Government Allocates $500 Million for National Road Projects

The New Zealand government is set to invest over $500 million in property acquisitions to facilitate a series of new Roads of National Significance (RoNS) projects. Transport Minister Chris Bishop confirmed that the New Zealand Transport Agency (NZTA) has approved business plans totaling $1.2 billion, marking a significant step in enhancing the nation’s transport infrastructure.

According to reports from RNZ, the funding breakdown includes $515 million earmarked for acquiring properties and an additional $675 million allocated for various preparatory activities such as consenting, design, route protection, site investigations, and early works. The NZTA has made all business cases publicly available on its website, providing transparency regarding the planned developments.

Chris Bishop emphasized the importance of these investments, stating, “These investments are about unlocking housing, jobs, and better travel times while ensuring our transport network supports regional growth.” The government aims to improve economic efficiency for commuters and freight, particularly through roads that are not tolled, which tend to yield higher cost-benefit ratios.

Impact of Key Projects

The proposed projects promise significant travel time reductions and support for future housing and employment growth. For instance, the Hamilton Southern Links project is expected to cut travel times by 14 minutes between Tamahere and western Hamilton. By 2055, this route will facilitate access to 17,300 new homes and 7,100 jobs. Its untolled benefit-cost ratio (BCR) stands at 9, increasing to 2.3 when accounting for wider economic benefits.

Another major project, the Petone to Grenada (P2G) and Cross Valley Link (CVL), could save peak travel times by up to 23 minutes between Lower Hutt and Porirua while supporting 30,000 new houses in the region. The combined BCR for these routes, whether tolled or untolled, is 7 and 2.7 with wider benefits included.

The State Highway 1 Wellington Improvements aims to reduce peak travel times to central Wellington, the hospital, and the airport by 10 minutes, cutting variability by 40% and peak traffic at Harbour Quays by 20%. The introduction of a second Mt Victoria Tunnel is projected to increase the number of daily walking and cycling trips by 200.

Future Developments and Approvals

As the NZTA prepares to seek statutory approvals by July 2026 under the Fast-Track Approvals Act, several projects are already in motion. Notably, the State Highway 29 Tauriko West (Phase 1) and the Ōtaki to North of Levin projects are currently under active construction. The Hawke’s Bay Expressway is anticipated to commence construction in November, while a preferred bidder for the Warkworth to Te Hana route will be announced in early 2024, with a contract expected to be finalized by mid-2026.

Other important developments include the Cambridge to Piarere and Takitimu North Link Stage 2 projects, which have already received necessary consents. Additional projects, such as Mill Road Stage 1, the Belfast to Pegasus route, and the Woodend Bypass, are navigating through fast-track or designation processes.

The Roads of National Significance programme, launched in 2009, reflects the government’s broader strategy to enhance safety, alleviate congestion, and improve economic connectivity across New Zealand’s regions. Through these extensive investments, the government aims to create a more efficient and effective transport network that supports both current and future needs.