Wellington transport upgrade: Second Mt Victoria tunnel, tolls proposed in $3.8b plan

The Government has unveiled its plans for a long-promised second Mt Victoria tunnel, as well as a duplicate Terrace tunnel and an extra lane through the city, at a forecast cost of between $2.9-$3.8 billion.

The new roads, which will likely be tolled, were announced today as part of the Government’s Roads of National Significance package.

The investment case for the State Highway 1 Wellington improvements went to the NZ Transport Agency Waka Kotahi (NZTA) board for consideration in August.

The summary investment case published today suggests the changes would spell less congestion, quicker journeys and better reliability, leading to increased productivity and economic growth.

The Mt Victoria tunnel has been long debated in the capital and was previously planned in the now-killed Let’s Get Wellington Moving (LGWM) project.

The Government’s plan includes improved walking and cycling facilities, with a separated shared path through the new parallel tunnel, and the demolition of the current path in the existing tunnel to widen lanes for traffic.

Transport Minister Chris Bishop said the current roading layout “causes frustration and delay to people just trying to live their lives and go about their day”.

During the 2023 election campaign, National campaigned on scrapping LGWM but continuing work on a new tunnel.

Party leader Christopher Luxon told media during the campaign that construction of the project would begin “probably about the mid to end point” of a National-led government’s first term.

Bishop said the project would seek to be fast-tracked and all documentation for the tunnels and wider roading improvements will be submitted by July next year.

Work will begin in 2026, Bishop said.

“It’s not just a second Mt Victoria tunnel, I want to stress that,” Bishop said, “it’s a duplicate Terrace tunnel, it’s three-laning down Vivian St so no longer, if the project goes ahead, no longer will you be able to park on Vivian St, which frankly I think is ridiculous, so it will be a road, which is actually what it should be.”

It also includes grade separation for local traffic and SH1 traffic around the Basin Reserve, he said.

On the decision to toll the roads, Bishop said it brings in a revenue stream to allow for the investment, as well as ongoing revenue for maintenance.

NZTA said public consultation would be undertaken on tolling once construction funding is confirmed.

The Wellington works have been announced within a $1.2b package to progress the Government’s pipeline of road transport infrastructure investments.

It includes Sections 2 and 3 of the Northland Expressway, Auckland’s East West Link, Hamilton Southern Links, Petone to Grenada and Cross Valley Link, and the Hope Bypass.

National’s 2023 estimate for a second Mt Victoria tunnel and Basin Reserve improvements was $2.2b.

The Government last year began looking into the option of a long tunnel under the city but that plan was scrapped, with Simeon Brown, then the Transport Minister, telling the Herald the mega-tunnel was unaffordable at an estimated cost of about $8b.

The Herald revealed last month that $7 million had been spent on consultants and contractors for the work.

Ethan Manera is a Wellington-based journalist covering Wellington issues, local politics and business in the capital. He can be emailed at ethan.manera@nzme.co.nz.