‘Value for money’: report
■ ‘Push for Northland Expressway by 2040’ ■ ‘Benefits beyond standard transport’
Afour-lane expressway from Auckland’s Warkworth to Northland’s Kaikohe would have huge economic benefits for all of New Zealand, increasing annual GDP by $1.2 billion a year.
That is the finding of a report commissioned by the Northland Corporate Group, a group of Te Tai Tokerau Northland business heavyweights.
The report by specialist consultants NZIER looked at an upgrade of State Highway 1 from north of Auckland, over the currently-closed Brynderwyns to Whangārei and on to Kaikohe in the heart of the Far North.
It found the so-called Northland Expressway would have a direct economic benefit in Northland of $299 million to $562m a year by 2050, due to efficiency with faster speeds, better resilience and improved safety.
But NZIER also used one of the largest business surveys ever conducted in Northland to show the overall benefits of addressing infrastructure constraints, with nearly 80 per cent of businesses surveyed saying poor transport infrastructure was one of their top challenges.
The survey showed the total cost of the Brynderwyns closing in 2023 due storm damage was $3.3m to $14.6m in business costs and losses.
It showed the conventional costbenefit analysis done by NZTA Waka Kotahi is far too conservative and understates the benefits in terms of growth and jobs.
NZIER found the expressway would grow the number of people in the region, provide cost savings to businesses, bring new jobs and investments, grow tourism and resourced-based industries, lift social outcomes and reduce poverty.
Te Tai Tokerau Northland’s annual GDP would grow by $2.1b a year and, if Northland business productivity increased by just 2.5 per cent, national GDP would increase by $1.2b a year, the report said.
NZIER put the total cost of the expressway at $5.5b to $11.1b, based on the total cost per kilometre of similar New Zealand four-laning projects. It argued this would be value for money, with GDP growing $24b from 2040 to 2060.
“The investment between Auckland and Whangārei is urgently needed to help Te Tai Tokerau Northland realise its potential and maximise its contribution to the national economy,” the report concludes. “The Whangārei to Kaikohe section should follow as the region grows.”
The report will now be used to lobby government for significant highway investment beyond what National has already committed to, which includes expressways from Warkworth to Wellsford and from Ruakākā to Whangārei, as well as a four-lane highway alternative for the Brynderwyns.
The findings of the report were presented to about 80 key stakeholders yesterday on afternoon, with a presentation and panel discussion run by Northland Corporate Group, which includes Channel Infrastructure NZ (formerly Refining NZ), Culham Engineering, Marsden Maritime Holdings (formerly Northland Port Corporation), McKay and Northpower.
Push for Northland Expressway by 2040
The report shows Northland is ripe for central government investment, Northpower CEO and Northland Corporate Group co-chairman Andrew McLeod said.
“Northland is uniquely positioned to supply Auckland. We don’t want a handout, we want an economic outcome through this investment.”
The Northland Corporate Group is now advocating for the Northern Expressway to be built before 2040, when the bicentennial of the signing of the Treaty of Waitangi will be celebrated, he said.
The Kauri Museum director and former Kaipara mayor Jason Smith asked how the expressway can be approved this time, when the need for it has been talked about in Northland for decades.
Northland MP Grant McCallum answered from the floor, saying the coalition Government is very focused on getting things done and views infrastructure as a key enabler.
It has brought back in the roads of national significance – which includes several parts of the Northern Expressway – and is introducing fasttrack consents, he said.
McCallum admitted the funding model is something that needed to be looked at and tolls might have to be considered.
Transport Minister Simeon Brown was interested in hearing about realistic economic returns and the potential unlocked from roading projects, he said.
The NZIER report gave the example of enabling the expansion of Northport, with international shipping companies losing interest in using the Whangārei port in 2023 due to the closure of SH1.
It found benefits to include:
● Annual cost savings to Northland businesses of $1.6b to $3.7b.
● Annual increase in business revenue of $1.2b to $4.1b.
● From 1520 to 5960 new jobs in Northland.
● Unlocking investment of $13.7b to $38.3b, which businesses are too scared to invest now due to the unreliability of the road.