QTS-026 · Programme business case · 2019Draft
Te Kirikiri Frankton Integrated Transport Programme Business Case
Part of: Rapid transit evidence →
GHD's Programme Business Case for Te Kirikiri Frankton, prepared for QLDC with partners NZ Transport Agency and ORC under the Way to Go partnership, was developed alongside Boffa Miskell's Te Kirikiri Frankton Masterplan (Appendix A) and sets a 30-year integrated transport programme for Frankton. Two problems were identified: a transport system favouring private vehicles that causes severance (60%), and land use, infrastructure constraints and growth causing congestion (40%). Seven long-list programmes were narrowed to three: Do Minimum, Programme 3 (bus priority then a trackless tram on SH6/SH6A within 10 years) and Programme 4 (a mass rapid transit linking Lake Hayes Estate, Frankton and Queenstown Town Centre within 10 years). Both 3 and 4 met the investment objectives, so the recommended programme is their common elements plus either a ground-based mass transit system or mass rapid transit, with the choice left to further work. It recommends short-term bus priority, an orbital bus trial, active mode links and parking policy; medium-term high capacity public transport, bus hubs, park and ride and new links; and long-term network expansion. Programme 3 is costed at about $295m (range $207m-$383m), Programme 4 at about $366m. Using trackless tram costs and benefits for Frankton only, the BCR is 0.3-0.6, rated low for benefit-cost appraisal but very high for results alignment. Indicative cost shares are NZTA $182.4m, QLDC $83.04m and ORC $28.8m.
What the document says
Context and purpose: QLDC and its partners NZ Transport Agency and ORC engaged GHD and Boffa Miskell to develop a Masterplan and Integrated Transport Programme Business Case for Te Kirikiri Frankton, as part of the Way to Go initiative (p.9). Both have a 30-year vision (p.9). Frankton is reached by road only via the Kawarau Falls Bridge, the Shotover Bridge and SH6/SH6A from the Town Centre; SH6A carries about 25,600 vehicles per day (p.9). The Wakatipu Ward population is forecast to grow by 17,260 (61%) by 2038, and the airport forecast over three million passengers by 2025 and six million by 2035 (p.10). The cover is marked 'Attachment B' (p.1).
Problems and objectives: Workshops in November 2018 identified two problems: the transport system favours private vehicles, causing severance (60%); and land use, infrastructure constraints and growth cause congestion (40%) (p.11). Five investment objectives cover severance and liveability, multi-modal access, safety, active mode connectivity, and reliability (p.11).
Options: More than 150 interventions informed seven long-list programmes, from Do Minimum to Do Maximum (pp.61-68). Programme 5 (mass transit in 20-25 years) was favoured for its mass transit elements but was judged not to meet PT needs within ten years (p.70). The short list was Do Minimum (about $10m), Programme 3 (bus priority, then a trackless tram on a designated corridor alongside SH6 and SH6A within 10 years; about $295m) and Programme 4 (a mass rapid transit linking Lake Hayes Estate, Frankton and Queenstown Town Centre within 10 years, a travellator from QEC to the airport, and ferry upgrades; about $366m) (pp.71-79). Both met the investment objectives; Programme 3 scored marginally better on PT share and travel times, and Programme 4 had greater landscape and visual effects but likely greater air quality and visitor benefits (p.80).
Recommended programme: The common elements of Programmes 3 and 4, plus either a ground-based mass transit system or mass rapid transit (p.81). Short-term (2019-2024) measures include a trial orbital bus, bus priority on SH6/SH6A, Orbus improvements, a new ferry terminal, a 50 km/h SH6 speed limit, safe crossings, a Jack's Point shared path and Kawarau River active bridge, and parking policy (p.82). Medium-term (2024-2028) measures include high capacity PT, more bus priority, the Humphrey Street link, park and ride near Boyd Road, a regional bus hub, the Lake Link, Robertson Street upgrades, intensification around mass transit stations and reduced parking requirements (pp.84-85). Long-term (2029-2050) measures include potential PT bridges over the Shotover and Kawarau rivers and network expansion (p.87). Further residential development above modelled levels, as transit-oriented development, is recommended (p.81).
Economics and finance: Using Programme 3 (trackless tram) costs and benefits within the Frankton study area only, the BCR is 0.3-0.6 at 6% (0.2-0.7 across sensitivities). NPV benefits are $89.4m against NPV costs of $141.5m-$262.1m (p.16). Costs outweigh benefits mainly because benefits start only in 2028 (p.92). The IAF rating is Very High for results alignment and low for benefit-cost appraisal (p.94). Programme 3 is estimated at $294.24m including escalation and contingency, of which public transport is $180m (p.98). Interventions to 2024 total $19.84m (p.99); common elements to 2028 total $115.2m (p.101); trackless tram elements total $159.2m (p.101); and items without a current business case total $54.72m (p.102). Indicative cost shares are NZTA $182.4m, QLDC $83.04m and ORC $28.8m (p.104). The Appendix J economics note carries a draft disclaimer (pp.254-263).
Management: Delivery is through the Way to Go partnership, with specialist procurement for high capacity PT (p.103). Risks include insufficient density for mass transit, high mass transit pricing and an unclear funding stream (p.96).
Mass rapid transit: Substantive. A mass rapid transit was one of two shortlisted high capacity PT options (Programme 4), linking Lake Hayes Estate, Frankton and Queenstown Town Centre within 10 years (pp.13, 76). Both mass transit options were deemed to meet the investment objectives, and the choice was deferred pending further work on costs and benefits (pp.13, 80). The economic case modelled only the trackless tram (pp.16, 257). The report records that a separate mass transit assessment 'has confirmed a need for a high capacity public transport solution for the Wakatipu Basin within the next ten years' (p.81).
Key figures
- SH6A Frankton Road carries about 25,600 vehicles per day (p.9)
- Wakatipu Ward population +17,260 (61%) by 2038; airport forecast >3 million passengers by 2025 and 6 million by 2035 (p.10)
- Short-list capex: Do Minimum about $10m; Programme 3 (trackless tram) $295m; Programme 4 (gondola) $366m (p.79)
- Recommended programme (Programme 3 basis) $294.24m incl. escalation and contingency; range $206.9m-$383.4m; public transport $180m (pp.16-17, 98)
- BCR 0.3-0.6 at 6% discount rate (sensitivities 0.2-0.7); NPV benefits $89.4m vs NPV costs $141.5m-$262.1m at 6% (p.16)
- Trackless tram elements by 2028: $128m tram services, $24m Superstop, $7.2m stops; total $159.2m (p.101)
- Interventions to end 2024 total $19.84m; common elements to 2028 total $115.2m; items without a current business case $54.72m (pp.99-102)
- Indicative cost allocation: NZTA $182.4m, QLDC $83.04m, ORC $28.8m (p.104)
- IAF: Very High results alignment; low benefit-cost appraisal (p.15)
- PT mode share Frankton: 3.48% (2018); 10-15% (2028) and 15-25% (2048) under Programmes 3 and 4 (p.230)
- 79% of journey to work trips by Frankton residents are by private vehicle (p.94)
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.
Shortlists mass rapid transit from Lake Hayes Estate to Frankton and the Town Centre, and a trackless tram; recommends one high-capacity public transport system within 10 years, with the choice deferred.
High capacity PT is central to the PBC. Programme 4 is 'Mass transit (gondola) within 10 years and active modes focus', mass rapid transit 'linking Lake Hayes Estate, Frankton and the Queenstown Town Centre that could be extended into growth areas' (p.13), with a QEC-airport travellator and complementary ferries (p.76). Programme 3 uses a trackless tram alongside SH6 and SH6A (p.74). Both 'meet the investment objectives and contribute towards the KPIs' (p.80). The trackless tram scored marginally better on PT share and travel times because it has more stops, while mass rapid transit would have greater landscape and visual effects but 'could become a significant attraction for visitors' (p.80). Programme 4 was costed at about $366m against $295m for Programme 3 (p.79). Because 'the relative costs and benefits of the two mass transit solutions requires further investigation', the recommended programme is the common elements plus 'either a ground based mass transit system, or a gondola' (pp.80-81). It states that a separate mass transit assessment 'has confirmed a need for a high capacity public transport solution for the Wakatipu Basin within the next ten years' (p.81) and assumes operation from 2028 (p.13). The economic evaluation used only trackless tram costs and benefits for Frankton (BCR 0.3-0.6) (p.16). The report notes a privately funded mass rapid transit being investigated between Remarkables Park and the Remarkables ski field (p.84).
"Programme Option 4: Mass transit (gondola) within 10 years and active modes focus... Specifically a gondola service linking Lake Hayes Estate, Frankton and the Queenstown Town Centre that could be extended into growth areas if demand supports this in the long-term." (p.13) | "The Recommended Programme is the common elements of Programme Option 3 (trackless trams and bus network) and Programme Option 4 (gondola and bus network) with a high capacity public transport system." (p.13) | "The relative costs and benefits of the two mass transit solutions requires further investigation before a decision can be made on the recommended solution." (p.80) | "An assessment of the Mass Transit options is being is being undertaken at the time of issuing this report and has confirmed a need for a high capacity public transport solution for the Wakatipu Basin within the next ten years." (p.81) | "The gondola would likely deliver greater air quality benefits and could become a significant attraction for visitors." (p.80)
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Actions recorded
Introduce a trial orbital bus service in Frankton linking Five Mile, Frankton Village, Queenstown Events Centre, the airport, Kawarau Falls, Remarkables Park and Shotover Delta.
Not assessed · ORC · Short term (2019-2024); bus-only lanes medium term
Orbital bus service introduced in Frankton to link the key activity precincts
Implement bus prioritisation along SH6 and SH6A.
Not assessed · NZTA · Short term (2019-2024)
Bus prioritisation along SH6 and SH6A
Increase marketing of the Orbus network and make operational improvements for more direct and frequent services and connections.
Not assessed · ORC · Short term (2019-2024)
Increased marketing of the Orbus network; Operational improvements to Orbus
Improve information for commuters through real-time information apps.
Not assessed · Short term (2019-2024)
Improved information provision for commuters through apps providing real time information
Construct a new ferry terminal and new or upgraded wharf to support upgraded ferry services from Frankton.
Not assessed · Short term (2019-2024)
A new ferry terminal and new or upgraded wharf is constructed
Improve bus stop comfort and accessibility (seating, covered stops, lighting, shade trees).
Not assessed · QLDC · Short term (2019-2024)
Provide facilities to improve comfort and accessibility for pedestrians and public transport users
Optimise the local road network to better accommodate buses.
Not assessed · QLDC · Short term (2019-2024)
Road network optimisation completed to better accommodate buses on the local network
Reduce the SH6 speed limit between Kawarau Falls Bridge and Quail Rise South (Grant Road) to 50 km/h (indicative cost $320,000).
Not assessed · Short term (2019-2024)
Reduce speed limits on State Highway 6 between the Kawarau Falls Bridge and Quail Rise South to 50 km/h
Show all 50 actions
Increase safe crossings on and adjacent to arterial roads near public transport stops (e.g. SH6 near QEC and Five Mile) ($1.92m).
Not assessed · NZTA · Short term (2019-2024)
Increased number of safe crossings on and adjacent to arterial roads near public transport stops
Improve the active mode connection between Quail Rise and Frankton Flats through the Quail Rise South development, and upgrade the pedestrian network in growth areas.
Not assessed · Short term (2019-2024)
Improve active mode connection between Quail Rise and Frankton Flats through Quail Rise south development
Build a shared path to Jack's Point including a new active mode bridge over the Kawarau River ($11.84m).
Not assessed · Short term (2019-2024)
New active mode bridge constructed over the Kawarau River and track to Jack's Point
Build new active travel routes A2 Shotover Bridge to SH6 ($3.2m) and A3/A4 SH6 to Frankton Track ($1.6m), and connected separated active mode paths within Frankton.
Not assessed · Short term (2019-2024)
New active travel route - A2 Shotover Bridge to SH6; A3/A4 - SH6 to Frankton Track
Provide lighting on key active mode routes and wayfinding and signage at visitor entry points and roundabouts.
Not assessed · Short term (2019-2024)
Wayfinding and signage improvements are made at key visitor entry points
Run safety promotion and education campaigns, including safe walking and cycling routes to Frankton schools ($160,000).
Not assessed · QLDC · Short term (2019-2024)
Safety promotion and education campaigns in the community
Promote high occupancy vehicles and run workplace and school travel planning initiatives.
Not assessed · Short term (2019-2024)
High occupancy vehicle promotion; Workplace and school travel planning initiatives
Implement parking policy ($320,000).
Not assessed · QLDC · Short term (2019-2024)
Parking policy implemented - BAU QLDC
Provide additional active travel connections ($480,000).
Not assessed · NZTA · Short term (2019-2024)
Additional active travel connections - QLDC/NZTA Low Cost Low Risk Programme
Extend bus prioritisation throughout the study area, including signal pre-emption and priority lanes on SH6/Kawarau Road and Hawthorne Drive ($14.4m).
Not assessed · NZTA · Medium term (2024-2028)
Additional bus prioritisation (public transport priority lanes)- i.e. SH6 / Kawarau Road and Hawthorn Drive
Invest in public transport technology (apps, real-time travel information) and provide PT facilities and express services in Frankton.
Not assessed · Medium term (2024-2028)
There is increased investment in public transport technology
Build the new Humphrey Street link with PT priority to Remarkables Park and the airport ($24m).
Not assessed · Medium term (2024-2028)
New Humphrey St Alignment and connection to Airport and Remarkables Park
Provide public transport priority and a new link between Queenstown Events Centre and Queenstown Airport.
Not assessed · Medium term (2024-2028)
Public transport priority and new link between Queenstown Events Centre and Queenstown Airport
Develop Park & Ride near Boyd Road, south of the Kawarau River, with the active mode bridge.
Not assessed · Medium term (2024-2028)
Development of Park & Ride facilities near Boyd Road, south of Kawarau River
Relocate the commuter hub and establish a regional bus hub, with stop and connections to a regional coach facility near Remarkables Park and the airport ($4.8m).
Not assessed · Medium term (2024-2028)
The Public Transport commuter hub is relocated and a regional bus hub established
Build bus-only lanes and infrastructure for the orbital bus route ($1.6m).
Not assessed · NZTA · Medium term (2024-2028)
Orbital bus route and bus lanes infrastructure throughout the study area
High capacity PT Option 1: trackless tram services on SH6 and SH6A completed within 10 years ($128m), with a Superstop near SH6/SH6A/QEC ($24m) and new stops to Shotover River ($7.2m).
Not assessed · NZTA · Medium term (2024-2028); operation assumed 2028 · Relevant to rapid transit
Option 1: Trackless tram (ground base mass transit) services on key routes State Highway 6 and State Highway 6A completed within 10-years
High capacity PT Option 2 (alternative): mass rapid transit linking Frankton and Queenstown Town Centre and potentially Lake Hayes Estate, with a travellator between QEC and airport stations.
Not assessed · Medium term (2024-2028) · Relevant to rapid transit
Option 2: A gondola service linking Frankton and Queenstown Town Centre and Frankton potentially to Lake Hayes Estate
Signalise the SH6 / Hawthorne Drive intersection to provide safe controlled pedestrian crossings ($3.2m).
Not assessed · NZTA · Medium term (2024-2028)
Signalise the State Highway 6 and Hawthorne Drive intersection
Build new road connections to the airport, including Lucas Place realignment ($16m), dependent on the masterplan and hospital/St John relocation or realignment.
Not assessed · Medium term (2024-2028)
New road connections to the airport including intersection upgrades / close the Lucas Place connector
Relocate or realign the hospital and St John Ambulance site to enable the Lake Link ($24m).
Not assessed · Medium term (2024-2028)
Relocation (or realignment) of hospital and St John Ambulance to enable Lake Link
Build the Lake Link active travel connection between Remarkables Park, the airport, Remarkables Primary School and Lake Wakatipu, including a bridge over SH6 ($16m).
Not assessed · Medium term (2024-2028)
Lake Link - new active travel connection between Remarkables Park, the airport
Upgrade and prioritise Robertson Street for active modes, with the Humphrey Street realignment ($3.2m).
Not assessed · QLDC · Medium term (2024-2028)
Robertson Street is upgraded and prioritised for active modes
Complete the Frankton cycling network ($1.92m) and build high quality cycleway connections parallel to SH6 ($4m).
Not assessed · NZTA · Medium term (2024-2028)
Frankton cycling network is completed; New high quality cycleway connections within Frankton parallel to SH6
Upgrade walking networks and routes around PT interchanges ($800k) and streets with covered bus stops and bike racks ($800k).
Not assessed · NZTA · Medium term (2024-2028)
Walking routes to public transport facilities continue to be upgraded
Intensify land use around proposed mass transit stations and promote transit-oriented development along key PT routes.
Not assessed · QLDC · Medium term (2024-2028) · Relevant to rapid transit
Increased land use intensification around proposed mass transit stations
Minimise parking requirements for new developments, require developments to provide accessible PT facilities, and provide freight loading zones.
Not assessed · QLDC · Medium term (2024-2028)
Minimise new development parking requirements (planning and policy)
Build new PT interchanges along key arterials and upgrade services, routes and frequency, including services to new intensification areas.
Not assessed · ORC · Long term (2029-2050)
New transport interchanges are built along key arterials
Provide a potential new one-way public transport bridge (with active mode connections) over the Shotover River, dependent on 2030-50 PT demand.
Not assessed · NZTA · Long term (2029-2050)
Provide a new potential new public transport bridge (with active mode connections) over the Shotover River (one way)
Provide a potential dedicated public transport bridge over the Kawarau River, dependent on longer-term PT demand.
Not assessed · NZTA · Long term (2029-2050)
Potential dedicated public transport bridge over the Kawarau River
Expand the high capacity PT network into growth areas based on demand (ground-based option, or mass rapid transit option - not included in cost estimates).
Not assessed · Long term (2029-2050) · Relevant to rapid transit
Option 1: Ground based high capacity public transport is expanded... OR Option 2: Gondola service can be expanded into new growth areas
Continue upgrading walking routes to PT and develop the district pedestrian network connecting with Frankton.
Not assessed · QLDC · Long term (2029-2050)
Walking routes to public transport facilities continue to be upgraded and amenity improved
Confirm the financial and economic viability and implementation timing of the preferred high capacity PT system (trackless tram or mass rapid transit).
Not assessed · Way to Go · Not stated (operation assumed 2028) · Relevant to rapid transit
Further work is required to confirm the financial and economic viability of the preferred system as well as the timing
Assess high capacity PT network costs and benefits across the whole Wakatipu Basin, which may justify investment.
Not assessed · Relevant to rapid transit
The high capacity public transport system options are currently being assessed to identify the network costs and benefits that occur across the whole Wakatipu Basin
Enable residential development in the study area above modelled levels, as transit-oriented development, to support mass transit uptake.
Not assessed · QLDC · Relevant to rapid transit
It is recommended that increased residential development occurs within the study area over and above what is currently modelled
Investigate mass transit pricing models, finalise mass transit cost estimates and establish a funding stream for capital and operating costs.
Not assessed · Relevant to rapid transit
Undertake further investigations into mass transit solutions and potential pricing models
Confirm business cases or planning activities for interventions without a current business case ($54.72m) through the Regional Land Transport Plan.
Not assessed · Way to Go · Next RLTP
Business cases or transport planning activities for these interventions will need to be confirmed through the Regional Land Transport Plan process
Continue risk assessment (risk identification, mitigation actions and owners) in future detailed business cases.
Not assessed · Future business case stages
It is recommended that ongoing risk assessment... continue to be undertaken during future detailed business cases
Review the masterplan at regular intervals (e.g. every 3 years) and amend it to keep transport and masterplan outcomes achievable.
Not assessed · Every 3 years
The masterplan will need to be reviewed at regular intervals (i.e. every 3 years)
Procure specialised skills and capabilities for the high capacity public transport elements.
Not assessed · Way to Go · Relevant to rapid transit
Specialised skills and capabilities will need to be procured for the high capacity public transport elements
Develop an ongoing benefit realisation plan through the Way to Go partnership.
Not assessed · Way to Go
An ongoing benefit realisation plan is to be developed as part of the Way to Go partnership
Share programme costs between partners, indicatively NZTA $182.4m, QLDC $83.04m and ORC $28.8m (for discussion).
Not assessed · NZTA
Table 30 Indicative Recommended Programme Cost Allocations
Study cost
A study cost has been requested under the Official Information Act or LGOIMA. No figure has been received.
Citation
QLDC, Way to Go partnership. Te Kirikiri Frankton Integrated Transport Programme Business Case (2019).