Laying the Foundations
The current infrastructure challenges, priorities and policies in New Zealand
Ernst ZollnerNZ Transport Agency
Welcome to my world…
• Transport (road, rail, air and sea ports)
• Telecommunications• Energy• Water (urban and
productive)• Social (education,
health, recreation, prisons)
Our national, regional and local
infrastructure
network
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My favourite idea the capital web
Some golden rules, to start with
Know your goals, and understand the power
First, maintain
and optimise what you
have
Build networks,
not projects
Some golden rules, to start with
Timing is everything
Its all about the users
Build it right, or regret it deeply
A task for those who like it tough
So you want to provide
infrastructure in NZ?
• Tough layout (long and thin)• Tough geography (mountains,
waters)• Tough geology (unstable and
bubbly)• Tough climate (but thanks for the
energy)• Tough market size (small economy
and population, badly distributed)• Tough demand patterns (peak
flows, and short runs)
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SHORT RUNS, LONG THIN LINES: ROAD
FreightTourismFreight and Tourism
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3.8 million tonnes +2.2 to 3.8 million tonnes0.9 to 2.2 million tonnesLess than 0.9 million tonnes
SHORT RUNS, LONG THIN LINES: RAIL
And how to make it harder…
So you want to provide
infrastructure in NZ?
• Weak tradition of integration and coordination
• (Some) weak providers• (Some) weak investment
analysis• Generally weak
understanding (or interest in) demand
• Weak long term planning
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WRONG LOCATIONS, BIG COSTS
Getting locations and integration wrong costs the ratepayer, the user and the taxpayers
But tough is what we do…A reasonable set of infrastructure
networks for our size and income:Generally good resilienceCongestion level reasonable by most
standardsCosts to users favourable in some areas
Generally good asset management practices
Generally good regulatory environment
Generally good reporting and accountability
Towards 2021 – our national agenda
• Strategic road linkages (congestion, reliability, unlock potential and address resilience)
• Rail maintenance and renewal (reliability and timeliness)
• Ultra-fast broadband (lower cost, increased access)
• Agricultural water use (increased access)
Support
economic
growth, and in
particular
exports
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Puhoi to Wellsford
Auckland Western Ring RouteAuckland Victoria Park Bottleneck
Waikato Expressway
Tauranga Eastern Corridor
Wellington Northern Corridor
Christchurch Motorway Projects
ROADS OF NATIONAL SIGNIFICANCE
Towards 2021 – our national agenda
Water management the area of biggest concern
• Make better use of what we have
• Better planning, integration and coordination
• Better investment analysis
Address the
system weakness
esThe big ask: long(er) term certainty
My favourite quoteHon Steven Joyce, previous Minister of Transport, NZ Rail Conference, 21 April 2010
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“Frankly everyone is going to have to hold hands and jump together if this is to work”
Towards 2021 – our national agenda
• Step 1.1: Make most of what we have
• Step 1.2: Implement programmed improvements
• Step 1.2: Agree the improvement plan
• Step 2: Fund the long-term plan
Supporting the growth
of Aucklan
d
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Optimisation solutions – really cool stuff
Towards 2021 – our national agenda
• Step 1.1: Restoring basic services
• Step 1.2: Make most of what we have
• Step 2: New plans for a changed city
Supporting the
recovery of
Canterbury
Towards 2021 – our national agenda
• Step 1.1: Implement programmed improvements
• Step 1.1: Think ahead: listen to the users
• Step 2: Agree revised long-term plans
Supporting the
growth of the
Upper North Island
My favourite planning project
Towards 2021 – our national agenda
• Step 1: Making better use of what we have
• Step 2: Open up new high productivity routes
Supporting the general freight task
Towards 2021 – our national agenda
• Step 1.1: Continue to unblock key bottlenecks
• Step 1.2 Get the regulations right• Step 2: New focus: tackle resilience
issues• Step 3: Get the levels of service right
Supporting the
productive rural areas
• Step 1: Implement programmed improvements
• Step 2: Making better use of what we have
And support
Wellington’s resilience
Plus: road safety, broadband and innovation
What I’m really excited about
The adaptable road
The automated road
The climate change resilient road
Towards 5th generation roads
Paying for it all… the challenge
Funding certainty is a big issue• Transport & water: investment
demand larger than future funding sources
• In terminal decline? Fuel excise duty and rates funding
• Too unreliable and complex? Development contributions
Paying for it all… to the rescue?
Users Basic: paying for use
Next step: users meet
marginal cost
Investors
Basic: Private capital repaid
by availability
charge
Next step: Private
capital repaid by actual use
Future generati
ons
Basic: spreading
some costs across life of
asset
So, how golden are we?Golden rule GradeKnow your goals, and understand the power
Improving
Maintain and optimise what you have, before building new
Can do better, promising
Build networks, not projects Must do better
Timing is everything Getting better
Its all about the use (and users), not the engineering awards
Getting better
Build it right Good(ish)
And can we do it? Yes, its…
