NZ Transport Agency Waka Kotahi (NZTA) is seeking feedback on a proposal to toll the new 11.5km Manawatū Tararua Highway to support the costs of constructing and maintaining the road.
Consultation closes 5pm, Monday 7 October 2024.
Tell us what you think - online survey(external link)
Tolling for Te Ahu a Turanga: Manawatū Tararua Highway
Findings from the tolling assessment show that tolling revenue for Te Ahu a Turanga: Manawatū Tararua Highway could make a positive contribution to recouping the project’s costs. Vehicles travelling on the road would be ultimately contributing to its construction, ongoing maintenance and operations.
Recouping project costs would ease pressure on the National Land Transport Fund, which is spent on our land transport system – including in our region. The fund is made up of revenue collected from fuel excise duty, road user charges, vehicle and driver registration and licensing, state highway property disposal and leasing, and road tolling, and it is currently constrained.
Toll prices
The tolling proposal includes fixed 24-hour toll rates, with one charge for light vehicles and another charge for heavy vehicles.
|
Section |
Light vehicles |
Heavy vehicles (Over 3500kg gross vehicle mass) |
|
Between Ashhurst and Woodville |
$4.30 |
$8.60 |
The toll prices being consulted on are in 2024 dollars.
Supporting growth and efficiency in the region
NZTA is creating a transport system that is effective, efficient, safe, secure, accessible and resilient to enable the movement of people and freight now and in the future. Our future network will support the Manawatū-Whanganui region as a key freight and transport hub supporting a strong primary production sector.
Te Ahu a Turanga: Manawatū Tararua Highway will replace the Manawatū Gorge route along State Highway 3 (SH3), closed permanently by slips in 2017. It will form a vital strategic North Island transport link that will provide a safer and more reliable route between the lower North Island and the East Coast. People and freight will benefit from more route options and improved travel times.
Light vehicles travelling on the new highway would save an average of 12 minutes per trip and heavy vehicles an average of 14 minutes per trip compared to using the Saddle Road. We expect heavy vehicles will use the new highway due to significant productivity benefits including an easier, less winding route.
Economic assessments done prior to the start of construction found the drivers would see benefits from reductions in travel time costs and vehicle operating costs. Regionally, there is also expected to be wider economic growth due to increased access for freight and visitors.
The new highway has been designed to a high quality and is expected to offer an improved safety performance. It has attained a 4-star KiwiRap rating, which is the measure used to assess safety risk on state highways.
Assessing the highway as a tolled road
Tolling provides an opportunity for an additional source of revenue, protecting the existing funding in the National Land Transport Fund, and will support faster delivery of infrastructure, providing safer and more efficient routes. NZTA will consider tolling of all new roads as outlined in the Government Policy Statement for land transport 2024 (GPS 2024).
NZTA has assessed Te Ahu a Turanga: Manawatū Tararua Highway’s suitability as a tolled road. This followed the release of the Government Policy Statement on land transport in 2024, which introduced a new expectation for NZTA to consider tolling to support the construction and maintenance of all new roads.
Tolling assessments are designed to analyse tolling feasibility, including how a potential toll road might interact with the wider transport network.
The Land Transport Management Act 2003 allows a toll to be established, as a mechanism for funding road infrastructure projects and sets out the process required.
The Land Transport Management Act 2003(external link)
Availability of alternative routes
All toll roads in New Zealand are required to have a feasible, untolled, alternative route available to road users.
In the case of Te Ahu a Turanga: Manawatū Tararua Highway, the untolled alternative routes include the Saddle Road through Ashhurst and the Pahiatua Track.
Modelling shows that around 11,000 vehicles could travel between Manawatū and Tararua each day next year with the new highway in place. It is estimated that with the proposed tolling scheme in place on the new highway, about one third of all traffic might take an alternative route. However, vehicle numbers on Saddle Road through Ashhurst would still be around half of what they are now. Long term, other tolling sites around the country have seen more traffic move from council-operated routes to tolled routes over time as the benefits of the new road become clear.
Setting toll rates
Each highway project has different costs and traffic volumes. Modelling compares a range of options to find the toll scheme which maximises usage of the road with revenue. The proposed rates on the new road are set to ensure sufficient revenue can be gained across the lifespan of the new road in order to recoup its construction costs and contribute to its ongoing maintenance and operation.
Next steps
Following the consultation period, we will analyse feedback received and provide an engagement report on our website.
All submissions and feedback collected via the public consultation will be summarised to the Minister for Transport. This will provide insights into the level of community support for the proposed tolling scheme in the region.
The NZTA Board will consider the results of the consultation, and the Board may then recommend tolling to the Minister of Transport. The final decision on whether or not to toll each road rests with Cabinet on the recommendation of the Minister of Transport.
How does tolling work?
Find out how tolling and electronic payment works:
Tolling assessment
Tolling proposals are assessed against a number of criteria before progressing to public consultation:
