Ministry Drops Freight Study After $164K SpentThe Ministry of Transport has abruptly ended its National Freight Demand Study after spending $164,000 on external consultation. The move has drawn criticism from Transporting New Zealand, which says reliable freight data is more essential now than ever before.
Freight Sector Highlights Need for Data-Driven Investment
“At a time when we’re seeing reduced freight capacity across the Cook Strait, serious international trade uncertainty, falling rail volumes, and huge pressure on the National Land Transport Fund, we need to be making well-evidenced investment decisions,” said Dom Kalasih, Chief Executive of Transporting New Zealand.
Study Tracked Changes in National Freight Movement
The National Freight Demand Study had been a key resource for understanding how freight moves throughout the country. Previous editions tracked shifts in freight transport mode, commodity type, and regional origin and destination.
The most recent data from 2017/2018 showed road handling 92.8% of freight tonnage, rail accounting for 5.6%, and coastal shipping reaching 1.6%. Ending the study leaves policymakers without essential data to guide infrastructure planning.
Transporting New Zealand Calls for Targeted Infrastructure Spending
Transporting New Zealand warns that without updated freight data, government transport investments could miss the mark—both financially and strategically.
“Poorly evidenced transport investments will cost the Government far more than any costs of the National Freight Demand Study,” said Kalasih.
He also emphasised the growing urgency around infrastructure investment, as supply chain inefficiencies begin to constrain New Zealand’s economic ambitions.
“The Government is not going to meet its goal of doubling the value of exports in 10 years if they don’t have a productive multi-modal supply chain to move freight across the country.”
Road Freight Sector Stresses Economic Impact and Funding Needs
Road freight remains the dominant mode of goods movement in New Zealand. Representing over 4,700 businesses and more than 34,000 workers, Transporting New Zealand estimates the sector contributes approximately $6 billion each year.
The organisation argues that infrastructure investment must be based on sound evidence, with this scale of economic activity.
“The Government needs to be targeting transport investment to where it will be most effective,” Kalasih added.
Freight Industry Urges Ministry to Reconsider Study Cancellation
Kalasih has rejected the Ministry’s justification for halting the freight study, calling the move short-sighted. “Transporting New Zealand has consistently emphasised the importance of good quality freight data when we meet with the Ministry of Transport. We highlighted the importance of an updated National Freight Demand Study in particular.”
He added, “We’ve raised our concerns directly with the Ministry, and hope that the decision will be urgently reconsidered.”
Industry representatives say that without recent data, transport policies risk being out of step with the realities facing the sector.