Auckland Southern Corridor improvements – construction funding

Applicant

NZ Transport Agency

Purpose

To seek the Board's approval for construction funding for the SH1 Auckland, Southern Corridor improvements project.

Date of decision

5 March 2015

Resolutions

The New Zealand Transport Agency Board:

a.

approved construction funding for the SH1 Auckland, Southern Corridor improvementsat an expected cost of $268 million.

b.

noted that most of this 'N' funding is to be provided from an interest-free government loan for the highway component.

c.

noted the reasons for this decision are because the project has a High Strategic Fit, High Effectiveness, a Benefit Cost Ratio between 6 and 9, and that the improvements will improve a critical bottleneck on Auckland's Southern Motorway. These reasons are elaborated in Attachment 1 of the Board paper.

Reason for the decision

The assessment profile for this activity remains at high strategic fit, high effectiveness. The BCR range is between 6 and 9, (depending on which growth scenario is assumed). This remains unchanged since the original application for the investigation phase. (A full assessment is in the Board Books Resource Centre.)

The project improves the critical bottleneck on Auckland's Southern Motorway. This will be even more severely stressed above its current lack of capacity when land development progresses in the fast growing southern growth area. The project will also upgrade the outdated and inadequate Takanini interchange, which is unable to match the level of service to the adjacent motorway.

In August 2010 the SH20 to SH1 connection was opened to the public. This link is an important part of the regional and national freight route, as it connects the 48km Western Ring Route motorway corridor to the Southern Corridor. The opening of the new SH1/SH20 interchange upgrade exacerbated existing congestion on SH1 southbound due to insufficient capacity to accommodate the increased demand on SH1 southbound from SH20. Current congestion through this part of the network has impacted journey times heading south. The Papakura interchange upgrade project has now become fully operational and is putting additional pressure on northbound traffic flows from Papakura as a result of improved access and development growth from Karaka. By 2026 congestion is expected to be more widespread and not just confined to the peak direction.

When originally planned it formed part of a strategic regional transportation network, as identified in the National State Highway Strategy, the Auckland Regional Land Transport Strategy, the South Sector Transportation Strategy and Southern Initiative.

By removing congestion from the existing motorway network the project is mainly aimed at improving access and mobility. The reduction of congestion will also reduce CO2 emissions, thus promoting public health and environmental sustainability.

The project has a high, robust BCR resulting from very little property purchasing and infrastructure requirements (mainly road widening within an existing corridor) that will produce significant benefits reducing severe congestion.

Benefits from cost savings comprise mainly of travel time savings which amount to 64% of the total saving. Savings from reductions in crash costs only amount to 2% of total savings.

Modelling forecasts indicate that travel time in the northbound morning peak will reduce by 4.5 minutes between Papakura and Manukau by 2016. Similarly, southbound evening peak journey times are predicted to reduce by 2.5 minutes. In 2026 these reductions are predicted to increase to 8.5 and 7.5 minutes respectively, when compared to the 'do nothing' scenario.

We confirm that the matters in sections 20(2) and 20 (5) of the LTMA have been satisfied, and that the matters in section 20(3) have been taken into account.