QUEENSTOWN BUSINESS CASE KEY PROBLEMS

Queenstown Transport

Business Cases

Queenstown TC DBC

Frankton to Queenstown (NZUP) SSBC

Passenger Transport IBC

Que

enst

own

Inte

grat

ed T

rans

port P

BC

Other Business Cases

Masterplans

Town centre PBCParking IBC

Arterials IBC

Grant Rd to Kawerau Fall

Bridge IBC

Ferry IBCMRT IBC

Queenstown town centre

Frankton Queenstown

AirportQueenstown event centre

Lake Wakatipu Public Water Ferry

Services DBC

Active Travel Network SSBC

Peop

le

0

50,000

100,000

150,000

200,000

2018 20482028

GROWTH FORECAST

Resident population

Peak day visitors

Avg day visitors

CAR DEPENDENCY

CarTour coach

Bus9%

7%83%

Active modes1%

If these problems are not resolved, it is

estimated that there will be between a

$670M to $1.2 billion loss to the

Queenstown economy, over a 40 year period,

through visitors travelling elsewhere

“

“

SH6A FLOW PROFILESV

ehic

les

per

day

0

17500

19500

21500

23500

Jan JulApr DecOct

25500

27500

29500

31500

20192015 2017 Road capacity

Feb Mar May Jun Aug Sep Nov

TRAFFIC GROWTH COMPARISON

0%

10%

20%

30%

40%

2012 20182015

50%

60%

70%

Wellington SH1Queenstown SH6 Christchurch SH1

2013 2014 2016 2017 2019

Tauranga SH2 Auckland SH1

The Queenstown area is one of New Zealand’s fastest growing regions, driven by growth in population, the tourism industry and supporting activities. This growth is placing increasing pressure on infrastructure and, in particular, the transport system.

This Queenstown Business Case provides a detailed assessment of the previous work undertaken and direction set by the Queenstown integrated Transport PBC and the QTC Masterplan PBC. Both of these PBC recommended programmes, that were economically robust, sought to address the following key identified issues:

• Efficiency.

• Amenity,

• Safety,

• Resilience.

While Covid-19 has affected current growth rates, these are expected to recover by the medium term and do not compromise the findings of this business case.

The agreed investment objectives of the business case are to:

1. Provide more efficient and reliable access for people and goods that:

• Sustainably manages growth

• Reduces reliance on private vehicle travel

• Enables enhanced land use

2. Is adaptable to change and disruption

3. Enhances the livability and quality of the natural and built environment

4. Enhances safety with a goal of vision zero.

A wide range of interventions and programmes have been considered in the development of this business case. The overarching philosophy when developing the preferred programme was to shift the current reliance on the private vehicle, providing users with choice, and to have a programme that is adaptive and scalable such that a response is agile to respond to uncertainties in the future.

A key outcome of the assessment process was that additional road capacity for State Highway 6A (SH6A) between Frankton and Queenstown would be unfeasible due to cost and geotechnical challenges. Furthermore, a step change is required to achieve the 40% alternative mode share needed during the PM peak on SH6A by 2028 to meet the investment objectives.

The recommended programme has therefore identified a mixture of infrastructure, public transport and travel behaviour change improvements for implementation.

Why invest?

• Peak day residential population is forecast to grow fromapproximately 120,000 in 2018 to 200,000 in 2048.

• SH6A practical capacity was exceeded on 140 daysin 2019 resulting in high levels of delay and congestion.

• Private car trips make up 83% of trips on SH6A which isnot sustainable impacts resident and visitor growth opportunities, efficiency, amenity, safety and network resilience.

• An estimated $ 670 million to $1.2 billion loss to theQueenstown economy will occur, over a 40 year periodthrough reduced visitor arrivals and/or activity.

Spatial Plan

Spatial Plan

Attachment A

91

QUEENSTOWN BUSINESS CASE PROGRAMME DEVELOPMENT

The development of the recommended programme involved an iterative optioneering process alongside stakeholders representing local Iwi, businesses, and community groups, as follows:

• More than 300 options were put forward (240 ideas for Queenstown Town Centre and 140 ideas for Frankton to Queenstown).

• Options that did not meet at least one of the project’s Investment Objectives were omitted. The remaining interventions were then categorised into 9 ‘strawman’ shortlist packages, ranging from car-focused to public-transport focused.

• The original scope was extended to include Frankton and Ladies Mile to provide a comprehensive assessment of the Wakatipu Basin transport system

• Integration with the Queenstown Spatial Plan, through regular communication with the spatial plan team.

• The best performing components of each package would then be reassembled into an optimised preferred programme.

SUMMARY OF FUNDING SOURCES (10 YEAR PROGRAMME)

NZUP

$107m

ORC$269m

CIP$119m

QLDC$151m

Waka Kotahi

$26m

The Benefit-Cost Ratio for the committed programme phases

of the overall project is 2.3

“ “Do nothing

Do Minimum + RTI

QTC masterplan preferred

Private vehicle friendly

Optimise existing

Public transport friendly

Get about with ease

Urban hub

Cars not needed

117

127

248

161

211

276

300

Relative Score

266

304

9

8

5

7

6

3

2

Ranking

4

1

Note: not in ranked order

Mor

e ca

r ba

sed

More PT

based

SHORTLIST MULTI-CRITERIA ANALYSIS

IO1 IO2 IO3 IO4

NZ Upgrade Programme and CIP funding was also secured in 2020 which has reduced the overall funding requirements of this business case.

Implementation of the recommende programme will enable the full value of these investments to be realized. The integrated programmed has therefore been shown in three parts:

1. Committed Activities,

2. Supporting Activities: Where funding is sought (2021-2027 NLTP Periods), and

3. Other Activities: Where programme endorsement is sought (2027+)

4. Other Activities: For noting only as potential future activities which will be subject to further evaluation.

Longlist300+ elements

Full Priority$300M

Offline Priority$5M

ShortlistingDeveloped 9 packages

Emerging Programme

Preferred Programme

Infr

astr

uctu

re

PT

Ser

vice

Trav

el B

ehav

iour

Cha

nge

RecommendedProgramme

NZUP+ CIP

*

1

Do

Not

hing

2

Do

Min

imum

with

RTI

3

QTC

Mas

terp

lan

Pre

ferr

ed

4

Priv

ate

Vehi

cle

Frie

ndly

5

Opt

imis

e Ex

istin

g

6

Pub

lic T

rans

port

Frie

ndly

7

Get

Abo

ut w

ith E

ase

8

Urb

an H

ub

9

Peop

le o

ver C

ars

*Approved 2019

Scope extended to include: Frankton +Ladies Mile

Mode Share Requirements Confirmed40% by 2028 l 60% by 2048

RECOMMENDED OPTION - 10 YEAR PROGRAMME

$114M

PT Services and Infrastructure

$162M $374M 2.3NZUP Enabled PT ServicesStanley + Shotover StreetsQueenstown Bus Hub

Programme60-year NPV

Cost BenefitBCR

Full ProgrammeNZUP Enabled PT ServicesStanley + Shotover StreetsQueenstown Bus HubTown Centre Upgrades - Stage 2Queenstown Arterial - Stage 2Queenstown Arterial - Stage 3

LIFETIME PROGRAMME - 50 YEAR

$295M $445M 1.5

$187M 1.6Offline public transport (inc. Frankton Bus Hub)

EXPENDITURE PROFILE (10 YEAR PROGRAMME)

$0

$20m

$40m

$60m

20252022 2028

$80m

Waka Kotahi NZUP CIP

2021 2023 2024 2026 2027 2029

QLDC ORC

$100m

$120m

$140m

$160m

Includes Crown and QLDC funding for Arterials – Stage 1 and Town Centre Street Upgrade – Stage 1

92

QUEENSTOWN BUSINESS CASE PREFERRED PROGRAMME

2018 2021 2024 2027 2030+

Arterial developments Area improvementsPublic transport

PT ServicesSH6A

Improvements

Travel Demand Management

package

Travel Demand Management

package

Travel Demand Management

package

Ladies Mile Improvements

Town Centre Upgrade – Stage 1

Town Centre Upgrade – Stage2

Travel Demand Management

package

Offline PT Service ImprovementsPT Services

Behavioural Change

Programme Endorsement Sought Funding Sought

Funding Sought

Stanley Street and Shotover Street Improvements

Funding Sought

Funding Sought

Funding Sought

Stanley StreetBus Hub

Funding Sought

NZUP

GR2KFB Improvements

NZUP

CIP

NZUP

Programme Endorsement Sought

On Road PT Service Improvements

Programme Endorsement Sought

Programme Endorsement Sought

Programme Endorsement Sought

Arterials – Stage 1 Arterials – Stage 2 Arterials – Stage 3

Funding SoughtCIPProgramme

Endorsement Sought

Outcomes

Preferred Programme• Town Centre – Arterial Stage 1 and streetscape upgrades.

• SH6A Corridor Improvements – Targeted PT priority and intersection improvements.

• SH6 Ladies Mile Corridor Improvements - Targeted PT priority and intersection improvements.

• SH6 Improvements - Targeted PT priority, intersection improvements, town centre upgrades and an upgrade to the existing Frankton bus hub.

• Other infrastructure – Stanley Street PT Hub, Arterials Stage 2 and Stage 3, increased active mode amenity.

• Public Transport Services – Enhanced PT fleet, Ferry services and PT hubs.

• Travel Behavioural Change – Travel demand management and parking management.

In summary, the proposed interventions will deliver the following key benefits and fufill the projects investment objectives:

• Corridor capacity increases in excess of 100% on the most constrained parts of the network will allow the Queenstown area to continue the grow and flourish as a tourist destination of international standing and a high quality place to live. This is estimated to unlock between $670M and $1.2 billion of economic growth.

• The delivery of a BRT based transport system, coupled with travel demand management measures, will improve travel times across the network by over 20%, along with significant reliability improvements.

• The suite of improvements in the town centre will increase the quality of the built environment stimulating development.

• Safety and access improvements across the network.

0

1000

2000

3000

3500

2021-2025 2031-20352026-2030

SH6A MOVEMENT CAPACITY

Car capacity(at capacity now)

Bus spare capacity

Forecast PT demand

Forecast people movement

Peop

le

500

1500

2500

2036-2040

MODEL SH6A TRAVEL TIMES 11AM-12PM

2018 2028 2048

2

4

6

8

0

Tra

vel T

ime

(min

)

Maximum

Average

Minimum

10

12

14

16

2028 Do-Min 2028 Preferredprogramme

Increase PT capacity incrementally*

*Interventions scheduled to achieve value for money and address capacity constraints

• Infrastructure to support PT services

• Town centre traffic reduction

• Town centre urban realm improvements

Outcomes

• Improved PT capacity

• Town centre hub

• Further town centre improvements

• BRT services

• Step change in PT capacity

• Further town centre traffic reduction

• Offline PT providing additional capacity

93

QUEENSTOWN BUSINESS CASE ADDITIONAL INFORMATION AND NEXT STEPS

Delivery approach:As part of the NZUP and CIP funding, an alliance approach has been agreed between the investment partners for delivery of these critical infrastructure projects.

Key risks:Risk allocation is dependent on the procurement approach and delivery model. For the projects that are delivered through the traditional approach it is expected that most risks would remain with QLDC or Waka Kotahi, but for the alliance it is expected that many of the risks would be transferred to the alliance.

A key philosophy is that the risks will be allocated to the organisation that is best placed to manage them. This requires that the individual projects develop their own risk registers for their next stage (under the traditional approach). These would be managed together under an alliance.

The key risks outlined in the commercial case for the recommended programme are:

1. That even with the infrastructure and service improvements in place the minimum mode shift target is not achieved to maintain a functioning transport as behavioural change to travel by non-car -modes has not occurred.  Mitigation includes recommending a wider transport package with travel demand management and behavioural change initiatives developed and implemented.

2. That we are not be able to rely on the compulsory acquisition provisions of the Public Works Act to acquire all the land needed in time for planned construction start date, noting that here is a significant number of portions of privately owned land that is required for the package. This could cause delay to the programme.   Mitigation includes the early development of the project property strategy and the early identification of the required properties for discussions to begin with property owners. Consideration of staging of construction also may help to minimise the delay from property acquisition.

3. There is a risk that the costs increase as more detailed assessment and investigation is complete.  Mitigation of this risk includes the business case work going into a high level of detail to reduce this risk.  Also, the parallel estimate currently being undertaken will provide a greater level of certainty with the project cost.

Next steps:1. The Queenstown Business Case programme is endorsed by the by Way to Go partners

2. A data improvement plan and final benefit realisation plan is delivered and signed off by the Way to Go Board

3. A parking implementation plan is delivered by Queenstown Lakes District Council, that is consistent with the Parking Strategy and able to support the ambitious mode share targets.

4. That a Travel Demand Management SSBC is progressed with urgency

5. That the Public Transport Services DBC is progressed with urgency.

Artists impression94

5aa. Queenstown Transport Business Case Poster