The Government has announced a record $32.9 billion investment in New Zealand’s transport network through the 2024-2027 National Land Transport Programme (NLTP).

Transport Minister Simeon Brown says that this investment will create a more reliable and efficient transport network that boosts economic growth and productivity, with “investment in transport projects that reduce travel times, improve public transport options, and build and maintain our roading network to the safe and reliable standard Kiwis expect”.

Key highlights of the NLTP, Brown says, include that it:

• delivers on the coalition agreements to reintroduce the Roads of National Significance (RoNS) programme, with a pipeline of 17 RoNS across the country;
• focuses on maintenance and pothole prevention to reduce the number of potholes on roads;
• supports reliable public transport services and delivers four new major public transport projects; and
• ensures Councils are “doing the basics brilliantly, with increased pothole prevention, reduced funds for cycleways, and no funds for speed bumps”.

The NLTP prioritises 17 RoNS to create a pipeline of roading infrastructure across the country. Takitimu Northern Link Stage 1 is already underway with Otaki to North of Levin to begin construction next year. According to Brown, NZTA is now adding seven further projects to begin procurement, enabling works and construction in the next three years.

This transport plan includes a $6.4 billion investment in public transport services and infrastructure. Brown states that the City Rail Link, which started under the previous National Government, will double Auckland’s rail capacity and reduce congestion when it opens in 2026.

“We are also increasing resilience by replacing nine priority bridges across the State Highway network and progressing work on a second Ashburton Bridge as a Road of Regional Significance. The Government will also replace the important Pages Road Bridge in Christchurch as a local road project,” Brown explains.

The Government has earmarked $5.5 billion for road maintenance which will focus on resealing, rehabilitation, and drainage improvements to prevent future issues. In 2023, 62,000 potholes were recorded on state highways alone.  

During the announcement, Nicole Rosie, Waka Kotahi NZ Transport Agency Chief Executive, said, “The ambitious roads of national significance and roads of regional significance that the minister has outlined for you will see the building of strategic corridors that will connect new housing areas for population growth and provide key links to export markets. They’ll also improve safety, help get goods to markets more efficiently and effectively, and will build greater resilience into the roading network.”

Comment

Following this Government’s pull back of several of the previous Government’s reforms (e.g. Three Waters and the Resource Management Act), many civil construction companies downsized their businesses as there have been fewer projects coming to market. While this record investment into the transport network should be good news for civil contractors, those businesses may need to think about plans for increasing their capacity to be able to take on these projects. 

While this is not a simple task, particularly with the shortage of skilled workers in New Zealand currently, we would advise that contractors start thinking and planning for this as soon as they can.