Understanding Transport Costs and Charges (UTCC)

Understanding Transport Costs and Charges (UTCC) – Phase 1

The Ministry of Transport is undertaking a study to update the knowledge of transport costs and charges. It is anticipated that this study will be completed by around December 2010.

The Main Report of an investigation into Surface Transport Costs and Charges (STCC) was released in March 2005. The STCC (2005) study provided some snapshot estimates of the total, average and marginal costs and charges associated with the road and rail networks for 2001-2002.

The UTCC project follows up on the STCC study. It aims to update the knowledge of transport costs and charges for two reasons:

There have been substantial changes both in the road and rail sectors since 2001-02, the STCC estimates and the comparisons between modes are largely out of date.
The absence of costs and charges information for the maritime sector makes it difficult for the industry and the policy makers to understand the opportunities for increasing coastal shipping as a means to transport domestic freight.

The UTCC adopts a two-phase process which consists of:

Phase 1 - a stock-take of the current domestic transport funding, charging and pricing arrangements and a gap analysis to identify transport costs and charges information needs. This work will be carried out for the domestic road, rail and water transport, consulting with government and industry stakeholders. A work plan that encompasses the priority, desirability, and practicality of further data collection and estimation will also be developed.
Phase 2 – data collection and estimation of costs and charges for the three modes, in light of the work plan and priorities identified under Phase 1. This phase is likely to involve a series of work streams to ensure costs and charges information are collected and estimated at the appropriate level of detail.

The UTCC project will be a significant resource for transport planners and policy practitioners. It will provide costs and charges information that is required for developing policies that encourage efficient use of the transport system over time.

We have recently engaged Hyder Consulting (NZ) Limited in partnership with Ian Wallis Associates Limited to work with us on Phase 1 of the UTCC project which is expected to be completed by mid-July 2008. If you would like any further information about this project, please contact Joanne Leung at the Ministry of Transport (j.leung@transport.govt.nz).