National Freight Demands Study - Ministry of Transport

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National Freight Demands Study Meat products Meat products are usually transported frozen or chilled and the meat plants often have rail connections. A high proportion of output goes for export and, increasingly, the meat plants are located at some distance from the ports. The need to provide facilities for frozen containers travelling over fairly long distances probably favours rail, as does the potential for delivery to the ports from the meat plant without trans-shipment. Reflecting these characteristics, the share of rail is typically high, particularly in the South Island, where supply routes are possibly more fixed, with activity focused on Port Chalmers and Lyttelton. For plants in the North Island, where there are a larger number of possible ports, supply chains may be less well defined and the increased flexibility required to meet shipping schedules and lower distances favours road. In addition, there have been some issues with movement by rail in the past which may still affect current modal-choice decisions. Cement Cement is a low-value commodity produced at plants on the coast, which does not require fast journey times. As a result, it is well suited for distribution by coastal shipping to storage facilities which have been developed in a number of major ports in the country. To date, onward distribution is undertaken by road, reflecting the need for specialised handling equipment and the relatively short distances from the ports to major consuming areas. This onward distribution by road is also flexible in meeting the peak requirements of large construction projects for the product. Supermarket goods The movement of supermarket goods can be divided into two groups: movements between DCs and movements from DCs to individual stores. In both cases, consignments are assembled at short notice and may require a range of specialised handling equipment for chilled and frozen goods. For movements to stores, delivery times need to be short, in response to the needs of stores which have only very limited storage facilities, and goods have to be delivered within tight time frames. The value of the product is usually high. Supermarkets tend to be in residential areas and are not rail connected. As a result, these movements are undertaken exclusively by road, and it is unlikely that in any scenario, the use of alternative modes would be attractive, even for long and sometimes inter-island trips. For movements between DCs where timescales may be more relaxed, the use of alternative modes has been trialled in an effort to reduce the costs of transport, and to investigate more environmentally sustainable options. Even for these movements, however, reliability of travel time is important, and the possible disadvantages of the alternative modes need to be balanced against the cost savings and environmental benefits which might result. Supermarket groups are also attempting to achieve cost and environmental savings through more efficient use of road transport. In practice, this may be a more effective way of achieving these benefits, at least in the short term. 184
National Freight Demands Study 8.4 Overall assessment There are a number of factors which influence freight mode choice and which would affect different commodities to different extents. Essentially, the choice of mode represents a trade-off between a number of factors (of which price and service quality are the most important) and the balance between these and the way in which different modes supply them differs for different commodities. With the increasing cost of transport following increases in fuel prices, it is likely that the balances will change and the greater awareness of environmental and sustainability considerations will also play a part. 185
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National Freight Demands Study - Ministry of Transport

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