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

  • Prospects for intercity transport technology
    February 1, 2012
    Magnetic levitation has been dismissed as unproven, too costly, or pie in the sky. It's time to reappraise it. With the unveiling by China (see News section, page 10) of its own, home-grown magnetic levitation train, it would be odd if politicians, policy-makers and the ITS industry did not want to take a closer look at the 'unproven' technology that is magnetic levitation. Fortunately, doing so is easy. The non-profit International Society for Maglev Transportation (The International Maglev Board) has an e
  • Prospects for intercity transport technology
    February 6, 2012
    Magnetic levitation has been dismissed as unproven, too costly, or pie in the sky. It's time to reappraise it
  • Study finds big differences in toll collection cases
    December 16, 2013
    Examination of Norway’s tolling companies finds much to praise, and some criticisms too, as Torill Eidsheim told delegates at the ASECAP conference. The cost of collecting tolls has a substantial effect on the profitability, or otherwise, of tolling companies and is within the company’s control to a far greater degree than, for instance, traffic volumes. And while it is easy to assume that all tolling companies incur similar collection costs, that is not always the case according to Torill Eidsheim, pres
  • Report analyses multiple ITS projects to highlight cost and benefits
    March 16, 2015
    Every year in America cost benefit analysis is carried out on dozens of ITS installations and pilot studies and the findings, along with the lessons learned, are entered into the Department of Transportation’s (USDOT’s) web-based ITS Knowledge Resources database. This database holds more than 1,600 reports and periodically the USDOT reviews the material on file to draw conclusions from this wider body of evidence. It has just published one such review ITS Benefits, Costs, and Lessons Learned: 2014 Update Re