Friday, November 18, 2016

Transport

A couple of informative pieces of commentary on SI transport chaos have appeared at Whaleoil, obviously written by someone with knowledge of and experience in the transport industry.

In an otherwise excellent dissertation, I was surprised to see the writer toss out the idea of air transport on the grounds of relative cost.

Air transport indeed was too expensive up until two weeks ago but that has all changed.

Low cost, efficient road/rail transport no longer exists.  It is gone and wont be back for perhaps five to ten years.  The correct comparison to make is between air transport and the now very limited and inefficient road transport available.  There will be many people for whom the choice will be be 'no delivery or air delivery.'

The only questions they will ask is:-   'Do I want to pay the price?'

I think many will say yes.  Take for example a 1,000 kg shipment of long grained rice, imported into Auckland from Thailand.  Currently sold for a bit under $2.00 per kg in supermarkets.  If air freight were to cost $1,000 per tonne would  people pay $3.50 per kg to buy the product?  I think so.  There will be plenty of other products which will stand a large price hike when people see the reason for it is genuine.

Some enterprising fellow will lease a dozen C130 Hercules aircraft and run a shuttle service between Palmerston North and Christchurch, moving up to 1,000 tonnes of freight per day.

6 comments:

Noel said...

Where there is a will there is a way
http://www.mainfreight.com/nz/en/news/earthquake-new-zealand-14-november-2016.aspx

The Veteran said...

Noel ... ty for that. Helpful link.

Anonymous said...

Cost of keeping a C-130 in the air is around $23,000 per hour. Factor in lease and landing fees and it's considerably more.....It ain't going to fly Orville.

Lord Egbut

Adolf Fiinkensein said...

Legbut. That seems rather a lot. Does it include a gold plated super scheme for the reserve crew?

Angry Tory said...

C-130J is USD14k/hr. That's not far from $23NZD. Ground crew, airframe checks, etc are all expensive.

You can wet-rent as many AN-124s at $20Kusd flight hr.

Adolf Fiinkensein said...

Funny maths you fellers use. On the current exchange rate US$14 = NZ$20.