The Northern Advocate

‘Value for money’: report

■ ‘Push for Northland Expressway by 2040’ ■ ‘Benefits beyond standard transport’

- Denise Piper

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.

 ?? Photo / Michael Cunningham ?? The Northland Expressway will improve transport time and resilience of State Highway 1, meaning an end to closures at the Brynderwyn­s.
Photo / Michael Cunningham The Northland Expressway will improve transport time and resilience of State Highway 1, meaning an end to closures at the Brynderwyn­s.

Newspapers in English

Newspapers from New Zealand