State highways
- PPE managed by the New Zealand Transport Agency (NZTA) as at 30 June 2010
10,984 km of state highways
21.1 billion km of travel per annum including 210 million tonnes of freight
- Critical transport infrastructure
- Assets incur significant renewal, maintenance and operating costs
- Roads of national significance identified and related projects to be advanced
Description
State highways are a key element of national transport infrastructure. NZTA is responsible for managing the state highways and is also a significant funder of local roads. The National Land Transport Fund (NLTF) is the main source of NZTA funding. The NLTF is primarily funded by road users through fuel excise duty, charges on diesel and heavy vehicles (road user charges) and motor vehicle registration and licensing fees. The NLTF also funds Crown contributions to local roads and other transport infrastructure which do not feature on the Crown's balance sheet.
Performance
The following tables outline NZTA measures of state highway asset condition.
| 2006/07 | 2007/08 | 2008/09 | 2009/10 | |
|---|---|---|---|---|
| Classified as smooth | 99.0% | 99.0% | 99.0% | 98.8% |
| Good skid exposure above threshold | 99.0% | 98.0% | 97.6% | 98.4% |
| 2009 q3 | 2009 q4 | 2010 q1 | 2010 q2 | |
|---|---|---|---|---|
| Availability of state highway | 99.7% | 99.6% | 99.6% | 99.5% |
| 2003 | 2006 | 2009 | |
|---|---|---|---|
| Road user satisfaction | 78% | 73% | 89% |
| ($ million) | 2007 Actual |
2008 Actual |
2009 Actual |
2010 Actual |
2011 Forecast |
2012 Forecast |
2013 Forecast |
2014 Forecast |
2015 Forecast |
Total across forecast period |
|---|---|---|---|---|---|---|---|---|---|---|
| Opening balance | 17,930 | 19,400 | 20,947 | 24,085 | 24,861 | 25,662 | 26,452 | 27,186 | 27,946 | |
| Additions | 912 | 1,012 | 1,207 | 1,267 | 1,341 | 1,216 | 1,159 | 1,189 | 1,378 | 6,283 |
| Disposals | (27) | (26) | - | (17) | (15) | (20) | (15) | (14) | (14) | (78) |
| Revaluations | 884 | 863 | 2,290 | (64) | - | - | - | - | - | - |
| Depreciation | (299) | (302) | (377) | (407) | (393) | (395) | (400) | (405) | (405) | (1,998) |
| Other movements | - | - | 18 | (3) | (132) | (10) | (10) | (10) | (9) | (171) |
| Closing balance | 19,400 | 20,947 | 24,085 | 24,861 | 25,662 | 26,452 | 27,186 | 27,946 | 28,896 |
Source: The Treasury
Risks and challenges
The state highway network and its assets are currently deemed to be in adequate condition overall. Ongoing costs of renewal, maintenance and operation of state highways are significant with planned expenditure between 2009 and 2012 of $1.5 billion on these functions.
Government priorities
A state highway classification system to guide future investment and management of the network is being developed and will involve categorising state highways based on the volume of traffic they carry and the function they perform - whether that's the movement of freight, everyday travel or tourism.
The Government has identified seven essential state highways that are linked to New Zealand's economic prosperity. Called the roads of national significance, NZTA is charged with delivering these highway projects within the next 10 years which will improve the transport connections in and around the five largest urban centres.
Other possible funding and financing sources for the NLTF that could be considered to support investment include tolls, PPPs (where a business case can demonstrate sufficient benefits) and other third party contributions (such as developer contributions or borrowing).
