Public transport continuous programmes

This page relates to the 2021-24 National Land Transport Programme.

Introduction

This page provides links to programme requirements, work category definitions and guidance, and profiling and prioritisation of public transport continuous programmes delivered in both the public transport services and infrastructure activity classes.

Public transport continuous programmes comprise:

• existing public transport services and associated activities that maintain the current level of service, including investment in the existing contracted service provision, the operation of call centre and information systems, and the marketing and promotion of these services, funded from the public transport services activity class
• maintenance and operation of public transport facilities and amenities and the renewal or replacement work associated with existing public transport infrastructure and amenities or infrastructure projects, funded from the public transport infrastructure activity class.

Qualifying for National Land Transport Programme consideration

For us (Waka Kotahi NZ Transport Agency as investor) to consider a public transport activity for funding as part of a public transport continuous programme within the National Land Transport Programme (NLTP), this activity must:

• be or relate to a contracted service, already operating and funded, to maintain the level of service provided to the community. The work required will be considered minor in terms of both the service provision and its nominal annualised operating cost
• be an operational or renewal public transport-related activity necessary for the public transport network to maintain the level of service provided to the community
• be included in a regional land transport plan (RLTP)
• form part of the regional public transport plan (RPTP)
• meet the appropriate work category criteria in this knowledge base (PIKB).

Qualifying work categories for public transport continuous programmes

Public transport continuous programmes can be assigned to either the public transport service activity class or the public transport infrastructure activity class, depending on the work category the continuous activity relates to.

Service and operational qualifying work specifically related to providing or maintaining public transport services is funded from the public transport services activity class via the following work categories:

• Work category 511: Passenger services - bus
• Work category 512: Passenger services - ferry
• Work category 515: Passenger services - rail
• Work category 517: Total mobility services
• Work category 519: Total mobility wheelchair hoists and ramps
• Work category 521: Total mobility wheelchair hoist use payments
• Work category 524: Public transport operations and management
• Work category 525: Operations and maintenance of real-time and ticketing systems.

Maintenance, operational and renewal qualifying work specifically related to public transport infrastructure is funded from the public transport infrastructure activity class, via the following work categories:

• Work category 514: Public transport facilities operations and maintenance
• Work category 534: Public transport facilities and infrastructure – renewals.

Exclusions

A public transport continuous programme does not include the following work categories or activity types:

• Work category 522: SuperGold trip payments
• Work category 532: Public transport low-cost, low-risk improvements
• Work category 540: Rapid transit
• Work category 554: Technology to improve effectiveness of public transport systems
• Work category 561: Passenger facilities and infrastructure improvements – bus
• Work category 562: Passenger facilities and infrastructure improvements – ferry
• Work category 563: Passenger facilities and infrastructure improvements – rail.

Distinct service or operational improvements beyond the existing level of service provision are considered to be improvement activities and should follow the procedures for profiling and prioritising activities.

Public transport improvements

Developing public transport continuous programmes 

Public transport continuous programmes are continuous programmes of existing services and associated operations and necessary renewal work required to maintain appropriate levels of service on the public transport network. Continuous programmes have no start or end date; however, the detail required to establish the appropriate investment levels is developed on a three-year cycle that aligns with the NLTP cycle. Funding approval from the National Land Transport Fund normally covers the three-year period of each NLTP and is made when the NLTP is adopted by the Waka Kotahi Board.

We require approved organisations to follow the Waka Kotahi investment principles in developing and delivering their public transport continuous programmes.

Investment principles

Links to planning

We require public transport continuous programmes to have applied the principles of the Business Case Approach (BCA) and to be firmly aligned with long-term planning documents, in particular:

• regional land transport plans (RLTPs)
  Work category 001: Regional land transport planning management

• regional public transport plans (RPTPs)
  Work category 003: Activity management planning improvement

• supporting assets and activities captured in documents such as local authorities’ activity management plans (AMPs).
  Work category 003: Activity management planning improvement

Information required

The above documents should describe the information and assumptions underlying the proposed service configuration requirements across the network, including any need to vary the existing service provision. They should also demonstrate synergy with any supporting infrastructure provision considered necessary.

The programme submitted into Transport Investment Online (TIO), including the programme’s on-going operational costs and any major improvement investments proposed, should align with the intent of the funding plan captured in the RPTP. The information submitted in TIO should also make reference to the relevant parts of crucial long-term planning documents. Approved organisations must demonstrate how the proposed activities optimise their public transport network(s).

Transport Investment Online(external link)

The public transport continuous programme should, where necessary, provide links to proposed improvement activities (under the improvements activity classes) and demonstrate:

• how the proposed services, operations and renewal activities fit within the public transport programme
• how the programme optimises the investment and aligns to delivering an appropriate level of service across the network(s) involved.

Requirements of public transport continuous programmes

Details of public transport services, operations, renewal and improvements activities must be held by the organisation responsible for the programme.

Consideration should be given to:

• the relationship between recommendations in the AMPs of approved organisations and information provided in the AMP of the road controlling authority that manages the associated roading network
• the relationship between recommendations in the approved organisations’ AMPs
• quality assurance
• innovation.

Differences in levels of service will have an impact on funding assistance.

Business Case Approach and funding decisions

We recommend early engagement with Waka Kotahi investment advisors as they are available for support and guidance throughout the BCA process. See our website for BCA guidance. 

Business Case Approach guidance

We expect planning documentation, as stated above, to take account of business case principles when either developed or updated. 

Profiling and prioritising public transport continuous programmes 

We profile and prioritise public transport continuous programmes under the Waka Kotahi Investment Prioritisation Method (IPM), similar to other continuous programmes.

2021-24 NLTP Investment Prioritisation Method

For more information about the profiling and prioritisation of continuous programmes under the IPM, see:

Determining the priority of an activity or combination of activities

Achieving value for money 

The programme submission for funding in an NLTP will demonstrate that the investment in public transport services provides value for money in delivering the outcomes set out in the GPS.

The cost of providing the programme will be directly or indirectly influenced by such factors as:

• the number of public transport units identified to deliver services across the public transport network and variations around these
• the competitive pricing of units
• significant re-tendering within the three-year period
• changes in input costs, such as cost escalation due to fuel movements and labour cost increases
• fare setting and farebox recovery
• operational costs or cost variables associated with the service costs included in the submitted programme.

These factors will affect costs to different degrees in different parts of the country, just as the outcomes delivered by programmes will vary in different cities and regions.

We expect approved organisations to apply robust procurement and management principles in managing their costs to stay within their allocated funding levels and ensure public transport continuous programmes continue to represent value for money.

Forecast performance information 

Approved organisations must submit, as part of their funding application, forecast information to support their public transport continuous programmes for the three years of the NLTP, together with an estimate for the following six years beyond this.

The forecast information will consist of estimated targets for passenger boardings, passenger kilometres, in-service vehicle kilometres and farebox revenue for each mode in their public transport continuous programmes.

We expect these statistics to align with the RPTP or any other key planning documents where this information is provided.

Methods for determining passenger kilometres

One of two methods may be used to determine passenger kilometres:

• actual passenger kilometre data from tag-on tag-off electronic ticketing systems, adjusted appropriately to take into account cash fare sales and any estimations required to capture these additional passenger kilometres travelled, or
• estimation of passenger kilometres travelled, calculated by multiplying the total number of boardings on a route by the average trip length for passengers on that route. Average trip length can be estimated from an on-board survey, or directly through a tag-on, tag-off integrated ticketing system.

Approved organisations must use one of these methods unless our prior approval has been obtained for an alternative method.

Use of public transport statistics

We will use the public transport statistics, together with expenditure detail submitted, to:

• analyse the submitted public transport continuous programme and identify the likely forward funding requirements for public transport in the region
• help identify contributions of programmes to GPS results
• benchmark comparative network performance by generation of key indicators to assist in determining the investment profile of the network
• set national estimates for end-of-year comparison with actual achieved.

Key performance measures

Approved organisations also need to refer to the provisions in the Waka Kotahi Procurement manual (chapter 11.7 Public transport service key performance measures) to ensure the data collection and reporting requirements are included as part of their public transport continuous programmes.

Procurement manual

Conditions of funding for continuous programmes 

Typically, we will approve funding for a public transport continuous programme for all three years in a NLTP, as part of the NLTP adoption. However, we may decide to impose terms and conditions on funding for all or part of the approved public transport continuous programme, due to:

• insufficient information submitted or attached in TIO to provide us with the confidence to approve funding in full. A key determinant of this is likely to be the assessment of the business case and the rating assigned by us as captured in TIO.
  Transport Investment Online(external link)

• a lack of confidence in the forecasts provided in support of the application for funding
• network performance indicators providing evidence of low returns on investment with insufficient or unreliable evidence that returns will improve.

The terms and conditions may apply across all three years of a NLTP or to particular years. For example, we may approve funding the first year of a public transport continuous programme in the newly adopted NLTP, but set conditions that have to be met before funding is released for any subsequent year.

Managing the programme 

We delegate programme management decisions on the activities contained in a public transport continuous programme to the approved organisation within an approved allocation that, as a rule, covers each of the three years of the NLTP.

Approved organisations may carry over unspent funds from one year to the next where justified. Our staff will verify that the carryover is justified and may reduce the level of carryover if not fully justified. At the end of the NLTP there will be no carryover of unspent funds left in the allocation to the following NLTP.

We expect approved organisations to manage their programmes to maintain expenditure within approved funding allocations for the three-year NLTP.