Northwestern busway – Rapid Transit Corridor – Indicative Business Case Funding

Applicant

NZ Transport Agency

Purpose

To seek the Board’s funding approval for development of an indicative business case to secure route protection for Auckland’s northwestern rapid transit corridor, and for this activity to be included in the 2015-18 National Land Transport Programme.

Date of decision

10 June 2016

Resolutions

The New Zealand Transport Agency Board:

a.	agreed to vary the 2015-18 National Land Transport Programme to include Auckland Transport’s North-western Rapid Transit Corridor project with ‘probable’ funding priority
b.	approved funding of $1.053 million for developing an indicative business case for Auckland Transport’s North-western Rapid Transit Corridor and a financial assistance rate of 51% (Transport Agency share $0.537 million)
c.	noted that once the indicative business case is complete, there will be no further work on the North-western Rapid Transit Corridor project until the next steps across Auckland’s wider transport network have been agreed through the Auckland Transport Alignment Project
d.	noted that the profile for the project has been assessed as High strategic fit and Medium effectiveness with a benefit cost ratio of 1.3-2.2 and the reasons for recommending this funding and the NLTP variation
e.	noted that, should the project proceed, the total construction cost for the North-western Rapid Transit Corridor is estimated to be $475 million with the 95th percentile cost estimated at $524 million and the 5th percentile at $ 411 million
f.	agreed that the Transport Agency will form part of the governance structure for the indicative business case given the interface of the project with the State highway Corridor.

Reason for the decision

The assessment profile for this activity has been determined as being of High strategic fit, Medium effectiveness and a benefit cost ratio of 1.3-2.2.

The Northwestern Rapid Transit Corridor project is not currently included in the 2015 -2018 National Land Transport Programme and this funding application is to act as a variation request to the National Land Transport Plan. The requirements under Land Transport Management Act 2003 have been met.

The public transport infrastructure activities in this Indicative Business Case are aligned with the Auckland Plan, the Auckland Regional Passenger Transport Plan, and the Auckland Transport 2015 -2018 Statement of Intent; and contribute to the Transport Agency’s Investment Assessment Framework. The project gives effect to the Government Policy Statement, and contributes to an effective, efficient, and safe land transport system in the public interest in accordance with the Land Transport Management Act 2003 by:

moving people, addressing a service provision that has a deficiency in journey time reliability and does not meet forecast demand in a major urban area
bringing forward investment in Auckland’s busiest corridors, to address mismatched capacity and demand resulting in severe congestion where journeys are provided for employment and access to economic opportunities
increasing the capacity and reliability of the transport system across Northwest Auckland, improving accessibility and expanding transport choices.

Preliminary appraisal of costs and benefits suggest significant benefits accruing to both road and passenger transport users making the Westgate to City journey. A key benefit is an anticipated increase in passenger transport patronage of some 1400 people in the morning peak (2041) travelling from Westgate to the City. This equates to a 42% increase in patronage overall, and takes account of transferral from rail.