Supply chains must keep moving, industry says …...“New Zealand transport companies are resilient and have responded quickly and responsibly to the challenges posed by the Covid-19

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Infrastructure NZ pitches recovery plan

Mainfreight keeps trucking

$54b earmarked for land transport

Transport leaders are urging the Government to keep supply chains moving as the road freight industry

and key players ramp up essential deliveries.This comes as the trucking industry steps up to remind the country of the critical role it plays after New Zealand went into level 4 lockdown at 11.59pm on Wednesday, March 25.Urgent deliveries were soon needed for food and groceries to supermarkets and medicines to hospitals and medical centres. The National Road Carriers Association (NRC) is responding by helping redeploy

drivers for essential deliveries. It has registered more than 250 relief drivers on its database to stand in for truckers who become ill or can’t work due to the coronavirus pandemic. The initiative had immediate effect in the first week of lockdown by overcoming a driver shortage – the organisation put a call out to members for trucks and drivers available to assist with extra capacity to keep up with supermarket demand.“We had a very good response and have now covered this requirement but our database will be available to other road transport operators who are short

Supply chains must keep moving, industry says

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APRIL 2020

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of drivers,” NRC chief executive David Aitken says.He says the road freight industry is always ready to respond to a national crisis and it has already proven itself capable during other events such as the Christchurch and Kaikoura earthquakes. “The road transport sector stood up and shone during previous crises to ensure communities get essential supplies.“We are confident the Government and banks recognise the road transport sector is an essential industry and will provide any support our businesses need to keep operating in order to keep supplies moving.“New Zealand transport companies are resilient and have responded quickly and responsibly to the challenges posed by the Covid-19 crisis. They are well-run by capable businesspeople and managers and staffed with experienced drivers,” Aitken says. Countdown national transport manager Graeme Doull says the supermarket chain is seeing a 30 to 40 per cent increase in deliveries to stores over the last few weeks to help keep up with demand. “It’s been a massive effort from right across our business, and our incredible transport and delivery partners are no exception.“We have deliveries on the road 24/7. Big stores will often receive multiple orders a day and in some cases, we’ve got whole trucks on the road just for one store - that’s the level of food and other essentials we’re needing to transport,” Doull says. The company has also welcomed more drivers through contractors and subcontractors to help keep up with the demand. “We’ve been very grateful to have had great support from all our suppliers during this very challenging time. “All our major suppliers have increased their deliveries, and we’ve also increased

the capability of our [distribution centres] to help cope with these bigger volumes. We’ve even opened an extra warehouse to store the extra deliveries during this time,” Doull says. Meanwhile, Road Transport Forum (RTF) chief executive Nick Leggett says the Government needs to act to ensure all freight is moved quickly to stop the ports from piling up, and allow trucking companies to survive throughout the period. The RTF is working with the Ministry of Transport to clarify essential services within the road freight industry.Leggett says the health response is the right move but “decisions are being made that adversely impact the movement of goods and the financial viability of companies that will be essential to any recovery”. With the response under way, “there must also be planning for how we are going to get out of this and not have the economy collapse completely,” he says. Speaking to Stuff.co.nz, Freightways boss Mark Troughear echoed those comments and said the company saw freight volumes drop around 65% after the lockdown. Courier drivers are on the road delivering essential freight with little else and the costs build up, he says. Troughear told Stuff “a greater flow of goods is needed to help keep the system working”. "If you choke off parts of the system, what you're leaving is very expensive systems with very little freight to feed them," he says. Leggett says the problem is classifying freight into two arbitrary groups – essential and non-essential. “You take one link out, and the whole chain starts grinding to a halt. Our trucking operators are seeing that. The burden is on them to keep essential supplies moving, but because of rules set on the fly, they may not be able to and may go out of business.“And goods coming in containers

deemed ‘non-essential’ have to be moved off the port and stored somewhere. If they can’t be unloaded from the container for the four weeks of the lockdown, that comes at a cost of around $50,000 for keeping the container that needs to go back into circulation for the supply chain to flow.“If the goods can’t be moved from the port, there is a high cost to that both in dollar terms and in the efficiency of port movements.“All freight needs to be free to move. The essential/non-essential distinctions present significant economic viability issues for those freight companies operating within essential services constraint,” Leggett says.

Continued from page 1

David Aitken

Nick Leggett

Chris Carr

Mark Cairns

Continued on page 3

2 | TRANSPORTTALK APRIL 2020 | www.transporttalk.co.nz

NEWSTALK

Ports keep moving Vehicle imports also continue to land on wharves with Ports of Auckland’s operations now solely focused on moving freight throughout the Covid-19 crisis.Ports of Auckland spokesman Matt Ball says ships are still coming in with vehicles and the main priority is to get them cleared off the wharves as quickly as possible.“Vehicle transporters will be taking them straight to storage yards and getting them off the port,” he says.At this stage they will remain in storage as they will not be going through compliance and registration.Carr & Haslam director Chris Carr says the “essential thing is we don’t want to disrupt the supply chain and we need to keep it operating”.“Ports will be a priority and clearing the ports will be a priority so they can operate … the wharves can’t be left to clog, they must be shifted,” he says.Meanwhile, essential freight on container and cargo ships includes everything from bananas, coffee, cereals and “yes, even toilet paper”, the port says.“The supermarkets will remain stocked so there’s no need to panic buy and we are taking additional measures to ensure our staff and our borders are protected from Covid-19.“As one of Auckland’s lifeline utilities we are acutely aware of our responsibility to ensure that 1.7 million Aucklanders can continue to get key essentials through the port amid the pandemic.“We’re also aware that many Auckland businesses rely on getting imports in or exports out via our port to keep their businesses running.“Ports of Auckland’s container and multi cargo terminals are open and operating,” the company says. Port of Tauranga is also busy moving vital supplies and completed its largest ever cargo exchange at its container terminal. The Sally Maersk container ship exchanged 9367 TEUs (twenty-foot equivalent units) over two and a half days before departing Tauranga for Kaohsiung, Taiwan, on Thursday, April 2.Port of Tauranga chief executive Mark Cairns says the exchange “completely blitzed” the previous record exchange of just under 7000 TEUs.At the same time, another 1772 TEUs were exchanged on two other vessels

– the Charlie B and the domestic vessel Moana Chief.“It is an outstanding achievement by our team, Independent Stevedoring Ltd, C3 Limited and our other service providers,” Cairns says.“Everyone has pulled together to ensure that essential cargo can be delivered and the supply chain keeps moving to make room for high priority supplies during the lockdown.”Four ship-to-shore cranes were used, with operators achieving a ship rate of 97.49 moves per hour – a 160% more efficient than the national average.“Thanks are also due to the truck drivers and KiwiRail staff ensuring import and export cargo gets to and from the port. We also appreciate the quick processing of imported containers by border agencies Customs New Zealand and the Ministry for Primary Industries,” Cairns says.KiwiRail suspended its three tourist trains, TranzAlpine, Northern Explorer and Coastal Pacific, while keeping lines open for freight. The Interislander was also closed to passengers and open as a freight-only service for commercial vehicles as a crucial transport link between the North and South Islands.

Dealerships, parts and serviceTruck dealerships and workshops also remain on deck to keep the transport industry moving through the crisis. Scania NZ managing director Mattias Lundholm says the company and its customers have a “massive obligation to provide an essential national service”.“During these challenging times we want to assure you that Scania will be doing all we can to keep our vehicles moving around New Zealand to supply essential services. “From grocery, fuel, general freight, livestock, milk, NZ Post, refrigerated goods and all agriculture transport. The list goes on.“We must do everything in our power to ensure that our workshop doors stays open, our spare-parts shelves stay stocked and our workshops

remain operating with skilled experts to keep the Scania fleet running.“Our priority as always is our people and our customers and we feel privileged to play a part in helping to keep all New

Zealanders safe,” Lundholm says.Fuso New Zealand chief

executive Kurtis Andrews says he is confident the transport and construction sectors will be central to the economic rebuild that will take place in

the following months.“Once we move beyond Covid-19 restrictions, we anticipate a resurgence in

transport activity,” Andrews says.“Ships are still bringing containers, our exporters will be desperate to get goods to international markets, and the Government has promised large investment in infrastructure construction,” he says. Nationwide commercial parts and service provider Truckstops also remains in operation with all 19 of its sites open to support essential services.

“As critical providers to New Zealand’s emergency services,

local government, freight, utilities [including bulk gas and fuel suppliers] and waste industries, we are aware that many of our customers’

businesses are categorised as essential services,” Sime Darby commercial group general manager Chris Brown says.

“Right now, our focus is on supporting these organisations to keep essential services operational through the availability of parts the and provision of vehicle maintenance and break-down services,” he says.CAL Isuzu managing director Ashok Parbhu says New Zealand’s essential transport services “are vital at this time”. “This means we will keep our doors open in Auckland, Waikato and the Bay of Plenty for truck servicing and part supplies, and our truck sales team are

working remotely to support our customers with answers to any

queries they may have.“All of us at CAL Isuzu would like to thank our customers and suppliers for the role they are playing every day providing for our communities,” Parbhu says.


Ashok Parbhu

Chris Brown

Kurtis Andrews

TRANSPORTTALK APRIL 2020 www.transporttalk.co.nz | 3

NEWSTALK

GOVT PROMISES $54B ON LAND TRANSPORT AS RECESSION LOOMS

Transport minister Phil Twyford has earmarked $48 billion over the next 10 years in the Draft Government

Policy Statement (GPS) 2021 on land transport.This is on top of the $6.8 billion boost announced from the NZ Upgrade Programme which will see a total $54b go to the transport construction industry.Twyford says there is no proposal to raise petrol tax and the spend will provide the industry with “certainty during the current global economic headwinds”.“This GPS shows our Government is putting the pedal to the metal on our balanced transport policy while committing to a massive infrastructure spend over 10 years.“Alongside the historic $12.1b Covid-19 economic response package and the $12b NZ Upgrade programme, this transport investment will make a real difference to New Zealand’s economic recovery,” he says.The GPS includes $10b which will go towards the Government’s safety

programme to reduce deaths and serious injuries on the road by 40%.“In the first three years alone, Road to Zero will invest nearly $3b in safety infrastructure like median barriers, safety campaigns and road policing.“The regions will get an extra $1.2b in road upgrades through Road to Zero in the first three years, more than double the amount for regional improvements under GPS 2018.“We’re taking climate change seriously through unprecedented investments in public transport and walking and cycling improvements.“Given how both rail and coastal shipping help take pressure off our roads and produce less emissions, we are looking to fund both in GPS 2021.“Building alternative transport options for people and freight is a vital part of achieving the Government’s goal of net zero emissions by 2050,” Twyford says.The Government is now seeking feedback from local government, the transport sector, community groups and the wider public on the draft GPS 2021.

Continued on page 6

Sharon Zollner

Phil Twyford


NEWSTALK

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VOLUME 8 | ISSUE 9Quantitative easingMeanwhile, the Reserve Bank has pulled out one of the biggest tools in its arsenal to boost the economy with quantitative easing. The Large Scale Asset Purchase programme (LSAP) will see the Reserve Bank buy back government bonds from banks, providing them with additional liquidity.“The negative economic implications of the coronavirus outbreak have continued to intensify,” a statement on behalf of the Reserve Bank’s Monetary Policy Committee says. “The committee agreed that further monetary stimulus is needed to meet its inflation and employment objectives.“Globally, the number of people infected with the virus has increased rapidly and measures to contain the outbreak have become more restrictive. Global trade and travel, and business and consumer spending have been curtailed significantly.“The programme aims to provide further support to the economy, build confidence, and keep interest rates on government bonds low,” the statement says.ANZ bank, owner of vehicle lender UDC, immediately issued a statement welcoming the move.“The RBNZ will purchase $30b worth of NZGBs across the yield curve in the next 12 months.”They have also said that they stand ready to “make adjustments and additions if needed”. “Given the size of the package, we think it will put to bed any questions about how effective it will be.”For dealers it’s welcome news as banks and financiers will still have money to lend, and provided you are not already in a precarious debt position, they will be keen to do it.It will also mean mortgage and lending rates from banks will remain or head lower – spurring consumer sentiment and spending.

Severe recession ‘guaranteed’However, the March ANZ Business Outlook Survey made for dreadful reading with business confidence plummeting 45 points to negative 64 in March – close to a record low.Not unexpectedly, a net 27% of firms expect weaker activity for their own business (down 39), the lowest read ever

(the survey began in 1988).“We’re on a very steep slide indeed,” says ANZ chief economist Sharon Zollner.“Responses received later in the month versus the early-sample results show that we are still on the slide – even with some series at record lows it seems unlikely we’ve seen the bottom.“Times are grim. We’ve never seen such a broad economic shock strike with such ferocity. “Firms are right to be alarmed. Both fiscal and policy are leaping into action but a severe recession is guaranteed.“The days when we were wondering why firms were so unsure about the outlook feel very long ago. The problem is front and centre, and it’s a whopper.“This will end. But with no one able to tell businesses when that will be, any attempts to shore up confidence are likely to get little traction in the near term.“It’s going to get worse before it gets better, and firms know that,” Zollner says.


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UNCERTAINTY GROWS FOR TRACTORS AND MACHINERYThe Tractor and Machinery

Association (TAMA) says the impact on sales in response to the

coronavirus pandemic is still unknown.TAMA president John Tulloch says 2020 is shaping up to be a year of uncertainty and “only time will tell”.Covid-19 could impact sourcing components from China although this had not yet occurred, he says.“We just don’t know the actual impact yet. It could end up being positive as New Zealand is known as a safe country for food production. We have stringent and well-recognised food safety systems so could be seen as a preferred supplier,” Tulloch says.TAMA statistics showed overall machinery sales were down in 2019 with 4382 units compared to 4531 of all types sold in 2018.Tulloch says as these units included everything from $1000 sprayers through to $500,000 harvesters, it was more useful for meaningful comparisons to focus on the key machinery areas of grass and forage harvesting.These sales were down around 6.8% with 1665 units sold in 2019 compared to 1787 the year prior.Meanwhile, there were 4007 tractor sales in 2019 compared to 4640 in 2018, a drop of 13.6%.“Anything over 4000 tractor units is still a respectable result and showed we had a pretty solid year. And certainly within the machinery sector, we had a better year than many were expecting considering the conditions,” Tulloch says.These conditions included uncertainties around government policy on water quality and emissions plus challenges in obtaining finance as banks beefed up their equity reserves.Tulloch says the North Island drought conditions would have an effect on farmers although contractors might have a good season as feed reserves have been used up, requiring restocking.Farmers in Westland, Southland and

Otago were also suffering after a wet, cold spring followed by summer flooding.“The reduction in value of dairy company shares is also suppressing the mood and sentiment of dairy farmers even though the predicted payout of $7-plus is still quite positive.“I would like to think that this coming season might give us a slight increase because some farmers and contractors have deferred purchasing so there’s

some pent-up demand to realise.“Many are saying ‘let’s wait and see’ but by the time they decide it could be too late to purchase in 2020.“Factory lead times are becoming longer as the machinery becomes more

complex and technical.“People need to order much earlier now to ensure their order can be imported in time, so it’s important they make the buying decision sooner not later,” Tulloch says.

John Tulloch


NEWSTALK

The Government is allocating $100 million to help redeploy workers and those hardest hit in the forestry

industry throughout the Gisborne-Tairawhiti region.Economic development minister Phil Twyford says East Coast forestry workers have suffered greatly as a result of the coronavirus impacts. The sector itself accounts for 6.7% of regional GDP.He says the Government is moving quickly to help these people stay in work and the funding package will go towards other means of employment over the next six months.Of the funding, $28m will support around 300 people in the Gisborne region as they are redeployed.“Forestry was one of the first industries to be seriously impacted by Covid-19 but by keeping the infrastructure and workforce of the sector intact, we hope it will be one of the first to recover,” Twyford says.Alternative employment for the forestry workers includes local roading and maintenance, hazardous tree removal, fast-tracked One Billion Trees projects, and conservation activities.The package will be administered through the Provincial Development Unit in partnership with the Mayors’ Forum and Gisborne District Council.Affected workers will be referred via the Ministry of Social Development’s Rapid Response Team and affected businesses.Forestry and regional economic development minister Shane Jones says it’s welcome relief for the forestry sector which was only just recovering from last year’s crash in log prices.“Many small firms used their cash reserves to get them through that and some companies are now struggling to

survive.“However, the future for the forestry sector is extremely bright and we want to ensure it is in a position to recover from the economic impacts of Covid-19 as quickly as possible.“By redeploying workers to short-term projects, we can help ensure they are available to go back to the forestry sector once it returns to normal,” Jones says.Eastland Wood Council chief executive Kim Holland says it’s a “fantastic” response from the Government and the package has already saved a number of jobs.“The Government is being really responsive to what the region has asked for with redeployment options for people to stay in the region an utilise their skills and experience in other sectors such as roading.“So, I think that’s really positive stuff, I’m sure there will be contractors pretty happy with it.”Speaking to TransportTalk before the Covid-19 level 4 lockdown, Holland says logs were starting to move from the port again although exports were still down around 30% from the year prior.“The forestry industry has been dealing with this for nearly two months now, we’ve been doing it hard for a while, but the key thing for us is pulling together and working together for whanau.“It’s a changing environment, it’s not just about jobs but people’s health as the impact of this virus starts to hit home,” Holland says.Following the level 4 alert, forestry company Aratu Forests was given special permission to keep logging trucks on the road and finish loading a ship at Eastland Port which started before lockdown started.

Aratu Forests chief executive Ian Brown told the Gisborne Herald cartage of the logs involved a restricted number of truck movements between the yard and the port in order to get the vessel loaded and away as quickly as possible. All truck drivers were sent home under the level 4 quarantine orders once the work was finished. Meanwhile, Eastland Port was designated an essential service (transport and logistics - critical infrastructure) by the Government. It saw a cancellation of logging ships coming into port until further notice, however, reefer ships carrying kiwifruit and squash, will continue to be loaded.The marine pilots are using full personal protective equipment and distancing protocols when they board vessels and follow the most stringent health and safety standards.

GOVT INJECTS $100M TO SAVE FORESTRY WORKERS

Kim Holland

Shane Jones


NEWSTALK

Infrastructure NZ is welcoming the Government’s $12.1 billion Covid-19 package for individuals and

businesses to help “soften the impacts”.It says now is the time for Government to create conditions to build investment momentum and has laid out a 10-point infrastructure recovery plan for “extraordinary times”.“We’re especially pleased with the reinstatement of depreciation deductions for commercial and industrial buildings,” Infrastructure NZ chief executive Paul Blair says.“This will allow around $2.1 billion in tax to remain with building owners and it is now incumbent upon them to follow the Government’s lead and inject that money into building upgrades and maintenance.“If building owners can take advantage of slack in the employment sector and taxpayer assistance, New Zealand could emerge from this crisis with greener, safer and healthier buildings. We’ll be more efficient, more sustainable and more resilient.“The big opportunity, however, is in the third and as yet unannounced component of the Government’s response – the broader recovery package.“If the Government gets it right, New Zealand will seize this opportunity to unlock constraints to our social, economic, cultural and environmental progress which have built up over many years, allowing our economy and people to bounce back quickly,” Blair says.“If we implement these measures, New Zealand can tackle long-standing, costly and damaging impacts from many years of high growth and weak investment. Never waste a good crisis.”

The 10-point infrastructure recovery plan includes:1. Fund local transport and water projects

– “many councils have consented, shovel ready projects across every town in New Zealand that are ready to go today and don’t need big workforces. Infrastructure New Zealand’s Building Regions proposal aligns well with the Crown’s unfunded Urban Growth Partnerships – the May Budget must introduce a new co-funding regime to get these projects done.”

2. Rapidly mobilise the Infrastructure Commission – “some councils don’t even need money to invest in long overdue water and transport projects, just capability. The faster we bring the Infrastructure Commission’s project advisory team on board, the more central and local projects we can unlock.”

3. Double down on housing growth – “Kainga Ora and the Government’s urban growth agenda must build on progress to address the housing crisis and support urban land supply.”

4. Let NZTA borrow – “the Transport Agency doesn’t currently have its own borrowing capacity, but it does have a reliable revenue stream and big asset base. If NZTA could borrow in the same way as Kainga Ora, multi-year transport programmes could be funded. If NZTA has funding certainty it will also enable councils to spend 100% of their transport capex programmes – today these are often underspent as NZTA doesn’t have sufficient funding.”

5. Invest in green energy – “we’ll never again have the opportunity to tackle emissions and climate change that we have today. A number of major renewable electricity projects are consented and awaiting transmission investment, but Transpower is unable to invest ahead of demand. Bring the energy programme forward to

accelerate the shift away from oil.”6. Consenting and design – “not all

projects need shovels and there are thousands of skilled workers who will slip on to welfare if the pipeline stops. We may need infrastructure spend to be a fiscal lever for us in the months ahead – why not design, consent and build business cases now to create a ‘shovel ready’ pipeline for the future?”

7. Streamlined RMA consents and Public Works Act initiatives – “the progress New Zealand made to recover from the devastating Christchurch and Kaikoura earthquakes was enabled by streamlining RMA processes. Let’s use these extraordinary times to ensure projects of national significance get consented, or Public Works Act interventions are made, to cut through excessive delays.”

8. Alliance contracting and open-book project delivery partnerships – “we can cut down on the time it takes to tender and procure work by signing longer term and bundled project contracts. An open book approach can ensure the taxpayer gets value for money and give employers confidence to keep and take on staff.”

9. Apprenticeships – “some sectors in New Zealand’s workforce will be hit hard. The Government can and should attach conditions to infrastructure delivery which require training, upskilling and apprenticeships of those looking for a new career.”

10. Risk – “not taking risks in the current environment, is taking risks. The Government is going to have to move quickly and responsively to a situation moving much faster than any infrastructure project. Some decisions will turn out to be wrong, others right. It will be no different for business owners. The Government must continue to exploit its size, authority and balance sheet to de-risk private sector investment and back New Zealand.”

INFRASTRUCTURE NZ PROPOSES PLAN FOR ‘EXTRAORDINARY TIMES’

Paul Blair


NEWSTALK

HIGHWAY WORK STOPS FOR LEVEL 4 LOCKDOWN

All non-essential work on state highways will stop during New Zealand’s Covid-19 level 4 national

shutdown, the NZ Transport Agency says.Some critical state highway maintenance work and emergency works will continue, and staff will also be maintained in traffic control operations centres. All other work will stop at midnight, March 25.“Capital works on state highway projects are not classified as essential services, and we have advised contractors and sub-contractors to make arrangements for work to shut down,” NZTA transport services general manager Brett Gliddon says."While there will be an impact on the timelines for some projects, the effect of the shutdown on specific projects wouldn’t be known for some time.“Our immediate focus is on ensuring the

health and safety of workers and the wider community during this very difficult time. We are committed to doing our part as New Zealand comes together to respond to this unprecedented challenge,” Gliddon says.

The highway work shutdown includes major works like the billion-dollar Transmission Gully project.Stuff.co.nz is reporting many Australians who were working on the project with two-weeks on, four-days off rosters, have headed back across the Ditch rather than be quarantined in New Zealand.However, critical state highway maintenance work will continue to ensure safe movement of New Zealand’s essential goods, Gliddon says.“The state highway network is the backbone of our transport system. It carries the bulk of critical freight, as well as providing access to lifeline utilities like hospitals and ensuring that emergency services can move quickly and safely around the country.” Essential maintenance activities include slip clearance and repairing damage after major weather events, critical road surfacing work and other safety-related activities like drainage work and the repair or replacement of damaged assets like road signs or median barriers. All other non-essential maintenance work will be deferred. All contractors and suppliers have health and safety plans in place to ensure that all work is carried out in line with Ministry of Health Covid-19 guidance. “If you see contractors out on the roads during the shutdown period please remember that they are carrying out essential work to keep us all safe. “If you are using the roads during this period remember to comply with any temporary speed reductions through roadworks to keep workers safe. They are doing vital work and we all owe them a debt of gratitude.”Gliddon says NZTA staff will also be maintained in traffic control operations centres, to ensure that the state highway network remains safe for essential travel.“The state highway network must remain safe and functional throughout this critical period, and we are committed to doing our part as New Zealand comes together to respond to this unprecedented challenge.”

Brett Gliddon


NEWSTALK

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The recent events relating to Covid-19 have created significant challenges for many businesses.

These range from some businesses completely losing their income overnight, through to other essential businesses experiencing a significant increase in demand and undergoing challenges with being able to keep up with this increased demand.Whatever the impact on your business, the Covid-19 outbreak will potentially be ongoing for a significant period of time, and the effects of the lockdown may linger for a while even after the current outbreak is contained. You may need to make some changes to your business, either temporarily or long term to get through.UDC Finance commercial general manager Morgan Strong says it’s important for businesses to work through different scenarios and have some plans in place to implement if required and he provides the following advice:

Getting the plan in placeWork with a good team of advisors, including an accountant, to develop a plan and continually monitor your progress against it. As part of your planning, review all your costs to make sure they are necessary during this period and speak to your advisors about your options. Ensure your team of advisors are prepared to challenge the numbers you put together by doing what we call a “sensitivity analysis” in the finance game. Don’t assume that everything will go to plan – build your plans to allow for something to go wrong.

Communicate with your funderBy having open, honest conversations early we can work together to support you in delivering your plan. This can help you protect your business and ensure you are as well positioned as possible when the next upswing comes. By sharing your plan, your funder can better understand the challenges you may be facing and can work with you to help overcome these.

Support your peopleLook at how you can reduce the risk to your critical staff. If you’re providing essential services, ensure you are complying with the Government’s recommendations to help your staff to remain healthy. Think about what back up options you have if critical staff are impacted. Work with your suppliers, customers and staff to support each other – taking a longer-term view where possible will help build strong relationships and ensure you’re well placed to take advantage of future opportunities.

Look upstream and downstreamBy considering what issues related industries are experiencing and looking at the downstream risks, you’ll be in a better position to front foot challenges which may be coming and also to see opportunities on the horizon.

Supporting our customersWe’re still seeing some vehicles being sold to businesses that are providing essential services through both our dealer and commercial channels. We anticipate trucks, delivery vans and farm equipment are likely to be the most in demand. Throughout this time, UDC remains open for business to ensure we continue to support our customers as needed.

Morgan Strong

BUSINESS PLANS ESSENTIAL IN THE CURRENT ENVIRONMENT: UDC

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NEWSTALK

IWI-OWNED GO BUS SOLD OFFSHORENgai Tahu Holdings and Tainui

Group Holdings has sold its public transport company Go Bus

to Melbourne-based industry operator Kinetic.Go Bus is one of New Zealand’s largest public transport operators with a fleet of over 1700 vehicles across the country including in Auckland, Waikato, Wellington, Christchurch and Dunedin.Top New Zealand law firm MinterEllisonRuddWatts advised Ngai Tahu Holdings and Tainui Group Holdings on the share sale agreement.The team was led by corporate partner Mark Forman and included partners Steve Gallaugher, Andrew Ryan, senior associate Jo Carrick-Anderson and solicitor Brad Cope.It previously advised Next Capital on its recent acquisition of the NZ Bus business from Infratil and has leading experience in advising on core transport network infrastructure projects.

“This is a fantastic outcome for Ngai Tahu Holdings and Tainui Group Holdings. We are delighted to have worked alongside the vendors ensuring that this iconic New Zealand company will be in great hands post sale,” Forman says.Kinetic operates SkyBus in Auckland and 177 other passenger transit services across Australasia, including leading Queensland transit brands Surfside Buslines and Sunbus, and Sydney’s largest bus and coach charter company, Telford’s.Its majority owned by OPTrust, one of Canada’s largest benefit pension plans.The acquisition is subject to Overseas Investment Office approval. Murray & Co acted as financial advisor to the vendors on the sale.New Zealand law firm Buddle Findlay advised as lead legal counsel for Kinetic and OPTrust throughout the acquisition.

Buddle Findlay head of corporate partner Grant Dunn says the deal “was complex due to its scale”.“Go Bus is New Zealand’s largest and most diverse operator of passenger service vehicles, with revenue contracts with multiple counterparties across New Zealand, interests in more than 70 property sites, and more than 2000 employees.“Buddle Findlay had a large amount of information to review in order to understand how the business operates as a whole and provide strategic advice,” Dunn says.


Protecting staff and customers from the spread of virus has become the new normal for motor vehicle

dealers, with the need to sanitise the surfaces of cars, utes, vans, trucks and other heavy vehicles and equipment with a reputable commercial grade product.DuraSeal Microbe Shield which is powered by the Zoono molecule is a non-toxic water-based commercial grade sanitiser for both hard and soft surfaces, which is also safe for use in enclosed places such as the interior of a vehicles.Packaged and distributed by TF Group New Zealand, for use in the automotive and commercial sectors, to a national network of certified application specialists. The distributor says the product conforms to regulations from

around the world and has passed PAS 242, EN13697, EN1276, and EN1652 amongst many more antimicrobial efficacy tests. When applied by spraying, wiping or “fogging”; DuraSeal Microbe Shield powered by Zoono leaves behind a mono-molecular layer that permanently bonds to the hard or soft surface. These molecules are antimicrobial, polymers which bond to the surface forming a barrier of positively charged microscopic pins.The positively charged microscopic pins attract and pierce negatively charged pathogens. The pins rupture the cell walls. This causes the pathogen to break up with lethal effect. The layer of molecular antimicrobial pins carries on working for up to 30 days on surfaces. Routine cleaning can continue and does not disrupt the Zoono molecule or its antimicrobial activity, TF Group says.FDA-approved DuraSeal Microbe Shield powered by Zoono not only provides

up to 30 days active protection when commercially applied under normal infectious conditions (14 in current conditions), it can also be applied to exterior door handles and touch points, and it also won’t wash off these under normal cleaning.

COMMERCIAL GRADE SURFACE SANITISATION FOR ALL TYPES OF VEHICLES

Volvo Group Australia is shutting down its Wacol, Queensland plant for four weeks in response to the

COVID-19 pandemic.The closure will take place on April 13 and work is set to resume on May 10.The shutdown will not impact the operation of Volvo Group Australia’s private and company owned workshops and service agents who are continuing to support our truck and bus customers.Its national parts distribution centre in Sydney is also operational supporting the dealer network and customers.Volvo Group Australia president and chief executive Martin Merrick says the COVID-19 outbreak has had “a considerable impact in limiting supply chains around the world and our supply chain is no exception”.“Volvo and Mack trucks have an identity indelibly etched into the Australian transport industry. We build these trucks here in Australia with pride.“The decision to idle our factory due to global supply chain disruptions will not only serve to secure our business over the long term, it will also serve to support the 90-plus suppliers that in turn support our supply chain.“Volvo Group Australia is committed to supporting a safe, sustainable, efficient and productive transport and manufacturing industry locally. We are committed to customer success and acknowledge the challenges faced by our business partners in these uncertain

times.“We are committed to playing our part in supporting the transport industry during these challenging times.“We have put in place social distancing and hygiene measures at all sites to combat the spread of COVID-19, we are servicing our truck and bus customers who are ensuring essential supplies and essential workers reach their destinations safely,” Merrick says.

NZ not significantly impactedMotor Trucks Distributor NZ (MTD) says it does not expect the upcoming shutdown to significantly impact its supply chain.MTD, which distributes Mack and Volvo Trucks to the New Zealand market, says it will have less of an impact because of New Zealand’s current national lockdown.“The MTD team have been and will remain in contact with effected customers and are committed to working closely to minimise any impacts,” MTD trucks general manager Clive Jones says.“Our sales support teams will remain available by phone/email to discuss current and/or future truck requirements.”Upon New Zealand’s country shutdown on March 25, shipments of trucks to New Zealand have been suspended to ensure port activity is restricted to

essential services however, a number of completed trucks will be shipped immediately on the current lockdown being lifted.Truck Stops NZ, the aftersales support network for Mack and Volvo Truck and Buses, is remaining open to support customers who are considered essential services during the nationwide lockdown.“At this unprecedented time, we would like to acknowledge the support of our customers and in particular the resilience and commitment from our team who have continued to work from home in extremely challenging conditions,” Jones says.

VOLVO PLANT TO CLOSE AS PANDEMIC RESPONSE

Clive Jones

Martin Merrick


NEWSTALK

PATCHELL GROUP LAYS OFF WORKERS New Zealand trailer manufacturer

Patchell Group has announced 24 job losses as a result of tough

times brought about by the COVID-19 pandemic.“Our principal market is within the logging industry, which has been impacted significantly, with reduced volumes and a number of crews laid off or working at reduced capacity,” chief executive Brent Whibley says.“This has meant less demand for our equipment. On a daily basis we are communicating with customers who are requesting delays to upcoming builds or full cancellations. We have also had to manage the cancellation of completed builds. This puts a huge strain on operational viability.”Whibley says the restructure was not something the company ever wanted to do, as its staff have been critical in maintaining its status as the number one trailer manufacturer in New Zealand.“However, if we do not react we could find it difficult to manage a wider downturn, especially if the full health

impact of COVID-19 reaches the New Zealand workforce.”The company’s management team had implemented a number of cost reduction strategies to mitigate the impact of the downturn, and the staff had also contributed a number of workable solutions that were being implemented.Leading up to the level 4 lockdown, another large local manufacturer had offered some fabrication work to help their business through a backlog, a move Whibley says was positive as it highlighted there were a number of sectors that were still buoyant within the New Zealand economy.“We understand the impact this will have on the families involved and the flow-on effect into the local economy. The company prides itself in being a significant employer of Rotorua people.“The ramifications of making such decisions have been well considered. Patchell Group would not be where it is

today without the dedication and hard work of employees.“Should it become apparent in the coming months that further difficult decisions may be required, we will consult with our staff throughout to ensure that they receive the support they need as we go through the process.”Whibley says overall the company was positive that this cycle would be over come and the markets would bounce back.“Our challenge is to remain viable and be ready to respond to an economic uplift,” he says..

CABLEPRICE AND JOHN DEERE PART WAYSCablePrice (CPL) and John

Deere Construction & Forestry have ended their distribution

arrangement of Deere-branded and manufactured construction, forestry, and compact machinery in New Zealand.Hitachi regional general manager for Oceania David Harvey says Hitachi Construction Machinery and John Deere have “a long and successful global partnership spanning multiple continents and product lines”.However, the two companies have expanded with different priorities in various markets around the globe, he says.“This partnership has served both companies well and supported each company’s global growth over the

multi-decade relationship.“However, we have agreed to separate and focus on our efforts on our respective product lines in the New Zealand.“Over the course of the next five months CPL and Deere will work together to execute a seamless transition of business to John Deere Limited’s soon-to-be-appointed construction and forestry dealers in New Zealand.“CPL, John Deere Limited, and the new dealers are committed to working together to ensure this transition has minimal impact on customers’ access to

machines, parts, and/or service,” Harvey says.“Similarly, CPL, John Deere Limited, and the new dealers are committed to smoothly transitioning customers who have existing agreements and service contracts with CPL. “We believe this change in distribution will allow both companies to increase focus on their respective brands and provide a world-class experience to customers across New Zealand.”


NEWSTALK

Mainfreight is working with customers from around the word to confirm their operational

status during the level 4 lockdown and reports all 275 of its global branches remain open at this stage.The company remains operating in 25 countries for government-approved essential international air and sea freight, transport and warehousing services.“In spite of restrictive measures being further strengthened across the world, borders remain open and largely unencumbered for trade. Even in the most impacted communities, our teams have been able to operate effectively,” the company says.In a company update on April 6, it says team members are working to put together solutions to help reduce the potential for increased freight costs.

New ZealandAir freight capacity to service customers in the short term is now in place, with charter space available most days between New Zealand and northern China, while options are also emerging on other key trade–lanes.Mainfreight expects to add more charter services in the coming weeks for import and export air freight. It has been clarified by the Ministry of Transport that it can deliver imported containers to approved transitional facilities (ATF), with only essential goods able to be unpacked, shipping lines in most cases have only extended detention-free periods until April 23.If the extend lockdown is extended

further until after this date, it is uncertain what position shipping lines will take in regard to detention fees.Mainfreight says there is the potential for significant additional costs in this area and has worked to mitigate that for customers through the offer of container unpacking services in Auckland, Wellington and Christchurch. It also has regional devanning services available at more than 20 ATFs operated by Mainfreight throughout New Zealand.Storage is available in most locations including its specialist dangerous goods sites in Auckland and Christchurch for less than container load customers. At this stage only Centreport in Wellington and the Port of Tauranga/Metroport have indicated concessions on demurrage charges for containers unable to be uplifted within free time. The shipping lines’ position on container detention has yet to be confirmed.Mainfreight has also enacted its New Zealand pandemic plan which ensures absolute business continuity throughout the period, it says.

AustraliaMainfreight’s transport, air and ocean and warehousing branches across Australia remain operational. State restrictions have resulted in a gradual closure of some businesses, mostly in industries currently deemed non-essential, including catering, retail and fitness. The movement of cargo remains unaffected.Mainfreight, Owens and Chemcourier transport teams are able to complete

deliveries and collections between states and locally, while following all recommended Covid-19 guidelines.

AsiaThe Mainfreight team in mainland China have seen an increase in demand for many New Zealand–made products as both commerce and consumer buying behaviour returns to normal, the company says. Meanwhile, air freight capacity from New Zealand to China has increased.Transport of cargo around China continues to operate almost without interruption, including inter–city movements.Government imposed border restrictions remain in place to ensure China avoids a second wave of imported Covid-19 infections, putting pressure on inbound passenger flight services. Cargo–only services are not impacted and capacity on these freighter flights is increasing with the re-purpose of aircraft for charter, however, rate levels to secure cargo space remain volatile.The Mainfreight Asia teams in Hong Kong, Japan, Taiwan, Singapore, Thailand, Vietnam, and South Korea all advise that they remain operational and open as normal. Social measures are in effect in several countries, however, to date they have not impacted cargo movement.Trade in India has been largely halted as ports, airports, government border agencies, and transport providers are included in the lock down currently in place. However, Mainfreight was

Continued on page 16

MAINFREIGHT MOVING THROUGH PANDEMIC


NEWSTALK

Some of the biggest shows on the calendar involving the trucking industry were among events

around the country cancelled due to the Covid-19 and the level 4 lockdown. This includes the TMC Trailers Trucking Industry Show and Fieldays 2020. The TMC Trailers Trucking Industry Show, run and organised by the NZ Trucking Association, was due to take place at Canterbury Agricultural Park, Christchurch, from March 20-21.NZ Trucking Association chief executive

David Boyce says the team was left feeling “a little shell-shocked” after two years of hard work organising the event.He says the Government is doing the right thing to try and stop the spread of Covid-19 and the truck show will be back “bigger and better” in 2022.This year’s event was set to be even bigger than the last one in 2018 which saw around 23,000 people attend.Boyce says he was expecting to see even more crowds this year with over 100 exhibitors and 100 entries in

the TR Group New Zealand Truck Driving Championships which were to be held at the show.It also sees the cancellation of the Teletrac Navman Industry Show Dinner and Awards Ceremony that was due to take place at the Canterbury

Agricultural Park Equestrian Centre on March 21.

Fieldays 2020

Fieldays 2020 was also cancelled and Fieldays Society chief executive Peter Nation says he stands by the Government’s decision to do all it can to tackle the spread of Covid-19. “We value our loyal stakeholders, including the many exhibitors, suppliers, volunteers, visitors, staff and their extended family, immensely. The whole event is about them. Their health and safety is of utmost importance to us and we take the government’s decision seriously.“The world may be undergoing major challenges in response to Covid-19 , but in this changing environment Fieldays will remain, albeit at a later date,” Nation says.Fieldays 2019 saw more than 128,000 people through the gates over four days including 1067 exhibitors across 1559 sites.

INDUSTRY EVENTS WAIT FOR ANOTHER YEAR

successful in moving air freight consignments into and out of India last week, it reports.

EuropeThroughout Europe, there has been a further tightening of social and commercial regulation to limit personal interaction.In Spain and Italy, non–essential businesses are largely closed, with demand reduced as a result. Ports, airports and logistics providers remain operational. There are some delays at road border crossings and the European Commission has made a number of recommendations to member states aimed at ensuring transport runs smoothly across the continent.Russia has recently extended its nationwide lockdown to the end of April, however, Mainfreight remains fully

operational from remote locations. Ports and other supply chain infrastructure at this time also remain operational.The team is reporting a slowdown in commercial activity across Europe consistent with the additional government measures being introduced. As with Russia, several countries have indicated further restrictions are likely with an extension to their lockdown periods.Go to covid-19.sixfold.com for live updates on driver waiting times at border crossings.

The AmericasThe Mainfreight team in North America reports that efforts to contain Covid–19 are increasing with quite significant impact in several cities, including New York. The US Government last week extended

"stay at home" orders until April 30 across the country, while borders between the US, Mexico, and Canada have closed to non-residents. Cargo, however, continues to move freely.All of the company’s branches across the Americas remain open and fully functional. This includes its warehouses and its trucks which continue to deliver products to customers and into communities.Central governments in the regions are also providing support to protect the consistent and unobstructed movement of cargo.The challenge is emerging in some countries, where non–essential customers are closing premises, to manage freight already in motion. Air cargo solutions are also available, and it expects further stability in the market as freighter services come on stream.



NEWSTALK

Keeping essential air freight moving is one of the Government’s top priorities and a $900 million loan

to Air New Zealand is part of that plan. The national airline has been severely impacted by the COVID-19 pandemic and the debt funding agreement ensures it can keep the country connected to major air freight channels for high priority goods such as pharmaceuticals and perishable products. “Without this intervention, New Zealand was at risk of not having a national airline,” finance minister Grant Robertson says. “Air New Zealand has a unique and critical role in our economy and society. Also, the Government owns 52% of the company, which means we have a responsibility towards it.

“The agreement also safeguards the domestic network, with flights assured to all current destinations,” Robertson says.The loan will be provided in two tranches including $600m with an interest rate expected to be between 7% and 8% per annum and a second tranche of $300m with an interest rate around 9% per annum.

Air New Zealand has cancelled its 2020 interim dividend of 11 cents per share (a total of $123 million) that was announced to the market on February 27. This was due to be paid to all shareholders, including the Government on March 25.The bailout is not enough to prevent job losses though and Air NZ boss Greg Foran says there will be at least 3500 redundancies based on “conservative assumptions” and the airline will be about 30% of the size it once was. He warns even more drastic measures could take place if the level 4 lockdown goes beyond the planned 28 days or border restrictions are in place for a prolonged period.The airline employs around 12,500 people around the world at a monthly labour cost of $110m.It has now cut more than 95% of its flights nationally and around the world which will result in a loss of more than $5 billion in revenue per year.Before COVID-19, the national airline’s annual revenue was around $5.8b and it made a profit of $374m in the last financial year. It also had around $1b in the bank for a rainy day but for nothing quite like this. “The global reduction in air travel has hit Air New Zealand hard and we are earning less than $500 million revenue annually based on the current booking patterns,” Foran says.“International tourism flows make up around two thirds of Air New Zealand’s revenue, which means the lack of incoming tourists also has a flow-on effect on our domestic network.“In that light, it is clear that the Air New

AIR FREIGHT FLOW CRITICAL TO RECOVERY


Grant Robertson

Greg Foran


NEWSTALK

Zealand which emerges from COVID-19 will be a much smaller and largely domestic airline with limited international services to keep supply lines open for the foreseeable future,” Foran says.Air New Zealand cargo general manager Rick Nelson says the airline has introduced a number of measures to keep Kiwi businesses connected with imports and exports. This includes a range of charter services covering every port on the Air New Zealand network (excluding London). Options from North American markets through to Australia are also available. “With our Boeing 787-9 Dreamliner aircraft for example, we have the ability to uplift 11 cargo pallets in each direction we fly. Each of these pallets can take up to 12 cubic metres in volume and up to 4600 kilograms in weight,” Nelson says. “We’ve shared these options with our global cargo customer base and are getting some strong interest from customers wanting to ship to and from

Shanghai, Hong Kong, San Francisco, Los Angeles, Sydney and Melbourne.“We’ve also introduced the concept of a ‘Multi Party Charter Agreement’ which has been designed to help small and medium sized exporters and importers to ensure they have options available to them to move their goods in these challenging times.“Under this model, our customers can purchase a single airfreight pallet position on a charter flight, or by working together with a freight forwarder, a coalition of exporters and importers can potentially combine and consolidate their shipments so that they are able to purchase a single unit on the aircraft.“This is undoubtedly an extremely difficult time for our airline with a significant reduction in capacity due to reduced travel demand, but we are pleased to be able to keep New Zealand connected to the world in this way,” he says. The Government has also unveiled a $600m aviation sector relief package to ensure air freight capacity is available on key routes for at least the next six months and for dealing with immediate risks and opportunities in the wider aviation sector.“The rest of the world still want our food products like milk and meat,” transport minister Phil Twyford says. “So it’s critical that part of the economy is able to continue exporting and keep employing New Zealanders during the lockdown – maintaining freight services is essential to that.”Under the air freight capacity support package, airlines and other air freight businesses will be invited to submit proposals for the Government to provide financial support for them to deliver freight capacity on key routes.Proposals will need to cover how critical imports of medicines, medical supplies and high value exports will be prioritised, and prices to be charged.There is also flexible funding available to respond to immediate risks and opportunities as they arise to retain capability and capacity in the aviation system.Twyford says he is already seeing great examples of the sector working collaboratively.“The Government will do all it can to cushion the blow of COVID-19 on the economy. Ensuring our businesses can keep exporting our goods, keep New Zealanders in work and keep earning money for the economy will be essential for our recovery,” he says.

Global air freight down Meanwhile, global air freight demand dropped 1.4% in February compared to the same period last year, International Air Transport Association (IATA) figures show. Seasonally adjusted demand was down 9.1% month-on-month as the COVID-19 crisis on air cargo demand was becoming visible with a number of significant developments in February. This includes: Manufacturing production in China, one of the world’s largest air cargo markets, dropping sharply due to widespread factory closures and travel restrictions.Global export orders falling to a historically low level and the global Purchasing Managers Index (PMI) in contraction territory, with all major trading nations reporting falling orders.Significant cargo capacity was lost as a result of airlines reducing passenger operations in response to government travel restrictions due to COVID-19, severely impacting global supply chains.Cargo capacity, measured in available cargo tonne kilometres (ACTKs), dropped by 4.4% year-on-year in February 2020. This is subject to the same distortions as the non-seasonally adjusted demand numbers."The spread of COVID-19 intensified over the month of February, and with it, the impact on air cargo,” IATA director general and chief executive Alexandre de Juniac says. “Adjusted demand for air cargo fell by 9.1%. Asia-Pacific carriers were the most affected with a seasonally-adjusted drop of 15.5%. “What has unfolded since is a story of two halves. The disruption of global supply chains led to a fall in demand. But the dramatic disruption in passenger traffic resulted in even deeper cuts to cargo capacity. “And the industry is struggling to serve remaining demand with the limited capacity available. We only got a first glimpse of this in February. Among all the uncertainty in this crisis, one thing is clear-air cargo is vital. “It is delivering lifesaving drugs and medical equipment. And it is supporting global supply chains. That’s why it is critical for governments to remove any blockers as the industry does all it can to keep the global air cargo network functioning in the crisis and ready for the recovery," de Juniac says.

Rick Nelson

Phil Twyford




NEWSTALK

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Airlines in Europe suffered a sizeable decline in year-on-year growth in total air cargo volumes in February 2020, while North American and Asia-Pacific carriers experienced more moderate falls. Middle East, Latin America and Africa were the only regions to record growth in air freight demand compared to February 2019.

Asia-PacificAsia-Pacific airlines saw demand for air cargo contract by 2.2% in February 2020, compared to the year-earlier period. Seasonally-adjusted cargo demand fell by 15.5% compared to January 2020, to levels last seen in early 2014. The drop in demand was largely due to the impact of COVID-19. Capacity decreased 17.7% - the largest fall since early 2013. Cargo capacity in China dropped sharply in February, driven in large part by the collapse of belly-hold capacity.

North AmericaNorth American airlines saw demand

decrease by 1.8% in February 2020, compared to the same period a year earlier. Capacity increased by 4.1%. Cargo traffic on the Asia-North America trade lanes decreased by 2.4% year-on-year as a result of factory closures in Asia due to COVID-19.

EuropeEuropean airlines posted a 4.1% decrease in cargo demand in February 2020 compared to the same period a year earlier. European carriers were among the first to cancel flights to and from Asia, contributing to the drop in demand in February. The ‘within Europe’ market decreased by 7.8% year-on-year. This suggests that the region was affected by global supply chain disruptions and early COVID-19 containment measures – notably in Northern Italy, an important manufacturing region. Capacity decreased by 3.8% year-on-year.

Middle EastMiddle Eastern airlines’ cargo demand increased 4.3% in February 2020 compared to the year-ago period.

Capacity increased by 6%. However, given the Middle East’s position connecting trade between China and the rest of the world, the region’s carriers have significant exposure to the impact of COVID-19 in the period ahead.

Latin AmericaLatin American airlines experienced an increase in freight demand in February 2020 of 1.8%. Capacity decreased by 2.6% year-on-year. The region was relatively unaffected by the COVID 19 outbreak in February. However, disrupted global supply chains and a fragile economic backdrop in some countries in the region continue to create headwinds for air cargo.

AfricaAfrican carriers posted the fastest growth of any region for the 12th consecutive month in February 2020, with an increase in demand of 6.2% compared to the same period a year earlier. Capacity grew 3% year-on-year. The Africa-Asia and Africa-Middle East trade lanes continue to bring robust growth to the region.


NEWSTALK

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The latest figures from KiwiRail show last year had the lowest number of collisions between vehicles and

trains on record.In 2019, there were 12 collisions between vehicles and trains, down from 25 in 2018. The previous best year on record was 2015, when there were 17 collisions.TrackSAFE NZ manager Megan Drayton says it’s a pleasing trend.“We really want to commend New Zealand motorists on this outcome. While obviously one collision is one too many, it’s encouraging to see this number come down to such a low level when use of the rail network is continuing to increase.“People seem to be realising that trains always have legal right of way, they travel extremely fast and they cannot stop in a hurry. It’s fantastic to see that many motorists are acting safely and legally at level crossings, and are fully aware of the risks of crossing the rail network,” Drayton says.Drayton says the decline in collisions cannot be attributed to one factor but several programmes over the past ten years have contributed to the reduction.Agencies are working together to upgrade and improve safety at level crossings – including improving visibility and signage and other improvements such as changing road alignments and installing flashing lights and bells and half arm barriers.Some level crossing upgrades are part of NZ Transport Agency’s Safe Network Programme which aims to achieve significant reductions in deaths and serious injuries on state highways and local roads across New Zealand.KiwiRail chief executive Greg Miller says collisions are very hard to talk about.“They involve communities, families, KiwiRail’s people, kids.“Rail fatalities are all avoidable. We are turning Rail Safety Week into a year-round focus on safety, and we can see that’s bearing results.”

KiwiRail is following a ten-point plan that includes:• Supporting Rail Safety Week

and TrackSAFE NZ.• Working alongside Waka

Kotahi NZ Transport Agency and installing barrier arms, flashing lights and bells at upgraded crossing in a New Zealand-wide, targeted programme.

• Working with local councils to install automatic pedestrian crossing gates and upgraded crossings, such as recent and planned upgrades in Auckland, Wellington, Napier and New Plymouth.

• Improving infrastructure to better separate train movements and level crossings, including spending $4 million at Wairarapa’s Waingawa log yard to improve safety and efficiency.

• Working with local councils to install fencing, such as in Levin.

• Working with regional councils and Police on specific campaigns, such as our Bay of Plenty campaign to prevent children jumping into rivers from rail bridges.

• Implementing a rail safety ambassador programme to visit schools and visit community events.

• Holding public meetings around changes to local rail configuration, such as in Wellington around double tracking.

• Integrating cycleways safely into rail corridors, including in Whangarei, Auckland and Wellington.

• Implementing regional safety campaigns around new services, such as the new logging trains from Wairoa to Napier.

“All of this makes the rail network safer, and we have further plans to be announced this year,” Miller says.“Our rail safety drive goes hand in hand with an internal safety drive that is also bearing results in protecting our people.“While collisions between trains and heavy vehicles are relatively infrequent compared to vehicle to vehicle accidents on the road, they have the potential for considerable loss of life and serious trauma.“These incidents are devastating for everyone affected. Each and every collision has a traumatic impact not just on the victims and their friends and families, but also the wider community and the rail staff involved, particularly the locomotive engineers (train drivers),” he says.

VEHICLE VS TRAIN COLLISIONS AT RECORD LOW


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Commercial registrations have taken another big dip

for the month, with both new and used trucks down nearly 30% year-on-year in March.Total registrations of new trucks and buses over 3500kg GVM sits at 411 units for March. This is down 29.5% compared to the same period the year prior which saw 583 registrations of new commercials for the month.A total of 1253 new trucks and buses have hit the road in the year-to-date compared to 1441 for the same period last year.Isuzu is market leader for March with 90 units registered and a 21.9% market share. It was down 15.1% compared to the 106 registered in the same period last year.Fuso is in second spot for the month, down 26.9% with 57 registered and a 13.9% market

share. Hino is third, down 50% with 34 registered and an 8.3% market share.Mercedes-Benz follows, down 17.5% with 33 units registered, Scania up 68.4% (32), Volvo down 42.3% (30), Iveco down 3.3% (29), Fiat down 35.5% (20), Kenworth down 58.6% (12) and DAF down 52.2% (11).Speaking with TransportTalk just before the level 4 lockdown alert, Isuzu NZ general manager Dave Ballantyne says the company’s forward orders were “still healthy” and dealers were also reporting good sales and enquiries.Ballantyne says the company hasn’t experienced any disruption to its parts supply chain and the parts warehouse remains open to provide support for essential business vehicles facilitated by its nationwide dealer network and authorised

service centres.Total registrations of used trucks and buses over 3500kg GVM sits at 141 units for March.This is down 27.3% compared to the same period the year prior which saw 194 registrations of used commercials for the month.

A total of 427 used trucks and buses have hit the road in the year-to-date compared to 580 for the same period last year.Toyota is market leader for used trucks in March with 37 units registered and a 26.2% market share. It was down 14% compared to the 43 units registered in the same period last year.NEW HEAVY TRUCKS : Over 23,001kg

MAKEMAR '20

MAR '19

% Change% of Market

YTD '20

YTD '19

VOLVO 30 50 -40.0 18.3 82 119SCANIA 26 11 136.4 15.9 69 29FUSO 16 22 -27.3 9.8 47 62ISUZU 15 40 -62.5 9.1 61 88HINO 12 22 -45.5 7.3 41 62KENWORTH 12 29 -58.6 7.3 49 79MERCEDES-BENZ 9 17 -47.1 5.5 29 35DAF 8 21 -61.9 4.9 25 59IVECO 7 1 600.0 4.3 19 7MAN 7 6 16.7 4.3 19 37OTHER 22 40 -45.0 13.4 84 97TOTAL 164 259 -36.7 100.0 525 674

NEW MEDIUM TRUCKS : 9,000 - 23,000kg

MAKEMAR '20

MAR '19

% Change% of Market

YTD '20

YTD '19

ISUZU 35 27 29.6 47.9 91 114HINO 14 25 -44.0 19.2 47 64FUSO 9 17 -47.1 12.3 35 56IVECO 4 7 -42.9 5.5 12 12DAF 3 2 50.0 4.1 4 5OTHER 8 21 -61.9 11.0 33 45TOTAL 73 99 -26.3 100.0 222 296

NEW LIGHT TRUCKS : 3,500 - 9,000kg

MAKEMAR '20

MAR '19

% Change% of Market

YTD '20

YTD '19

ISUZU 38 37 2.7 24.4 98 89FUSO 32 36 -11.1 20.5 89 96FIAT 20 31 -35.5 12.8 67 71MERCEDES-BENZ 19 18 5.6 12.2 42 44IVECO 16 20 -20.0 10.3 39 39HINO 8 21 -61.9 5.1 36 46FORD 5 4 25.0 3.2 11 10OTHER 18 31 -41.9 11.5 54 76TOTAL 156 198 -21.2 100.0 436 471

NEW BUSES : Over 3,500kg

MAKEMAR '20

MAR '19

% Change% of Market

YTD '20

YTD '19

FORD 6 9 -33.3 33.3 17 18SCANIA 4 0 0.0 22.2 11 3MERCEDES-BENZ 3 2 50.0 16.7 15 3ISUZU 2 2 0.0 11.1 4 12IVECO 2 2 0.0 11.1 3 9OTHER 1 12 -91.7 5.6 20 90TOTAL 18 27 -67.3 100.0 70 135

TRUCK REGISTRATIONS TAKE A HIT IN MARCH



STATSTALKNew Vehicles

Isuzu is second, down 23.8% with 32 units registered and a 22.7% market share. Hino is third, down 55.3% with 17 registered and a 12.1% market share.Nissan follows, down 29.4% with 12 units registered, Mitsubishi down 33.3% (10), Fuso up 166.7% (8), Fiat up 150% (5), Ford down 50% (3), Mazda down 57.1% (3), UD Trucks up 200% (3) and Volvo down 50% (3).The new heavy vehicle segment over 23,000kg GVM was down 36.7% year-on-year with 164 units registered in March. This compares to 259 in the same period the previous year. Volvo leads the segment for the month, down 40% with 30 units registered and a 18.3% market share. Scania is second, up 136.4% with 26

registered and a 15.9% market share. Fuso is third, down 27.3% with 16 registered and a 9.8% market share. Isuzu follows, down 62.5% with 15 units, Hino down 45.5% (12), Kenworth down 58.6% (12), Mercedes-Benz down 47.1% (9), DAF down 61.9% (8), Iveco up 600% (7) and MAN up 16.7% (7). The new medium truck segment between 9000kg and 23,000kg GVM was down 26.3% year-on-year with 73 units registered in March compared to 99 in the same period the year prior. Isuzu takes the top spot for the month, up 29.6% with 35 units registered and a 47.9% market share. Hino comes in second, down 44% with 14 registered and a 19.2% market share. Fuso is third, down 47.1% with nine registered and a 12.3% market share.

Iveco follows, down 42.9% (4) and DAF up 50% (3). The new light commercial segment between 3500kg GVM and 9000kg GVM featuring trucks, vans and buses was down 21.2% year-on-year with 156 units registered compared to 198 in the same period the year prior. Isuzu leads the segment for the month, up 2.7% with 38 registered and a 24.4% market share. Fuso comes in second, down 11.1% with 32 registered and a 20.5% market share. Fiat is third, down 35.5% with 20 registered and a 12.8%

market share. Mercedes-Benz follows, up 5.6% (19), Iveco down 20% (16), Hino down 61.9% (8) and Ford up 25% (5). Registrations for new commercials (under 3500kg GVM) were down 40.1% year-on-year with 2901 units registered in March compared to 4846 in the same period the year prior. This is the sixth consecutive drop in registrations for the sector. Toyota takes the top spot in March, down 19% with 597


NEW LIGHT COMMERCIAL MAKES : Under 3,500kg

MAKEMAR '20

MAR '19

% Change% of Market

YTD '20

YTD '19

ISUZU 90 106 -15.1 21.9 254 303

FUSO 57 78 -26.9 13.9 179 223

HINO 34 68 -50.0 8.3 124 172

MERCEDES-BENZ 33 40 -17.5 8.0 91 70

SCANIA 32 19 68.4 7.8 87 39

VOLVO 30 52 -42.3 7.3 83 125

IVECO 29 30 -3.3 7.1 73 66

FIAT 20 31 -35.5 4.9 67 4

KENWORTH 12 29 -58.6 2.9 49 75

DAF 11 23 -52.2 2.7 29 62

OTHER 63 110 -42.7 15.3 217 302

TOTAL 411 583 -29.5 100.0 1253 1441


NEW LIGHT COMMERCIAL MAKES : Under 3,500kg

MAKEMAR '20

MAR '19 Movement

% Change

% of Market

OCT 20

OCT '19

TOYOTA 597 737 Up 1 -19.0 20.6 2079 2148

FORD 508 982 Down 1 -48.3 17.5 2346 2688

HOLDEN 374 493 Up 1 -24.1 12.9 935 1148

MITSUBISHI 347 594 Down 1 -41.6 12.0 249 271

NISSAN 198 325 -39.1 6.8 737 998

ISUZU 156 308 -49.4 5.4 549 837

MAZDA 105 284 -63.0 3.6 499 643

MERCEDES-BENZ 93 111 Up 3 -16.2 3.2 249 271

VOLKSWAGEN 71 162 -56.2 2.4 297 380

FUSO 57 77 Up 2 -26.0 2.0 179 223

OTHER 395 773 -48.9 13.6 2288 3354

TOTAL 2901 4846 -40.1 100.0 10407 12961


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units registered and a 20.6% market share. Ford is second, down 48.3% with 508 registered and a 17.5% market share. Holden is third, down 24.1% with 374 registered and a 12.9% market share. Mitsubishi follows, down 41.6% (347), Nissan down 39.1% (198), Isuzu down 49.4% (156), Mazda down 63% (105), Mercedes-Benz down 16.2% (93), Volkswagen down 56.2% (71) and Fuso down 26% (57). Overall registrations, including passenger cars, were down 37.3% year-on-year with 8317 new vehicles registered in March compared to 13,271 the year prior.

“The month of March was already slowing due to supply constraints from shut down manufacturing plants around the world and then they ground to a halt when the Covid-19 alert level 4 was implemented,” Motor Industry Association chief executive David Crawford says.Year-to-date, the market is down 15.6% (6075units) on the same period in 2019.“The prospect for registrations during April remains bleak with the Covid-19 level 4 alert planned to be in place for the majority of the trading month,” Crawford says.The used heavy truck segment over 23,000kg GVM was down 41.2% year-on-

year with 10 units registered in March compared to 17 the year prior. Volvo leads the segment with three registered, Freightliner follows with two and DAF with one unit registered. Used medium trucks between 9000kg and 23,000kg GVM

USED LIGHT TRUCKS : 3,500 - 9,000kg

MAKEMAR '20

MAR '19

% Change% of Market

YTD '20

YTD '19

TOYOTA 37 42 -11.9 30.6 105 117ISUZU 30 40 -25.0 24.8 81 105HINO 16 32 -50.0 13.2 60 97NISSAN 12 15 -20.0 9.9 29 48MITSUBISHI 10 14 -28.6 8.3 35 53FIAT 5 2 150.0 4.1 16 8MITSUBISHI FUSO 5 3 66.7 4.1 9 12OTHER 6 12 -50.0 5.0 30 33TOTAL 121 160 -24.4 100.0 365 473

USED BUSES : Over 3,500kg

MAKEMAR '20

MAR '19

% Change% of Market

YTD '20

YTD '19

FORD 2 6 -66.7 50.0 3 15ALEXANDER DENNIS

1 0 0.0 25.0 3 0

OTHER 1 3 -66.7 25.0 9 10TOTAL 4 12 100.0 100.0 15 25

USED HEAVY TRUCKS : Over 23,001kg

MAKEMAR '20

MAR '19

% Change% of Market

YTD '20

YTD '19

VOLVO 3 6 -50.0 30.0 6 11FREIGHTLINER 2 0 0.0 20.0 3 0DAF 1 0 0.0 10.0 1 2OTHER 4 11 -63.6 40.0 15 29TOTAL 10 17 -41.2 100.0 25 42

USED MEDIUM TRUCKS : 9,000 - 23,000kg

MAKEMAR '20

MAR '19

% Change% of Market

YTD '20

YTD '19

FUSO 2 0 0.0 33.3 2 0UD TRUCKS 2 0 0.0 33.3 3 2MERCEDES-BENZ 1 0 0.0 16.7 3 0OTHER 1 8 -87.5 16.7 14 38TOTAL 6 8 -25.0 100.0 22 40

USED TRUCKS & BUSES MAKES : Over 3,500kg

MAKEMAR '20

MAR '19

% Change% of Market

YTD '20

YTD '19

TOYOTA 37 43 -14.0 26.2 105 120ISUZU 32 42 -23.8 22.7 88 114HINO 17 38 -55.3 12.1 65 118NISSAN 12 17 -29.4 8.5 33 56MITSUBISHI 10 15 -33.3 7.1 40 59FUSO 8 3 166.7 5.7 15 12FIAT 5 2 150.0 3.5 16 8FORD 3 6 -50.0 2.1 6 17MAZDA 3 7 -57.1 2.1 13 16UD TRUCKS 3 1 200.0 2.1 5 5VOLVO 3 6 -50.0 2.1 7 12OTHER 8 14 -42.9 5.7 35 43TOTAL 141 194 -27.3 100.0 427 580



STATSTALKUsed Vehicles

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were down 25% with six units registered for the month. Fuso and UD Trucks both had two registrations and Mercedes-Benz had one in the segment. Used light commercials between 3500kg and 9000kg GVM were down 24.4% year-on-year with 121 units registered for the month compared to 160 in the same

period the year prior. Toyota leads, down 11.9% with 37 registered and a 30.6% market share. Isuzu comes in second spot, down 25% with 30 and a 24.8% market share. Hino is third, down 50% with 16 and a 13.2% market share. Nissan follows, down 20% (12), Mitsubishi down 28.6% (10), Fiat up 150% (5) and Mitsubishi-Fuso up 66.7% (5). The new tractor segment was down 46.5% year-on-year for the month with 91 units registered in March compared to 170 in the same period the year prior. John Deere leads, down 56.6% with 23 registered and a 25.3% market share. Massey Ferguson is second, unchanged with 18 registered

and a 19.8% market share. Case IH is third, down 25% with nine registered and a 9.9% market share. Kubota follows, down 25% (9), New Holland down 72.7% (6), Case down 16.7% (5),

Class up 25% (5), Deutz-Fahr down 66.7% (5) and Fendt unchanged (3).

NEW TRACTOR REGISTRATIONS

MAKEMAR '20

MAR '19

% Change% of Market

YTD '20

YTD '19

JOHN DEERE 23 53 -56.6 25.3 102 154MASSEY FERGUSON

18 18 0.0 19.8 52 54

CASE IH 9 12 -25.0 9.9 23 42KUBOTA 9 12 -25.0 9.9 24 35NEW HOLLAND 6 22 -72.7 6.6 32 58CASE 5 6 -16.7 5.5 17 9CLAAS 5 4 25.0 5.5 14 9DEUTZ-FAHR 5 15 -66.7 5.5 14 23FENDT 3 3 0.0 3.3 16 19OTHER 8 25 -68.0 8.8 42 75

TOTAL 91 170 -46.5 100.0 336 478

USED TRACTOR REGISTRATIONS

MAKEMAR '20

MAR '19

% Change% of Market

YTD '20

YTD '19

NEW HOLLAND 10 5 100.0 15.2 25 15JOHN DEERE 9 12 -25.0 13.6 34 41MASSEY FERGUSON

9 22 -59.1 13.6 26 59

TRACTOR 7 2 250.0 10.6 13 7FORD 4 1 300.0 6.1 8 6KUBOTA 4 1 300.0 6.1 6 8OTHER 23 27 -14.8 34.8 86 64

TOTAL 66 70 -5.7 100.0 198 200


USED LIGHT COMMERCIAL MAKES : Under 3,500kg

MAKEMAR '20

MAR '19 Movement

% Change

% of Market

YTD '20

YTD '19

TOYOTA 298 499 -40.3 43.1 1073 1335

NISSAN 195 218 -10.6 28.2 606 637

ISUZU 37 45 Up 1 -17.8 5.4 104 126

MAZDA 27 50 Down 1 -46.0 3.9 94 151

FORD 24 36 Up 1 -33.3 3.5 85 142

MITSUBISHI 22 20 Up 1 10.0 3.2 65 84

HINO 17 38 Down 2 -55.3 2.5 65 118

HOLDEN 12 14 Up 1 -14.3 1.7 38 46

FIAT 10 15 Down 1 -33.3 1.4 88 69

CHEVROLET 8 12 -33.3 1.2 32 53

OTHER 41 62 -33.9 5.9 152 185

TOTAL 691 1009 -31.5 100.0 2402 2946


STATSTALKUsed Vehicles



Iveco New Zealand has several models of the new Euro-6 Acco range undertaking real-world trials with

customers in local conditions and will soon be launched in the market.The Acco is available in 6×4 and 8×4 configurations and the vehicles will be equipped with Iveco front axles, tapered two-leaf parabolic suspension and rear eight-bag electronically controlled air suspension (8×4 models also receive front electronically controlled air suspension), with Meritor tandem drive axles featuring active traction control and driver controlled diff locks.For refuse collection applications, Iveco will continue to offer a factory dual control system, and has consulted with the waste industry to develop a variety of body mounting and chassis layout options to suit a variety of bodies. The model is also available with a Parker Chelsea power take-off which is a favourite for waste collection work.The latest Acco will feature SCR Euro 6, Cursor 9 engines with between 310 and 360hp and 1300 and 1650 Nm of torque, with emission control handled by Iveco’s Hi-eSCR system.The engines are matched to Allison Generation Five 3200 Series, 6-speed

full automatic transmission.Standard safety features include adaptive cruise control (ACC), anti-lock braking system (ABS), electronic braking system (EBS), advanced emergency braking system (AEBS), electronic stability program (ESP), axle load indicator, electronic battery cut-out and LED daytime running lamps and rear LED lights.Operators also benefit from a new cabin design that offers additional visibility and comfort combined with easy access.Another familiar feature includes the three-piece steel front bumper with headlight mesh protection, providing added durability and lower maintenance costs.Iveco NZ dealer principal Jason Keddie says the Acco is a transport industry legend in New Zealand and given its status in the market, Iveco has worked hard to ensure the latest version would do the nameplate proud.“Initially developed for the Australian army in the years following World War II, the Acco model was a tough, no nonsense vehicle that was extremely reliable and would outlast the

IVECO TO DELIVER NEW 'NO-NONSENSE' ACCO


“Initially developed for the Australian army in the years following World War II, the Acco model was a tough, no nonsense vehicle that was extremely reliable and would outlast the competition”


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competition,” Keddie says.“There are still many Acco models from the 70s on New Zealand roads today, and the oldest surviving and registered Acco is in fact housed at Bill Richardson Transport World in Invercargill.“The new Euro 6 Acco will stay true to its origins in terms of its durability and low total cost of ownership, while introducing some of the cleanest and most efficient engines available along with high level safety features. The enhanced driver comfort levels are also something that Acco drivers of yesteryear would not have even dreamt of.“Like its predecessor, we expect that the new Euro 6 Acco will quickly find favour with buyers involved in demanding refuse collection, concrete agitator and construction applications,” he says.

X-Way launch postponed

Meanwhile, Iveco NZ had to pull the brakes on the official launch of its X-Way range which was due to be unveiled at the TMC Trailer Trucking Industry Show on March 20.The company says the Covid-19 pandemic is having a “dramatic effect across business operations right throughout New Zealand including our own areas of concern”.Iveco product manager Emiliano Foieri was going to be leading the presentation and product launch on the X-Way before it was cancelled.

Iveco says it plans to reschedule an official launch for the X-Way at another date. The Euro 6-rated X-Way range features the best of Iveco’s fuel efficiency and on-road technologies, including its patented Hi-SCR technology that requires no parked vehicle regeneration.The range comprises both prime mover and rigid models with a number of cabin options and GVMs and GCMs of up to 25 and 50 tonnes respectively.


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Mercedes-Benz is launching the eVito Tourer as part of an upgrade across the mid-size van

range.The vehicle delivers 150 kW (204 hp) peak power, 362 Nm of torque for a standard top speed of 140 km/h and a range of 421 kilometres.It adds to the Vito’s range, manufactured in Vitoria, Spain, with 508,000 units sold since its introduction in 2014.Mercedes-Benz Vans product and marketing manager Pia Herkewitz says the upgraded Vito models feature a new system which make them even more attractive.“The Vito is still uncompromising when it comes to operating costs or the desire for low emissions. As before, the payload and diversity of variants are among the best in the segment. The new infotainment offerings also meet the increased demands of our commercial customers,” Herkewitz says.Mercedes-Benz Vans EV head Benjamin Kaehler says the eVito Tourer “sets benchmarks in its segment with regard to everyday suitability and usability”.“Thanks to the rapid charging function and to a higher range, compared to its predecessor, it can be used flexibly. It underscores our idea of a locally emission-free van.”The eVito Tourer comes as standard with a water-cooled on-board charger with alternating current with an output of 11 kW. This means that it is capable of

AC charging at home or public charging stations.A maximum output of up to 110 kW can be charged from 10% to 80% in under 45 minutes at a rapid charging station.Meanwhile, 10 of the standard eVito vans have recently been handed over to Amazon at its fulfilment centre in Munich, Germany.The long body vans are now in operation throughout the city with more deliveries planned as Amazon looks to expand its EV fleet.The vehicles are charged directly at the centre where charging infrastructure has been installed.Mercedes-Benz Vans sales head Stefan Sonntag says inner-city courier operations are “the ideal field of operation” for EVs.“That’s why we’re so happy that Amazon has opted for the eVito and will now also be in a position to offer its drivers and customers in the Munich area all of the advantages which locally emission-free driving with our impressive Mercedes-Benz Vans offers,” Sonntag says.Amazon Europe senior sustainability head Adam Elman says everyone is “really pleased” about the progress of the EV fleet.

“Amazon recently co-founded Climate Pledge and strives to implement the conditions of the Paris Agreement on climate change in 2040 already – a whole 10 years ahead of the agreement’s defined fulfilment date of 2050.“Strong partnerships such as this one with Daimler will enable us to achieve this aim,” Elman says.The standard eVito has a battery capacity of 41 kWh and a range of between 150 and 184 kilometres and a full charging time of six hours.It delivers 85 kW of output and can reach up to 295 Nm of torque. It has a top speed of 80 km/h but can also be configured for up to 120 km/h.

MERCEDES-BENZ RELEASES EVITO TOURER


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Following the introduction of the Chevrolet Silverado 2500 Heavy Duty pickup truck in 2018, HSV

has confirmed the Silverado 1500 LTZ Premium Edition is soon to arrive in dealerships. Arrival was initially planned for March but the COVID-19 pandemic has set that back a few months and will see the vehicle land around May if all goes to plan. HSV NZ regional manager Andrew Lamb says production is already under way in Australia and pricing will be released soon. It will be competitive with other similar sized vehicles on the market, he says. The current Silverado 1500 (platform name T1) will set the category benchmarks for power, technology, and safety when it reaches dealerships according to HSV.It is propelled by a 313kW/624Nm 6.2-litre EcoTec3 V8 engine mated to a 10-speed automatic transmission, offering a maximum towing capacity of up to 4.5 tonnes using a 70mm ball.The Silverado 1500 features tow/haul mode, trailer swap control, hill start assist and auto grade braking.Everything needed to simplify towing is found in the available advanced trailering package: hitch guidance with hitch view, integrated trailer brake

controller, trailer theft alert, and in-vehicle advanced trailering system.Active safety features include: Front and rear park assist, lane change alert with side blind zone alert and rear cross traffic alert. IIn addition, there is forward collision alert, low speed forward automatic braking, front pedestrian braking, IntelliBeam automatic headlamp control, following distance indicator and safety alert seat.The suite of passive safety features includes dual-stage frontal airbags for driver and front outboard passenger; set-mounted side-impact airbags for driver and front outboard passenger; and head-curtain airbags for front and rear outboard seating positions. There is StabiliTrak electronic stability control with rollover mitigation technology, trailer sway control and hill-start assist.Inside, the 1500 boasts perforated leather-appointed upholstery plus heated driver and front outboard passenger seats with 10-way power and driver memory, plus a heated steering wheel. The Chevrolet Infotainment 3 Plus system, multi-touch display and advanced voice recognition is included, as is a high-definition rear vision camera. Two USB ports provide power and

connectivity for mobile devices, while two in the rear support charging devices.To optimise the steering feel and the turning radius of the Silverado, the size of the electric power steering motor was increased to develop higher output.A drive mode selector allows the choice of different drive modes that alter the transmission shifts, throttle and traction systems to better handle varying road conditions. Tour is for everyday driving; Sport increases responsiveness; tow/haul aids in trailering; and off-road is helpful in slippery conditions.Performance options will include HSV-tuned suspension for those seeking more driver feedback and performance airbox/exhaust and a complete range of performance upgrades.The Silverado 1500 has a longer wheelbase, and more cargo volume than the previous generation, yet it is up to 205kg lighter. It features high-strength steel in the frame, bed and safety cage and lightweight aluminium in the doors, hood and tailgate.The all-new frame is 40kg lighter than its predecessor, but has 10% greater torsional rigidity according to HSV. As much as 80% of the frame is made of high-strength steel varying from 2mm to 5mm in thickness.

CHEVROLET SILVERADO 1500 SET FOR NZ MARKET


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It is quite incredible how in the matter of a few weeks the world has changed. The spread of Covid-19 has been far

more aggressive and far swifter than many of us anticipated and has led to lockdowns and social isolation across much of the world. Not since World War II have we experienced the sheer scale and economic disruption that we are witnessing now. The Economist Magazine summed it up perfectly with its recent cover featuring the globe with a “closed” sign dangling in front of it. What is not closed, however, is trucking. RTF has worked hard with government officials to make sure that most road transport operations have been designated as “essential services” vital to maintain the supply chain and carry food, medical supplies and other necessities to where they are needed.Other businesses that provide the services to keep trucks operational, such as part suppliers, mechanics and tyre services are also deemed essential. I recommend touching base with your local service centres to find out what their processes and arrangements are ahead of any work you may require from them over the next few weeks. The interisland ferries will remain operational. Only freight and essential service workers will be carried on the ferries to help ensure security of supply between the islands.Obviously, many businesses do not meet the essential services criteria as set out by the Government. The fact is that many of our customers will not qualify and therefore will not require logistics services. We are asking the customer to self-identify if they are essential or not, rather than put the responsibility for that on road freight operators.We also have a situation where many businesses that receive freight are closed and there is nowhere for it to go as it is not deemed essential. Ports are struggling. If containers aren’t unloaded there will be a shortage of containers for goods going out and space on our wharves.

We need the Government to allow that freight to move so we are working with them on how we can do that under current conditions.The Government’s updated information on essential and non-essential businesses is on the covid19.govt.nz website. This may be subject to change as the situation dictates over the next few weeks. If you are unsure of where you stand you can send questions to [email protected] is also really important that government get the rules and processes that surround the lockdown right. For instance, we can’t have trucks getting stuck at road blocks if they are carrying vital medical supplies or food.The reality is that truck drivers and those who support them are working in an unprecedented environment and RTF is really conscious of how stressful this is on logistics staff.For those who are keeping the supply chain moving it is absolutely critical that you do all you can to stay safe and help others stay safe while you are on the job. That means operators instituting practices that mean their staff strictly follow Ministry of Health guidelines including having alternative ways of working that ensures physical distancing.RTF is endeavouring to get the Government and NZTA to provide further guidance around avoiding fatigue and the process for extending worktime hours if that is deemed necessary and desirable. The closing of rest stops, highway services and food outlets will have a negative impact on drivers so please make sure you plan your journey thoroughly and take food and water with you.

There is also some concern over safety and security within the supply chain and RTF has been asking the Government to consider what Australia have done by engaging police to help with the security of drivers, vehicles and goods.The RTF office in Wellington, like thousands of other workplaces around New Zealand, is now closed. My staff and I have access to well-functioning remote systems and are all working from home. If you wish to get hold of us you can still call or email and it will be diverted to the appropriate staff member. We will continue working hard to support the industry through this period. It is important to use the accurate and verified information from the Government as it applies to the New Zealand situation with Covid-19. Please do not rely solely on what you hear in the media or on social media.RTF will also keep members and the wider industry informed as to any updates or change in circumstances via our channels. The Government is making announcements daily in relation to Covid-19 and financial relief for businesses. We are posting these on our website, rtfnz.co.nz/covid-19/. The important thing to remember, particularly during the darkest times in this crisis, is that we will get through it. The drastic social distancing measures, the shutting of shops, cafés, bars and restaurants, the cancellation of sports and events, and the hard work of the dedicated men and women of our industry will all be worth it.If people heed Government and Ministry of Health guidance, stay at home and effectively isolate themselves from others we can get on top of this thing and win our domestic freedoms back.

Nick LeggettIs the Road Transport Forum chief executive. He has had a distinguished career in local government, serving two terms as mayor of Porirua City from 2010, and was the youngest mayor in New Zealand. He was first elected to council in 1998 aged only 19.

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PEOPLETALK

Covid-19 is reshaping the world, not only as I pen this monthly column but I suspect for months and years

to come. The world is always changing and always evolving, but the question here is how much has Covid-19 given this evolution a kick along?The pathway of how we got to a level 4 lockdown is nothing like anything we have known in our lifetimes. Just as the pathway to how we got to where we are today is unfamiliar territory, so too will be the slow and difficult period of recovery. Sure, we all remember the global financial crisis, but this is different. Fundamentally different. Just how severe this pandemic will be is still difficult to quantify but we know it is going to be a very tough time. The cost to human life is already too high, and some of the numbers being discussed of the total mortality rate as the pandemic progresses is horrifying to say the least. Just as the health impact is too high, so too is the economic impact. In the vehicle sector, within a matter of days we went from business as usual to shutting down all non-essential services with only an on-call capability for parts and repairs to essential vehicles. Sales of new vehicles for the month of March are down about 45% on March 2019, and I fear sales of new vehicles for April might only amount to 10-15% of April 2019 sales.Questions remain on what sales will look like from May onwards. This will depend on how quickly we as a country can break the chain of infection and begin our recovery to a new normal. There is uncertainty on whether once out of alert

level 4 we then stay out, or whether as a nation we need to return to alert level 4 again at some point. Additionally, even if New Zealand can break the chain of infection, we will need to keep our borders closed until the rest of the world can do the same, or a vaccine is found. Which ever way you look at it, recovery is going to be slow, fragmented and painful. To their credit, distributors and franchised dealers quickly responded to the Government’s call to shut down non-essential parts of their businesses. Staff were set up to work from home and contingency plans rapidly implemented. But sadly, it has also meant businesses have had to already downsize. The painful decision to let go of staff is not something anyone wants to do, and more importantly have it done to you. I suspect tougher decisions will need to be made in coming months. The longer it takes to control this pandemic the more severe the economic impact on our overall economy. The tourism and hospitality sectors have been decimated and how many will survive is an unknown. It is thought to be a fraction of what was operating before the pandemic. For our sector to recover we need the

rest of New Zealand to recover. For the rest of New Zealand to recover we need to firstly get on top of controlling the corona virus, stop further importation of virus vectors entering our country and then get our businesses open again. This suggests New Zealand needs an economic recovery plan. While the MIA applauds the current economic stimuli made by our Government, I have not yet seen a well thought out economic recovery plan. As economist Shamubeel Eaqub noted in his briefing to MP’s on Parliaments Covid-19 select committee, he stated we needed to think lockdown, purgatory and new normal. I want to finish this month’s column by thanking our prime minister for her clear communications and reinforcing the need for us to be kind, stay at home and behave as if we each have the virus. This tragically hit home for me in a personal way as March came to a close. As some of you know, I have travelled extensively through work and for holidays. Over time I have made many friends in Europe and North America. Sadly, I have lost an acquaintance already and another is in intensive care. The virus does not care who you are.Stay safe everyone, at the end of the day that is the most important thing.

David Crawford Is the chief executive of the Motor Industry Association.

THE LONGER THIS IS, THE MORE SEVERE

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PEOPLETALK

It goes without saying that what transport operators are experiencing in light of the

COVID-19 pandemic and New Zealand’s current lockdown is unprecedented. Whilst those involved solely in the delivery of essential goods are working round the clock with little reprieve, many of you are facing an uncertain future as the tight margins the industry operates on begins to prove there is often little room for contingencies. Saving for a rainy day just ain’t easy.I’ve been doing my best to provide free advice to as many business owners as possible over the last few weeks, so when I was approached to write for Transport Talk, of which I’ve been a long-time reader due to my work in the industry, I was stoked to say the least. After all, the more Kiwis can help each other over the coming months, the better off we’ll all be.So on that note, here are the key steps you can (and should!) be taking as a transport operator affected by the pandemic to help get through it, and breakdowns of actions you can take today:

1. Government support:I have to say, despite varying opinion on how well the Government’s handling the containment of the virus, they’ve done a bloody good job at getting assistance in place for business owners.Firstly there was the wage subsidy: $7029.60 paid straight into business’s bank accounts per full-time employee.The most common query I’ve been answering around this is whether the business owner themselves qualify. Chances are, yes, you do. This includes owner/drivers. If you’re unsure, and you still haven’t applied for the subsidy, reach out to your accountant or whoever handles your tax and get this sorted. It’s money straight in the bank. Secondly, the Regional Business Partner Network has put additional funding towards COVID-19 support, so eligible businesses can receive funding to pay for specialist business advice,

particularly around continuity planning, HR, financial/cash flow management, and health & wellness. This means businesses can engage people like me at no cost, to provide one-on-one assistance in these areas.Thirdly, the Business Finance Guarantee Scheme has been rolled out and banks are now taking expressions of interest. Basically, these are loans up to $500K for businesses turning over between $250K and $80m, paid back over a three-year period, supported by the Government. Rates are being advertised from as low as 4%. This brings me on to getting stuck into your numbers..

2. Financial managementIt’s an unsexy topic but it’s one all business owners need to have their head around. Forecasting your financial performance over the coming months is going to benefit you in three ways:• Understand what could happen in your

business in different scenarios and plan accordingly.

• Be prepared for finance applications.• Feel confident in knowing what's going

on with your numbers, so you can focus on what else you need to do.

The Business Finance Guarantee Scheme is not going to cause banks to throw money at just anyone. As part of the application process you will need to provide financial information, including forecasts – so you need to get prepared if you want to take advantage of this.Your forecasts will also give you an idea of what loan amount is going to be sensible, manageable, and what impact the cash injection and repayments will have on your bottom line over the coming months. Taking out a loan without knowing how it’s going to impact

you long term is in no way sensible, pandemic or otherwise!It also goes without saying, that you should make contact with your bank if you haven’t already, if you think you’re going to be facing some hardship over the coming months. Same goes for any finance company you have a loan with, especially on your gear.

3. OperationsOnce you’re on top of the Government support and had a good hard look at your numbers, you’ll be in a much better position to think about what practical steps you need to take.Looking at your overheads for example: Chances are there aren’t many you can reduce, other than those that are directly associated with your running costs, like fuel. But for the others – can you speak to any of your suppliers about easing up on their payment terms?Do you employ people? Will you need to sell gear down? Will you be able to re-deploy gear into different contracts if you need to? Can you contract drive for another company providing essential services?The questions you ask and processes you go through are going to be different depending on the type of work you’re in, so make sure you speak up and talk to your mates who are going through the same thing, engage with the professionals around you like your accountant or business advisor, and keep an open-mind about the possibility of making some serious changes to your business.It’s a tough time but we’re all in this together. And to those of you still out there on the road keeping our country moving, thank you.

BUSINESS OPTIONS AVAILABLE FOR THESE TOUGH TIMES

Lani Fogelberg is the managing director of Fogelberg Consulting and provides independent, practical advice to businesses seeking improved cash flow and greater operational efficiency. Her experience spans many core industries including transport, construction, financial and professional services, manufacturing, medical, hospitality and retail trade services. Go to fogelbergconsulting.com for more information.


PEOPLETALK

The consequences of pollution and unethical business practice are becoming increasingly visible,

driving government and organisational policies to take sustainable outcomes into account. In response to this, more and more businesses, organisations and customers are looking for ways to limit their carbon footprint. A sustainability-minded economy has effectively become the norm in 2020.Many factors are at play here - the New Zealand stock exchange’s (NZX) 2017 Guidance Note gave all nationally listed companies a big push towards including sustainability considerations into their business strategies. Listed companies are asked to report on social and environmental results as well as financial – or explain why they can’t. NZX implemented this requirement after a collective global decision among the Sustainable Stock Exchange Initiative, and the Financial Stability Board Taskforce on Climate Related Financial Disclosures. Investors are also increasingly choosing to back responsible and sustainably minded companies to future-proof their investments. In addition, pressure from media and the general public, who are demanding governments and businesses take concrete action, ensures that the spotlight stays on sustainability, responsible and ethical business behaviours. This change of mindset will affect the transport industry due to its reliance on fuel consumption and resulting carbon emissions. However, as the industry awaits suitable alternative fuels and engines, there are plenty of technology-based solutions to reduce and offset carbon emissions, meaning fleet operators can run a profitable operation while also looking after the planet and keeping customers happy.

Competitive advantageAll companies are part of a wider supply chain. Larger companies are starting to ask suppliers about their carbon footprint and what processes they have in place to reduce their environmental impact, as this impacts on the larger company’s sustainability profile.Savvy transport operators can gain a competitive advantage in the sustainability focused economy by making themselves part of a wider, greener supply chain. GPS technology provides the data needed to make operations as efficient as possible and assists operators in measuring and benchmarking the fleet. A large number of transport businesses use GPS fleet tracking, but many are still not utilising the CO2 emissions tracking features. Teletrac Navman software features can capture and evaluate fleet fuel usage, trip distance and CO2 emissions. Together with EV analysis, the complete tracking solution enables operators to set and measure sustainability goals and report on these successes to their customers.Teletrac Navman customers have seen up to a 30% reduction in fuel consumption and CO2 emissions after actioning sustainability goals – depending on the fleet setup. These statistics are based on data from over 500,000 vehicles that are tracked globally. Here are areas to focus on for redoing and reporting on fuel consumption:• Improving driver behaviour which

impacts fuel burn, by reducing speeding, harsh acceleration, harsh corning, and hard braking, and excessive idling.

• Benchmarking and aiming for improvements through improved maintenance, such as ensuring optimum tyre pressure or increasing fluid changes.

• Measuring the impact that new vehicles, or new parts aimed at reducing fuel use, have on CO2 emission.

• Understanding where alternative fuel vehicles, such as EV trucks, can be implemented in the operations and, once introduced, reporting on the C02 reduction when compared to the former diesel.

Offsetting carbonFurthermore, tracking technology also provides fleet operators a measurement on the total fleet carbon emissions. To further increase your sustainable profile and be the operator of choice for listed companies, transport operators can use this fleet data to partially or fully offset the carbon emissions with a New Zealand carbon offsetting provider, such as CarbonClick, Enviro-Mark Solutions and Ekos Rainforest Carbon Boutique.

Effective integration of electric vehiclesTeletrac Navman can use high-definition route data from the customer’s own fleet to better understand which of its vehicles are suitable to become EVs. The software can assist with information on charging station locations and capacity, allowing fleet operators to increase their EV base and range, thus further reducing CO2 emissions.As a key part of the supply chain, transport businesses have an opportunity to gain a competitive advantage with climate-conscious businesses by proactively focusing on sustainability measurements and initiatives.

GAIN AN EDGE IN THE SUSTAINABILITY ECONOMY WITH SMART TRACKING

Mats Dahlstedt is a national integration aolutions specialist at Teletrac Navman.


PEOPLETALK

A FOCUS TO KEEP THINGS MOVING

During the unprecedented conditions that apply during New Zealand’s alert level 4 as a result

of the Covid-19 pandemic, our Regulatory Services team at Waka Kotahi NZ Transport Agency has been streamlining our services and requirements to ensure we’re doing all we can to minimise the stress on commercial operators and drivers.We understand that because some operations are essential services it’s vital to ensure they run as well as possible. There are laws and rules that need to be adhered to and processes that need to be maintained, but in these unusual times we’re doing all we can to smooth the path for the operators who are keeping New Zealand running during alert level 4. My Safer Commercial Transport team have been working hard to maintain contacts with operators. While we’re at alert level 4 status, obviously we can’t meet people as we normally do, but our staff have remained in contact through email, phone and Skype. We’re working hard to maintain our relationships with the industry and addressing the challenges that have appeared in this dynamic and evolving situation.We’ve been considering workplace

exemption requests as they have been made and have been providing information concerning Certificate of Fitness (CoF) expiry and providing details of testing stations where CoFs can be obtained. We know drivers are doing it tough out there as the services they rely on are no longer available. We want to thank them for the job they are doing, being away from their families at this time and putting themselves on the front line to keep New Zealand moving and operating - and most importantly, doing it safely. They don’t get the acknowledgement and thanks they deserve. I am taking this opportunity to give these thanks today through the pages of TransportTalk. We are aware of the concerns of drivers and operators that licences and endorsements are expiring soon and we’re working with the Ministry of Transport to put in place formal regulations. We should be able to provide an update on this very soon.I’ve asked my colleague Paul Fantham, senior manager, commercial licensing and revenue, what his focus has been in these unusual times. He says the over-riding

concern has been to keep things moving. The focus of Paul’s team has been on activities that put money back into the community and make it easier for people who need to make applications. Where possible, applications are being fast-tracked, - and processes for fuel excise duty (FED) refunds and licensing applications have been streamlined to try to get the money back into the community and avoid any unnecessary delay.These challenging times require solutions on a day-to-day basis. I’m extremely pleased with the way the industry has worked with our teams at Waka Kotahi to come up with innovative thinking and ideas to help keep the essential services running.This ability to work together with the transport industry helps to make sure safety is at the very centre of our role as a firm and fair regulator.

Brett Aldridge is the safer commercial transport senior manager at the NZ Transport Agency.

MONTHLY MAGAZINE FOR WWW.TRANSPORTTALK.CO.NZ – VOLUME 7 | ISSUE 12 | JULY 2019

NZ’S NEWS SOURCE FOR ROAD TRANSPORT, LOGISTICS & HEAVY EQUIPMENT INDUSTRIES

More needs to be done to get drugged drivers off the roads and this includes tougher roadside drug testing polices, the Road Transport Forum (RTF) says. It comes following the establish-ment of a NZ standard for oral test-ing in March this year.Ministry of Transport data shows drugged drivers were responsible for

159 deaths on the roads over the last two years.The RTF has submitted on the Ministry of Transport’s Enhanced Drug Impaired Driver Testing discus-sion document and is calling on a fresh approach to tackle the problem. RTF chief executive Nick Leggett says the Government needs to change its “single-minded road safety focus, which is tunnel vision on speed and getting vehicles off the road”. “The number of people be-ing killed by drug impaired drivers is higher than by drivers above the

INSIDEINSIDETackling safety and regulation p3Truck training boost

p6 Christchurch welcomes E-buses p11Protecting lone workers p19 3 6

TR Group enters Australia

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Let’s tackle drugged drivers, RTF says

Continued on page 5

TR Group is making its entry into Australia with the acquisition of Melbourne-based trailer rental company Semi-Skel Hire.It comes after many years of inves-tigating the market across the Tasman and fits with TR’s ambitions to provide world-class service in renting and leasing trucks and trailers.TR was founded in 1992 and now has a team of 180 people and a fleet of 5500 rental and lease vehicles in New Zealand.

The group provides cus-tomers with a complete fleet management ser-vice and provides

Want an automated solution to help schedule your fleet maintenance?Come and see EROAD at Civil Contractors Conference for a closer look at our telematic solution for a safer, more efficient and productive fleet.

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MONTHLY MAGAZINE FOR WWW.TRANSPORTTALK.CO.NZ – VOLUME 8 | ISSUE 1 | AUGUST 2019


Hamilton-based CAL Isuzu

is expanding its footprint

with the recent acquisition

of heavy vehicle servicing company

New Zealand Trucks and its branches

in Auckland and Hamilton.

New Zealand Trucks was based

in Christchurch and was owned by

former NZX-listed Hellaby Holdings

Limited before it was sold in 2016,

alongside AB Equipment, to private eq-

uity fund Maui Capital for $81 million.

The new deal will see CAL taking

over the Hamilton site in Earthmover

Cresent and the south Auckland,

Wiri site in Edsel Way.

The acquisition will see over 35

staff join the CAL team and brings its

numbers to around 200 people.

The two additional sites adds

around 15,000 square metres and

sees the company grow to two sites

in Hamilton, three in Auckland plus

sites in Tauranga and Whangarei.

CAL Isuzu owner and managing

director Ashok Parbhu says he’s very

pleased with the deal which was car-

ried out in just a couple of months.

The acquisitions are all about

INSIDEINSIDE

Fuso NZ welcomes sales manager p4

Log prices crash

p5

CablePrice signs deal p8

Skills training shakeup p13

48

Scania

scales up NZ

operations

Continued on page 4

CAL Isuzu takes

over NZ Trucks

Continued on page 3

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and servicing

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Scania is making its largest ever

investment in New Zealand fol-

lowing more than two decades

of distribution by third party Cable

Price.

Scania New Zealand, now a

wholly-owned subsidiary business,

kicked off on January 1, 2019.

It’s now responsible for the impor-

tation, distribution and sales of new

Scania heavy trucks and buses, as well

as parts and business services.

It’s being led by managing direc-

tor Mattias Lundholm, who has more

than 20 years’ experience with the

Swedish trucking heavyweight.

Scania's local headquarters are

in Penrose, Auckland, and a satel-

lite site in Wellington is now open

MONTHLY MAGAZINE FOR WWW.TRANSPORTTALK.CO.NZ – VOLUME 8 | ISSUE 2 | SEPTEMEBR 2019


I t’s the end of an era for almost 100 years of Gough Group family own-ership and it’s “sad to see the end”,

chairman Keith Sutton says. The New Zealand-based heavy equipment company is being sold to Malaysian firm Sime Darby for NZ$211 million.Gough Group has the local Cater-

pillar dealerships with service territory

in New Zealand and interests in the transport and materials handling business in New Zealand and Aus-tralia.

Founded by Edger Gough, Harry Hamer and Tracy Gough as Gough, Gough & Hamer Limited in 1929, the company initially dealt in electrical goods.

It secured the Caterpillar fran-chise in 1932 and soon became the world sales leader for non-United States Caterpillar dealers and is one of the oldest dealerships of Caterpil-lar equipment outside of the US.

INSIDEINSIDERTF tackles mental health pg 6

Transdev enters NZ bus sector pg 8

Ruakura gears up for freight pg 11

Northland rail’s $94.8m boost pg 19

68

AdvanceQuip set for Iveco sales

Continued on page 4

NZ’s Gough Group to end

Continued on page 3

Truck and machinery distributor AdvanceQuip has appointed Noel Macdonald to the role of

Iveco sales manager for the south.Macdonald will be responsible

for Iveco truck and van sales in the Otago and Southland regions, having moved from the Manawatu where he was selling the Fuso range of trucks.

Now based in the central location of Alexandra, he will be readily acces-

Limited time only

Affordable lightvehicle telematicsA complete fleet solutionfor only $25 per month.Find out more: 0800 376 237eroad.co.nz/ehubo1-light-vehicle

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on +64 21 933 279









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scales up NZ

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Visa Mastercard


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on +64 21 933 279









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INSIDEINSIDE


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p5



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scales up NZ

operations

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and servicing









Price.



























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Limited time only


Name:

Email:

Number:

Postal:

Visa Mastercard


Name on Card:

Signature:




on +64 21 933 279


Scan completed form & email to: [email protected]


PEOPLETALK

Volvo Trucks reveals new rangeVolvo Trucks is introducing four new generation models with a focus on the driver comfort, safety and fuel efficiency.The FH, FH16, FM and FMX, represent about two thirds of Volvo Truck deliveries and the new versions are available with many different cab models and can be optimised for a wide range of applications.The new FM and FMX models have a new cab, as well as many of the same instrument display functions as the larger Volvo counterparts.“We are really proud of this big forward-looking investment. Our aim is to be our customers’ best business partner by making them even more competitive and help them attract the best drivers in an increasingly tough market,” Volvo Trucks president Roger Alm says.

Fuso reaches 150 eCanter salesMitsubishi Fuso Truck and Bus Corporation (MFTBC) is celebrating the 150th global delivery of the all-electric eCanter.The milestone was reached just over two years since the first delivery of the light-duty truck was made in October 2017.In Japan, 53 units have been delivered in the Kanto, Tokai and Hokuriku regions, while a total of 101 units are already in operation in customer’s hands in Europe and the US.The eCanter has been driven over 1.6 million kilometres worldwide and has been used as a delivery truck by e-commerce operators as well as logistics and retailing businesses in Japan for short-distance and urban deliveries.The truck is also being utilised in landscaping and waste disposal by administrative authorities around the world.

New Cybertruck factory plannedTesla is seeking a “central USA” site to build a new factory for its Cybertruck.The company’s plan was revealed on Twitter by Tesla chief executive Elon Musk, adding it’s also considering the East Coast for Model Y SUV production.Most of its EVs are built in the US at its Fremont factory in California and batteries at the Nevada factory.Tesla’s Gigafactory Shanghai is producing Model 3s and Model Ys, while construction of another factory in Germany is under way.The Cybertruck electric ute was revealed in November and variants are due to enter production from late 2021.Musk has been reported as saying initial orders exceed expectations – it got more than 250,000 pre-orders in the first week.The unusual looking Cybertruck is expected to be priced from US$39,900, have a more than 800km range, tow around 6300kg, carry a 1600kg payload and accelerate to 96km/h in under 2.9 seconds.Its launch included showing how an electric quad bike Tesla also plans to produce can be stowed in the rear compartment.

Freightways gets OIO green light for Big ChillFreightways’ sale and purchase agreement to buy Big Chill Distribution for more than $117 million has been approved by the Overseas Investment Office (OIO).More information will be provided regarding the Big Chill business and its integration into Freightways with the deal expected to be complete by April 1, 2020.Big Chill operates a fleet of over 200 temperature-controlled trucks and trailers and delivered more than 2 million shipments in 2018 through its nationwide network of depots



and purpose-built cool stores.The acquisition involves an initial payment of $117m, representing 80% of an agreed enterprise value for Big Chill, and a final payment later in 2022.

EROAD images show lockdown freight volumesEROAD has released fleet tracking imagery comparing heavy vehicle movement before and after the Covid-19 level four lockdown.It shows trucks travelling in New Zealand’s major cities on the first day of the Covid-19 alert level 4 lockdown at 9am, March 26 compared to trucks travelling at the same time and day in February.Although there is a dramatic reduction in traffic volume, it shows freight keeps moving to keep the essential supply chains and services open.

Fieldays 2020 postponedFieldays 2020 has been postponed in line with the ban on large gatherings to stop the spread of Covid-19.Prime minister Jacinda Ardern announced the rules on Monday which applies to all non-essential events of more than 500 people indoors or outside.“The society stands by the government’s decision to cancel events that draw crowds over 500 in order to stall the spread of Covid-19,” Fieldays Society chief executive Peter Nation says.“We value our loyal stakeholders, including the many exhibitors, suppliers, volunteers, visitors, staff and their

extended family, immensely. The whole event is about them. Their health and safety is of utmost importance to us and we take the government’s decision seriously.“The world may be undergoing major challenges in response to Covid-19, but in this changing environment Fieldays will remain, albeit at a later date,” Nation says.Fieldays 2019 saw more than 128,000 people through the gates over four days including 1067 exhibitors across 1559 sites.

Daimler suspends European operationsDue to the Covid-19 pandemic, the Daimler Group has decided to suspend the majority of its production in Europe, as well as work in selected administrative departments, for an initial period of two weeks.The company is following the recommendations of international, national and local authorities. The suspension applies to Daimler’s car, van and commercial vehicle plants in Europe.Connected to this is an assessment of global supply chains, which currently cannot be maintained to their full extent. An extension of this measure will depend on further developments. Wherever operations need to be continued, the company will take appropriate precautions to prevent the infection of its employees.With these closures, Daimler is helping to protect its workforce, to interrupt chains of infection and to contain the spread of the pandemic. At the same time, this will help the company to prepare for a period of temporarily lower demand and to protect its financial strength.

Scania to halt European productionScania is stopping operations at most of its European production sites as a result of major supply chain disruptions and component shortages caused by the spread of Covid-19.The shutdown was planned for March 25 and production is expected to resume within two weeks.“To ensure our customers’ vitally important transports for society, our service workshops and parts centres will continue their operations,” Scania president and chief executive Henrik Henriksson says.Scania staff directly affected by the planned production shutdown are employees at the group’s plants in Sweden, the Netherlands and France.Scania is in talks with union representatives to address the situation.“The management and employee representatives both highly appreciate the state support measures that are now being made available in the countries where our staff now temporarily will lack work,” Henriksson says.Scania’s industrial operations in Latin America, which account for about one-fifth of the company’s production volume, will continue as planned.



NEWSINBRIEF

Robin Thomas, Owner & Operator HIAB Transport

“The best thing about our Teletrac Navman system was

that it solved any customer disputes over invoicing.

They couldn’t argue with the time-keeping of the system,

and therefore we retained valuable revenue.”

GPS Tracking eRUC Maintenance eLogbook

0800 447 735

TeletracNavman.co.nz

Robin Thomas, Owner & Operator HIAB Transport

“The best thing about our Teletrac Navman system was

that it solved any customer disputes over invoicing.

They couldn’t argue with the time-keeping of the system,

and therefore we retained valuable revenue.”

GPS Tracking eRUC Maintenance eLogbook

0800 447 735

TeletracNavman.co.nz

http://www.teletracnavman.co.nz

MADE FOR NEW ZEALAND

When times are tough, we’ve got to pull through and work together. Our truck drivers are considered essential services and are out there, so they can keep delivering the goods. Whether they are delivering livestock, dairy, fuel or groceries, they are helping to keep our beautiful country going.

Thanks truckies – you are true transport heroes!

WE ourtruck drivers

http://www.scania.co.nz

Documents

Supply chains must keep moving, industry says …...“New Zealand transport companies are resilient and have responded quickly and responsibly to the challenges posed by the Covid-19