QTS-094 · Business case chapter or appendix · 2024
Queenstown Public Transport Business Case – Summary Report
Part of: Rapid transit evidence →
Two-part summary of the Queenstown Public Transport Business Case prepared for Otago Regional Council and the Way to Go partners (NZTA (Waka Kotahi), QLDC). Part A answers the key questions the business case addressed; Part B summarises the five cases. The preferred programme is an enhanced Bus Max (Composite) network of frequent bus routes with battery electric articulated and standard buses, a more frequent Kelvin Heights ferry, hub and interchange changes, an SH6 bus lane and a new ORC-owned electric bus depot, staged over about 12 years. The BCR is 2.3; capital costs are put at $63.7m (excluding depot land) and operating costs at $25.0m a year by 2035. No park and ride is included. Modelled 2053 AM peak non-car mode shares (34% on SH6A, 16% on Shotover Bridge, 24% on Kawarau Falls Bridge) achieve roughly half of the investment objective, so the report says operational and demand management measures, such as congestion charging, are also needed. A section headed 'An Off-line Solution' recommends that an offline solution such as mass rapid transit be investigated in the 2024-27 period, and that project partners investigate offline public transport options within the next NLTP period. A list of 2024-27 NLTP funding requirements by lead organisation (ORC, NZTA, QLDC) is included.
What the document says
Context and purpose: This summary of the Queenstown Public Transport Business Case (QPTBC) has two parts. Part A gives the business case's response to the key questions it had to address, and Part B summarises the strategic, economic, commercial, financial and management cases (p5). It describes the QPTBC as an indicative business case responding to the 2020 Queenstown Business Case, which ORC and QLDC approved in January 2021 and Waka Kotahi in February 2021 (p12). It assumes NZUP bus priority on SH6/SH6A by 2028, and town centre Arterials stages and Project Manawa completing between 2024 and 2032 (p6). The business case was reviewed by Invise (case documents), AECOM (CAPEX) and MRCagney (OPEX), with NZTA Investment Quality Assurance involvement (p13). The copy held is version 0.6 of 3 April 2024, stamped 'Attachment A', with added page numbers (27-54).
Demand and problem: Peak hour trip demand is forecast to more than double over 30 years, with the largest growth in the southern corridor (p7). Required AM peak PT volumes on SH6A are 592 (2027), 1,082 (2039) and 1,466 (2053) people per hour, against current capacity of 260 (p14-15). Modelled 2053 AM peak non-car mode shares for the preferred option are 34% on SH6A, 16% on Shotover Bridge and 24% on Kawarau Falls Bridge, 'so achieving roughly half of the investment objective' (p7). Free parking in Frankton is identified as limiting mode shift (p7).
Preferred programme: an enhanced Bus Max (Composite) network with battery electric buses, supporting infrastructure and a Kelvin Heights ferry (p17). Articulated buses (around 110 passengers) are the preferred vehicle (p8). It has eight core interventions (p18), staged over about 12 years in three tranches. Full electrification is planned for 2035 with a new depot, using large diesel buses under an interim contract until then (p8). Indicative service levels by NLTP period are tabled (p20-21). On-demand service is proposed for Queenstown Hill and Goldfields (p8). Park and ride is excluded because of limited patronage uplift and high land costs (p8-9). Ferry frequency is to rise to 60 minutes in 2024-27 and 30 minutes in 2027-30 (p10). Public consultation drew 231 submissions, with most preferring Bus Max plus the Malaghans Road option (p17).
Costs and economics: Capital costs are stated as $63.7m, of which the depot is $45.5m excluding land or lease (p10). Elsewhere the depot is given as '$54.4M + land or lease' (p9) and, in the capital table, $59.5m including land (p19). About $14m is budgeted for depot land (p10). Operating cost is $25.0m by 2035 (p11), although the financial case section gives $14.3m by 2039 and $22.6m by 2053 (p25). The BCR is 2.3 (p19). Lead-organisation costs are disaggregated on p10, and an interventions table with lead organisation, trigger, activity class and NLTP period is on p26-27.
Performance: AM peak PT mode share on SH6A is predicted to rise from 14% to 34% by 2053, short of the 47% objective (p19). The objective to maintain a functional network 'cannot be fully achieved by the public transport services alone', and additional travel demand measures such as congestion charging are recommended (p20).
Commercial and management: The Unit 7 contract is to be extended to 19 November 2028 and a new contract let that includes 18 articulated electric buses (p22). The depot should be publicly or investor owned, with Frankton Flats preferred and Coneburn the alternative, and a 20-plus-year lease of Queenstown Airport land should be explored (p22-23). ORC is to create a contracted Kelvin Heights ferry unit (p23). ORC is the procuring organisation and will appoint a Project Sponsor/Director; QLDC and NZTA are road controlling authorities and funding partners (p23). Key risks include depot timing, power supply, funding, the SH6 bus lane, driver shortages and the Edith Cavell Bridge weight limit (p24). Demand management tools are described as critical but left to 'a subsequent project' (p24). Next steps are endorsement, reframing of the Way to Go partnership, NLTP funding applications and review each NLTP period (p28).
Mass rapid transit: Section 2.13 'An Off-line Solution' states that 'an offline solution such as a gondola is suggested to be further investigated in the 2024-27 period' to allow lead time for investigation, consultation, land acquisition, design, procurement and construction (p11). Part B adds that, while outside the scope of the business case, 'an offline public transport system has the potential to drive further uptake in public transport' and recommends that project partners 'investigate offline public transport options within the next NLTP period' (p20). The next-phase scope includes investigating an off-line route to supplement the bus and ferry network (p11, p28). No cost or lead organisation is given for this, and it does not appear in the 2024-27 funding list (p11).
Key figures
- 2053 AM peak non-car mode share (preferred option): SH6A 34%, Shotover Bridge 16%, Kawarau Falls Bridge 24% – 'roughly half of the investment objective' (p7)
- Required AM peak PT on SH6A: 592 (2027), 1,082 (2039), 1,466 (2053) people/hour vs current capacity 260 (p14-15)
- BCR 2.3 (p19)
- Capital cost $63.7m, of which depot $45.5m excluding land/lease (p10); depot also stated as $54.4m + land (p9) and $59.5m incl. land (p19); depot land budget $14m (p10)
- Lead-organisation split: ORC depot $45.5m + land; NZTA Stanley St $0.6m, Frankton hub $1.6m, southern corridor bus lane $3.6m, SH bus stops $0.6m; QLDC intersections $0.5m, local stops $0.6m, Remarkables Park hub $0.8m, Five Mile hub $0.4m (p10)
- Operating cost $25.0m by 2035 (p11); $14.3m by 2039 and $22.6m by 2053 (p25); current $6.7m vs preferred $25.0m (p19)
- 2024-27 NLTP: PT service improvements $11.0m per annum (ORC) (p11)
- Frankton hub modifications $1.9m (p10); Stanley St interim $0.7m (95th percentile) (p10); interchanges $1.2m (p10)
- 18 high-capacity articulated electric buses in the new contract (p22)
- 231 public submissions on short-listed options (p17)
- Depot minimum footprint about 10,000 m2; $17m for charging and power connection (p9)
- Funding mix FY2023/24: 31% rates, 41% fuel excise duty, 28% fares (p24)
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.
Recommends that partners investigate offline mass rapid transit in 2024-27; this is outside the business case scope and absent from the listed funding requirements.
The summary gives off-line public transport its own heading in Part A. Section 2.13 'An Off-line Solution' states: 'Given the rapid growth occurring in Queenstown, an offline solution such as a gondola is suggested to be further investigated in the 2024-27 period. This will allow a lead time for investigation, consultation, land acquisition, design, procurement and construction' (p11). In Part B, after noting that the objective to maintain a functional network cannot be fully achieved by public transport services alone, it states: 'While outside the scope of this business case, an offline public transport system has the potential to drive further uptake in public transport. It is also recommended that the project partners investigate offline public transport options within the next NLTP period' (p20). The indicative scope for the next phase includes 'Investigation of off-line public transport route to supplement the bus and ferry based public transport network' (p11, p28). The list of elements requiring funding in the 2024-27 NLTP (p11) and the interventions table (p26-27) do not include this investigation, and no lead organisation or cost is given. Unlike the final combined business case, the summary does not include the statement that the articulated-bus network has capacity until 2053.
"Given the rapid growth occurring in Queenstown, an offline solution such as a gondola is suggested to be further investigated in the 2024-27 period. This will allow a lead time for investigation, consultation, land acquisition, design, procurement and construction." (p.11) | "While outside the scope of this business case, an offline public transport system has the potential to drive further uptake in public transport. It is also recommended that the project partners investigate offline public transport options within the next NLTP period." (p.20) | "Investigation of off-line public transport route to supplement the bus and ferry based public transport network." (p.28)
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Actions recorded
Fund public transport service improvements at $11.0m per annum in 2024-27, increasing to $25.0m per year by 2035.
Not assessed · ORC · 2024-27+ / Ongoing
Public Transport Service Improvements, ORC lead organisation, $11.0M per annum
Make interim Stanley Street bus hub changes for articulated buses ($0.6m).
Not assessed · NZTA · 2024-27
Stanley Street interim bus hub changes, NZTA lead organisation, $0.6M
Modify the Frankton Bus Hub (NZUP design) for articulated buses ($1.6m); lead shown as 'Way to Go' on p11 and 'NZTA / QLDC / ORC' in the table.
Not assessed · Way to Go · 2024-27
Frankton Bus Hub changes, Way to Go lead organisation, $1.6M
Develop the Remarkables Park hub ($0.8m); ORC is lead on p11 and p26 but the item is listed under QLDC on p10.
Not assessed · QLDC · 2027-2030
Remarkables Park hub, ORC lead organisation, $0.8M
Develop the Five Mile hub ($0.4m), dependent on Grant Road signalisation under NZUP; ORC is lead on p11 and p26 but the item is listed under QLDC on p10.
Not assessed · QLDC · 2027-2030
Five Mile hub, ORC lead organisation, $0.4M
Deliver an electric bus depot ($45.5m plus $14m land or lease); preferred staging 2024-27, secondary staging 2030-33.
Not assessed · ORC · 2024-27 (preferred) / 2030-33 (secondary)
Electric Bus Depot under preferred staging, ORC lead organisation, $45.5M
Deliver the SH6 bus lane from Kawarau Falls Bridge to William Rees Cottage ($3.6m), triggered by southern corridor growth.
Not assessed · NZTA · TBC – 2027-30
SH6 bus lane – Kawarau Falls Bridge to William Rees Cottage | NZTA
Improve local road intersections for articulated buses ($0.5m).
Not assessed · QLDC · 2024-27
Local intersection improvements, QLDC lead organisation, $0.5M
Show all 25 actions
Make bus stop changes on local roads ($0.6m).
Not assessed · QLDC · 2024-27
Bus stop changes on local roads, QLDC lead organisation, $0.6M
Make bus stop changes on the state highway network ($0.6m).
Not assessed · NZTA · 2024-27
Bus stop changes on state highway network, NZTA lead organisation, $0.6M
Investigate an offline solution such as mass rapid transit to allow lead time for consultation, land acquisition, design, procurement and construction.
Not assessed · 2024-27 period · Relevant to rapid transit
an offline solution such as a gondola is suggested to be further investigated in the 2024-27 period
Project partners to investigate offline public transport options.
Not assessed · NZTA · Within the next NLTP period · Relevant to rapid transit
recommended that the project partners investigate offline public transport options within the next NLTP period
Investigate an off-line public transport route to supplement the bus and ferry network (next phase scope).
Not assessed · Next phase · Relevant to rapid transit
Investigation of off-line public transport route
Project partners to investigate additional travel demand measures such as congestion charging.
Not assessed · NZTA · Not stated (implementation left to 'a subsequent project', p24)
additional travel demand measures such as congestion charging are investigated by the project partners
Endorse the business case by the Way to Go partners.
Not assessed · Way to Go · Next step
Endorsement of this Business Case by Way to Go partners
Reconfirm and reframe the Way to Go partnership to define responsibilities and accountabilities.
Not assessed · Way to Go · Next step
Reconfirmation and reframing of Way to Go partnership
Make the necessary NLTP funding applications and forward-work planning.
Not assessed · Next step
Necessary funding applications from NLTP and forward-work planning
Review the business case at least once per NLTP period.
Not assessed · Each NLTP period
Review of the business case at least once per NTLP period
Extend Unit 7 to 19 November 2028 and procure a new contract under the SPTF, including electric buses (18 articulated), new depot arrangements and more drivers.
Not assessed · ORC · 2028
contract for Unit 7 be extended to match the completion date of Unit 6
Identify a depot site: engage Aurora, landowners in Frankton and Coneburn, and bus operators; carry out due diligence; explore a 20-plus-year Queenstown Airport land lease.
Not assessed · ORC · After endorsement and ownership decision
next steps to identify a preferred location would be: Engage with Aurora
Create a new contracted unit for the Kelvin Heights ferry, improving frequency to hourly and revisiting fares.
Not assessed · ORC · 60-min 2024-27; 30-min 2027-30
recommended that ORC creates a new unit and contracts out this service
Appoint a Project Sponsor/Project Director to oversee the programme.
Not assessed · ORC
ORC will appoint a Project Sponsor/ Project Director
All partners to commit to prioritising public transport in traffic signal operation and enforcing bus lanes.
Not assessed · Way to Go
commitment to prioritise public transport in the operation of traffic signals and the enforcement of bus lanes
Develop on-demand services and factor them into consenting and approvals so growth can be serviced as it happens.
Not assessed
on-demand services should be developed and factored with consenting and approvals
Consider vehicle internal layout (luggage, ski equipment, mobility devices, prams) during fleet procurement.
Not assessed · Fleet procurement
internal layout of the vehicle is strongly considered during fleet procurement
Study cost
Costed with the parent document.
Citation
ORC. Queenstown Public Transport Business Case – Summary Report (2024).