The ARTA Years 2004 – 2010 - Auckland Transport

Rising fuel prices in 2008 supports shift to public transport use
In mid-2008, fuel prices reached unprecedented levels, peaking in July with regular petrol reaching $2.18 a litre.
While the link between fuel prices and total public transport boardings over the past six years seems weak, uptake of
public transport is influenced by a number of factors, including convenience, capacity, reliability and the relative cost of
public versus private transport.
In Auckland, in the 12 months to July 2008 train passenger numbers were 32% higher and average boardings for Auckland
buses increased by 3.5%. Between July and November 2008, transport fuel prices dropped significantly. An immediate
upswing in traffic volumes was observed throughout New Zealand but customers in Auckland have remained loyal to
public transport. From surveys ARTA has carried out, there is a growing commitment to use of public transport, with its
environmental benefits being a significant driver.
Sustaining funding for major projects
Experience has shown there is no single solution to lifting Auckland’s transport funding constraints. A significant
funding gap has long been identified in both the RLTS and ARTA’s ten-year planning documents. Even with adequate
funding, the programme of action may be too little and too late to make acceptable progress towards Auckland’s, and
the Government’s, objectives and targets.
There have been three major challenges in respect of funding:
Allocation by mode
The 2009 ATP has been limited by government funding arrangements that allocated funding by mode rather than across
modes and based on merit.
Changes to the way funding and projects are delivered
For example, in 2005/06 the Government changed funding for the core network upgrade of rail. For the Western Line
double tracking, Newmarket remodelling and Manukau Rail Link Treasury, through KiwiRail, would fund all below track
upgrades (track, track signalling and platforms) while the region will totally fund above track capital improvements (trains
and station facilities).
In 2009, cancellation of the regional fuel tax affected a number of big ticket projects, including completion of Newmarket
rail station and the electrification project, which was subsequently transferred to KiwiRail.
The complexities of fragmented transport governance
Transport funding has been complex. State highways are funded 100% through the National Land Transport Programme,
local roads from local rates and the NLTP, KiwiRail directly by Treasury, ARTA’s rail infrastructure activities by the ARC,
public transport services from regional rates and the NLTP; and ferry wharves by local councils, the ARC and the NLTP.
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