Chapter G1 Creating an assessment profile

G1.4 Guidance on strategic fit rating

Introduction

This section gives general guidance to assist with rating the strategic fit of activities and combinations of activities for developing an assessment profile.

The strategic fit rating is dependent on the activity class. The NZTA's detailed methodology for rating strategic fit is set out in chapters G4 to G10.

Alignment with strategic direction

The strategic fit rating is a measure of how an identified problem, issue or opportunity that is addressed by a proposed activity or combination of activities, aligns with the NZTA's strategic investment direction.

Reference: For details of the NZTA's strategic investment direction, see section B1.8.

Potential solutions excluded

The strategic fit must be assessed without considering potential solutions.

Source of criteria

The strategic fit criteria are derived from the GPS and the NZTA's strategic investment direction.

Evidence required

Evidence on the strategic fit must be submitted through LTP online, preferably as part of a study or strategy.

Definitions and explanation

This section sets out definitions and explanation of terms that are common to strategic fit assessment for a number of activities.

Terms in bold in this section are as defined in this section.

Roads of National Significance

Roads of National Significance (RONS) are listed by the government in the GPS. In general terms they are:

• Puhoi to Wellsford – State highway 1
• Completion of the Auckland Western Ring Route – State highway 20/16/18
• Auckland Victoria Park bottleneck – State highway 1
• Waikato Expressway – State highway 1
• Tauranga Eastern Corridor – State highway 2
• Wellington Northern Corridor (Levin to Wellington) – State highway 1
• Christchurch motorway projects.

Local roads critical to RONS

These are local roads connecting to RONS that are critical to realising the benefits of the RONS. These local roads will be identified by the NZTA in consultation with relevant stakeholders.

Tourism routes

Tourism routes are defined in the NZTA's Tourism Plan (to be released December 2009). This guidance is interim pending completion of this plan.

Tourism routes:

• provide access to tourism areas with forecast tourists (domestic and international visitors) greater than 5 million per annum (eg Waipu to Taupo, Amberley to Ashburton), or
• have tourism flows greater than 60% of the total traffic and greater than 1 million tourists per annum, or
• provide access to one of the top five tourism areas outside major urban areas.

Freight routes

Freight routes are defined in the NZTA's Freight Plan (to be released December 2009). This guidance is interim pending completion of this plan.

Freight routes are:

• connections between freight generators and attractors with traffic volumes of greater than 1,000 heavy commercial vehicles per day, including:
  • ports
  • airports
  • distribution centres
  • areas with a high concentration of firms, ie at a local authority level, the number of firms in the local authority area is greater than 2% of the total number of firms in New Zealand;

or

• a route that:
  • handles a volume or value of freight that is greater than 10% above the national total, or
  • handles significant volumes or values of specialised commodities not normally transported on routes;

  and

  • has no freight transport alternative if the route is closed.

Critical urban arterials

Critical urban arterials will be identified by the NZTA in consultation with relevant stakeholders.

These are arterials that provide access to one or more of the following:

• significant markets; or
• significant areas of employment; or
• significant areas of economic growth;

and:

• with average annual daily traffic (AADT) greater than 20,000 vehicles per day; or
• where there is a high potential for the route to be closed for more than 5 working days and there is no alternative route for closure.

Significant markets

Significant markets means areas with:

• volume or value of freight greater than 20% of the national total
• specialised freight not suited to other hubs; or
• areas with a high concentration of firms, ie at a local authority level, the number of firms in the local authority area is greater than 2% of the total number of firms in New Zealand.

Significant areas of employment

Significant areas of employment means areas with:

• share of employment greater than 2% of the total number of employees in New Zealand.

Significant areas of economic growth

Significant areas of economic growth means:

• areas where growth in total number of firms over the last 5 years is more than 20% above the national average; or
• areas where growth in number of firms in an industry over the last year is more than 20% above the national average for that industry; or
• areas where growth in employment over the last 5 years is more than 20% above the national average; or
• one of the top 5 tourism areas outside major urban areas.

Key routes

Key routes are routes providing access to:

• Markets, areas with:
  • volume or value of freight greater than 10% of the total volume or value of freight in New Zealand; or
  • areas with a high concentration of firms, ie at a local authority level, the number of firms in the local authority area is greater than 1% of the total number of firms in New Zealand; or to:
• Areas of employment, areas with:
  • share of employment greater than 1% of the total number of employees in New Zealand; or to:
• Areas of economic growth, areas with:
  • growth in number of firms over the last 5 years is more than 20% above the national average; or
  • growth in number of firms in an industry over the last year is more than 20% above the national average for that industry; or
  • growth in employment over the last 5 years is more than 20% above the national average.

Main urban areas

Main urban areas are as defined by Statistics NZ. They represent the most urbanised areas in with respect to the concentration of employment, firms and population. Main urban areas are centred on a city or main urban centre. They have a minimum population of 30,000 and an above-average concentration of businesses (typically greater than 90 businesses per 1000 population).

Under these criteria the main urban areas are represented by Whangarei, Auckland, Hamilton, Tauranga, Rotorua, Gisborne, Napier-Hastings, New Plymouth, Whanganui, Palmerston North, Kapiti, Wellington, Nelson, Christchurch, Dunedin and Invercargill.

Reference: For maps, see http://www.stats.govt.nz/browse_for_stats/people_and_communities/geographic_regions/urban-rural-profile/urban-rural-profile-maps.aspx

Major urban areas

Major urban areas have the highest concentration of economic activity in employment and firms. These are represented by the major business and employment areas within the main urban areas of Auckland, Hamilton, Tauranga, Wellington, Christchurch and Dunedin.

Tourism areas

Tourism areas are defined in the NZTA's Tourism Plan (to be released December 2009). This guidance is interim pending completion of this plan.

The top five tourism areas outside major urban areas are Taupo, Roturua, Franz Josef/Mount Cook, Queenstown/Milford Sound, and Hamner Springs.

Volume or value of freight

For ports and airports, volume or value of freight as used in this section can be taken as the combined volume or value of imports and exports.

Reference: For detail on value of imports and exports, see http://www.stats.govt.nz/methods_and_services/tablebuilder/exports-and-imports-tables.aspx

Firms

Firms means geographical units as defined by Statistics NZ. This is a separate operating unit engaged in New Zealand in one, or predominately one, kind of economic activity from a single physical location or base.

Reference: For information on geographical units, see http://www.stats.govt.nz/methods_and_services/tablebuilder/business-statistics.aspx

Employment

Employment, as used in this section, is the employee count as defined by Statistics NZ.

Reference: For information on employee count, see http://www.stats.govt.nz/methods_and_services/tablebuilder/employment-and-unemployment-tables.aspx

Safety

Potential for significant improvements in safety means:

• where there is a potential to reduce accident costs by at least 50% when analysed in accordance with Appendix A6 of the NZTA's Economic evaluation manual, volume 1
• risk of road accident reduction and the mitigation measures is assessed in accordance with Appendix A13 of the NZTA's Economic evaluation manual, volume 1, for projects for which risk analysis is required as specified in Part C Regional land transport programmes.

A relevant road safety strategy

Significant improvements resulting from implementing a relevant road safety strategy means where a road safety strategy that has been endorsed by the NZTA identifies the potential for significant road safety improvements.

The Ministry of Transport Road Safety to 2010 Strategy is to be replaced by the Road Safety to 2020 Strategy in December 2009.

Journey time reliability

Journey time reliability is the reliability of trips on the network, as defined in section 3.5 of the NZTA's Economic evaluation manual, volume 1.

Congestion

Congestion is where:

• the volume to capacity ratio exceeds 80% for 5 days per week over at least a 1 hour time period that affects at least 1.5 km of a route.

Severe congestion is where:

• the volume to capacity ratio exceeds 100% for 5 days per week over at least 1 hour in a time period on at least 3 km of a route; and
• with average annual daily traffic (AADT) greater than 20,000 vehicles per day

Reference: For information on the volume to capacity ratio, see Appendix A3 of the NZTA's Economic evaluation manual, volume 1.

Network security and reslience

Network security means the elimination of risks or effects of a distruption. Network reslience means the ability of the network to withstand, or recover quickly after a disruption. Both of these require consideration of the effects of:

• risk from natural hazard or other transport operation disruptions, and
• level of service.

Potential to meet agreed levels of service, to optimise levels of service or for significant improvements in network security and resilience, requires that:

• there is no alternative route, and
• the route is demonstratively susceptible to disruption.

Road levels of service

Agreed levels of service mean the maintenance target values for the particular road group set out in the NZTA's Maintenance guidelines (PDF, 391 kb) for local roads, or as otherwise agreed with the NZTA.

General considerations for optimisation

For general criteria to consider during optimisation, see section C10.3 and chapter G2 Standard criteria and considerations for assessment.

Optimisation of levels of service for roads

Optimisation of levels of service for roads involves rational analysis of:

• road traffic demand forecasts
• asset condition
• asset deterioration/life
• service level targets
• whole-of-life costs
• risks and mitigation
• decision-making processes,

and

• maintaining the existing levels of service, including the service level target values, with reduced resources, or
• increasing the existing service levels, including the target values, within existing resources in response to changed demand, or
• reducing government costs while maintaining the existing service levels, including the target values,

through the consideration of

• making better use of existing infrastructure, and
• extracting maximum value from existing infrastructure.

Optimisation of PT services and infrastructure

Optimisation of public transport services and infrastructure involves rational analysis of:

• passenger transport demand forecasts
• passenger transport policies and measures, including farebox recovery policy
• related strategies, eg land use, demand management, walking and cycling
• service level targets
• whole-of-life costs
• risks and mitigation
• decision-making processes,

and

• reducing the government cost per passenger in the medium to long-term,

through the consideration of

• making better use of existing services and infrastructure, and
• extracting maximum value from existing services and infrastructure.

Making better use

Making better use of existing services and infrastructure means fully considering and analysing existing services and use of infrastructure and identifying opportunities for change without significant additional expenditure.

Extracting maximum value

Extracting maximum value from existing services and infrastructure includes optimising services and the use of existing infrastructure.

PT patronage during peak times

Significant increase in public transport patronage during peak times in major urban areas with severe congestion means:

• making public transport a viable alternative to private vehicle travel
• increasing public transport patronage in peak times from mode change that increases the effective travel capacity of the network.

Transport choice

Transport choice means making available to transport users, particularly those with limited access to a car or who are vulnerable to changes in fuel prices, alternative means of transport.

PT network and interchange capacity constraints

Significant improvements in public transport network and interchange capacity constraints means reducing the capacity constraints such that patronage during peak times is increased.

Model walking/cycling communities with objective to reduce congestion

Model walking/cycling communities are defined in the NZTA's Model Walking/Cycling Communities Plan (interim under development, final to be released December 2009).

The objective to reduce congestion means that the plan aims to reduce congestion in main urban areas by creating environments where walking and cycling becomes a realistic and viable transport choice by:

• improving safety for walking and cycling
• improving access to walking and cycling
• improving awareness of walking and cycling;

with approved organisations that show commitment through:

• leadership
• community support
• local funding
• integration with other activities and policies, including land use, parking, vehicle access and transport user hierarchy.

Key walking and cycling networks

Key walking and cycling networks will be identified by the NZTA in consultation with relevant stakeholders.