QTS-006 · Programme business case · 2017Draft
Queenstown Integrated Transport Programme Business Case (2017 programme business case)
Part of: Rapid transit evidence →
Programme business case prepared by Abley Transportation Consultants for the NZ Transport Agency with investment partners Queenstown Lakes District Council (QLDC), Otago Regional Council (ORC) and Queenstown Airport Corporation, bringing together earlier Frankton Flats, Town Centre and Wakatipu public transport business cases. It defines two problems: growth causing unreliable trips and worsening customer experience, and car dominance harming liveability. SH6A was operating at 88% of its 28,500 vehicles/day theoretical capacity, expected to reach 100% by 2026. From about 100 options, nine programmes and four short-listed variants were assessed; stakeholders selected the 'Balanced Public Transport and Active Modes Focus' programme. It combines committed works, bus priority on SH6A, public transport service and hub improvements, park and ride, a water taxi/ferry network, a mass rapid transit corridor from Frankton to the town centre, a town centre arterial, active travel investment, a parking strategy and town centre pedestrianisation. Estimated cost is $447-647 million with a BCR of 0.7-1.0. Outcomes by 2045 include 30% alternative mode share and a 16-minute travel time saving. The MRT corridor ($160 million expected cost) is placed in the long term (2027 or beyond), represents 41% of programme cost and is identified as an opportunity for private investment or alternative funding.
What the document says
Context and purpose. The Queenstown Integrated Transport Programme Business Case (QITPBC), Version 4 dated 16 June 2017, was prepared by Abley Transportation Consultants and commissioned by the NZ Transport Agency (p.12), now NZTA (Waka Kotahi). It brings together the Frankton Flats Strategic Case (2015), the Queenstown Town Centre PBC (2016) and the Wakatipu Basin Public Transport Network PBC (2016) into one programme (p.13). The investment partners are NZTA, QLDC, ORC and Queenstown Airport Corporation (p.43). The PDF is an agenda attachment ('Item 10: Queenstown Integrated Transport Strategy', p.1) and ends with a two-page summary dated 25/07/2017 (pp.127-128).
Problem and objectives. Population rose 65% from 2001 to 2013; airport passengers grew 200% since 2005 to nearly 1.8 million; Queenstown has over 2,000 rental vehicles (p.10). SH6A operates at 88% of a theoretical capacity of 28,500 vehicles per day, expected to reach 100% by 2026, and is severely constrained by topography (p.10). 77% of peak inbound town centre journeys are by car and 13% by public transport (p.11). The problem statements (weighted 67%/33% in the summary, p.127) concern trip unreliability and car dominance. Investment objectives include a 20% reduction in single-occupant vehicles into the town centre, a 30% increase in people moved on SH6/SH6A, PM peak travel time variability no worse than 5 minutes, and 80% bus punctuality by 2025 (p.59).
Options. About 100 options from stakeholder workshops were reduced to 45; twenty were discounted through a fatal-flaw test (p.62). Nine programmes were assessed (pp.63-64); stakeholders preferred 'Balanced 1', refined into four variants (p.64). Indicative results: Balanced Infrastructure Focus $241-337m, BCR 0.6-0.9 (p.69); Balanced Active Modes Focus $241-338m, BCR 0.9-1.3 (p.70); Balanced PT Focus $417-601m, BCR 0.7-1.1 (p.71); Balanced PT and Active Modes Focus $447-647m, BCR 0.7-1.0 (p.72). Costs are high level, without site visits, and include a 15% allowance for development, consenting and land (p.68).
Recommended programme. The Balanced PT and Active Modes Focus programme was selected (p.73). Table 16 lists its contents (p.75): committed works (Eastern Access Road, Kawarau Falls Bridge, Grant Road to Kawarau Falls Bridge Stage 1, PT Improvements Stage 1 with a $2 flat fare, MaaS Stage 1); PT Improvements Stage 2 (services, EV fleet, town centre and Frankton hubs); park and ride; a water taxi/ferry network; an MRT corridor; SH6A bus priority; Ladies Mile improvements; a Queenstown town centre arterial; a Quail Rise to Hansen Road link; Grant Road to Kawarau Falls Bridge Stage 2; a Shotover River Bridge (Arthurs Point) duplication; the Wakatipu active travel network; Frankton Track upgrade; town centre pedestrianisation; MaaS Stage 2; a parking strategy; workplace travel plans; a growth management strategy review and an integrated land use and transport masterplan. QLDC will separately review the District Plan, increase town centre density, develop a Network Operating Framework and create a single transport entity (pp.73-74). The staging timeline places most items between 2018 and 2026, and the MRT corridor and Shotover River bridge in the long term, '2027 or beyond' (p.79).
Outcomes and economics. By 2045: 30% alternative mode share (up from 15%), 329 public transport passengers per hour and 223 fewer vehicles per hour (7%) Frankton to Queenstown, a 16-minute travel time reduction and 3-minute AM peak variability (p.11). The indicative BCR uses a 40-year benefit period and 6% discount rate: present value costs $303m (BCR 1.0) to $436m (BCR 0.7) (p.88); with benefits varied by plus or minus 30%, BCRs range 0.8-1.3 (low cost) and 0.5-0.9 (upper cost) (p.88). The investment profile is High/Medium/Low (p.92). Funding shares are NZTA 70% ($313.1m), ORC 4% ($18.6m) and QLDC 26% ($115.7m) of the $447.5m expected total (p.95). Value capture tools (development contributions, financial contributions, targeted rates) are discussed (pp.93-94).
Delivery. Detailed business cases are proposed for 2017/18 for Grant Road to Kawarau Falls Bridge Stage 2, SH6A corridor, water taxi/ferry network, the active travel network and the town centre and PT hub (p.96). The Wakatipu Transport Governance Group oversees delivery, with NZTA as sponsor (pp.96-97). Key risks are topography, land cost, and failure to achieve reduced private vehicle use (pp.86-87).
Mass rapid transit: The QITPBC is substantive on MRT. The recommended programme includes a 'Mass rapid transit corridor (e.g. Gondola, light rail etc) from Frankton to town centre' (p.75), described among core elements as 'a Mass Rapid Transit (gondola)' (p.73). Its expected cost is $160m (95th percentile $240m) (p.95) and, with water taxis/ferries or on its own, it is said to represent 41% of programme cost and to offer opportunity for private investment or alternative funding (pp.11, 85, 93). Demand analysis suggests extra SH6A person capacity is needed by 2040, which 'can be delivered in the form of MRT' (p.77). MRT is a long-term activity (2027 or beyond, p.79), dependent on monitoring and trigger points still to be developed (p.77), and has no detailed business case in Table 18 (p.96).
Key figures
- Recommended programme cost $447-647 million (expected $447.5m; 95th percentile $646.9m) (pp.11, 93, 95)
- Recommended programme BCR 0.7-1.0; PV cost $303m-$436m; 40-year, 6% discount (p.88)
- Sensitivity (benefits +/-30%): BCR 0.8-1.3 at low cost, 0.5-0.9 at upper cost (p.88)
- MRT corridor expected cost $160m; 95th percentile $240m (p.95)
- MRT corridor said to represent 41% of total programme cost (pp.11, 85, 93)
- SH6A at 88% of 28,500 vpd theoretical capacity; 100% expected by 2026 (p.10)
- 77% of peak inbound town centre trips by car, 13% by public transport (p.11)
- 2045 outcomes: 30% alternative mode share (from 15%); 329 PT passengers/hour; 223 fewer vehicles/hour (7%); 16-minute travel time saving; 3-minute AM variability (p.11)
- Short-list: Infrastructure Focus $241-337m BCR 0.6-0.9; Active Modes Focus $241-338m BCR 0.9-1.3; PT Focus $417-601m BCR 0.7-1.1 (pp.69-71)
- Funding shares: NZTA 70% ($313.1m), ORC 4% ($18.6m), QLDC 26% ($115.7m) (p.95)
- Queenstown town centre arterial $72m expected (p.95)
- Queenstown Airport nearly 1.8 million passengers in year to June 2017 (p.10)
Rapid transit
Mass rapid transit means light rail, gondola/cable car, bus rapid transit and similar dedicated rapid-transit technologies. It does not include ordinary bus services or ferries.
Substantive. Discusses, assesses, recommends or programmes mass rapid transit.
Recommended programme includes a mass rapid transit corridor from Frankton to the town centre; long term (2027+), $160m, suited to private or alternative funding.
MRT is one of the defining differences between the short-listed programmes: the PT-focused variants add a 'fully separated and Mass Rapid Transit' option with an integrated transport hub (p.64), costed at $160m (p.65). The recommended Balanced PT and Active Modes Focus programme lists an 'MRT corridor: Mass rapid transit corridor (e.g. Gondola, light rail etc) from Frankton to town centre' (p.75), and the programme overview names 'a Mass Rapid Transit (gondola)' among core supply elements (p.73). The assessment credits mass rapid transit with the 'ability to move high volumes of people', rates feasibility 'Medium - due to Mass Rapid Transit corridor', and says it 'provides opportunity for alternative funding mechanisms' (p.72). Peak hour analysis (Figure 31) finds that by 2040 additional SH6A person capacity is required 'and this can be delivered in the form of MRT' (p.77); if traffic keeps rising, 'The most notable' further intervention 'is the introduction of a Mass Rapid Transit corridor', with trigger points to be developed in later business cases (p.77). The MRT corridor is scheduled for '2027 or beyond' (p.79). Figure 37 gives an expected cost of $160m and 95th percentile of $240m, entered in the NZTA (HNO) funding column (p.95), while the text says the MRT corridor 'represents 41% of the total programme cost' and is a good opportunity for private investment (pp.11, 85, 93). AV trials could serve hotels from the 'Mass Rapid Transit hub' (p.83). No MRT detailed business case is scheduled (p.96).
"Mass rapid transit corridor (e.g. Gondola, light rail etc) from Frankton to town centre." (p.75) | "Increased public transport reliability and choice through addition of bus priority on SH6A corridor, a Mass Rapid Transit (gondola) and an extensive water taxi network." (p.73) | "A Mass Rapid Transit corridor provides a good opportunity to attract private investment or alternative funding arrangements, and represents 41% of the total programme cost." (p.11) | "This suggests that at 2040 additional person movement capacity is required on SH6A and this can be delivered in the form of MRT." (p.77) | "If traffic volumes continue to increase, further interventions will be required. The most notable of these, is the introduction of a Mass Rapid Transit corridor." (p.77) | "Mass Rapid Transit corridor (gondola) provides ability to move high volumes of people" (p.72)
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Actions recorded
Complete committed works: Eastern Access Road, SH6 Kawarau Falls Bridge and Grant Road to Kawarau Falls Bridge Stage One.
Not assessed · Committed (2017)
Committed
Deliver PT Improvements Stage One: higher frequency and coverage, $2 flat fare, minor infrastructure and better luggage carriage.
Not assessed · ORC · Committed (2017)
The Otago Regional Council is committed to a number of improvements
Deliver Mobility as a Service Stage One (journey planning app) and Stage Two (integrated booking and payment).
Not assessed · NZTA · Stage 1 2017; Stage 2 2022
Mobility as a Service Stage 1
Develop and implement a parking strategy, including parking pricing changes and supply and controls.
Not assessed · QLDC · Pricing 2018; supply and controls 2020
Introduce a subsidised water taxi service, expanding to a ferry network with infrastructure at four locations; prepare a detailed business case.
Not assessed · NZTA · DBC 2017/18; water taxi 2019; ferry network 2023
Water taxi/ferry network 2017/18 Staged commencing 2018
Upgrade Frankton Track, including sealing and lighting the existing path.
Not assessed · NZTA · 2020
Upgrade Frankton track including sealing and lighting existing path
Deliver Grant Road to Kawarau Falls Bridge Stage Two (four-laning, SH6/6A upgrade, Frankton PT hub and park and ride) via a detailed business case.
Not assessed · NZTA · DBC 2017/18; implementation 2020/21
Includes 4 laning, intersection upgrade and Frankton PT Hub
Deliver Ladies Mile corridor improvements for residential access from Howards Drive, Stalker Road, Lower Shotover Road and Tucker Beach Road.
Not assessed · NZTA · 2021
SH6 corridor and access improvements for residential traffic
Show all 28 actions
Deliver SH6A corridor improvements including bus priority (bus borders, widening, intersection upgrades with signal priority) via a detailed business case.
Not assessed · NZTA · DBC 2017/18; implementation 2020/21 (timeline shows 2022)
SH6A Corridor Improvements 2017/18 2020/21 NZTA
Deliver PT Improvements Stage Two: further frequency and coverage increases and fleet renewal to EV.
Not assessed · ORC · 2023
1.4m pa over 10 years
Build public transport hubs at Frankton and in the town centre (Stanley Street).
Not assessed · NZTA · Frankton 2021; town centre 2023
Queenstown hub is on Stanley St
Provide park and ride services at Frankton, Ladies Mile, Jacks Point and Arrowtown, and a rental car park and ride.
Not assessed · NZTA · Frankton 2021; rental car 2023; other locations 2025
The provision of parking facilities at appropriate locations
Investigate and construct a Queenstown town centre arterial (Stages 1 and 2) enabling PC50 and a town centre PT hub, through the Town Centre and PT Hub DBC.
Not assessed · NZTA · DBC 2017/18; implementation 2022/23
Queenstown town centre and PT Hub 2017/18 2022/23 NZTA
Build a Quail Rise to Hansen Road link road as an alternative to SH6 to enable housing supply.
Not assessed · QLDC · 2022
Develop the Wakatipu active travel network, including an additional Shotover River crossing, cycle hire and end-of-trip facilities.
Not assessed · NZTA · DBC 2017/18; implementation 2020/22
Wakatipu active travel network 2017/18 2020/22 NZTA, QLDC
Introduce Queenstown workplace travel plans with major businesses.
Not assessed · QLDC · 2025
Pedestrianise the town centre, restricting vehicle access and relocating parking.
Not assessed · QLDC · 2026
Queenstown town centre pedestrianisation
Deliver a mass rapid transit corridor from Frankton to the town centre.
Not assessed · Long term (2027 or beyond) · Relevant to rapid transit
MRT corridor
Duplicate the Shotover River Bridge at Arthurs Point (one-lane crossing for all modes).
Not assessed · QLDC · Long term (2027 or beyond)
Shotover River bridge
Review the Growth Management Strategy 2007.
Not assessed · QLDC
Develop an integrated land use and transport masterplan.
Not assessed · NZTA
Development of an ovearching integrated land use and transport plan
Review the District Plan for mixed use and travel-oriented development and increase town centre density.
Not assessed · QLDC
Reviewing the District Plan to encourage mixed used
Develop a Network Operating Framework.
Not assessed · QLDC
Development of a Network Operating Framework
Create a single transport entity for the Wakatipu Basin to support integrated delivery.
Not assessed · QLDC
The creation of a single transport entity
Implement a monitoring programme and develop trigger points (in later business cases) for further interventions, most notably the MRT corridor.
Not assessed · Ongoing · Relevant to rapid transit
A careful monitoring programme will be implemented
Develop a stakeholder engagement and communication plan following approval of the QITPBC.
Not assessed · NZTA · After QITPBC approval
a stakeholder engagement and communication plan will be developed
Monitor investment objectives annually (mode share, people throughput, travel time reliability, bus punctuality, resident and visitor satisfaction).
Not assessed · NZTA · Annually
Annually
Consider value capture mechanisms (development contributions, financial contributions, targeted rates) in funding proposals.
Not assessed · QLDC
Value capture mechanisms should be considered as part of a funding proposal
Study cost
A study cost has been requested under the Official Information Act or LGOIMA. No figure has been received.
Citation
NZTA (Waka Kotahi). Queenstown Integrated Transport Programme Business Case (2017).