Sector state of play: Transport

Our transport system is a network of interconnected infrastructure, which together enable journeys of people and goods. For example, ports are gateways to international trade, but cannot function well without land transport connections to our towns, farms and factories. Ensuring there is integration of the different parts of the system and the many infrastructure providers involved is key to the success of the transport system.

A well-performing transport system provides people with access to social and cultural activities, jobs and other opportunities and firms with access to markets and the inputs used in production.

This research looks closely at the transport sector in New Zealand, looking at the state of the sector, the issues it faces as well as those it needs to prepare for. The report is based on our own research, a survey of infrastructure owners as well as conversations with people within the sector.

Key findings

• There has been significant progress made in New Zealand’s transport infrastructure sector, with both increased capital investment and investment across all modes. This includes significant new investment in rail, urban public transport, and active modes like walking and cycling. This investment comes with greater expectations about transport’s role in contributing to our wellbeing, whether it is economic or social.
• The transport sector is experiencing a period of significant change, including the broadening of objectives which public sector transport investments are expected to impact upon, movement towards alternative fuels and the emergence of micro-mobility as examples.
• Funding arrangements are experiencing significant change due to increased Crown funding for new transport infrastructure, both to respond to the above issues and to respond to expected demand growth.
• New technology raises the prospect of new ways of travelling, better use of information to assist with making more efficient journeys, and better use of pricing to manage demand on congested roads where alternatives exist.
• The integration of infrastructure with urban land use outcomes, the move to a system based approach to transport infrastructure, the adoption of demand management in conjunction with targeted supply side investment, and the movement towards carbon neutrality present challenges and opportunities for the future of transport infrastructure.