This report investigates vulnerabilities in New Zealand’s strategic road network that could cause disruptions. The project identifies critical vulnerabilities that impact the national freight network and strategic supply chains, incurring significant costs to end users, and identifies mitigation activities to reduce these vulnerabilities. The analysis includes crucial nodes and linkages, predicting the impact of their unavailability on supply chains. The report highlights the importance of competition in the freight sector, noting that an oligopolistic structure often drives inefficiencies and increased costs. We identify short-term (up to 1 day), medium-term (up to 1 month) and long-term (3 months or longer) closure timeframes as defined by users, outlining their respective impacts and contingency plans. In short-term closures, contingency plans typically involve dynamic decisions, carrying safety stock and delaying shipments. Medium-term closures see a shift towards using rail and sea transport and offshore storage in containers for warehousing. Long-term closures emphasize sea transport and adaptive decision making even more, with significant variations in response based on the specific business and level of uncertainty involved. We use economic impact computable general equilibrium modelling and stakeholder engagement to inform the need to strengthen or build redundancy into the freight system, focusing on road transport. Findings indicate regional variations in freight cost impacts and suggest the importance of adaptive planning for deeply uncertain events. The report emphasizes economic impacts, not financial costs, and provides insights into contingency plans and their effectiveness in different scenarios.

Infrastructure Assets: Highway Assets
Resource Types: Research Report
Capabilities: Data & Information Systems
Management Processes: Monitoring & Adjustment, Performance Based Planning & Programming, Performance Reporting & Communication, Strategic Direction