite the Minister of Railways to a conference to discuss the truck system. In view of the wide interest in the subject, the “Northern Advocate communicated with local bodies, dairy companies, chambers of commerce and the Railways Department in order to obtain representative opinions covering the province. The response received is indicative of the importance attached to the question by the interests concerned. In 1933 the Railway Department instituted a system on the AucklandW hangar ei-Opua-Okaihau section whereby an LA truck (the loading capacity of which is equal to 20 cubic tons, and with a dead Weight capacity of 12 tons weight of sugar or merchandise) can >be loaded at Auckland with any class of goods and railed to certain stations at a special low charge, kpown as the “truck rate." . , The truck can he loaded with goods belonging to any number of persons, provided it is consigned by one person or firm.