SH1 improvements in Wellington - a lot to like, but it wont complete the job

So this was a quick couple of hours of thoughts... Feedback to NZTA is due by Sunday 14 December if you are interested.

Background information is here (PDF)

A video flythrough is here 

Apologies, I've been following this whole segment of road for far too long, from growing up being driven through Mt Victoria Tunnel, to some work on the Inner City Bypass 20 odd years ago to living near the tunnel today.

....

The Government’s proposal for a 2nd Mt Victoria Tunnel, 2nd Terrace Tunnel, reconfiguration of the roads around the Basin Reserve and widening of Vivian St is the latest set of proposals to fix the unfinished business of the Wellington Urban Motorway.  We will see whether all, some or any of it proceeds, but for the sake of Wellington at least some of it should (specifically the tunnels), because the status quo, notwithstanding the largely evidence free claims of Green Party politicians, is an absurd waste of time and energy in a city of this size.

History

It wouldn’t be hard to write a book about the history behind all of this, which started with then US consultancy firm De Leuw Cather, preparing a “transportation master plan” for Wellington. It considered the option of a waterfront motorway (see Seattle and San Francisco for now demolished versions of this), but preferred what was known as the Foothills Motorway. It follows the existing motorway, with two instead of one Terrace Tunnel (3 lanes each way), with 2 lanes continuing on a motorway going under and over various streets and, initially, demolishing the Basin Reserve for a motorway interchange, before finishing up at a second Mt Victoria Tunnel (2 lanes each way using the existing tunnel). De Leuw Cather also proposed placing the Wellington commuter rail service underground to Courtenay Place, through the reclamation land.  Of course that latter proposal wasn’t going anywhere, but the motorway started from Ngauranga (not connected to Ngauranga Gorge, but rather as just an extension of the Hutt Road from the Hutt). In the 1960s and early 1970s, the motorway cut a swathe through Thorndon and Kelburn, with much of a cemetery dug up and interred in a mass grave (don’t think that this was an era of much consecration to Christian religious values). However, the 1974 oil crisis (entirely stemming from the Yom Kippur War) saw a slowing down of the project, with the Muldoon Government ultimately deciding that it (and multiple other road projects) would be terminated at Willis Street, with the segment from Bowen Street south halved in scope. One Terrace Tunnel, one lane southbound, two lanes northbound.

At the time, with the motorway only being SH2 (SH1 still being the Hutt Road from Ngauranga to Aotea Quay, and continuing along the waterfront to the termination point of Jervois Quay and Taranaki Street), this made some sense. It was never congested, and the scale of traffic through Te Aro was easily handled by the Vivian St/Ghuznee Street one way pair. 

In 1983 the Ngauranga Interchange changed all that, by around doubling traffic on the motorway, the end of the motorway became a bottleneck, exacerbated by the single lane in the tunnel. Further bottlenecks existed with Ghuznee Street and Buckle Street, with the dog leg route from the Basin Reserve to the motorway being utterly unsuitable for the traffic volumes going through it.  This situation persisted for 12 years.

Meanwhile, a scaled back proposal to ease the traffic pressure came from the then National Roads Board. A motorway extension designed as an arterial highway with 70km/h speed standards. The original plan to destroy the Basin Reserve for a motorway interchange (which had been shelved some years previously) was replaced with a highway bridge across the northern boundary of the park.  The Terrace and Mt Victoria Tunnels would be linked by a fully grade separated highway going under Willis and Victoria Streets, severing Cuba Street (except for a pedestrian bridge), passing over Taranaki Street before darting under Tory and Sussex Streets. One lane would extend from Mt Victoria Tunnel under Sussex Street to join a second lane from the south. Whereas one lane would exit at the Basin to Cambridge Terrace and Dufferin St, with one lane extending to Mt Victoria Tunnel.  

1980 scaled down motorway extension proposal before it got dropped in a trench in 1991

Fully trenched but not covered in this brutalist image that looks like it was designed to kill it

The next decade or so would see the project rise up the regional priority rating, as other projects were built: Upper Hutt Bypass, Mungavin Interchange, Silverstream-Manor Park 4-laning etc, but then the funding system for roads was reformed. The Ministry of Works was abolished, and shortly thereafter, Ruth Richardson slashed funding for roads. At the time, funding was mostly allocated based on a cost/benefit analysis, with 25 year return periods. For around two years funding was not even sufficient to keep up with maintenance, and as the 90s progressed, the Wellington Urban Motorway arterial extension went up in cost and was always borderline for funding. However, it always had a BCR of over 2 when the threshold for funding was 5 or 4. 

At the same time the nascent Green Party campaigned vehemently against it.  To try to address concerns the project was first redesigned to be trenched the whole way across Te Aro, then put in a cut-and-cover tunnel to the bridge on the north of Basin (called Tunnellink).  However, it was clear by the mid 1990s that funding wasn’t likely for over a decade. So a three stage project was advanced. First a simple one-way pairing of Buckle and Vivian Street, followed by what is now known as Karo Drive. Karo Drive literally took around 12 years from its inception to opening, largely because of the opposition to it by the Green Party spreading vast amounts of misinformation. Then Green MP Sue Kedgley always called it a “motorway extension”, and eventually when it got funded by Transfund, and all legal avenues under the RMA to stop it were exhausted, it got built.  It was only meant to be a ten year stopgap until the Tunnellink could be built.

However, by then Transit NZ (later to be merged with Transfund and the Land Transport Safety Authority) had largely given up on the idea of a cut and cover tunnel.  So the next step was to fix the Basin Reserve, and plus ça change it was stopped by an organised campaign of the Greens and Mt Victoria NIMBYs. This was for a two-lane 50km/h one lane bridge clear of the Basin Reserve, westbound. 

2001 - preferred Basin grade separation without Tunnellink

2008 - one of the options for the Basin Bridge 

At the tail end of the Key/English Government there was a commitment to a second Mt Victoria Tunnel, but of course that all was stopped under the Ardern Government, as the Greens made sure that the Let’s Get Wellington Moving project would prioritise emission reductions, and put little value on reducing general traffic congestion. 

The Ardern/Hipkins Government did support a second tunnel, but it was to close the existing tunnel to motor vehicle traffic, and build a new one with four-lanes, two for buses. In short, no relief for general traffic.

What’s been proposed?

So here we are today with essentially five main elements to upgrading SH1 through Wellington. Once again the Greens are talking about “building a motorway through Wellington” which it absolutely does not do. It doesn’t build one metre more of motorway, but it does widen one section along an existing motorway corridor. The five elements are:

- Second Terrace Tunnel

- Upgrading SH1’s one-way pair through Te Aro

- Basin Reserve reconfiguration

- Second Mt Victoria Tunnel

- Widening eastern approach roads to Mt Victoria Tunnels.

Second Terrace Tunnel:  This is sensible, because it will the single biggest measure to remove 20% of traffic from the waterfront route. It is on a smaller scale than the original proposal (will be two-lanes not three southbound and the existing tunnel will only be two-lanes northbound), but should not be controversial.  What will constrain it is…

Upgrading SH1 through Te Aro: Reversing forty years of planning, Te Aro will still be blighted by heavy highway traffic pushing through it, by widening Vivian Street (which has been designated on the Wellington District Plan for many years) to three lanes one way.  As a stopgap this is satisfactory from a traffic flow point of view. but is hardly a long-term solution. It should have a cut-and-cover tunnel along the line of Karo Drive, which would be expensive and disruptive, but would be transformational for Te Aro. A proper bypass would make a huge difference, but for now with the two tunnels being the major bottlenecks, that idea isn’t progressing. In short, this will be the new bottleneck, exposing the greatest number of pedestrians (and traffic) to delays and emissions. It’s the cheap part of the package, and it will need to be addressed at a later date.

What’s disconcerting is that there is little future proofing to enable a solution to his, especially with this proposal…

Basin Reserve reconfiguration: There is no shortage of options designed to fix this problem, which is essentially the need to separate east-west traffic from north-south traffic, while also allowing it to interchange.  The latest proposal partially separates traffic, but it means the same number of traffic light controlled intersections westbound and eastbound on SH1. See below:

No doubt clearing Mt Victoria Tunnel congestion will improve eastbound flows, but it is far from clear that retaining a network of pedestrian controlled traffic lights and keeping SH1 at ground level in front of the Basin Reserve will not create new bottlenecks, and worsen the concentration of traffic/emissions across the northern side of the Basin. The Rugby/Dufferin Street sections outside the schools will be quieter, but be a ratrun for traffic from the city to SH1 west, and from Newtown to SH1 east. The big winner is north-south traffic to and from Newtown towards the city.

No doubt there will be a net improvement, but it is clear from the proportion of benefits of the total package that this is where not much will be gained. What’s particularly concerning is that it doesn’t look like it provides for future proofing building a parallel eastbound pair of lanes to take traffic from Vivian Street and over to the second Mt Victoria Tunnel. I understand the reluctance to elevate SH1 near the Basin, but it could be done by elevating Sussex Street over SH1 and building an artificial hill to carry the road with significant mitigation of the visual and noise impacts of a bridge. This is a mess. The new Green Link looks like it is preserving an option, or maybe it is preventing it.

Second Mt Victoria Tunnel: This is like past proposals and is entirely suitable as a solution to this problem. It is a shame that westbound its capacity will be constrained by unnecessary intersections at the Basin.

Widening eastern approach roads:  Four-laning Ruahine St and Wellington Rd (six lanes at points) has long been the right approach, but the design of intersections seems bizarre indeed. Grade separating at Hataitai Park (to a new road where houses currently exist) seems over the top. The removal of Taurima St access to Mt Victoria Tunnel needs a solution, as does access to Hataitai Park, but why is this intersection getting such lavish treatment, but Wellington Rd/Ruahine St (which enables access from Newtown to the airport, from Hataitai to Newtown, and for access to southern Newtown to and from SH1 bypassing the bottleneck in front of the Hospital) is curtailed to simple slip lanes in one direction only? The latter should be a full scale intersection. Previous plans simply had an elaborate intersection at Goa Street, although there is some merit in having grade separation, it seems odd that a low traffic intersection gets it, but not the much heavier traffic ones at Kilbirnie Crescent and Evans Bay Parade (although imagine the outcry if that were proposed). 

There are lots of minor details in this section which make access between Kilbirnie, SH1 and Hataitai worse, presumably to save money from more comprehensive wider intersections. Much of this looks worse for residents. In particular, anyone driving from Newtown to the airport will weirdly have to drive through Kilbirnie’s CBD (but not in the other direction). Anyone driving from Hataitai to Newtown will either have to go through Mt Victoria Tunnel to ratrun past the stands at the Basin Reserve, or go into Kilbirnie and ratrun up Duncan Tce. (a narrow street with poor visibility at the top). 

This is all details though in intersection design, which I expect locals to have their views on. The Greens are claiming a big increase in traffic in Moxham Avenue will occur, but that’s mostly a shift from Taurima Street and the existing intersection on Ruahine Street.

Thinking more widely

There is talk of tolling the route, although no details have been presented, it is difficult to envisage it not simply being at the tunnels. On its own this would have merit if the whole proposal enabled free flow traffic all the way. It doesn’t.  Paying a toll to drive through the Terrace Tunnel to end up at Vivian Street isn’t a compelling proposition, and would divert local traffic from the tunnel to The Terrace.  Likewise paying to use Mt Victoria Tunnel to reach a pair of traffic light controlled junctions by the Basin Reserve. A full scale freeflow bypass would be another proposition, offering a high value fast trip, but that isn’t what is proposed.

On the other hand, a central Wellington congestion pricing scheme within the boundaries of SH1, which helps pay for this, would have much more merit as it would reduce traffic towards the city at peak times, and enable better flow of traffic around it.  An AM peak inbound, PM peak outbound price for driving in and out of Wellington on weekdays would have some merit.

Much has been raised about the BCRs of the project, but although I put some value on economic analysis, when it comes to tunnels, the return period for them is much longer than any conventional highway or bridge. Tunnels last almost forever once dug, and only need moderate upgrades throughout their existence.  So I treat the two tunnels as very long term investments in addressing the resilience of the city’s transport network, and enabling a future full scale bypass of the city.

Claims from the likes of the Greens that “car tunnels” (a deliberate misinformation campaign to diminish the role of freight and buses) will just induce more traffic are largely nonsense, especially if congestion pricing is introduced in parallel. There is no more capacity that will be build north of Ngauranga Interchange, so more traffic cannot be attracted from that direction, and with much of the traffic on the route bypassing the city, little of that is going to be attracted from public transport to driving. Modern cities have good bypasses, Wellington has lacked it for decades. 

So I’m in favour of the tunnels, in favour of the widening east of Mt Victoria Tunnel (with some caveats), but the upgrade through Te Aro is cheap and nasty, and needs to make provision for something better once the two tunnels are built. It will be obvious the city needs a proper bypass. The Basin Reserve proposal is messy and poor value. It’s unclear why north-south traffic going in a four-lane trench is better than being on a four-lane bridge over the east-west traffic, and why so many light controlled intersections should be kept. It should be reconsidered.

And for the opponents...

"A City for People" is, of course, a Green Party oriented activist site (they always claim to be non-partisan, even though the members are largely not) ideologically and philosophically aligned to the other Green oriented activist ginger groups (which have a lot of interchangeable members) like Generation Zero, Parents for Climate Aotearoa, Cycle Wellington, Women in Urbanism, Renters United and the Sustainability Trust.  

The propaganda inference is that if you don't support their policies, you don't want a "city for people". It's a shade of the People's Republics, which imply if you oppose them, you're opposed to The People.  While I have some support for their campaign to enable more intensification, this isn't a group in favour of more freedom and less government. It is not in favour of people who want to drive, or people who ship goods or deliver goods. 

It claims "A whole generation of people are being forced out from the city spending hours every day in traffic jams".  While I have  lot of sympathy about housing prices, the idea that people in Wellington are spending "hours every day in traffic jams" is nonsense. 

It states:

The cost of this project is truly bananas. Per kilometre it’s the most expensive roading project in the entire country. It’s $2.9-3.8 billion (with a B - looks like this).

And it’s all about a relatively small aspect of Wellington’s transport problems: private-car congestion at selected times.

It makes no attempt to fix what will make the most difference to people (and LGWM’s origin story): the bus-network that’s already at capacity and hamstrung by being stuck in general traffic.

Even just for general traffic congestion, this project is jumping to a platinum-plated mega project solution before we’ve tried all the other things first.

It could do irreparable harm to Wellington, just as we’re starting the transition to being a real city.

It IS expensive, but tunnels are. I'd note that the Let's Get Wellington Moving project to build a single tram line to Island Bay and a second Mt Victoria Tunnel that added no new road capacity (but freed up the existing tunnel entirely for cycling and walking, and added lanes for buses) was $7.4 billion.  That would have delivered a tram to Island Bay that would have been no faster than current bus services, and only modest relief to traffic congestion at the Basin Reserve.

The claim that the proposal is just about addressing "private car congestion" is misinformation, and minimises a situation that exists most of the day during weekdays and much of the weekends. It also affects bus congestion from the eastern and southern suburbs at the Basin and Kilbirnie Crescent. It isn't just cars, it's also trucks (the Greens pretend freight doesn't matter), taxis and rideshare services, besides the majority of trips undertaken in Wellington are by car, either as drivers or passengers.

It WILL fix bus network capacity issues, especially at the Basin Reserve, Kent Terrace and from the Eastern Suburbs, as traffic will flow much more freely, and take 20% of traffic off of the waterfront route.  It's wilful blindness to pretend otherwise (because these people think any new road capacity is malign).

The claim it is a "platinum plated mega project solution" before "we've tried all the other things first" is pejorative nonsense, especially from people who were happy to spend double that, mostly on a tunnel and tram line.  The only option that might help somewhat is road pricing, but the advocacy for that is muted. There is no realistic chance of significant modal shift for trips that bypass the city, because they have a diverse range of origins and destinations. Likewise, without an additional tunnel to the eastern suburbs, there will not be modal shift from there as buses cannot flow freely.  It's fair to object to spending a lot on transport infrastructure, but not when you're solutions are more expensive and require significantly more taxpayer cost over time to subsidise their operations.

The claim it could do "irreparable harm" to Wellington is pejorative hyperbole. The land for the second tunnels is hardly significant, part of it is within the motorway corridor in any case. 

Finally, their claims about the proposals are weak:

• It aims to “fix” traffic congestion by building a bigger road in the centre. Never, not ever, has this worked.
• If you look at the numbers for how LGWM’s package was going to “fix traffic”, it wasn’t the very expensive road-building that was going to do the heavy lifting: it was congestion charging (digital infrastructure and some gantries) and the second spine for public transport (paint, signage, timetabling). And the costs for civil construction (which this expansion project is all about) have rocketed since then.
• There are lots of flaws with the logic: smooth, faster-flowing traffic through the city centre while also somehow not worsening severance in Te Aro, and while also allowing lots of cars to turn on and off it…
• Its Cost-Benefit Ratio is already low (even with the extra-low discount rate now allowed to be used) and the Inner City Bypass was found to have been probably not worth the money spent on it (we lose more than we gain from having it) so it’s highly likely this will be worse given its far greater costs. The opportunity cost of this public money is dismaying.

First bullet is wrong. It is not a bigger road in the centre at all, and yes building new roads has fixed congestion in many cases, especially in smaller cities. Many cities have inner bypasses that work, such as Oslo, Berne and Bergen, and they DO relieve congestion.  The first motorway in New Zealand, the Johnsonville-Tawa segment, remains adequate for traffic at most times and there is NO proposal to widen it.  It's time that the oft-claimed "every new road induces traffic until it fills up" is tempered by reality that this is only true in some cases.

Yes, congestion charging will have a big impact on traffic, which is also being enabled by this government.  The second spine for public transport wont work effectively without a better bypass to take through traffic off the waterfront (and any good congestion charging scheme enables traffic to bypass it because public transport does not do well serving most demand that does not start or terminate in the central city).  Furthermore, just converting lanes on the waterfront to bus lanes will make congestion worse, which backs up to buses elsewhere in the network. 

The third bullet has a point. Not building a proper bypass under Te Aro will worsen the severance due to SH1, but the Greens spent years campaigning against a cut and cover tunnel under Te Aro to fix this.  Nothing will magically fix this problem, short of kneecapping the economy and demand for travel.

Yes it is a low value project, but it underestimates the real lifecycle benefits of tunnels (which last for much longer than any appraisal period).  It is fair to argue about the opportunity cost of the money, but then I don't think the people pushing this want people to pay lower taxes and spend the money themselves! The Greens opposed the project when it had BCRs of 2-5 in the 1990s, with a much higher discount rate and 25 year appraisal period.  It is difficult to believe that if it had a BCR of 5 or 10 the opposition would change, it is a blanket opposition to any new road capacity regardless of whether it is priced or not.

The whole wording of the opposition is childish and sneering towards people's choices.  The language that sneers at ""popping down to Moore Wilsons” and “going to pick the kids up cos it’s raining”" is misanthropic.  So what if people want to do that, as long as they pay at peak times.  Most people can't live within walking or cycling distances of where they want to go. 

These groups stopped Wellington getting a proper bypass in the 1990s and beyond, and the blight of having at at-grade SH1 through Te Aro is because of this philosophy. 

Could it be better? Yes. Should there be pricing? Yes.  Should it mean the tunnels shouldn't proceed? No.

Tolling Auckland motorways

I know a bit about road pricing.

So I've been following the debates about tolling Auckland roads for many years, and so given the latest stories it's time for some very clear thinking about the proposals being floated by "independent advisors" to the Mayor of Auckland, because it's very easy to give a kneejerk reaction to the idea.

So here's the quick and dirty summary of what it is all about:

• Len Brown wants to spend a lot of money on (mostly public) transport projects that will lose money.  He doesn't have the money to do it.  His usual way of raising money is from ratepayers, and ratepayers don't want to pay for it.  
• The projects he proposes will never generate enough money from fares to pay for the cost of operating the trains and buses, let alone pay for the capital costs of building the infrastructure. They will lose money, because Len knows that if he confronted users with those costs, they wouldn't use the services.
• Central government isn't keen to spend national taxpayers' money on these services for the same reason, and because the net economic benefits are at best heroically optimistic.   At worst it is a transfer from taxpayers to a tiny fraction of Auckland commuters (and a few property owners who will gain increased value).

So Len has some pet projects he can't convince the users to pay for, or Auckland ratepayers to pay for, so he wants to tax road users to pay for them.

Now local authorities are permitted to toll any new road capacity they build, under certain conditions and with central government approval.  The key element being that it is new capacity, and the money raised is used to pay for the road improvements.  That's not what Len wants to do, he isn't interested in the approach of Oslo, Stockholm or Sydney, in charging road users to pay for improved roads.  He wants to charge them for improved railways.

The problem is that road users already pay to use the roads.  The roads he wants to toll, aren't his. The motorways are state highways paid for by central government, and fully funded by taxes on the use of roads.  All fuel tax, all road user charges and motor vehicle registration/licensing fees go into the National Land Transport Fund, and fully fund state highways.  Those taxes are enough to keep the motorways maintained and to fund expansion and improvements around Auckland.  They also pay half the cost of the roads Auckland Council does control (the rest comes from rates).

So Len wants Auckland motorists to pay more to use roads that aren't his responsibility, so that he can build some grand projects that will lose Auckland ratepayers money (he'd like the motorists to pay for those losses too) and wont generate net economic wealth.

Arguments that the motorists will benefit are grossly exaggerated, since very few motorists will switch from driving to using these services and Auckland Council has long given up claiming it will clear the roads - it wont, it doesn't.

The funny thing is that charging motorists directly would make sense, to reduce congestion simply by applying market pricing.  At peak times scarce road capacity should cost more, because demand exceeds supply.   If priced efficiently, traffic congestion would largely be avoided, and enough money might be raised to build more capacity.   Conversely, during off peak times it would be much much cheaper, as there is ample unused capacity and it makes sense to encourage greater use at those times to generate revenue.

That could be achieved by replacing the current flat fuel tax and RUC system with a pricing system, that would reflect demand and supply.   If the motorways were run like a business, that could happen.

Cheaper motoring off peak, less congestion at the peaks, buses could flow more freely at peak times and could expand services to meet demand from those who find driving too expensive.  More mobility, less emissions and yes more public transport, though not the kind some planners embrace, but the kind driven by what users want.

However, it wouldn't include Len's train set, and so he wont embrace that sort of solution for Auckland.

The government should tell Len quite simply no - he can't toll the motorways that are not his, to pay for his pet projects.  He might consider instead running his own roads more like a business, and lobby government to do the same for its roads, even selling the Auckland Harbour Bridge as a test case.

but I bet he wont...

Yes you can privatise the roads - says UK thinktank

The Institute of Economic Affairs (IEA) is rapidly becoming one of the highest profile think tanks in the UK, certainly it has been getting increased media exposure, including the regular appearance, on the BBC no less, of the excellent Communications Director Ruth Porter (who has links to New Zealand, having once worked for the Maxim Institute - not a reason to hold against her though).

It describes itself as "the UK's original free-market think-tank, founded in 1955. Our mission is to improve understanding of the fundamental institutions of a free society by analysing and expounding the role of markets in solving economic and social problems".

It has become one of the foremost advocates for questioning new government interventions, preferring less government spending and regulation, and seeking solutions involving free markets and personal choice over statism.

The latest report commissioned and published by the IEA, has been written by German transport economist and President of the Institute for Free Enterprise, Dr Oliver Knipping, and IEA deputy editorial director and director of its transport unit, Dr Richard Wellings.

It advocates privatising all roads in the UK.  Yes, ALL roads.  

The report is available here, and makes a compelling case that damns the existing system for producing inefficient outcomes (congestion, poor maintenance standards, inadequate supply of capacity in some areas and overbuilding in others) and suggests that the government simply get out of the way, by selling some roads and giving others away perhaps to co-operatives of road users and property owners to decide for themselves how to make money from them.

The authors propose that all roads, motorways, major highways, rural roads and urban streets could be privatised. Just selling the major highways is estimated to generate £150 billion for the government, which could be used to repay public debt, saving several billion a year in interest.  That would still leave local roads to be privatised by transfers to co-operatives of businesses and residential properties.

The new owners could choose to toll, issue access permits or leave the roads free when and where they saw fit, using whatever technologies they decided.

In exchange, the authors suggested abolishing vehicle excise duty (the equivalent of motor vehicle registration), and cutting fuel tax by at least 75% (noting that the UK, unlike NZ and the USA, does not legally dedicate any fuel tax to government spending on roads - but the existing fuel tax takes four times as much tax revenue as is spent on the roads), with the remainder being a sop to environmentalists by reflecting a carbon tax and tax on emissions.  This would reduce the price of fuel in the UK by a whopping 53p/l (though they neglect to note that EU law sets a minimum tax rate for energy that is about 29p/l).

Wouldn't the new road owners rip everyone off?  Well the authors say no. They have several ideas to avoid this.

They argue that the way privatisation is carried out should be done to promote competition between road owners.  For example, major highways could be sold to different companies, so that the M6/M1 and the M40 would have different owners offering different prices for driving between London and Birmingham.  Yes, there will be many cases where competition isn't feasible, but having some competition is more than exists now.  They see breaking up the road network so it doesn't resemble the patchwork of central and local government controlled routes now, would promote competition and innovative approaches to pricing.

By allowing road owners to price flexibly, it would mean prices at off peak times would likely be lower than at peaks, because underutilised assets are better off with customers willing to pay to use them, especially cars as they inflict relatively little damage to road surfaces compared to trucks.   As such, it may be much cheaper to drive outside commuter and holiday peaks than today.

Local roads owned by businesses seeking customers are more likely to discount access or offer it for free, especially if it attracts retail customers.  They may see this as important as offering free parking, so that the incentives are wider than just paying for the roads.

There remains competition  from other modes for certain trips, such as railways, airlines and canals.  In addition, telecommunications technology makes it increasingly attractive to use phones, Skype and other forms of teleconferencing instead of travelling.  Road owners will not be insensitive to these options.

Indeed, the question about being "ripped off" becomes more moot, if road owners are seeking to attract users by having well maintained, well signposted roads, which are priced to avoid congestion by spreading demand, and a planning system that does not prevent new capacity being built except by road owners needing to consider private property rights.  The likelihood is that the motoring experience will improve.

Finally, it's worth noting (though they did not appear to do so in the report), that with government in the UK already recovering four times as much in motoring taxes from road users (fuel tax and vehicle excise duty) than it spends on roads, that motorists are already being ripped off, by the government.

The UK government is today considering how to get more private sector involvement in financing and building roads, this report shows how far it could really go, and is one of the few studies I've seen which actually breaks apart the "consensus" of state owned and operated roads, and shows how it might be different, and better with privatisation.

Northern Gateway should be sold

The news that the New Zealand Transport Agency (NZTA), which if you haven't been keeping up is the result of Labour merging Transit NZ with its funder  Land Transport NZ (because the then government was tired of one government agency holding another accountable), has not prosecuted a single toll evader on the Northern Gateway toll road is not surprising.

Quite simply NZTA has not a smidgeon of experience in running toll roads as there have been no state highway toll roads (the Tauranga ones have been council owned) since the Auckland Harbour Bridge.   On top of that, the decision to toll a road once called ALPURT B2 and before that the Orewa Bypass, was very political, as Transit NZ wanted to prove it was competent as a tolling authority under the Land Transport Management Act - a child of the Labour, United Future and the Greens during the last government's second term.

The rate of evasion at 4% of trips is good by international standards, but reports such as those in the NZ Herald today undermine this significantly.   I know about good practice with toll roads, I have designed business rules for them, and one of those is to pursue repeat recividist non-payers with prosecution.  You see, in effect, non payment is trespass.

All of the net toll revenue is used to service and repay debt used to pay half the cost of the road (the rest has been funded through fuel tax and road user charges, so motorists effectively half pay for the road without the toll).  If there was a private owner, you can be sure that it would pursue prosecution and seek court costs from motorists who continue to not pay.  

Moreover, a private owner would likely run the tolling operation more efficiently than the government.  The reported NZ$0.75 transaction cost is rather high by international standards, it should be around a third less.   Why is it high?  For starters it is being run by a long established government bureaucracy called the Transport  Registry Centre.  Sure it does the best job it can, but it is not commercially driven, so is unlikely to be able to be as efficient as foreign counterparts.  Secondly, the sheer volume of transactions is pitifully low.  Thirdly, without the experience it is unable to adopt best practice easily or automatically.  Finally, unless it goes offshore it cannot get decent professional advice on these things, given the lack of experience in the country at all.   

So why not sell the Northern Gateway?  There is an alternative route after all, the original highway through Orewa (and even SH16 off to the west).  It would showcase how no one should fear privately owned highways.  Given many French and most Japanese motorways are privately owned, it shouldn't be a big deal, but the New Zealand left is rabidly irrational about such things.

Indeed, selling it ought to pay off the debt and some and it might mean the Tauranga Eastern Motorway is run better (that should be privately funded as well).   It might also mean the NZ Herald writes no more editorials that have involved the complete absence of research or journalism on the topic.   Given the NZ Herald somehow links this to regional fuel tax, when Labour approved tolls on the road in the first place, shows once again how incredibly shallow and nearly useless the media can be.  

Bush administration goes forward - on roads anyway

Whilst many pundits decry the Bush Administration as a “disaster” as if it were self evident, it is clear to me that in the field of transport, it is light years ahead of past administrations of both colours.

The current Transportation Secretary Mary Peters (and her last significant predecessor, Norm Mineta) have both made the very clear and blunt points – the status quo doesn’t work. Environmentalists may be surprised that the Bush administration is strongly supportive of road pricing, instead of ongoing politically driven funding of roads and public transport.

Some of the best points she made at a recent meeting of Governors at the White House were:

“in the era of a government mandated monopoly in telecommunications and price controls you'd get a recording: "I'm sorry all circuits are busy. Please try again later." "Your call couldn’t go through the system for the same reason your car can’t get through rush hour – poor pricing," Peters said.”

That's the fundamental point. People put up with chronic traffic congestion roads, but wouldn't with other infrastructure - and it is due to lack of pricing and poor quality investment - those are both due to government's running roads in the same old Soviet era way. She also points out that throwing taxpayer money at the problem hasn't worked:

"The failings of federal tax and earmark programs she said are highlighted by the 300% increase in traffic congestion in the past 25 years while spending on roads and transit is doubling every ten years."

Think also about healthcare, how throwing money at that simply isn't working either. None of this should be a surprise.

"There is no greater symptom of failure than the fact that Americans simply don’t support putting more money into this broken system. Poll after poll shows strong opposition to traditional fuel taxes. The public ranks gas taxes as among the least fair taxes at the federal, state and local levels. And they are rightfully suspicious that higher taxes will (not) translate into more efficient transportation systems."

Quite right too. Fuel taxes are charges for buying fuel, not buying road use. While New Zealand has only just moved to spend all central government fuel taxes on transport (note this includes public transport, walking and cycling infrastructure), the temptation during hard times will always be to use it for general revenue.

"More and more people are seeing that direct charges offer a better deal for taxpayers than increasing dependence on dysfunctional sources like federal gasoline taxes. This simple but powerful technology unlocks enormous new opportunities for communities BOTH to attract new investment capital AND to manage congestion through variable prices."

So let the private sector in and the market mechanism of price in. Letting them both do it removes the political albatross that doing either wont work well. London's congestion charge is severely hamstrung by the political agenda of Ken Livingstone which gives a significant portion of London traffic a discount or exemption, but also earmarks the money for a lot of buses, many of which carry few people.

Hopefully her initiatives to set free private capital for investment in highways at the federal and state levels, set free the price mechanism for charging for highway use, ending "earmarked" pork barrel funding for roads and getting better results from what federal spending that remains will not be jeopardised by the games of Obama, McCain and Clinton. I am not optimistic, but these baby steps are all in the right direction, and are worth watching. It also shows there is a bit of free market thinking in the Bush administration after all.