Skip to main content

Auckland considers road user charging to plug funding shortfall

Auckland, New Zealand, faces a US$9.5 billion transport funding gap to build the fully-integrated transport network set out in the 30-year Auckland Plan that includes new roads, rail, ferries, busways, cycle-ways and supporting infrastructure needed to cope with a population set to hit 2.5 million in the next three decades. If Auckland opts to pay for the fully-integrated Auckland Plan, Auckland Council officials claim the transport network congestion is expected to improve by 20 per cent over the next 1
October 29, 2014 Read time: 2 mins
Auckland, New Zealand, faces a US$9.5 billion transport funding gap to build the fully-integrated transport network set out in the 30-year Auckland Plan that includes new roads, rail, ferries, busways, cycle-ways and supporting infrastructure needed to cope with a population set to hit 2.5 million in the next three decades.

If Auckland opts to pay for the fully-integrated Auckland Plan, Auckland Council officials claim the transport network congestion is expected to improve by 20 per cent over the next 10 years compared with where the city’s traffic problems are currently heading.

The higher level of transport performance will also deliver economic benefits to the Auckland region of US$1.3 billion in improved productivity and reduced costs.

An Independent Advisory Body (IAB) has worked out two ways Auckland could fund the fully-integrated transport system. One way is agree to increase petrol price by 1.2 cents a litre (in addition to increases signalled by the government) and share the rest of the cost equally amongst ratepayers. This would mean an increase in average general rates of around one per cent per year, in addition to increases signalled by the council, over the next ten years.

The other suggestion is to charge the motorway users an average user fee of US$1.6 depending the time of day or day of the week they use the motorway.

The government has criticised the proposals, however.

Transport Minister Simon Bridges said he was "very sceptical" about the options presented today by an Independent Advisory Body (IAB) to the Auckland Council.

Bridges said the Government was already spending about US$794 million a year on Auckland's transport network. "These projects will make a big difference to congestion in Auckland," he said.

"But we remain very sceptical about the options being presented today to Aucklanders and whether the programme proposed will further alleviate congestion. Aucklanders would need a very clear sense of what results they are getting and whether the new projects would deliver tangible value for money for commuters. They also need to have the discussion about how much more Aucklanders are prepared to pay for their transport."

The council says no decision will be made without extensive consultation with residents, which commences in January 2015.

Related Content

  • Mileage based charging offers secure future for funding
    August 10, 2016
    HNTB’s Matthew Click sets out why a move to mileage-based pricing is inevitable. Infrastructure is the most neglected yet the most critical engine of our society, and our continued indifference could lead to a dystopian future. Our roads, bridges and highways have been largely passed by in the digital age—marginalised in an era when funding is limited and stewardship of physical assets has given way to our preoccupation with technological innovation and data—the stuff of the virtual realm.
  • Work begins on Auckland, New Zealand motorway project
    December 9, 2016
    Work has begun on new US$509 million (NZ$709.5 million) motorway in New Zealand, extending from Puhoi, approximately 50 km north of Auckland, to Warkworth, a distance of 18.5 kilometres. The project is New Zealand’s second Public Private Partnership (PPP) for a state highway and will be delivered by the Northern Express Group, which will finance, design, construct, manage and maintain the motorway for the 25 years that will follow the expected five year period to build the motorway. Full ownership of the
  • Moody's: tolls will have a greater role in closing US highway funding gap
    April 28, 2017
    In light of stagnant federal funding and limited capacity for states to increase spending, toll roads will play an increasing role in addressing the funding gap for road and bridge infrastructure needs in the US, according to a new report from Moody's Investors Service. Based on historical trends, Moody's projects more toll roads and increased tolling in areas with existing traffic congestion and growing economies, population and per capita income. The 2017 Infrastructure Report Card by the American Society
  • Foundation funds research for informed campaigning
    April 29, 2015
    ITS International talks to Professor Stephen Glaister, director of the transport research and lobbying organisation, the RAC Foundation. It is through the eyes of an economist that Professor Stephen Glaister, emeritus professor of transport and infrastructure at Imperial College London and director of the RAC Foundation, views current and future transport problems. Having spent 30 years at the London School of Economics and another 10 at Imperial, the move to the RAC Foundation was a radical departure from