This policy was superseded in March 2020 by a new Tolling policy.
Tolling is a method of raising revenue from transport infrastructure which involves a charge or fee imposed on the user in return for the benefits received from using said infrastructure.
This section sets out the guidance on assessing the potential to toll new roading infrastructure as a means to support either the funding of new infrastructure or investment in general from the National Land Transport Fund.
Tolling is consistent with Waka Kotahi NZ Transport Agency’s beneficiary pays principle because tolling roads and using toll revenues collected to build roads shifts the National Land Transport Programme towards an increase in ‘value of service’ customer payments.
The Waka Kotahi strategic options toolkit(external link) outlines that the purpose of tolling suitable state highway links can be either to advance projects through toll-funded borrowing and/or to raise additional land transport revenue. The toolkit provides several case studies, including Auckland’s Northern Gateway.
Any decision to establish a tolling scheme is made in accordance with the Land Transport Management Act on the recommendation of the Minister of Transport. This is separate to the decision to build any particular road (that may be subject to tolling), which is made by Waka Kotahi when approving a project for funding.
The decision to proceed with tolling requires an assessment of the impact of tolls compared to an untolled case. The balance between the impact of tolling on project outcomes and the relative importance of project outcomes are factors for consideration, and will be determined on an individual project basis. This policy considers tolling from revenue and welfare perspectives rather than just operational matters.
CloseAs per section 48(external link) of the Land Transport Management Act (2003), a road tolling scheme may be established to provide funds for the purposes of one of more of the following activities regarding new roads:
This is provided that the Minister of Transport is satisfied that:
A number of criteria apply to determine whether a new transport project will be recommended for tolling. Waka Kotahi will also investigate further practical and financial matters when assessing toll road projects.
The following criteria will be used to determine whether new transport projects will be recommended for tolling;
In assessing potential toll road projects, Waka Kotahi will also investigate whether:
The requirements of the Land Transport Management Act and Crown Entities Act(external link) need to be met and recommendation of the Minister of Transport is required to implement a tolling scheme.
Toll prices need to strike the right balance between recovering costs and pricing benefits.
To maximise the potential returns for our customers, Waka Kotahi needs to have the flexibility to set prices in ways that reflect infrastructure cost, ongoing operational costs and customer value, recognising that these may vary at different times and locations and for different customer groups and that this variation can contribute to the customer value proposition.
In determining the price at which the toll should be set Waka Kotahi will consider the following toll price principles.
Toll prices should: