Queenstown Road Pricing Proof-of-Concept Study

Context and purpose: The Whakatipu Basin population is expected to double in 30 years, with an 80% increase in housing and 45% in employment (p.2). Recent business cases (QBC 2021, QPTBC 2024, TDM SSBC 2023) identified solutions, but also 'a clear deficit between what the infrastructure and public transport improvements can deliver, and what is required to maintain acceptable network function', and funding remains uncertain (p.2). QLDC, as part of Way to Go, commissioned this proof of concept (PoC) to understand how road pricing might support transport objectives (p.7). It is 'for conceptualisation and framing only' and 'does not constitute Council policy' (pp.2, 7). There is no enabling legislation; the GPS 2024 signals time-of-use charging reform (pp.2, 13–14).

Method: Four facilitated workshops with QLDC, ORC and NZTA officers set principles and objectives, generated and shortlisted concepts, considered complementary measures and future-proofing (pp.7, 15). Analysis used elasticities from Stockholm (-0.87) and Gothenburg (-0.69), TomTom origin–destination data calibrated to NZTA counts, MBCM diversion rates (40% of trip reductions to PT), a $0.75 transaction cost and a 50% revenue reduction for variable pricing (pp.20–21). Equity and environmental impacts were out of scope (p.8).

Context findings: The QBC found SH6A practical capacity was exceeded on about 140 days in 2019 (p.9). Business case analysis 'indicated that the public transport improvements alone will be insufficient to maintain an acceptable transport network level of service', and there is a risk that mode shift will not be achieved through 'pull' measures alone, since buses largely use the same congested network (pp.9–10).

Options: Six concepts were reduced to three (p.18): A, a single SH6A gate (17–24% SH6A reduction, $10m net revenue, but diversion via Gorge Road and the one-lane Edith Cavell Bridge); B, multiple gates (10–17%, 95th-percentile SH6A time 25→20 min, $27m, 300–400k new PT boardings); C, multiple zones (11–18%, $35m, 400–900k boardings) (p.21). Stakeholders preferred B as more targeted, user-centric and legible (p.23). Gates: SH6A east of Marina Drive, Gorge Road, Fernhill, Shotover River Bridge, Kawarau Falls Bridge; $5 peak (7–10am, 4–7pm), $2 interpeak, weekdays, capped at one charge per trip (p.23).

Future years: Against QPTBC 2039 scenarios, maintaining 2023-equivalent performance needs about $15 peak charge with minimal PT (Do Minimum) or about $10 with Bus Max, each generating about $40m net revenue (p.25). Road pricing 'can make a significant contribution to achieving the target mode share' but is 'not a complete solution' (p.26). Three of the five gates are on state highways, so NZTA could set charges with revenue returned to the region (p.27).

Engagement and recommendations: A staged approach is proposed: Council briefing (Stage 0), key stakeholders, public engagement and a deliberative democracy process (pp.28–30). The study 'does not recommend that the scheme concept be implemented without further investigation', and lists equity, tourist impacts, pre-requisites (viable PT alternatives) and revenue hypothecation for further work (pp.31–32). Key findings: road pricing could reduce congestion, increase PT mode share and generate net revenue (p.32).

Mass rapid transit: The document says nothing about mass rapid transit. Complementary measures discussed are bus-based (the QPTBC 'Bus Max' option), active modes, trip timing and travel demand management.