The 2012 NLTP Investment Outlook
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Transcript of The 2012 NLTP Investment Outlook
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The 2012 NLTP Investment Outlook
Geoff Dangerfield, Chief Executive, 10 February 2011
The Planning & Investment
System
National Land Transport FundNational Land
Transport Fund
State HighwaysState Highways
Local RoadsLocal Roads
Road PolicingRoad Policing
Public TransportPublic Transport
Community Programmes/SafetyCommunity Programmes/Safety
Rail and Sea FreightRail and Sea Freight
Walking & CyclingWalking & Cycling
Transport PlanningTransport Planning
1920
900
870
120
100
50
00
Mgmt – Funding AllocationMgmt – Funding Allocation100
Local Government Funding
Local Government Funding
1760
720
90
20
30
00
Crown Funding - RailCrown Funding - Rail
1170
Ministry of Tourism Ministry of Tourism 50
Land Transport Expenditure – 2009/12
Est. total: $13.5 billion
$m
4590
NLTF PLANNING & INVESTMENTRespective roles of the Minister, Local Government & NZTA
Land Transport Management Act
Government Policy Statement
Regional Land Transport
Programmes
National Land Transport
Programme
LTCCP’s & other local strategies
Regional Strategies & Plans
Investment and revenue strategy
- Minister/Ministry
- Local Government
- NZTA
Enhance transport efficiency and lower the cost of transportation through the following impacts:
improvements in journey time reliabilityeasing of severe congestionmore efficient freight supply chainsbetter use of existing transport capacity.better access to markets, employment and areas that contribute to economic growtha secure and resilient transport network.
2009 GOVERNMENT POLICY STATEMENTThe Investment ‘Brief’
$0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5
New and improved infrastructure for State highways
Road policing
Maintenance and operation of State highways
Maintenance and operation of local roads
Renewal of local roads
Renewal of State highways
Public transport services
New and improved infrastructure for local roads
Demand management and community programmes
Public transport infrastructure
Transport planning
Management of the funding allocation system
Walking and cycling facilities
.
Minimum
Expected
Maximum
Expected Expenditure on Transport Infrastructure - 2009/10 to 2011/12
(NZ$bn)
2009 GPS FUNDING RANGESThe Investment Parameters
Strategic fit
Alignment with the Government’s direction
Effectiveness
How well the project/package achieves the strategic outcomes
Economic efficiency
Benefit cost ratio or cost effectiveness
High, Medium or Low assessment for each
INVESTMENT DECISION-MAKINGThe decision criteria
STRATEGIC FITThe policy test
The current ‘top’ priorities
RONS and local roads critical to RONS
Key freight and tourism routes
Key urban arterials
Model urban walking and cycling communities
Public transport making significant contributions to easing severe congestion
Optimising existing capacity and levels of service on highly trafficked roads
Low Medium High
Minimum
Meets LTMA/NZTS objectives
Affordable
Considers appropriate alternatives and options
Considers adverse effects or impacts
Appropriate scale
Low criteria PLUS
Part of a strategy, package or plan
Optimised
Enduring benefits
Considers land use strategies and implementation plans
Low + Med PLUS
Integrated between transport modes
Integrated with land use and other infrastructure
Supports networks from national perspective
EFFECTIVENESSThe best practice test
EFFICIENCYThe value test
For improvements the primary measure of economic efficiency is benefit cost ratio
Low Medium High
BCR ≥ 1 and < 2
BCR ≥ 2 and < 4
BCR > 4
Towards the 2012 NLTP
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STARTING POINTS (1) Delivery against the 2009 NLTP
STARTING POINTS (2)The forward commitments for 2012 and beyond
Most forecast revenue will be committed to maintaining and optimising what we’ve got and investing in planned improvements
0
500
1000
1500
2000
2500
3000
3500
2009/10 2010/11 2011/12 2012/13 2013/14 2014/15
$mil
lio
ns
2009-12 & 2012-15 NLTPs - Total expected spend & commitments
Discretionary funding
Commitments (incl. Group allocations)
Actual spend 2009/10
Programme commitments
STARTING POINTS (3)Key drivers for the 2012 NLTP
• GPS 2012 • RLTS, RLTPs
• Safer Journeys (and Road Safety Action Plans)
• State highway classification • RONS programming • Auckland Spatial Plan • Public Transport – sector action
plan• Freight efficiency – sector action
plans
EMERGING THEMES (1)Sharpening our strategic intent
Clearer strategies and alignment of programmesFocus on all components of our land transport networksBetter links between programmes and strategy
Greater optimisation
extracting maximum value from past/current investment
the optimal balance between maintenance and improvements
Increased focus on user perspectives
Better definition of the desired levels of service e.g. KiwiRAP
Basis for understanding network access charging
EMERGING THEMES (2)Lifting the efficiency equation
Improved costing e.g. whole of life costing of programmes and projects
Sound land use and transport planning – assessing the need for future transport investment
EMERGING THEMES (3)Lifting the effectiveness of our investments
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IN CONCLUSIONThe challenge for us all
• Maintaining and optimising what we’ve got
• Meeting our forward commitments
• Giving effect to Government and regional direction
• Meeting transport user and ratepayer expectations
• Optimising the above within flat-lined revenue