New Zealand importers and exporters spend about $5 billion on freight services each year. These services provide essential connections between New Zealand and the international economy – allowing New Zealand products to be exported to markets all over the world and allowing New Zealand businesses and consumers access to a wide range of imported goods, equipment and materials.
The Commission has been looking at whether the efficiency of these services can be improved. For businesses this would mean more competitive exports and higher profits. For consumers it would mean cheaper prices and greater spending power.
As the most remote developed country in the world, having highly efficient international freight services is crucial for New Zealand’s economy and for the wellbeing of its citizens.
Our investigations have revealed that while the performance of New Zealand’s international freight system is good, opportunities exist to make it better. These opportunities exist in a wide range of areas and across many parts of the logistics chain – from better planning of infrastructure investments, to improvements ingovernance structures and more productive workplace relationships.
Purpose
The Government asked the Commission to undertake an inquiry into international freight transport services.
The key high-level questions for the inquiry were:
- What factors influence the accessibility and efficiency of international freight transport services availableto New Zealand firms?
- Are there opportunities for changes in New Zealand’s infrastructure and regulatory regimes that could increase the accessibility and efficiency of international freight transport services for New Zealand firms?
In answering these questions the Commission was asked to pay particular attention to:
- the effects of New Zealand’s distance from overseas markets and reliance on overseas providers of international freight transport services;
- the costs, efficiency, productivity level and growth of all components of New Zealand’s international freight services supply chain, with international comparisons; and
- the effectiveness of current regulatory regimes (including those in the Civil Aviation Act 1990 and Shipping Act 1987), and the potential costs and benefits of alternative regulatory arrangements, with international comparisons.