Transit's Auckland tolls likely to reap $75m a year

Transit NZ expects to reap $75 million a year from Aucklanders in western ring route tolls by 2021, according to initial modelling, but says it will take some time to reach that level.

The agency yesterday cautioned against simply multiplying the figure by the minimum 35 years it wants to charge motorists to repay a proposed $800 million construction loan, subject to gaining strong community support for completing the 48km route by 2015.

But an average annual toll take of $75 million would push revenue from the life of the project to more than $2.6 billion - over and above the $1.3 billion that the Government has already pledged to the Manukau-Albany route through traditional funding.

Although Transit says more detailed modelling needs to be conducted next year, it hopes to provide fuller financial details before the end of this week, including indicative loan repayment schedules.

In a preliminary report for Transit, consultant Beca Infrastructure predicts annual revenue of $75 million in 2005 dollars from 45 million vehicles using the route by 2021 and paying an average toll of $1.66.

After deducting $20 million a year in transaction costs, at an assumed 25c each time a vehicle passes under one of seven electronic toll gantries, it predicts a net revenue of $55 million.

Transit is proposing a peak-time toll of $7 plus inflation for cars covering the full route - double for trucks.

Most of the loan would be needed for a 5km motorway link through Waterview, which Transit says could cost between $1 billion and $1.5 billion.

Waterview project manager Clive Fuhr said it was important to consider the ring route as one integrated motorway, from which full benefits (including up to 40 minutes saved at peak times) would not be available until all components were in place.

Some tolls could start as early as this time next year when the $100 million Greenhithe motorway opens.