The Campaign For Better Transport

Over at the forum, I asked the question what would make a good fare structure for Auckland.  Given the recent news that the Snapper system is coming to Auckland next year, I think it is important to focus on what would really make a difference to the average punter using buses, trains and ferries in the Auckland region.

Personally I’m drawn to the idea of fare caps, which is how I understand it works in London. In this scenario, punters are charged when they get on their first trip, but as they get on subsequent trips during the day they aren’t charged over a certain fare cap amount ($5 for example).

Anyhow, the post got a really great response from loose_shunter, “a fares policy person” over at the Victorian Department of Transport. It’s well thought out and informative, so I’ve posted it here as an article.  ARTA, employ that person!

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With most business opportunities, it is possible to calculate the expected monetary benefits and costs, while considering other factors such as the opportunity cost of capital and project risk.A similar approach for transport infrastructure projects is also attractive. Just work out the benefits in today’s money, divide this by the cost and – presto! – you know exactly how much the economy will benefit from for every dollar spent.

Take the proposed Waterview motorway extension, for example. Treasury and Ministry of Transport officials have worked out that for every dollar spent on the $2.8bn motorway connection between Mt Roskill and Waterview, the economy will receive $1.15 worth of benefits.

In the business case document now being considered by Cabinet, officials point out that “full tunnel” option means that the benefits are only a little in excess of their costs. Some above ground options might save up to $200m from the construction cost, but these have higher social and environmental costs, and also involve the loss of park land and a significant number of houses.

Considering the billions of dollars at stake, one would hope that the economic benefits and costs of the various options are as accurate and as realistic as possible. So are they? Well, no, actually.

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Now if I’m being honest here, I will admit that public transport advocates do get hammered a bit on the whole “economics of transport” debate. The roads lobby constantly states how through petrol taxes trucks and cars pay their way, yet at the same time rail and buses simply can’t fund themselves and require massive subsidies. Now I’ve always thought this strange – that something which just seems so much more efficient (putting a whole lot of people inside a metal box and moving them) could actually be not as economically justifiable as something which just was so obviously less efficient (putting one person in a metal box and then shifting heaps of those metal boxes).

Thanks to a most excellent book that I own, called “Asphalt Nation: how the automobile took over America and how we can take it back“, by Jane Holtz Kay, we can see the argument for cars over public transport start to unravel. Not only in terms of the environmental and social impact of cars – but in their economic inefficiency, striking at the very heart of those who promote roads-centric policies. It’s a book that Steven Joyce, Minister of Transport, should definitely read. It is written from an American perspective, but pretty much everything can be applied to New Zealand as we’re definitely one of the most auto-oriented countries in the world, particularly in the case of Auckland. An interesting quote on page 128 looks at the overall cost to individuals of transportation:

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Transport planners Julie Anne Genter, Stuart Donovan and Professor of Economics Tim Hazledine explain why there is no such thing as a free lunch, and there is no such thing as free parking. Read the rest of this entry »

This month’s briefing paper brings Saudi Arabian production and oil speculation into the spotlight. Click opbp_june_2008 for the PDF version.

Oil prices continue to maintain their record high levels, and consequently the New Zealand economy is likely to move into a recession, accompanied by high inflation. In particular, the petro-chemical, airline and fishing industries are coming under increased pressure as a direct result of increasing oil prices.

Saudi All Liquids Production

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Article by Todd Litman, Victoria Transport Policy Institute

Abstract

Traffic congestion tends to maintain equilibrium. Congestion reaches a point at which it constrains further growth in peak-period trips. If road capacity increases, the number of peak-period trips also increases until congestion again limits further traffic growth. The additional travel is called “generated traffic.” Generated traffic consists of diverted traffic (trips shifted in time, route and destination), and induced vehicle travel (shifts from other modes, longer trips and new vehicle trips). Research indicates that generated traffic often fills a significant portion of capacity added to congested urban road. Read the rest of this entry »

Christopher E Harris, PhD (Planning)

Two recent papers have described an ‘Americanisation’ of transport policy in Auckland, New Zealand, characterised by the successful advocacy of motorways at the expense of rail. Arrested development of rail transit in Auckland presents a striking contrast to Wellington, New Zealand, where suburban rail is as well developed relative to population as in Perth (WA). Wellington’s suburban rail was installed as part of a state-led development planning programme. By the late 1940s this template was intended for extension to Christchurch and to Auckland, then undergoing rapid growth. Following a change of government in 1949 development planning ceased and a state highway fund was established to fund urban motorways instead. The principal conclusion is that state support for development planning along transit corridors may be a prerequisite for successful urban transit development.

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The Campaign for Better Transport (CBT) would like to congratulate the Government for attempting to develop an energy strategy.

As the CBT is primarily focused on transport issues, we have chosen to concentrate our submission on this area.

We have arranged our submission into key headings. We have also included a commentary on some specific wording within the NZES document that we think should be reconsidered in the “Edit; Undo” section at the end of this document.

Finally we have answered selected questions from the “Have Your Say” sections of the strategy.

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