Govt plans big transport spend, improved returns

New Zealand government transport plans for the next 10 years include a $36 billion investment in road, a $4.6 billion investment in rail, and an intention to seek improved returns from previous investments and existing services.

Transport Minister Steven Joyce has released Connecting New Zealand, a summary of the government’s intended policy direction for transport over the next decade.

Mr Joyce says the government has been working hard to progress its three main areas of focus in transport policy: economic growth and productivity, value for money, and road safety. The document is intended to help transport stakeholders better understand what the government is seeking from the transport system.

Major challenges for transport systems noted in the document include an overall population increase, especially in those aged 60-plus, and an increase in freight volume.


Transport intentions – key points

Road

- amount freighted is expected to double by 2040, with significant growth in Waikato, Caterbury, Northland and Auckland especially

- $36 billion will be invested in land transport over the next 10 years (spend includes state highways and subsidies for regional and local roads and public transport)

- the first set of Roads of National Significance will be completed.

- aiming to reduce carbon dioxide emissions from land transport “over time”

 

Aviation

- industry moves $6 billion worth of NZ exports each year, critical to $5.6 billion tourism industry

- air services agreements that provide more access to key trade and tourist markets will be negotiated

- plans to seek better performance and value for money from the Civil Aviation Authority and the Aviation Security Service

- market barriers to trade will be reviewed.

 

Rail

- carries 15% of freight nationally; aiming to increase efficiency to match projected freight increase

- the KiwiRail Turnaround Plan (an investment of $4.6 billion into rail over the next 10 years) aims to make KiwiRail a commercially viable business

- $2.3 billion will be invested in metro rail infrastructure in Auckland and Wellington

 

Maritime

- greater focus on port productivity (currently carries approx. 15% of freight)

- driving greater performance and value for money from Maritime New Zealand

- sustainable funding basis to be established for Maritime New Zealand

- improve public information on the performance of maritime and freight transport

 

Public transport

- aiming to improve the efficiency of public transport.

- aiming to increase public transport patronage and decrease reliance on subsidies

 

A range of road, air and water safety initiatives are also mentioned.

The minister says Connecting New Zealand reinforces the government’s commitment to these areas by clearly summarising how each of those aims impact on the different parts of the overall transport sector.

“The transport sector has a crucial role to play in supporting our growth plans.  Economic growth and productivity, value for money, and safety are the areas where we need to see the greatest improvement from in the transport system over the next decade.

 

Download the pdf here.

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8 Comments & Questions

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The government should concentrate on what is good for NZ inc. We still own most of our electricity, so more emphasis should be on rail which uses it.
Both road & rail are funded through the government. The big difference is that oil profits; which are mind blowing, leave the country and circulate somewhere else at the expense of us.
Isnt it time this government worked for its citizens than overseas interests. Their continued mission towards selling at least 15% more of our electricity country to overseas interests makes no longer term sense at all. I'm voting for someone other than national, & you should too.

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Geee Wizz... Talk about narrow minded. We are in debt, we can hardly say we own the asset in full anyway.

The Super Fund has to hold a large percentage of NZ equities will have no difficulty snapping up large holdings in what is listed on the NZX- this beats sinking their money into things like infratil & Z energy....!

as for getting excitable about voting for someone else. You are exactly what is wrong with NZ public. I bet your day consists of waking up in the morning, rolling over to talk to your sister, then walking down to get your dole payment...

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Sorry mate. I am 45, been self employed for a large part of my working life, support a family of five and could retire tomorrow; if I wished.

This is big picture stuff that I am promoting, which is obviously beyond you. I think longer than my nose, and plan for the future.

This country has been corrupted by politicians, whos masters are unknown, that take short term fixes at the expense of future wellbeing of the wider society.

You must have been living under a rock for the past 25 years, if you havent seen the decline in our living standards. I now carry private health care because I dont want to be left in the queue, and pay for education, so that my kids are less likely to be exposed to 'youth drug peddlers'.

NZ had/has the capacity to be totally self sufficient, and Muldoon was on the right course. His problem was he wanted to take the country there too quickly, and in the process exposed it to the overseas vultures who play by their own rules.

By selling off more core assets, we only expose ourselves to more of this no rules game of others. Politicians are weak, and generally make decisions to protect their tenure, and generally not those more favourable to the country in the longer term. Trust me, I have worked for them.

The more we internalise our economy, and get rid of these parasites, the better off we will be. The only overseas investment that is favourable to the economy is stuff that creates businesses that we previously didnt have.

Apart from the golf courses of Julian Robertson & 2 degrees, I am struggling to think of any other overseas investment that has worked for us. They overseas investment government have encouraged has been wrong. These company interests are so big, they have dictated the terms of trade to the point of being price setters. Its unfortunate the wider populus dont understand these concepts.

The overseas big boys through the skilful use of media and the political system are making us slaves in our own land, if you havent noticed. Its time we started thinking and acting smarter, and if that means being run by an astute common sense patriotic dictator for a short term then bring it on. Wishful thinking however.

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most of the 'quality' that suports the depth of analysis for most of these highly speculative, risk rated, heavy tax burdon, special-interest serving decisions - may as well be written on a piece of toilet paper. that's also assumes you can find the analysis that supports them.

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I note our assinine government seems totally oblivious to peakoil - odd isnt it that here we are with the US/Eurozone and Japan on the verge of recession and yet the Brent crude price is $114. Do you think they might have worked it out yet?

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Love the investment in road and an attempt to fix rail. Again nothing on ferries, which TAs have proven incompetent to develop and promote.
Just hope that we won't have to wait for Fletchers to finish CHCH and the Waterview link (probably 2025, knowing the way they go about things: but they do seem to be the Nat Govt favourites).
Lets give the contracts to the Chinese and have everything done by 2015.

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We spend and we owe , surely somethings should be put aside in monetry recession as they did in the 1920s.

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There is a 200 mile per hour total economic collision happening through the hypercathnenated use of debt for such hairbrained schemes vs. negative growth.i.e the design of stagnation.

Lately, however, it's become obvious there are three types of people out there in NZ.

1) At one end of the spectrum, there are those waking up to what's going on with the global economic circumstances and the severity of it irrespective of whether it's design or just negligence

2) At the other end, there are those that are getting deeper into their denial and saying "nope" there is no issue [NBR being one of the] and spouting some sort of deluded optimism despite standing on the edge of the abys and looking down at the ambulence...and pretending otherwise

3) And there are those in the middle who have "no idea" what's going on whatsoever. Indeed, its a testiment to the folk who make decisions in businesses and governments who sound like addled, low grade, unaware, morons. They are just gibbering mindless idiots that can tell you everything about every facet of the latest all Blacks dilema, any soap opera or dramas event, sports claptrap and so on and who think it's wierd that some people are economically and socially aware. Or, worse, they get freaked out if some people are informed as to what's happening. Indeed, the irony is they think folk who portray reality are showing off or are sanctimonius in trying to warn them. They think it's "crazy" that people know the basic details of socio-political, socio-economic functions and the obvious agenda afoot. Basic facts often are regarded with distain and raised eyebrows and calls arise to justfiy blatant madness like choo choo trains.

Why don't we just ship 0.5bn away to the UN every year on climate fraud gift donations....doh....we already dooo

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