The Campaign For Better Transport

The Herald reports that:

Early community consultations are expected on route preferences for a new “road of national significance” costing up to $2 billion between Puhoi and the north of Wellsford.

That follows the Transport Agency’s awarding last week of a contract worth to $12 million for route investigation work on a proposed 38km link, entailing a four-lane extension of the Northern Gateway toll motorway to Warkworth and a dual-carriage expressway beyond that.

The investigation, by engineering and environmental specialists Sinclair Knight Mertz, is expected to take 15 months, but agency acting regional director Tommy Parker said he would be “disappointed if we are not talking about [route] options before about the middle of the year”.

 The Transport Agency fudges the poor economics of the project by saying:

…the figures were calculated by discounting the benefits at a standard 8 per cent each year after the road opens, a rate it sees as more appropriate to short-term projects.

It says if a 4 per cent discount rate could be used to reflect the longevity of the road, the economic returns could rise to $2 for every $1 spent.

I actually feel a bit for the NZTA here, basically being forced to justify a totally uneconomic project to satisfy the whims of the Minister of Transport.

Danielle Williamson’s well informed article on the proposed Puhoi to Wellsford motorway concluded that, mainly for reasons of road safety, the 35km stretch of road should be divided into a “proper motorway”.

However, doing so would be extraordinarily costly and technically challenging. Just the first section alone, between Puhoi and Warkworth, will not be completed for at least nine years, even if it were tolled.

We need to objectively consider the best use of an apparent budget of $2.3bn, rather than adopt an all-or-nothing approach.

For instance, the worst of the accident black spots could be upgraded to a higher standard far sooner than nine years from now. A Warkworth bypass could be built, perhaps to an expressway standard. The rail line to Northland could be repaired so that it is once again capable of carrying freight in a timely manner, reducing the number of large trucks on SH1.

It would be prudent to at least consider these alternatives, especially considering the likelihood of higher petrol prices in the next few years.

Official Information Act Request Reveals Economic Assessment “Several Months” Away

It was revealed today that the Government’s “Roads of National Significance”, which includes the latest Waterview motorway option along with six other motorway plans around the country, have yet to pass any economic assessment.

In March of this year the Government announced the seven roading projects were “essential routes that required priority treatment” and would “support economic growth”, however the Campaign for Better Transport has received confirmation from the New Zealand Transport Agency that “corridor benefit cost ratios” for each route will take “several months to complete for all seven of the Roads of National Significance.”

Campaign For Better Transport spokesperson Cameron Pitches said this raises serious questions about the decision last week by Minister of Transport Steven Joyce to commit an additional $1bn to state highway projects over the next three years, bringing total funding to around $3bn.

The funding boost has been achieved by deep cuts to public transport, walking and cycling, demand management, local roading and project monitoring budgets.

“On the one hand the Minister of Transport is on record saying that he ‘supports transport infrastructure projects that make at least some sort of economic sense’, and on the other he has advanced billions of dollars to new state highway projects without knowing any of the costs or benefits. He can’t have it both ways,” said Mr Pitches. Read the rest of this entry »