27 August 2009

Record investment to improve land transport and boost economic growth

New Zealand’s land transport network is receiving a record level of investment when the country needs it the most. The NZ Transport Agency (NZTA) has today announced details of $8.7 billion to be invested in New Zealand over the next three years through the National Land Transport Programme (NLTP).

“This is the largest land transport investment in New Zealand’s history, and it represents a 17 percent increase from the previous three year period. This additional investment will deliver significant benefits for New Zealand now and in the future,” says NZTA Chair Brian Roche.

Following the direction outlined in the Government policy statement on land transport funding (GPS), the NZTA has given top priority to activities that encourage economic growth, productivity and employment.

“Our primary focus in this NLTP is a series of targeted investments that will help to address the important challenges New Zealand faces with land transport – in particular improving the efficiency of key transport routes, improving public transport and easing severe congestion in key urban areas, upgrading important freight and tourism routes, and improving safety and access to markets, employment and areas that contribute to economic growth,” says Mr Roche.

The NLTP invests in a range of projects in all regions, providing guaranteed funding levels for each region over the next three years. There are significant increases in the level of investment for most activities, including:

• a 21 percent increase for public transport ($899 million investment over the next three years)
• a 19 percent increase for New Zealand’s state highway network ($4.5 billion investment over the next three years)
• a 14 percent increase for local roads ($1.9 billion investment over the next three years).

The new three-year timeframe for this NLTP allows for investments with a longer-term view, and allows local government and the wider land transport sector to plan ahead with increased confidence.

The preparation of the NLTP has been informed by 16 regional transport committees and the Auckland Regional Transport Authority (ARTA) developing and submitting regional land transport programmes outlining activities to be prioritised for NLTP funding.

“This collaborative process has allowed us to build an overview of land transport requirements across New Zealand and to balance regional and national priorities in deciding on the best investment programme to maximise value for money across the country.”

National and regional NLTP documents, Q&As and regional media releases are available on the NZTA website at www.nzta.govt.nz.

PLEASE REFER BELOW FOR Q & As

For more information please contact:

2009-2012 National Land Transport Programme: Q&A’s

General questions

1. Q: Why is the NZTA publishing the 2009-2012 National Land Transport Programme (NLTP)?

A: The NLTP is published to provide the public and key stakeholders with important information on land transport activities that may be funded over the next three years from the national land transport fund. The NLTP gives effect to the government’s transport priorities and impacts set out in the Government Policy Statement for Land Transport Funding (GPS).

2. Q: How is this NLTP different from last year’s one?

A: This is the first-ever three-year NLTP and New Zealand’s largest-ever investment in land transport. It aims to ensure that we support economic activity and assist economic growth during the worst economic conditions experienced for decades through a series of highly targeted investments designed to deliver the best possible returns for New Zealand in the long-term.

The new three-year NLTP timeframe enables investment with a longer-term view, and the wider land transport sector to plan ahead with increased confidence and flexibility. It also reduces a significant planning workload, enabling everyone involved to focus more on achieving the results we seek.

3. Q: How has the NLTP been developed?

A: The NLTP went through an extensive development process in which 16 regional transport committees and the Auckland Regional Transport Authority developed regional land transport programmes outlining the activities for which they sought NLTP funding.

Public submissions on draft regional programmes were reflected by the regional transport committees in the final regional programmes that went to the NZTA Board for consideration for inclusion in the NLTP.

This regional perspective enabled the NZTA to build an overview of land transport requirements, and to align regional and national views in deciding on the most appropriate allocations of funds to give effect to the priorities the government outlined in the Government Policy Statement on Land Transport Funding (GPS).

4. Q: What criteria does the NZTA use when deciding which activities to fund?

A: We use three key criteria to determine whether a transport activity will be approved for funding and to prioritise the activities in the NLTP:

• Strategic fit
Assessment of strategic fit considers how well the transport activity aligns with the NZTA’s strategic direction. Strategic fit ensures that the activities the NZTA approves for funding address significant opportunities and issues from a national perspective.

• Effectiveness
The effectiveness rating is about the contribution the proposed investment will make towards achieving a particular strategic outcome. Higher ratings are provided for those proposals that provide long-term, integrated and enduring solutions.

• Economic efficiency
The GPS signals a greater emphasis on economic efficiency as a key factor in obtaining value for money. Therefore there is a greater emphasis on assessing economic efficiency, particularly (but not exclusively) through the benefit cost ratio. Economic efficiency assessment captures how efficiently resources are used, how sustainable the benefits are, and whether the proposal represents value for money. Economic efficiency assessment applies to projects that result in the delivery of transport infrastructure or services.

5. Q: How much money is being invested in land transport over the next three years?

A: The NZTA plans to invest $8.7 billion over the next three years – the largest transport investment in New Zealand’s history and a 17 percent increase on funding in the past three years.

The NLTP will allocate for state highways a record amount of money – $4.5 billion over the next three years or almost $1 billion more than in the previous three years.

There are funding increases across most types of activities, including:

• a 21% increase for public transport ($899 million over the next three years)
• a 19% increase for NZ’s state highway network ($4.5 billion over the next three year)
• a 14% increase for local roads ($1.9 billion over three years)

6. Q: How will the NLTP benefit New Zealand?

A: The NLTP aims to make NZ more competitive through improvements to key freight and tourism routes, improved access to markets, employment and areas that contribute to economic growth, improved journey time reliability on key national and urban routes and the easing of severe congestion in urban areas.

7. Q: What are the NLTP’s long-term benefits?

A: When making funding decisions, the NZTA has taken a long-term view to ensure activities funded in the next three years yield benefits for land transport in the future.

We expect the activities to deliver measurable results through:

• improvements to key freight and tourism routes
• improved access to markets, employment and areas that contribute to economic growth
• improved journey time reliability on key national and urban routes
• easing of severe congestion in urban areas.

8. Q: What are the most significant national projects the NZTA plans for the next three years?

A: The following seven routes have been identified as ‘roads of national significance’ by government, and progressing these projects is a key priority in the NLTP:

- Puhoi to Wellsford – SH1
- Completion of the Auckland western ring route – SHs 20, 16, 18
- Auckland Victoria Park bottleneck – SH1
- Waikato Expressway – SH1
- Tauranga Eastern Corridor – SH2
- Wellington Northern Corridor (Levin to Wellington) – SH1
- Christchurch motorway projects

In addition to these routes, the projects listed in the table below are considered key priorities in the NLTP.

Region/Organisation/Project name/s/Strategic fit

Northland/Whangarei District Council/Lower Hatea River crossing (CBD urban arterial)/Easing severe congestion

Northland/Whangarei District Council/Porowini Avenue extension/Easing congestion

Auckland/Rodney District Council/PENLINK (urban arterial)/Easing severe congestion

Auckland/North Shore City Council/Albany arterial road improvements/Easing severe congestion

Auckland/NZTA/SH18, Constellation to Albany interchange upgrade/Easing severe congestion; Western Ring Route RoNS

Auckland/North Shore City/East Coast/Lake/Glenfield arterial roads improvements /Easing severe congestion

Auckland/North Shore City/Taharoto/Wairau Road bus priority/Easing severe congestion

Auckland/Auckland City Council/AMETI (public transport priority measures) /Easing severe congestion

Auckland/Auckland City Council/Tiverton/Wolverton Roads arterial improvements /Easing severe congestion

Auckland/Auckland City Council/Green Lane/Great South Road arterial road improvements /Easing severe congestion

Auckland/NZTA/SH1, Newmarket Viaduct /Easing severe congestion; improving freight movement

Auckland/Auckland City Council/Dominion Road arterial bus priority measures /Easing severe congestion

Auckland/Waitakere City Council/New Lynn transit-oriented development/Easing severe congestion

Auckland/Waitakere City /Lincoln Road improvements (urban arterial) /Easing severe congestion; compliment Western Ring Route RoNS

Auckland/Manukau City Council/Nesdale/Liverpool Roads arterial improvement/Easing severe congestion; complement Western Ring Route

Auckland/Manukau City Council/Smales/Ormiston/Preston /East Tamaki arterial roads improvements/Easing severe congestion

Auckland/Various/Road – rail crossings/Easing severe congestion; improving safety

Auckland/Auckland Regional Transport Authority (ARTA)/Auckland integrated fare solution/Easing severe congestion; improving public transport

Auckland/ARTA/Rail station improvements/Easing severe congestion; improving public transport

Waikato /Hamilton City Council/Wairere Drive capacity improvements (urban arterial)/Easing severe congestion; complement Waikato Expressway RoNS

Waikato /NZTA/SH2, Maramarua deviation/Improving safety; easing severe congestion; improving freight movement

Waikato /NZTA/SH25, Kopu Bridge/Easing severe congestion; improving tourist movement

Waikato/Taupo District Council/East Taupo arterial /Improving freight/tourism movement

Bay of Plenty/Tauranga City Council/Pyes Pa bypass /Easing congestion

Bay of Plenty/NZTA/SH2, Tauranga northern arterial/Easing severe congestion; improving freight movement

Central/Napier City Council/Prebensen Drive four-laning /Improving freight movement

Central/Tararua District Council/Pahiatua Track improvements/Improving freight movement

Wellington/NZTA/SH2/58 Hayward’s interchange/Easing severe congestion; improving freight movements

Wellington/NZTA/SH2 Melling interchange/Easing severe congestion; improving freight movements

Wellington/Wellington City Council/CBD bus priority measures/Easing severe congestion; improving public transport

Wellington/Greater Wellington /Rail station improvements/Easing severe congestion; improving public transport

Wellington/Greater Wellington /Real-time passenger information system/Easing severe congestion; improving public transport

Canterbury/Christchurch City Council/Wigram/Magdala arterial improvement/Easing severe congestion; complement Chch motorways RoNS

Otago/Dunedin City Council/Portobello Road arterial improvements /Easing congestion; improving tourist movement

Otago/NZTA/SH1, Caversham four-laning/Easing severe congestion; improving freight movement

Otago/Dunedin City Council/Harbour arterial /Easing congestion; improving freight movement

Southland/Invercargill City Council/Tiwai Bridge/Improving freight movement

9. Q: What is the primary focus of this NLTP?

A: Our primary focus in this NLTP is a series of targeted transport investments that will give New Zealanders better travel experiences and help businesses be more productive. As a result, the NLTP aims to address some important challenges facing land transport in New Zealand - in particular improving journey time reliability on key routes, easing severe congestion, upgrading important freight and tourism routes, and improving safety and access to markets, employment and areas that contribute to economic growth.

10. What role has the Government Policy Statement on Land Transport Funding (GPS) played in the development of the NLTP?

A: In developing the NLTP, the GPS, together with the regional land transport programmes, has been our guiding document. As an expression of the government’s priorities for investment in land transport, the GPS recognises that quality land transport infrastructure and services are an essential part of a robust economy. The GPS clearly shows that the government wants to direct transport investment at those activities that will make the greatest contribution towards economic growth and productivity. The GPS is also concerned to progress other objectives such as improving safety, providing more transport choices, contributing to positive health outcomes and reducing adverse environmental effects from land transport.

11. How does the NZTA manage its dual role as funder and provider when developing the NLTP?

A: The NZTA's Highway and Network Operations Group is responsible for delivering and managing the state highway network using mainly NLTP funding. The Land Transport Management Act requires that the NZTA give the same scrutiny to its own activities to be included in the NLTP as it does to activities proposed by approved organisations. As a consequence, the activities put forward by the Highway and Network Operations Group through regional land transport programmes for the NLTP are assessed by a separate, independent business group in the NZTA using the same assessment criteria that are applied to approved organisations. Following that assessment, and any changes required as a result, the state highway activities are recommended to the NZTA Board by the same independent business group that scrutinised the programme.

In order to ensure that the state highway activities continue to align with the assessment criteria and investment direction throughout delivery, the Highway and Network Operations Group’s performance is monitored on an ongoing basis.

12. Q: Will the NLTP change during its three year life cycle?

A: Given the new three-year timeframe, the NLTP is a dynamic programme which will be reviewed and updated regularly to reflect any approved variations to programmes, with the latest version available on the NZTA’s website at www.nzta.govt.nz.

13. Q: Where can we get a copy of the NLTP document?

A: The full NLTP is available on the NZTA website at www.nzta.govt.nz.

Role of regions

14. Q: How have regions helped to shape this NLTP?

A: This NLTP is the result of an extensive development process in which 16 regional transport committees and the Auckland Regional Transport Authority developed regional land transport programmes outlining the activities for which they sought funding. This regional perspective enabled the NZTA to build an overview of land transport requirements across the country, and to align regional and national views in deciding on the most appropriate investment of funds to give effect to the GPS priorities.

Given the funding available, we have had to make decisions according to activities’ relative priorities and readiness, and the funding allocated to them in the GPS.

15. Q: How does the NLTP reflect regional land transport programmes?

A: Regional land transport programmes (RLTPs) have been an essential building block for the NLTP. However, the RLTPs generally included more activities than there is funding available, locally, regionally and nationally. Accordingly, the NLTP prioritises activities nationally to best give effect to the GPS and has allocated funding to obtain the best value for money from the programme.

Roads of national significance

16. Q: How will roads of national significance be funded?

A: Roads of national significance (RoNS) will be funded in much the same manner as previously forecast, as the Minister announced when signalling increases in funding for state highway improvements within the GPS. Those projects that were indicatively funded from regionally distributed funding or Crown appropriations will potentially still be funded from the same source when they are given funding approval by the NZTA in the future.

17. Q. How does prioritising RoNS above other activities affect regions that don’t have RoNS?

A: The NLTP plans significant investments in state highways and other land transport activities in all regions. Regions nearby those with RoNS will enjoy the benefits of better routes from their regions to large cities. For example, Northland will benefit from the SH1 Puhoi-Wellsford project, Taranaki will benefit from the Waikato Expressway and SH1 Wellington Wellington Northern Corridor, and Manawatu/Wanganui will benefit from the SH1 Wellington Northern Corridor.

18. Q: How will RoNS benefit New Zealand?

A: Prioritising RoNS will help grow the national economy by improving productivity in New Zealand’s largest cities and surrounding regions. Making these key routes more efficient and safer will improve the reliability of journey times, reduce severe congestion and improve key freight and tourism routes.

19. Q: Will we be able to measure the economic benefits and value for money of RoNS?

A: The government’s primary economic objectives, as set out in the GPS, are to increase our global competitiveness and create economic growth within New Zealand. The roads of national significance are one of the initiatives that the government is introducing to achieve these objectives. Construction of the roads of national significance will provide a range of benefits from savings in travel times and reductions in vehicle operating costs, through to agglomeration benefits (productivity gains resulting from the clustering of economic activity) and labour market changes. The roads of national significance will not achieve economic growth and productivity on their own, but they will assist the economy to function more efficiently and help achieve these objectives.

Local roads

20. Q: Why is more NLTP funding going towards state highways than local roads?

A: The NZTA recognises the importance of local roads, and our investment in local roads has also increased by 14 percent in comparison to last years. In giving effect to the GPS, the NZTA has recognised that government’s priority for land transport investment is to support national economic growth and productivity. Investing in high quality infrastructure, particularly the state highway network, will contribute to that outcome by encouraging efficient movement of freight and people.

21. Q: How do you decide how to split funding between local roads, state highways and RoNS?

A: The NLTP allocates funding to the various activity classes in accordance with the GPS priorities. This provides for a significant increase in funding for state highways, including RoNS, to address the GPS key impact of economic growth and productivity. Funding allocated to local roads has increased 14 percent in comparison to last years and is within the funding range set in the GPS.

Road safety, walking and cycling and public transport

22. Q: What’s happening with funding for road safety, sustainability and alternative modes of transport such as walking and cycling?

A: Funding for road safety, sustainability, public transport, walking and cycling has increased over the three year period of the NLTP from that provided in the previous three-year period.

These activities are important in delivering an integrated transport system. The NZTA has maintained its already strong focus on road safety, particularly in the context of the maintenance, operation and renewals of local roads and state highways; demand management and community programmes, the Road Policing Programme and research.

23. Q: How does Safer Journeys (road safety strategy to 2020) relate to NLTP?

A: Safer Journeys forms part of the road safety strategy to 2020 which the Ministry of Transport is currently consulting on. Making significant improvements in safety, including implementing a relevant road safety strategy, is one of the assessment criteria used to compile the NLTP.

Approved organisations

24. Q: Are you changing funding approvals for approved organisations?

A: The NLTP now being a three-year programme means that for ongoing activities, such as maintenance of roads and passenger transport services, funding has been approved for three years, rather than for one year as in the past. This provides approved organisations with more certainty on the funding available. The NZTA expects approved organisations to manage those activities within the funding approved.

25. Q: Who do approved organisations need to contact if they have any questions around NLTP?

A: Approved organisations should contact their closest NZTA regional office. For contact details visit www.nzta.govt.nz.

26. Q: What are walking and cycling model communities?

A: The priority for NLTP funding over the next three years and beyond is to improve the contribution that walking and cycling activities make to the reduction of congestion in the main urban areas. This will be done by targeting investment at communities that have long-term commitment to significantly increasing walking and cycling as a practical and safe travel option

The NZTA is currently developing criteria and guidance for walking and cycling model communities for release in December 2009. Model communities will address road traffic congestion through a variety of tools across all council business and operations to make walking and cycling a practical and safe travel option. We want to work with approved organisations to identify their long-term commitment through funding, policy and planning to establish and sustain a model community.

27. Q: Where in Zealand are the key freight and tourism routes?
The NZTA is currently developing criteria and guidance to identify key freight and tourism routes which assist economic growth and productivity across New Zealand. The criteria are planned to be released in December 2009.

Interim guidance on key freight and tourism routes is available in the NZTA Planning, Programming and Funding Manual (Chapter G1). We encourage approved organisations to use the interim criteria to identify the potential key freight and tourism routes on their networks.

ENDS

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