Government eyes congestion charging for new Mt Vic, Terrace tunnels

Tuesday, 21 January 2025

The existing Mt Victoria tunnel was built in 1931 and services more than 39,000 vehicle movements a day.

It's not quite spades in the ground, but the bean counters will soon begin work on the much-anticipated second Mt Victoria and Terrace road tunnels.

That includes investigating road pricing — congestion charging or tolling — to fund the new roads.

NZ Transport Agency Waka Kotahi last week briefed potential consultants to work out the costs of upgrading State Highway 1 through Wellington.

The project scope and request for tender, seen by The Post, reveals the agency plans to appoint contractors by the first week of February.

A final decision on funding will be made by NZTA’s board in June with the agency looking at whether construction can start next year.

Ahead of the 2023 election campaign, National pledged work would start on the second tunnel in its first term.

It put the estimated costs of its Wellington transport package at $2.2 billion and proposed to pay for it by scrapping the troubled $7.4b Let’s Get Wellington Moving project.

Simeon Brown, speaking as Transport Minister before the Cabinet reshuffle, said the existing Mt Vic tunnel was built in 1931 and serviced more than 39,000 vehicle movements per day.

There would be “significant benefits” for those travelling by car or public transport, and NZTA was “working at pace,” he said. That included whether enabling works could start in 2026.

“Wellingtonians are sick of gridlock clogging up the city … After almost 100 years, Wellingtonians need a new tunnel to keep this city connected,” he said.

Simeon Brown says the road upgrades will save Wellington commuters 10 minutes.

Funding for the investment case, design and consenting of this project was allocated in the three-year National Land Transport Plan, announced in September.

The Government had been “incredibly clear” it wants NZTA to take a “no frills approach” to construction, Brown said.

“NZTA is also expected to consider tolling to help fund and finance the delivery of all major new roading projects, including this project.

“Tolling is a tool used around the world to help fund and finance new infrastructure, and to ensure users contribute to the cost of the infrastructure that they benefit from.

“I expect NZTA will be considering tolling for this major project which will significantly benefit Wellington and the Lower North Island.”

The project has been included in the Government’s fast-track project list to enable swift consenting and lessen the avenues for opposition.

Brown believes the upgrades will save commuters around 10 minutes on journeys and reduce southbound traffic across the harbour quays by 30%.

Easing the capital’s congestion woes has been a long running saga, with the first attempt at a second tunnel begun in 1972 and then scrapped in 1981 because of costs.

The Government confirmed its plans to ease the bottleneck in late November. Brown had previously been flirting with building a mega-tunnel under the city but dropped that idea.

The second 700m-long Mt Vic tunnel will run parallel to the existing tunnel and a second 500m Terrace Tunnel will be built alongside the original.

The Arras Tunnel under the Pukeahu National War Memorial will also be extended with changes around the Basin Reserve to separate local roads from the state highway and improve the north-south bus corridor.

The documents note: “The scope is complex with an ambitious timeline that requires design development and other investment case activities to start as soon as possible.

“NZTA needs to leverage off the work previously undertaken and access historic knowledge in order to avoid the risk of re-litigation of issues.”

Wellington Central MP Tamatha Paul and Rongotai MP Julie Anne Genter, both Greens, are opposed to the plan, arguing it is 'a 1950s-style solution“ that will funnel more traffic into the inner city.