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Treasury not yet convinced about fancy train set for Auckland CBD

Auckland’s CBD Rail Link is not over the line yet – with a Treasury review finding more work’s needed on the business case before the project could proceed.

Transport Minister Steven Joyce released the review today, which was conducted by the Ministry of Transport and the Treasury in conjunction with the NZ Transport Agency.

“In short, the review says more work needs to be done to determine the full future transport needs of central Auckland before proceeding with a project like the CBD Rail Link,“ said Mr Joyce.

“However, the review suggests that in the meantime, it makes strategic sense for Auckland Council to move to protect the route, and I agree with that.”

The review found:

• That the estimated construction costs for the CBD Rail Link are largely sound – at a total of $2.4 billion. 

• Transport benefits of the project are estimated at $387 million rather than the $1,319 million assessed in the business case. 

• The project would have only a modest impact on traffic volumes and likely remove up to 1,400 cars (2,000 people) of the estimated 29,000 cars (41,000 people) travelling into the CBD during the morning peak in 2041.

• Wider economic benefits of the project as estimated in the business case ($3.3 billion) were very significantly over-stated and were in fact more like $305 million – which was still high relative to the transport benefits when compared with similar large international transport projects.

Steps have been suggested to help the Auckland Council improve the case to develop the rail link.

These include implementation of the Auckland spatial plan and City Centre Masterplan to establish and quantify CBD growth projections.

Treasury has also suggested council implements large-scale residential developments along the rail corridors to capitalise on the current upgrade and electrification.
 

Comments and questions
16

errr... how is it decided which 'projects' or 'models' are to be subject to any 'review' or 'cost-benefit' analysis by Treasury and which are not?

How come Treasury was never asked to carry out any form of 'cost-benefit' analysis of the 'Council Controlled Organisation' (CCO) model into which 75% of Auckland regional rates are now being paid?

Where's the publicly-available 'Register of Interests' for Treasury staff?

Penny Bright
http://waterpressure.wordpress.com

You seem to have lots of questions but no answers??

Good article - very informative!!

Again we have Penny not very bright with a nonsense diversion to assist the lefty cause..

Penny you are on to it......Key has gathered some very pliable people around him: Dick Smith, Joyce, Finlayson, Hide, Off-her-Trolley and others.
They bend the rules but (largely) stay out of the media and public gaze. Hide's been masterful in pulling the wool over out eyes on this miserable scam of a Mediocre City.

i UNDERSTAND THAT ONCE THE LOOP IS CREATED THE FREQUENCY OF THE TRAINS ON THE WESTERN LINE COULD BE 10 MINS APART AT PEAK TIMES AND GENERALLY ABT 20MINS AND SIMILAR TO THE SOUTHERN LINE/ALSO AIRPORT.

IF THAT BE THE CASEMOST OF US WOULD DROP OUR CARS AT THE CLOSEST CAR PARK, AND HOP ON TRAINS AND THEN GET ON LINK BUSES TO DESTINATIONS OR TAXIS. CONGESTION AND EMISSIONS WILL ALL BE REDUCED VERY SIGNIFICANTLY.

Sadly, the "closest car park" will either be full before 0800 each week day or will have disappeared. the Orakei station car park is scheduled to disappear in a developer's favour. And other car parks are chokka early on.
As for getting new stations? "they will slow the train service down" (Veola)

Sir Dovemeyer - his proposal would have have solved many of the issues facing us today.

I fully endorse those remarks

So am I right in my understanding that for an initial investment/cost of $2.4Billion the region will get a return of $692million per annum? Being a return on investment of 28% per annmum? Or a repayment of the full cost in 4 years? Am I missing something here? If not then where can I buy the shares cos I am in!!!!!

Provided all train stations have free public car parks, this train project will hardly survive........and ended up like another "WHITE ELEPHANT"

To get to the CBD from Avondale by train takes approx 40mins.

By bus it takes 20mins.

If only the buses were always on time, we would have a clear winner.

Let's do the cost/benefit analysis assuming a worldwide oil price of US$150/barrel. Then let's do the same to the Northwestern Motorway extension.

This government sees very clearly into the future, and that future is thirty years ago.

The train loop is a total joke and waste of money. I'm glad we have some sound reasoning and some proper analysis of this.

If Auckland wants it Auckland can pay for it -with rates, bonds, levies, whatever!

Why should the rest of the country continue to fund these billion dollar projects for a city which will shortly lose out the main seaport bragging rights to Tauranga, and will over the next decade become regional office locations for Sydney and Singapore head office locations.

Auckland doesn’t want it and doesn’t need it - total waste of money and another of the Mayors loopy ideas, or is it just loopy mayor? We subsidize the current useless system enough now. Our current system is so smart they can not even arrange the busses to funnel traffic to the train stations instead they compete. They totally fail to provide any parking mind you the northern expressway is a classic case of their stupidity to – finally you arrange a bus system that gets people across the shore into town but then provide parking at a level that’s makes it better to drive to town. Integrated transport system, yer sure. Boy that’s how smart these idiots are and they want a bigger white elephant! When are these people going to wake up to the fact that very few Aucklander’s actually want to or need to go into the CBD. Stats already show that most of the people moving around Auckland are not going into the CBD but still these people think that the CBD has a use. Lets leave the CBD to those non-productive people, Lawyers, Accountants and Banking people. The rest of us have to work for a living and are sick and tired of our hard earn’t money being wasted buy councils and Gvmt. This must stop now.

Auckland does want and does need it.

Since the busway opened, harbour bridge traffic has declined 5% but carries more people, and rail patronage continues to grow at 20% pa.

The market has spoken!

Time to look at technology not developed when Queen Victoria was on the throne (rail). ULTra (link to ultraprt.com) addresses all the issues raised by Treasury and does not require on going subsidy to operate.

Auckland need alot more people to live in the inter city for this scheme to be financially viable. That will happen, & should be encouraged by city planners. It is a good idea, but a fear 10/15 years ahead of time. They should however start planning for this rail loop now, as a project of this nature will take a long time to pull together; unless one is prepared to pay over the odds in a short time.