Delays and red tape costs hit Auckland transport projects

Wednesday, 27 March 2019

One Auckland transport project up and running is the City Rail Link beneath CBD streets.

Transport officials in Auckland are frustrated at lengthy delays for government funding approvals and additional costs being added by red tape.

A major revamp of the transport interchange at Waiheke Island's main ferry wharf spent a year going through NZTA processes before being denied funding in the forseeable future.

A planned bus and rail interchange at Puhinui may miss its America's Cup deadline amid repeated rejections by NZTA of the scope for a business case seeking funding.

Auckland Transport's chief executive Shane Ellison has listed the projects in a letter, and NZTA has admitted it is struggling with the level of funding bids from around the country.

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Auckland Transport said the projects affected were those already on a list of work agreed between the council and the government, in ATAP - the Auckland Transport Alignment Project.

In a letter to NZTA's acting chief executive Mark Ratcliffe, Ellison said relatively small projects were also being hit with the high costs of full-blown business cases required by NZTA when it considers funding.

'A recent competitive tender for a $40 million improvement to Lake Road has resulted in quotes of between $0.8 million and $1.2 million,' wrote Ellison.

'The current business case process for small-medium investments is slow and expensive, with little outcome for the community being achieved, 4-7 years after a project is initiated.'

Ellison said the electrification of the southern rail line between Papakura and Pukekohe had been delayed by months, due to numerous meetings with large numbers of officers, over issues raised by NZTA, most of which turned out to not need resolving.

The Puhinui bus interchange, a connection between Auckland Airport and the southern rail line has had its business case rejected twice with 'no constructive feedback'.

'This is a time critical project and is now on a critical path with the risk of non-delivery in time for APEC/AC36 (in 2021) increasing every day,' Ellison wrote to NZTA.

He told Stuff AT and NZTA had met this week to try to sort out the problems.

Auckland Transport needs to complete its budgets for the year starting in July, but said it was not yet clear how much NZTA could contribute for work normally funded 50-50 between local and central government.

NZTA has acknowledged funding pressure, in a letter from Ratcliffe to all local bodies.

The government agency has received a surge of funding bids after both the level of funding and the proportion that NZTA would pay for each project, were increased in some categories for the next decade.

'There is already a large programme of activities submitted in each activity class, and remaining unallocated funding is very limited,' warned Ratcliffe.

Public Transport, walking and cycling are among areas cited by Ratcliffe as tight.

There is doubt at Auckland Transport, that the government agency will be able to fund all the projects on the ATAP list.

That is despite an assurance in a cabinet paper last year from the Minister of Transport Phil Twyford, noting increases he had made to public transport funding in the 10-year Government Policy Statement, which sets funding priorities.

'An increase to this activity class in the final GPS will provide sufficient funding to support delivery of ATAP and other public transport priorities outside of Auckland,' said Twyford in the cabinet paper.

Auckland Transport's frustration comes as it tries to accelerate work, in line with the ATAP agreement - hailed as a major step forward for tackling the city's transport needs.

'The good news is, for the first time we've got alignment on a whole lot of programmes and work, now we're trying to crack on with delivery,' Ellison told Stuff.

'It's a capital programme we've never seen before and we're trying to push that through,' he said.

Stuff sought an interview with Twyford, but he responded with a statement.

'While there is never enough for all projects to be funded, we are putting more money than ever before into transport over this three year period,' he said.

'However, I've asked NZTA to work on a case by case basis with local councils to clarify these issues. The Government wants to see transport investments made as quick as possible.'

While the funding and delay issues are being discussed, the government and council are also working on a programme of transport initiatives to try to accelerate the shift out of private vehicle use, into public transport.

That is expected to be completed mid-year.