Projects

Client: National Transport Commission
Title: Update of Heavy Vehicle Operating Cost (HVOC) model

Client’s Challenge
The National Transport Commission (NTC) is responsible for advising governments on heavy vehicle charges. In 2024, the NTC needed to develop an updated cost base to guide future heavy vehicle charges. To achieve this, the NTC required a detailed understanding of the operating costs for 27 different types of heavy vehicles, which is analysed in its heavy vehicle operating cost model. The heavy vehicle operating cost model had not been updated since 2020. The NTC needed to update the inputs and parameters of this model to accurately reflect current costs. These updates were essential to support the preparation of a regulation impact statement scheduled for 2025.

Our Solution
Positive Economics Advisory updated the NTC's heavy vehicle operating cost model by undertaking a detailed data review process and engaging industry stakeholders. We conducted a thorough analysis of publicly available sources, supplemented by consultations and a stakeholder workshop to validate the model’s inputs and assumptions. We enhanced the existing model to align it with best practice modelling standards, making it more user-friendly and effective for decision-making. The model and report were prepared to be publicly available on the NTC’s website.