Public transport improvements

Service and operational public transport improvements:

• are activities identified in the qualifying services and operations work categories listed below. A variation to the level of service of one or more of these work categories is expected to result in an increase in the annualised cost of the approved public transport continuous programme existing in the financial year immediately prior to the first year of the NLTP under development.

More specifically these improvements include:

• new services or reconfigurations within a network resulting in additional funding required per annum to provide the total level of service
• trial services with a clearly defined period, expected to be up to three years. These will be reviewed before the end of the trial period to test whether they become part of the continuous programmes
• variations in public transport units, which will affect the total cost provision, and increase both the total annualised cost of the programme and the level of services being provided by a specific activity, ie where no cost savings are instigated in other parts of the network to keep expenditure within the existing approved allocation.

Types of service improvement applications include the following:

• New services, service trials or service variations with a whole-of-life cost of over $1,000,000 need to be set up as separate improvement activities. They will require the application of a cost–benefit appraisal procedures from the Economic evaluation manual, and must include a fit-for-purpose business case and risk assessment related to the improvement(s) being initiated.
• New services or service trials or service variations with a whole-of-life cost of less than $1,000,000 should be treated as low cost, low risk  improvements under work category 532: Public transport low cost, low risk improvements.
• Public transport initiatives in addition to the services, eg marketing, minor on-street infrastructure, terminal upgrades, park and ride facilities, improved access via walking or cycling should all form part of the packaged application (ie where there is interdependency across activities seeking additional funding).

Any proposed public transport improvement as set out above must demonstrate how it will add value to the existing network. This can be done via scenario testing of the public transport service programme using the cost-benefit appraisal template which can be downloaded from Transport Investment Online(external link) (TIO). 

Service and operational improvements can be carried out under the following work categories as standalone activities, separately identified and funded:

• work category 511: Bus services
• work category 512: Passenger ferry services
• work category 515: Passenger rail services
• work category 514: Public transport facilities operations and maintenance
• work category 524: Public transport information supply, operations and maintenance
• work category 532: Public transport low cost, low risk improvements.

Public transport service improvements use the same work categories as the approved public transport continuous programme, but, where feasible, the activities need to be identified and submitted as separate improvement projects in TIO for inclusion in the NLTP for funding approval.

The following work categories are not considered public transport improvement activities:

• work category 517: Total mobility services
• work category 519: Total mobility wheelchair hoists and ramps
• work category 521: Total mobility wheelchair hoist use payments
• work category 531: Public transport infrastructure improvements and major renewals are covered under public transport infrastructure improvements (see below).

Inter-regional services must be included in both councils’ regional public transport plans (RPTPs) and regional land transport plans (RLTP), and be consistent with the Land Transport Management Act 2003 (LTMA).

Public transport infrastructure improvements include the construction or implementation of public transport related physical facilities or amenities expected to generate or accommodate a level of service which is not already being provided.

Public transport infrastructure improvements which cost over $1,000,000 total cost and major renewal activity costing over $5,000,000 are funded under the following work category:

• work category 531: Public transport infrastructure improvements and major renewals.

If the qualifying work is related to infrastructure improvements and is under $1,000,000:

• work category 532: Public transport low cost, low risk improvements.

If the qualifying work relates to operational amenities, is clearly renewal related and the total cost is under $5,000,000, then the activity can be funded under the following work categories:

• work category 514: Public transport facilities operations and maintenance
• work category 524: Public transport information supply, operations and maintenance.

If the qualifying work relates to service or operational improvements costing over $1,000,000 then Waka Kotahi NZ Transport Agency will assess the activity:

• as a stand-alone improvement activity or packaged together with other related improvement activities
• separate to or as an eventual add-on to the public transport continuous programme
• under the work categories set out above in the service improvements section.

Approved organisations, Waka Kotahi (state highways) and regional transport committees (RTCs) may propose the sources of funding for activities they include in their transport programmes and RLTPs, based on the criteria that apply to the sources.

Waka Kotahi will make the final decision as to which source of funding will be applied to assist the activity when it comes forward for funding approval.

Approved organisations and Waka Kotahi (state highways) are expected to provide robust cost estimates for their activities prepared by competent people. The cost estimation process should follow the principles set out in the Waka Kotahi Cost estimation manual, SM014.

Where risk analysis is required to provide 5th and 95th percentile cost estimates, the results are expected to reflect the project phase and type of cost estimate, eg a feasibility estimate would be expected to have a much wider range around the expected estimate than a construction estimate.

The cost estimate is uploaded to the TIO funding application as supporting information.

For all improvement projects over $20 million estimated construction cost, the Transport Agency requires these to undergo a parallel cost estimation process as set out in the Cost estimation manual(external link), SM014 .

A summary of the parallel cost estimate and reconciliation is attached to the TIO funding application as supporting information.

Waka Kotahi requirements and guidance on the peer review of improvement activities are provided in this knowledge base (PIKB).

The peer review is uploaded to the TIO funding application.

Approved organisations and Waka Kotahi (state highways) are expected to apply risk assessment and management processes to the development and implementation/construction of their activities. These should be appropriate to the scale and risk involved. This process follows the guidance and applies the procedures set out in the Waka Kotahi Risk management process manual.(external link)

The risk register and management plan(s) for projects under development are attached to the TIO funding application as supporting information.

Programme consultation is managed by the RTC when it consults on the RLTP. However, the requirement to take into account the views of affected communities under the LTMA, to give early and full consideration of alternative options, implies a need to consult or engage at the activity level in the course of activity development. This may also be required under other legislation, eg Resource Management Act 1991.(external link)

Waka Kotahi may apply conditions to any support, endorsement or approval it provides for a strategy, package, programme or activity. These will generally fall into one of two categories:

• Condition precedent means that the condition must be fulfilled before the support, endorsement or approval is put into effect. For a funding approval this will mean that no funding will be released until the condition is met.
• Condition subsequent means that the condition needs to be fulfilled by a specified time or event, but the decision can be put into effect. For a funding approval this will mean that funding can be released before the condition is met. Often, conditions subsequent will need to be fulfilled before the next funding application for an activity.

Conditions are recorded and managed through TIO.(external link)

The IAF has the following requirements for public transport improvements:

• Waka Kotahi first assesses the proposal to provide assurance that a robust business case has been developed under the Business Case Approach principles.

• Waka Kotahi expects that public transport improvement activities are firmly linked to long-term planning documents, particularly RLTPs and RPTPs.

• For the 2018–21 NLTP, the results alignment rating will be used by Waka Kotahi to assess the significance of a problem, issue or opportunity relative to desired results set out in the Government Policy Statement on Land Transport.(external link)

• A benefit–cost ratio must be calculated using the Monetised benefits and costs manual (from August 2020) or the Economic evaluation manual (superseded August 2020) procedures and templates.

For more details refer to Assessment of public transport, rapid transit and transitional rail improvement activities.