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Long-discussed Wellington tunnels and highway on the move at last

Tuesday, 21 October 2025

A second Mt Victoria Tunnel will have a shared 3.6m pathway for cyclists and pedestrians.
A second Mt Victoria Tunnel will have a shared 3.6m pathway for cyclists and pedestrians.

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Two long-discussed Wellington roading projects — worth a combined $6.4 billion — have taken a major step forward, with investment cases signed off and fast-tracking confirmed.

Newly released plans show the Wellington tunnels project - which includes a second Mr Victoria tunnel - is expected to cost up to $3.8b and a new Petone to Grenada highway $2.6b.

But both supporters and opponents want a lot more detail.

Transport Minister Chris Bishop and Prime Minister Christopher Luxon announced on Monday that the New Zealand Transport Authority had approved investment cases for each of the Government’s “Roads of National Significance” (RoNS) projects.

But the catch is you’re likely to have to pay for it.

A map of the expected new Wellington highway and tunnels improvements, shows the second Terrace tunnel at figure 1 and second Mt Victoria Tunnel at figure 8 on the way to the airport.
A map of the expected new Wellington highway and tunnels improvements, shows the second Terrace tunnel at figure 1 and second Mt Victoria Tunnel at figure 8 on the way to the airport.

The investment cases for the high-profile projects included them being toll roads. Bishop also said congestion charging was on the table.

First off the rank will be the Wellington City link to the airport, with work on a second Mt Victoria tunnel to start in 2026, Bishop said.

The investment case for the route on State Highway 1 from the Terrace Tunnel to Wellington airport includes a two-lane second Terrace tunnel, three lanes on Vivian St, three lanes on Karo Drive, Basin Reserve upgrades with public transport and walking and cycling connections and a second Mt Victoria tunnel with a 3.6m separated walking and cycling shared path and widening of Ruahine St on the Hataitai side of the Mt Victoria Tunnel.

The case says it would save up to 10 minutes in travel time in peak periods and a 20% reduction in peak traffic on Harbour Quays. The project was expected to take until at least 2028 for design and buying of properties.

A map of the preferred route for Petone to Grenada road and Cross Valley Link.
A map of the preferred route for Petone to Grenada road and Cross Valley Link.

A route had also been chosen for a Petone to Grenada road which would require 70% less earthworks than previously designed.

A “feasible” route for the adjoining Cross Valley Link across Lower Hutt had also been chosen. The road has been talked about since the1960s.

The investment case expected it would save up to 23 minutes in travel time at peak times between Lower Hutt and Porirua CBDs. It would also be an alternative route for closures on SH1 and SH2.

The Petone to Grenada road will be a four-lane highway with two short tunnels and an 80kph speed limit.

The projects would receive a total of $1.2b in funding for preliminary works and to purchase properties required to build the roads. More than $675 million would be spend on consenting, designing, site investigations and early work, and $515m was earmarked for purchasing properties.

Incoming Wellington mayor Andrew Little said it ws good to see walking and cycling included as part of the second tunnel.

“We need to see the detailed plan on the path through Wellington. I expect there will be future decisions to make on the link between the Mt Victoria tunnels and the Terrace Tunnel,” Little said.

National Road Carriers Association spokesperson James Smith said they were pleased to see rapid progress being made on bringing all the projects listed in the Roads of National Significance (RoNS) closer to construction.

“All of these projects are much needed improvements that will deliver safety, resilience and productivity to the roading network,” he said. “Many have been on the drawing boards in various states for decades so this meaningful progress is worthy of celebration.”

They would also bring much needed work for the civil construction sector that had been through a fairly bleak few years.

Tim Jones from the Wellington branch of Living Streets Aotearoa said they were keen to see more details but did not believe a shared pathway in a new Mt Victoria tunnel was a good idea.

“A shared path is not good for pedestrians or cyclists - on a shared path pedestrians are vulnerable and it puts them off using the path.”

Jones said they also wanted to see detail about how it would work around the Basin Reserve and what it would mean for pedestrians.

He said it felt like a car-centric proposal with bits for pedestrians and cyclists bolted on to it.

– Additional reporting, Thomas Manch