Local and regional roads and exports – 130314slide 1

The economic value of good roadsRoads and the nation’s export effort

presentation to

LGNZ Transport Summit

Dr Ganesh NanaChief Economist

13 March 2014

Local and regional roads and exports – 130314slide 2

Brief• 2012 research study

* Transport Futures – Economic Evidence

• evaluate the importance of local and regional roads, in comparison to that of state highways, in transporting main commodities from origin source to port of export

Local and regional roads and exports – 130314slide 3

Headline result

Getting NZ’s main land-based exports to port

requires 1.3 to 1.8 tonne kilometres use of local and regional roads

for every 1 tonne kilometre use of state highways

Local and regional roads and exports – 130314slide 4

Which exports?annual export values (Jun 2012)

$bn

Dairy 16.3

Meat 5.5

Logs & timber 3.3

Kiwifruit 1.0

Wine 1.1

Apples 0.3

Total of above 27.5 = 62.5% of total merchandise exports

Total merchandise exports 44.0

Local and regional roads and exports – 130314slide 5

Annual road transport taskfor main land-based exports = 6.6 billion tonne kilometres

0 1,000 2,000 3,000 4,000 5,000 6,000 7,000

Total

tonne kilometres (million)

origin to processor processor to port

Local and regional roads and exports – 130314slide 6

Annual road transport task

0 750 1,500 2,250 3,000 3,750 4,500

Dairy

Meat

Logs & timber

tonne kilometres (million)

origin to processor processor to port

Local and regional roads and exports – 130314slide 7

Farm-gate to processor milk road transport Top-10 Districts

0 20 40 60 80 100 120 140

Otorohanga

Rotorua

Waikato

Waipa

Ashburton

South Waikato

Matamata-Piako

Selwyn

South Taranaki

Southland

tonne kilometres (million)

Local and regional roads and exports – 130314slide 8

Assessing the road transport task

• origin to processor predominantly via local and regional roads except* in absence of precise data, assume for dairy

between 10% and 35% of this stage on state highways

• processor to port predominantly via state highways

• exclude from calculations use of rail

Local and regional roads and exports – 130314slide 9

Annual road transport task

0 750 1,500 2,250 3,000 3,750 4,500

Dairy - assump B

Dairy - assump A

Meat

Logs & timber

tonne kilometres (million)

local and regional roads state highways

Local and regional roads and exports – 130314slide 10

Annual road transport task for main land-based exports

tonne kilometres (million)

Local and regional

roads

State highways

ratio(local & regional

per SH)

Meat 299 107 2.8

Kiwifruit 16 9 1.8

Wine 11 9 1.2

Apples 12 7 1.7

Logs & timber 2,327 1,871 1.2

Dairy 1,121 819 1.4

Total 3,786 2,822 1.3

or if assumption B 4,217 2,391 1.8

Local and regional roads and exports – 130314slide 11

Road transport for main land-based exports

This distance on state highways

Means at least this much distance is on local and regional roads as well

OR, it might even be up to this much distance on local and regional roads