Toll Highway Failure Could Force Rethink
September 4th, 2008
Tauranga City Council could be forced to rethink its plan to build toll roads throughout the greater city region as Tauranga’s existing toll highway continues to under perform on traffic volumes and income. Route K in opened in 2003 to speed access to the city’s port especially for heavy vehicles but is struggling to generate enough traffic to cover its maintenance costs let alone recoup its construction costs. The situation has wider implications for toll road supporters too. It indicates if it was built as a Public Private Partnership it is unlikely to ever generate a return which would satisfy a private sector backer.
Free Route Undermining Toll Traffic. Although traffic volumes have grown from 2000 to 3800 vehicles per day in five years including 500 trucks, revenue last financial year totaled just $1.8m. The annual loss has now grown to $2.2m and Tauranga City Council estimates the road will not make a profit until 2024/25. Even this may be optimistic as the Council provides no indication as to why the situation will change other than population growth in adjoining catchment areas. The problem is an alternative free route is close by which is little slower, and motorists are voting with their wallets for this option. There seems no reason why motorists’ habits should change. It may well be a case of back to the drawing board for the Council. More and better public transport and cycleways may be more appropriate for the times.
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