Media Release
9 March 2004
Economic benefits of Eastern
Transport Corridor justifies strong commitment by central and local government – BERL report
An economic report that evaluates the strategic and economic importance of the Eastern Transport Corridor released
today, concludes the scale of possible benefits to Auckland and New Zealand would justify strong commitment by local and
central government to the development of the Eastern Transport Corridor.
The report, by Business and Economic Research Limited (BERL), says the corridor project is justified economically as it
will provide significant urban improvement benefits and economic development. For example, the report states that
economic growth in Glen Innes and Panmure areas in the Tamaki Edge alone could add $1-1.5 billion to New Zealand’s GDP
in 2030 if the Eastern Transport Corridor is built. In BERL's assessment the share of this growth attributable to the
ETC would be substantial.
It also says that if the ETC is integrated with other initiatives it would increase residential and employment density
and promote sustainable transport usage.
The report paints a picture of Auckland with the Eastern Transport Corridor as an attractive, enjoyable, and vital city
with ready access among communities to work, to play, and to culture. It also points to changed travel behaviours with
more walking, jogging, and cycling trips and more frequent and attractive public transport services.
It says the Eastern Transport Corridor will ensure Auckland assists in achieving the Government's growth objectives for
New Zealand. The corridor will also allow Auckland to retain and build its attractiveness as an internationally
competitive city.
The BERL report states that Auckland is constrained by sprawling suburbs of low urban and industrial density that have
fed growing traffic congestion. It says future population increases and GDP growth will be constrained without
commitment to change this pattern.
The report says economic research found iincreased transport capacity from Manukau to downtown Auckland through the east
is justified.
Report author Kel Sanderson says the Land Transport Management Act of 2003 and the New Zealand Transport Strategy
released in December 2002 broaden the vision for the role of transport investments, and therefore change the approach to
be followed in evaluating and developing transport infrastructure in New Zealand.
“Cost Benefit Analysis has been replaced with an evaluation approach designed to reflect a much broader range of
objectives, including assisting economic development,” he says.
This report is the first economic impact assessment of a major transport infrastructure project using this new
framework. A significant outcome from applying this broader framework of analysis is the conclusion that the Eastern
Transport Corridor is not just a transport project, but is an urban transformation and economic development project that
will increase Auckland’s capacity and ability to promote New Zealand’s growth
Sanderson says the potential for integrated growth driven by the Eastern Transport Corridor is large, and there are
clear opportunities to achieve this growth, especially by committing to transformation and economic development in the
Glen Innes and Panmure areas. He says there are many opportunities for committing to similar transformation and economic
developments along the length of the Corridor including developments at Sylvia Park, East Tamaki and the port.
“The actual level of benefit generated for Auckland and all of New Zealand by the Eastern Transport Corridor can be very
large, depending on the specific opportunities developed.”
Ends