Minister Chris Bishop to make transport pipeline announcement

New Zealand's transport infrastructure plans face an uncertain future for several key projects, with Transport Minister Chris Bishop revealing a new phased pipeline for Roads of National Significance (Rons). Five major road projects have been relegated to a "slow track," leaving their construction timelines unclear.

Concerns over funding and project sequencing have intensified, particularly in recent months. The war in the Middle East has exacerbated worries about escalating construction costs, driven by fuel price hikes and potential disruptions to bitumen supply. Furthermore, reduced petrol consumption due to high prices could impact government tax revenue, a critical factor for funding these large-scale projects.

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fuel excise duty has fallen in real terms by 21 per cent since 2020 when it was last increased, while construction costs have risen significantly over the same period, with the recent conflict in the Middle East contributing to that challenge

Minister Bishop acknowledged that "fuel excise duty has fallen in real terms by 21 per cent since 2020... while construction costs have risen significantly." He explained that a phased approach is necessary because "not all projects can start immediately." This involves extensive preparation, including route protection, detailed design, and property acquisition, before main construction can commence.

The pipeline divides projects into three phases. Phase one includes projects already underway, such as the Ōtaki to north of Levin Road, the Hawke’s Bay Expressway, and Takitimu North Link Stage 1. Procurement is ongoing for the Northland Expressway and the Cambridge to Piarere Road, with Stage 1 of the latter expected to begin construction in early 2027. Phase two projects are currently in the preparation stages for construction.

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The pipeline shows why a phased approach to delivering the Roads of National Significance is important. As I’ve said many times, not all projects can start immediately. It takes time to get projects ready for construction, with route protection (designations and consenting), detailed design, and property acquisition all needing to be completed before main construction works can begin.