This week we completed our submission to the Transport and Infrastructure Committee on the Regulatory Systems (Transport) Amendment Bill.

The Bill covers a number of relatively straightforward issues. Of most interest are proposed changes to strengthen the transport service license (TSL) regime, and a change to allow NZTA to close sections of State Highway without needing Police involvement.

We support NZTA being given broader powers to close parts of the State Highway network for safety reasons. This would align its powers with those local authorities already hold for local roads. However, we’ve recommended a caveat. NZTA should be obliged to consider and manage the safety and welfare of those impacted by a closure.

This reflects the real-world problems many of our members face, sitting at a closure with no information, while carrying perishable freight or livestock suffering in queues.

On the TSL changes, we don’t believe the Bill goes far enough.

We routinely hear that NZTA is too constrained by the current “fit and proper person” test when assessing new TSL applications. It has no ability to consider the scale of the proposed operation, nor whether an applicant has the capability, experience, knowledge, and skills to manage a transport business.

Yes, NZTA can audit operators once they are in service. However, that approach is inherently reactive. It is the classic case of “shutting the gate after the horse has bolted.”

We believe NZTA should only issue licences when it is confident the applicant has the ability to run a safe and competent operation. Our submission recommends the Bill be extended to address these shortcomings.

That said, it is important to keep perspective. Most operators are running safer and more efficient businesses than ever before. Crash statistics and ACC figures prove it. The priority now is to back the good performers and enforce the rules against those who refuse to meet basic standards.

Transport Minister announces three freight initiatives

It is good to see freight firmly on Transport Minister Chris Bishop’s agenda. However, if the Government really wants to double exports over the next decade, a more ambitious approach is needed.

We are already waiting on the upcoming VDAM consultation. It was concerning to see in the new Freight Action Plan that some regulatory reforms aimed at improving productivity will not be delivered until June 2027 or later.

The new Freight Advisory Council could be valuable, provided it stays focused on a few key priorities and holds itself accountable for results.

We are also pleased that, following strong advocacy, the National Freight Demand Study is back on track. An update will provide much-needed insight into how freight is moving across road, rail, and coastal shipping.

That said, the Minister missed an opportunity to show leadership on rail. Despite years of effort and significant public investment, rail freight volumes have steadily declined, down about 20 percent over the past five years. KiwiRail’s FY2023 freight target was 4.36 billion net tonne kilometres. Actual volumes in FY2025 were just 3.37 billion.

Rather than gearing up to handle its share of the forecast 55 percent freight growth over the next two decades, rail’s performance continues to slip.

Government must ensure every dollar of transport investment, whether in road, rail, or coastal shipping, delivers real value and measurable results.

You can see a quick video summary from me here on YouTube.

Dom Kalasih, Chief executive of Transporting New Zealand