Local and regional roads and exports – 130314 slide 1 The economic value of good roads Roads and the nation’s export effort presentation to LGNZ Transport.

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Presentation transcript:

Local and regional roads and exports – slide 1 The economic value of good roads Roads and the nation’s export effort presentation to LGNZ Transport Summit Dr Ganesh Nana Chief Economist 13 March 2014

Local and regional roads and exports – slide 2 Brief 2012 research study *Transport Futures – Economic Evidence evaluate the importance of local and regional roads, in comparison to that of state highways, in transporting main commodities from origin source to port of export

Local and regional roads and exports – slide 3 Headline result Getting NZ’s main land-based exports to port requires 1.3 to 1.8 tonne kilometres use of local and regional roads for every 1 tonne kilometre use of state highways

Local and regional roads and exports – slide 4 Which exports? annual export values (Jun 2012) $bn Dairy16.3 Meat5.5 Logs & timber3.3 Kiwifruit1.0 Wine1.1 Apples0.3 Total of above27.5 = 62.5% of total merchandise exports Total merchandise exports44.0

Local and regional roads and exports – slide 5 Annual road transport task for main land-based exports = 6.6 billion tonne kilometres

Local and regional roads and exports – slide 6 Annual road transport task

Local and regional roads and exports – slide 7 Farm-gate to processor milk road transport Top-10 Districts

Local and regional roads and exports – slide 8 Assessing the road transport task origin to processor predominantly via local and regional roads except *in absence of precise data, assume for dairy between 10% and 35% of this stage on state highways processor to port predominantly via state highways exclude from calculations use of rail

Local and regional roads and exports – slide 9 Annual road transport task

Local and regional roads and exports – slide 10 Annual road transport task for main land-based exports tonne kilometres (million) Local and regional roads State highways ratio (local & regional per SH) Meat Kiwifruit Wine Apples Logs & timber2,3271, Dairy1, Total3,7862, or if assumption B4,2172,3911.8

Local and regional roads and exports – slide 11 Road transport for main land-based exports This distance on state highways Means at least this much distance is on local and regional roads as well OR, it might even be up to this much distance on local and regional roads