Mark Heine: Eroad co-CEO reveals how electronic RUCs could work

Fuel taxes are set to be replaced by road user charges for all vehicles - and it's left many wondering how these changes will be implemented.

Eroad has welcomed this development, and their share price has risen in the hours since Transport Minister Chris Bishop made this announcement.

Eroad co-CEO Mark Heine says the company's been making use of electronic road user charges (eRUC) for years and says the technology's there to get this going.

"We're still working through with the Government for the pricing for that, but our target is to get it as cheap as possible."

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Episode Transcript

Speaker 1 (00:00):
One of the lingering questions after yesterday's announcement on the
road user charges v petrol tax shakeup is how this
is going to work. Well, there's a key we company
called E Road based in Auckland. It's already delivering exactly
this for our trucking industry. Mark Heine is the co
CEO of E Road. Hey, Mark, good Mark explained to
me how you guys do this.

Speaker 2 (00:20):
So look, ecotechnology has been around for a number of
years and it's very prominent in the heavy vehicle space.
So to have eruck, you need three things. One, you
need to know the distance travel by a vehicle. Seeking,
you need a platform to collects that data and enables
payment for use of the roads. And finding need that
data connection. So those three elements correct this eeruck system

(00:42):
to enable pain for use of the roads.

Speaker 1 (00:45):
Right, So, if I have a new car, I imagine
this reasonably. No, Actually, let me imagine assume nothing. If
I have a new car bought it last year, Let's
just say, what do I need to install?

Speaker 2 (00:55):
Look, many new cars already are connected. They already have
a SIM card and them a matter of an API.
I've been switched on. Data flows through and you can
make your payment straight away now as the minute to mention.
They want it to be as easy as paying for Netflix.
Their technology is already there to enable that.

Speaker 1 (01:10):
Okay, Old car Old you.

Speaker 2 (01:12):
Need probably some aftermarket hardware. So if you've go to Sydney,
you see this all toll tags and vehicles just near
something like that. Something really unobtrusive, easy to install, collects
data and then transmit its back to the platform and
you get gained paid in credit easily, just like Netflix.

Speaker 1 (01:27):
How much does that cost?

Speaker 2 (01:30):
So we're still working through with the government the pricing
for that, but our target is to get it as
cheap as possible. That toll tag and Sydney costs around
forty dollars to buy. We'd like to see something around
that price. If not, blow on that.

Speaker 1 (01:42):
Can it be gained?

Speaker 2 (01:44):
Can it can be gained? Look for all these things,
you have robust technology and tamper proof protections in them.
We've got one hundred and thirty thousand pieces of a
hardware out there. People aren't gaming them. It's pretty robust
and reliable.

Speaker 1 (01:56):
You can't wind the odometer backcutter cable do something like that.

Speaker 2 (02:00):
Not for this sort of technology.

Speaker 1 (02:01):
No, you can't how sure are you of that? Because
you know we find ways, don't we mark a look.

Speaker 2 (02:08):
Kerrys are very creative and have a lot of ingenuity.
But the good thing is this relies on GPS technology.
It's fairly robust and really reliable. We last you collect
the closer billion dollars on calf the government without costing assent.
And it's off the back of really robust, reliable technology.
You can't really tackle with how.

Speaker 1 (02:27):
Do authorities know if that white car driving down the
road hasn't paid their rucks?

Speaker 2 (02:32):
So there's good technology you can start using now, whether
it's around bluetooth connectivity, doing number plate readers in the
light to actually understand what vehicles have connected technology for
e eruck and you can pick it up pretty It's
simply if you don't have the connection India, you can
go right this white vehicle down the road doesn't have it.
It can pull them over and hap them to catch up.
There may be some other fail safe mechanism back in

(02:54):
there when you check your off make sure the ODO
is no consistent of what the EERU creators saying. Sin's
other file safe mechanism you can put in there to
make sure people are being honest with their use of.

Speaker 1 (03:08):
The road market reckons you're going to get one of
the contracts? Are you're going to get one of the contracts?

Speaker 2 (03:13):
Look, you know E Road was the market leader here.
We developed the technology over ten years ago, so we're
confident that our technology will be great for all kiwis
and so yeah, we're definitely pitching in here and playing
our part.

Speaker 1 (03:24):
How quickly do you reckon? Realistically the government can get
a system like the setup for the entire country.

Speaker 2 (03:30):
Well, the system's already there, So the question is going
to be about how do you best rolled out. Already
a million vehicles have to pay some form of ROADUS
to charging. E Road has one hundred and fifty thousand
using our technology already, So the technology is there around
how do you want to stage their rollout? Whether you
want to start with heavy vehicles and then work your
way down to light passenger vehicles. So I think the

(03:51):
government inspectation on timeline is probably fare let the technology
get into the market between now and twenty twenty seven,
but then start phasing this technology into people's vehicles.

Speaker 1 (04:00):
Mark, thank you so much. Make Heine, co CEO of
E Road for more from hither Duplessy Allen Drive. Listen
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