CORRECT: NZ could reap $190M/year benefit from drones   5 Mar 2015

Article - BusinessDesk

CORRECT: NZ could reap $190M/year benefit becoming first nation to allow beyond-line-of-sight drones

(Fixes number of UoC test zones in 5th graph)

By Fiona Rotherham

March 5 (BusinessDesk) - Allowing drones to operate beyond the operator’s line of sight could provide economic gains of up to $190 million a year to New Zealand's farming, forestry and energy sectors, according to a report commissioned by Callaghan Innovation.

New Zealand may become the first in the world to have a regulatory framework that lets beyond line of sight (BLOS) flights on unmanned aerial vehicles (UAVs), with the Civil Aviation Authority aiming to get sign off for a new rule from the Transport Minister later this month.

The report by Andrew Shelley Economic Consulting and Aviation Safety Management Systems estimates BLOS UAV operations would provide between $152 million and $190 million in annual revenue increases and cost savings. Benefits could come from improving the frequency and efficiency of farm pasture measurement, early disease detection in forestry, and reduced electricity sector outage times and maintenance needs.

Currently there is little formal regulation for UAVS, with smaller ones falling under model aircraft rules and large ones requiring special authorisation. The CAA’s new part 102 rule would allow commercial drone operators to apply on a case-by-case basis for the safe operation of BLOS flights rather than the blanket ban on them that currently applies in other countries.

CAA has already given the University of Canterbury permission for one test zone for long-distance use of UAVs without endangering other airspace users. The Airways Corporation has also set up Airshare, a hub for UAVs to look at ways of integrating commercial drones with other aircraft. It has had 160 controlled airspace flight requests from UAV operators in the past three weeks alone.

Callaghan Innovation's aviation sector manager Chris Thomson said the report shows beyond line of sight makes unmanned aerial flights a lot more economic than staying within line of sight.

‘It’s not economic to place a person every kilometre to monitor transmission lines down the length of the country or over every four hectares of farmland." he said. "If we can do beyond line of sight safely, then it opens up a whole lot more benefits.”

While media attention has focused on novel uses for drones such as delivering parcels or pizzas, Thomson anticipated initial take up in New Zealand would be from the infrastructure sector, which tends to be an earlier adopter of new technology than the agricultural sector.

“The oil and gas sector has huge costs around manned helicopter operations and health and safety risks with those operations, so finding something that is lower risk and lower cost is a huge driver, Thomson said. "I think the infrastructure sector – electricity, oil and gas, bridging and roading, they will be the first ones to jump onto it.”

Delivering in rural areas with wide open air spaces is a lot easier to do safely than in built-up urban areas where there are more privacy concerns and more potential for UAVs to fall on people on the ground. Thomson says drone deliveries are much harder to do and are still some years off.

Transpower, owner and operator of the national electricity transmission network, and Hawke’s Bay electricity network provider, Unison, have conducted UAV trials for inspecting overhead power lines. Both point to a significant difference between BLOS and LOS operations, with line of sight flights creating little additional value over existing inspection methods.

Transpower estimates it could achieve $1 million of annual gains from more frequent UAV inspections and for substituting a UAV for the helicopters currently used for patrolling the zone protecting the Cook Strait cable. Unison wouldn’t provide its costs and benefit analysis for commercial reasons.

The Callaghan report estimated likely electricity distribution benefits ranging from $1.85 million a year for centrally-located UAVs operated by service providers through to $6.62 million if distribution companies had their own UAVs that could identify the cause of outages and monitor storm damage at short notice. It estimated additional benefits to electricity consumers of between $4.46 million to $19.26 million a year from the reduced cost of outages.

Use of BLOS-operated UAVs would enable farm consultants to obtain relevant imagery for a number of farms at once and provide each farmer with the necessary information for active pasture management. The benefits from greater uptake of active pasture management to New Zealand is estimated at over $1 billion per year, the report said.

Within the forestry sector, UAVs have application in cheaper monitoring of forest health, particularly in identifying a range of forest diseases, pests and weeds. The report said although trials are needed to work out the level of control possible, it’s reasonable to assume benefits from controlling Dothistroma, one of two common tree diseases, ranging from $46 million to $69 million per year.

Pest infestations also have a significant negative impact on the economics of hardwood plantations which comprise only 2 percent of New Zealand’s forest estate. The report found improved pest control could result in potential savings of $26 million per year if hardwood imports were able to be replaced.

(BusinessDesk is funded by Callaghan Innovation to write about the commercialisation of innovation).

(BusinessDesk)

Add a comment

News

Hilary Timmins' Award-Winning UK Documentary Series To Inspire NZ Students

29 Jun 2020 Education
Dream Catchers, produced and directed by Hilary Timmins, celebrates the success stories of more than thirty inspirational New... more

New Zealand reaffirms support for Flight MH17 judicial process

7 Mar 2020 News By Rt HON WINSTON PETERS
Ahead of the start of the criminal trial in the Netherlands on 9 March, Foreign Minister Winston Peters has reaffirmed the need to... more

Business

NZ Government's Economic package to fight COVID-19

17 Mar 2020 Business News By RT HON JACINDA ARDERN
The Coalition Government has launched the most significant peace-time economic plan in modern New Zealand history to cushion the... more

NZ Government announces aviation relief package

19 Mar 2020 Business News By Hon Phil Twyford
Transport Minister Phil Twyford today outlined the first tranche of the $600 million aviation sector relief package announced earlier... more

Living

Diversity was Key at New Zealand Trade Tasting in London

6 Jun 2022 Food & Wine
New Zealand Winegrowers Annual Trade Tasting was recently held in London, on Wednesday 4 May, in Lindley Hall. It was the first... more

Kiwi author stuns Behind the Butterfly Gate

12 Jan 2022 Arts By Charlotte Everett
Hidden behind the Butterfly Gate is where the secret has been kept for 76 years...  New Zealand writer Merryn Corcoran’s... more

Property

Fairer rules for tenants and landlords

17 Nov 2019 Property By Minister Kris Faafoi
17 NOVEMBER 2019 The Government has delivered on its promise to the over one million New Zealanders who now rent to make it fairer... more

New Zealand Government will not implement a Capital Gains Tax

17 Apr 2019 Property By RT HON JACINDA ARDERN
The Coalition Government will not proceed with the Tax Working Group’s recommendation for a capital gains tax, Jacinda Ardern... more

Migration

Boosting border security with electronic travel authority – now over 500,000 issued

19 Nov 2019 Migration By Hon Iain Lees-Galloway
19 NOVEMBER 2019 We’ve improved border security with the NZeTA, New Zealand Electronic Travel Authority, which helps us to... more

Christchurch reinstated as refugee settlement location

18 Aug 2018 Migration
18 AUGUST 2018 HON IAIN LEES-GALLOWAY The announcement that Christchurch can once again be a settlement location for refugees... more

Travel

Gallipoli Anzac Day services cancelled

19 Mar 2020 Travel & Tourism By RT HON JACINDA ARDERN
The New Zealand and Australian Governments have announced this year’s joint Anzac Day services at Gallipoli will be cancelled... more

New Zealanders advised not to travel overseas

19 Mar 2020 Travel & Tourism
New Zealanders advised not to travel overseas more

Sport

The Skipper's Diary: Sir Richard Hadlee honouring his father and NZ's Forty-Niners

27 Oct 2019 Cricket By Charlotte Everett
NZNewsUK London Editor Charlotte Everett spoke to Sir Richard Hadlee about why he’s chosen to publish his father’s... more

PREVIEW: All Blacks v England semi-final

26 Oct 2019 Rugby
The two most convincing quarterfinals winners are set to square off in a semifinal showdown for the ages when the All Blacks meet old... more

Columns

Gordon Campbell on the Gareth Morgan crusade

11 Nov 2016 Opinion
Gordon Campbell on the Gareth Morgan crusade First published on Werewolf The ghastly likes of Marine Le Pen in France and Geert ... more

Gordon Campbell on the US election outcome

10 Nov 2016 Opinion
Column - Gordon Campbell   Gordon Campbell on the US election outcome Well um.. on the bright side, there (probably)... more

Kiwi Success

Congratulations to Loder Cup winner

26 Sep 2018 People By Hon Eugenie Sage
25 SEPTEMBER 2018 The Loder Cup, one of New Zealand’s oldest conservation awards, has been awarded to Robert McGowan for 2018... more

Appointments to New Zealand National Commission for UNESCO

16 Aug 2018 Appointments
16 AUGUST 2018Appointments to New Zealand National Commission for UNESCO HON JENNY SALESA Associate Education Minister Jenny Salesa is... more

Recruitment

Historic pay equity settlement for education support workers

14 Aug 2018 Recruitment By RT HON JACINDA ARDERN
14 AUGUST 2018Historic pay equity settlement for education support workers RT HON JACINDA ARDERN HON CHRIS HIPKINS Prime Minister The... more

Historic pay equity settlement for education support workers

22 Aug 2018 Recruitment By RT HON JACINDA ARDERN
14 AUGUST 2018Historic pay equity settlement for education support workers RT HON JACINDA ARDERN HON CHRIS HIPKINS Prime Minister The... more