National Road Carriers (NRC) is urging the Government to change its proposed time-of-use charging regime by charging heavy vehicles no more than twice the passenger vehicle rate, lifting the heavy vehicle threshold from 3,500kg to 6,000kg, and introducing a maximum daily charge for freight operators.

The Ministry of Transport (MoT) has proposed heavy vehicles be charged four times the passenger vehicle rate in its proposed regulations under the Land Transport Management (Time of Use Charging) Amendment Act 2025.

NRC Chief Executive Justin Tighe-Umbers said the freight industry supports time-of-use charging as a tool to reduce congestion, but the current proposal risks imposing significant costs on businesses and consumers without delivering meaningful congestion benefits.

“We support congestion charging because a more efficient road network benefits everyone, including freight operators,” said Tighe-Umbers.

“However, the proposal to charge trucks four times the rate of passenger vehicles goes further than any comparable scheme anywhere in the world. The evidence simply does not support a multiplier that high.”

While the MoT has proposed a 4:1 charging ratio for heavy vehicles, NRC argues international evidence points to a ratio closer to 2:1, reflecting the actual impact heavy vehicles have on traffic flow.

“No country has adopted a truck congestion charge at four times the passenger vehicle rate,” said Tighe-Umbers.

“In New York, one of the most ambitious congestion charging schemes in the world charges trucks around 2.4 times the car rate. Despite that, truck movements into the charging zone fell by less than two percent. The reality is that freight movements are largely dictated by customer requirements, port schedules and delivery windows, not by road pricing.”

Tighe-Umbers said heavy vehicles account for only a small proportion of peak traffic. In Auckland, heavy vehicles make up approximately seven percent of vehicle movements, while passenger vehicles account for the overwhelming majority.

“Trucks are not the primary cause of congestion. Even if a significant number of trucks could be shifted out of peak periods, the overall impact on congestion would be modest. Meanwhile, the cost would flow through supply chains and ultimately be paid by New Zealand businesses and consumers.”

NRC is also calling for the threshold separating light and heavy vehicles to be raised from 3,500kg to 6,000kg to reflect the increasing weight of electric utes, vans and SUVs.

“A growing number of vehicles are exceeding 3,500 kilograms simply because of battery weight, not because they behave like heavy trucks on the road,” said Tighe-Umbers.

NRC is further recommending a maximum daily charge to prevent freight operators from being penalised multiple times for undertaking essential work throughout the day.

“Freight vehicles often make several peak-period movements while keeping supply chains moving,” said Tighe-Umbers.

“Without a daily cap, operators could face repeated charges that bear little relationship to the congestion they actually create.”

He said NRC remains committed to working constructively with Government on a congestion charging framework that improves network performance while remaining fair, evidence-based and economically sustainable.

“If the Government wishes to impose a charge higher than a 2:1 ratio, it should first publish New Zealand-specific modelling demonstrating why our network justifies a higher charge than any comparable scheme overseas. Good policy should be guided by evidence, not assumptions.”