The charges for track usage run to the heart of the viability of rail transport. We acted on behalf of Toll New Zealand on proposed track access charges by Ontrack. This required analysis of budgets and forecasts for operation, maintenance and development of network assets. The result was a recommended framework that was fair and reflected the commercial realities of a complex rail network.
We have worked with nine Councils on the design of development contribution policies. We have also assisted Councils on options for rating policies, and systems to track receipt and expenditure of contributions. The process has meant policies that are readily understood by councils and developers and legally robust.
Most transport revenue comes from petrol excise and Road User Charges. A relatively small, but still material amount comes from fixed charges on vehicle licencing. We assisted both the Ministry of Transport and NZ Transport Agency to assess the efficiency and equity considerations for fixed charges.
Understanding the costs of delivering services is a key element of price or fee setting decisions and for monitoring the level of profitability or cost recovery that each service contributes to the organisation. Activity-based Cost Management is a decision support methodology we use to support our costing and pricing engagements.