Infrastructure Plan Prioritises Roading
March 2010

A $10.7 billion investment in state highway projects over the next 10 years is the main focus of the Government’s first National Infrastructure Plan.

Other main targets of the plan, which has a 20-year horizon but is expected to be regularly updated, include broadband, electricity transmission, regulatory reform, and the Rugby World Cup 2011.

The “Roads of National Significance” identified by the plan include:

· Puhoi to Wellsford (SH1)

· Completion of the Auckland Western Ring Route

· Auckland Victoria Park bottleneck (SH1)

· Waikato Expressway (SH1)

· Tauranga Eastern Corridor (SH2)

· Wellington Northern Corridor -- Levin to Wellington (SH1)

· Christchurch motorway projects

Domestic shipping and the port sector were discussed in the plan, but as per the Government’s previous indications about allowing market forces to direct change, no intention to direct any investment to either was indicated.

Among future transport-related investments mooted were an additional Auckland Harbour crossing in the next two decades as well as replacing some rail fleet to boost revenue growth on some routes and the likelihood of increased demand for further investment in the Auckland and Wellington metro rail systems.

Predictably Roading New Zealand and the Road Transport Forum New Zealand have received the plan positively, as has Ports of Auckland for the improved roading and rail developments in its region.

However, New Zealand Shipping Federation executive director Sam Buckle lamented the “same old playing field imbalances between modes” caused by the failure to move the wider transport sector onto the commercial footing faced by other infrastructure and network industries.

Mr Buckle felt rail was continuing to receive preferential treatment and was disappointed at the “almost complete lack of recognition” of the contribution of domestic shipping, but was pleased there was a desire to move road user charges onto the demand-based eRUC model and fully incorporate all social costs.

However, he stressed there was a need to address the “most important question of a return on capital value”.

“Without which, talk of getting price signals right or applying commercial principles is rather hollow,” said Mr Buckle.

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