A new report, commissioned by Auckland mayor Wayne Brown, has estimated the city’s traffic congestion could cost the local economy around $2.6 billion annually by 2026.
The report, entitled Auckland’s Cost of Congestion, comes as the mayor pushes for a time of use or congestion charge which he said could be a solution to help manage demand on motorways and major roads.
The Government has introduced a time of use charging bill, which passed first reading in Parliament today.
Then-Transport Minister Simeon Brown announced the Government’s intention to do so in August last year.
Auckland Council gave the go-ahead for a scheme to be designed for the Auckland region in June.
The planned legislation will allow councils to propose schemes for their road networks. The NZ Transport Agency (NZTA) will work with local councils to design the schemes, providing “strong oversight”, and any schemes would require central government approval.
The report, prepared by EY and ARUP with support from Auckland Transport, estimated the average Aucklander would waste more than 17 hours in traffic every year by 2026, with a total of around 29 million hours each year across the city.
Costs incurred by traffic delays were estimated at around $1.9 billion and macro-economic costs were estimated at $700 million, adding up to $2.6 billion a year by 2026.
Brown said congestion needed to be fixed to grow the city.
“A Time of Use Charge will enable people to think of other ways to travel, like public transport, carpooling or driving outside rush hour.
“Reducing Auckland’s congestion will mean that truckies can deliver more freight on less trucks, and tradies can spend more time on the job, rather than sitting in traffic.
“If we’re going to achieve the growth the government wants, we need to fix this now.”
A congestion charge would not be the only solution to congestion, with a stronger public transport network and roading system also required, Brown said.
“Congestion is costing our economy billions of dollars every year and if we don’t do something about it, it will get worse.”
The report said that 90% of vehicles stuck in traffic were cars, with the next 7% being heavy vehicles.
Congested morning traffic began around 7am, peaked at 8am and began to decline around 10am, while congested evening traffic began at 3pm, peaked at 5pm and began to decline by 7pm.
“While the evening rush hour lasts about an hour longer and sees slightly higher peak times compared to the morning, both periods of congestion are nearly double the time of travel during overnight trips,” the report read.
Auckland was ranked as the 77th most congested city and the worst in New Zealand or Australia out of a database of 500 cities across 62 countries.
Industry bodies respond to congestion report
Various industry bodies have been broadly positive about the potential introduction of congestion charging, with calls for exemptions for freight and goods vehicles and ring-fencing the resulting revenue for transport investment.
Transporting NZ chief executive Dom Kalasih said reducing congestion would have “big benefits” for freight efficiency, labour productivity and emissions reductions.
“Congestion reduces the number of trips that freight operators can complete, puts pressure on drivers who are only legally permitted to work a certain number of hours per day, and pressures freight companies to put more, less efficient vehicles on the road.”
Kalasih said Transporting NZ would like to see exemptions for freight and goods vehicles permitted by the legislation, with current proposal limiting exemptions to emergency vehicles.
“This is bad news for bus users and road freight businesses who will have to pass costs on to consumers. Overseas schemes allow for wider exemptions that maximise savings for consumers and businesses.”
Infrastructure NZ policy director Michelle McCormick said congestion charging “must be in Auckland’s future if we are to unlock the productivity potential of our largest city”.
“Congestion charging can both manage demand on the city’s roading network and help pay for the provision of Auckland’s transport infrastructure into the future.”
She said revenue derived from the scheme should be ring-fenced for transport investment in the city.
“This would provide Auckland with an important new tool to help fund both roading and public transport improvements.”
Employers and Manufacturers Association head of advocacy Alan McDonald said the charging would “help maximise” the existing motorway and arterial routes.
“Congestion charging is intended to reduce this traffic and introduce more certainty into travel times on our roading network, but it will also improve air quality and help to fund public transport.”
