NZ Herald
  • Home
  • Latest news
  • Herald NOW
  • Video
  • New Zealand
  • Sport
  • World
  • Business
  • Entertainment
  • Podcasts
  • Quizzes
  • Opinion
  • Lifestyle
  • Travel
  • Viva
  • Weather

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • New Zealand
    • All New Zealand
    • Crime
    • Politics
    • Education
    • Open Justice
    • Scam Update
  • Herald NOW
  • On The Up
  • World
    • All World
    • Australia
    • Asia
    • UK
    • United States
    • Middle East
    • Europe
    • Pacific
  • Business
    • All Business
    • MarketsSharesCurrencyCommoditiesStock TakesCrypto
    • Markets with Madison
    • Media Insider
    • Business analysis
    • Personal financeKiwiSaverInterest ratesTaxInvestment
    • EconomyInflationGDPOfficial cash rateEmployment
    • Small business
    • Business reportsMood of the BoardroomProject AucklandSustainable business and financeCapital markets reportAgribusiness reportInfrastructure reportDynamic business
    • Deloitte Top 200 Awards
    • CompaniesAged CareAgribusinessAirlinesBanking and financeConstructionEnergyFreight and logisticsHealthcareManufacturingMedia and MarketingRetailTelecommunicationsTourism
  • Opinion
    • All Opinion
    • Analysis
    • Editorials
    • Business analysis
    • Premium opinion
    • Letters to the editor
  • Politics
  • Sport
    • All Sport
    • OlympicsParalympics
    • RugbySuper RugbyNPCAll BlacksBlack FernsRugby sevensSchool rugby
    • CricketBlack CapsWhite Ferns
    • Racing
    • NetballSilver Ferns
    • LeagueWarriorsNRL
    • FootballWellington PhoenixAuckland FCAll WhitesFootball FernsEnglish Premier League
    • GolfNZ Open
    • MotorsportFormula 1
    • Boxing
    • UFC
    • BasketballNBABreakersTall BlacksTall Ferns
    • Tennis
    • Cycling
    • Athletics
    • SailingAmerica's CupSailGP
    • Rowing
  • Lifestyle
    • All Lifestyle
    • Viva - Food, fashion & beauty
    • Society Insider
    • Royals
    • Sex & relationships
    • Food & drinkRecipesRecipe collectionsRestaurant reviewsRestaurant bookings
    • Health & wellbeing
    • Fashion & beauty
    • Pets & animals
    • The Selection - Shop the trendsShop fashionShop beautyShop entertainmentShop giftsShop home & living
    • Milford's Investing Place
  • Entertainment
    • All Entertainment
    • TV
    • MoviesMovie reviews
    • MusicMusic reviews
    • BooksBook reviews
    • Culture
    • ReviewsBook reviewsMovie reviewsMusic reviewsRestaurant reviews
  • Travel
    • All Travel
    • News
    • New ZealandNorthlandAucklandWellingtonCanterburyOtago / QueenstownNelson-TasmanBest NZ beaches
    • International travelAustraliaPacific IslandsEuropeUKUSAAfricaAsia
    • Rail holidays
    • Cruise holidays
    • Ski holidays
    • Luxury travel
    • Adventure travel
  • Kāhu Māori news
  • Environment
    • All Environment
    • Our Green Future
  • Talanoa Pacific news
  • Property
    • All Property
    • Property Insider
    • Interest rates tracker
    • Residential property listings
    • Commercial property listings
  • Health
  • Technology
    • All Technology
    • AI
    • Social media
  • Rural
    • All Rural
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology
    • Opinion
    • Audio & podcasts
  • Weather forecasts
    • All Weather forecasts
    • Kaitaia
    • Whangārei
    • Dargaville
    • Auckland
    • Thames
    • Tauranga
    • Hamilton
    • Whakatāne
    • Rotorua
    • Tokoroa
    • Te Kuiti
    • Taumaranui
    • Taupō
    • Gisborne
    • New Plymouth
    • Napier
    • Hastings
    • Dannevirke
    • Whanganui
    • Palmerston North
    • Levin
    • Paraparaumu
    • Masterton
    • Wellington
    • Motueka
    • Nelson
    • Blenheim
    • Westport
    • Reefton
    • Kaikōura
    • Greymouth
    • Hokitika
    • Christchurch
    • Ashburton
    • Timaru
    • Wānaka
    • Oamaru
    • Queenstown
    • Dunedin
    • Gore
    • Invercargill
  • Meet the journalists
  • Promotions & competitions
  • OneRoof property listings
  • Driven car news

Puzzles & Quizzes

  • Puzzles
    • All Puzzles
    • Sudoku
    • Code Cracker
    • Crosswords
    • Cryptic crossword
    • Wordsearch
  • Quizzes
    • All Quizzes
    • Morning quiz
    • Afternoon quiz
    • Sports quiz

Regions

  • Northland
    • All Northland
    • Far North
    • Kaitaia
    • Kerikeri
    • Kaikohe
    • Bay of Islands
    • Whangarei
    • Dargaville
    • Kaipara
    • Mangawhai
  • Auckland
  • Waikato
    • All Waikato
    • Hamilton
    • Coromandel & Hauraki
    • Matamata & Piako
    • Cambridge
    • Te Awamutu
    • Tokoroa & South Waikato
    • Taupō & Tūrangi
  • Bay of Plenty
    • All Bay of Plenty
    • Katikati
    • Tauranga
    • Mount Maunganui
    • Pāpāmoa
    • Te Puke
    • Whakatāne
  • Rotorua
  • Hawke's Bay
    • All Hawke's Bay
    • Napier
    • Hastings
    • Havelock North
    • Central Hawke's Bay
    • Wairoa
  • Taranaki
    • All Taranaki
    • Stratford
    • New Plymouth
    • Hāwera
  • Manawatū - Whanganui
    • All Manawatū - Whanganui
    • Whanganui
    • Palmerston North
    • Manawatū
    • Tararua
    • Horowhenua
  • Wellington
    • All Wellington
    • Kapiti
    • Wairarapa
    • Upper Hutt
    • Lower Hutt
  • Nelson & Tasman
    • All Nelson & Tasman
    • Motueka
    • Nelson
    • Tasman
  • Marlborough
  • West Coast
  • Canterbury
    • All Canterbury
    • Kaikōura
    • Christchurch
    • Ashburton
    • Timaru
  • Otago
    • All Otago
    • Oamaru
    • Dunedin
    • Balclutha
    • Alexandra
    • Queenstown
    • Wanaka
  • Southland
    • All Southland
    • Invercargill
    • Gore
    • Stewart Island
  • Gisborne

Media

  • Video
    • All Video
    • NZ news video
    • Herald NOW
    • Business news video
    • Politics news video
    • Sport video
    • World news video
    • Lifestyle video
    • Entertainment video
    • Travel video
    • Markets with Madison
    • Kea Kids news
  • Podcasts
    • All Podcasts
    • The Front Page
    • On the Tiles
    • Ask me Anything
    • The Little Things
  • Cartoons
  • Photo galleries
  • Today's Paper - E-editions
  • Photo sales
  • Classifieds

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In
Advertisement
Advertise with NZME.
Home / Business / Companies / Freight and logistics

Auckland traffic 'pouring $1.9 billion down the drain'

Frances Cook
By Frances Cook
BusinessDesk Investments Editor·NZ Herald·
2 Aug, 2017 06:13 PM5 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article

Traffic congestion on the Auckland Harbour Bridge, 2011. Photo / file.

Traffic congestion on the Auckland Harbour Bridge, 2011. Photo / file.

Auckland's snarled traffic is costing strangled businesses up to $1.9 billion each year, as some trucking firms refuse to deliver to parts of the city labelled vehicle "black holes".

But the revelations, detailed in a new report on Auckland's gridlock, have sparked promises that help is on the way.

The Benefits from Auckland road decongestion report was released by the New Zealand Institute of Economic Research (NZIER) last night, and tallied the $1.9b figure as the lost productivity from workers stuck in traffic.

That's twice as much as clogged roads were previously estimated to cost the city.

The report noted that congestion was spreading, forcing firms to hire more staff to do the same amount of work, or make fewer runs and deliver less stock.

Advertisement
Advertise with NZME.
Advertisement
Advertise with NZME.

In the December 2016 quarter, 24 per cent of the arterial network was congested during the morning peak. That's an 18 per cent spike over the same period in 2014.

But it also found that infrastructure improvements could claw back $1.3 billion of that cost.

The findings have sparked calls for urgent investment in new infrastructure projects, public transport and congestion charges to curb worsening delays.

Advertisement
Advertise with NZME.

Auckland mayor Phil Goff said traffic was getting worse by the day and, if anything, the $1.9 billion in losses was conservative.

"That doesn't take into account the social costs of lost recreation and leisure time, by people who find it's taking them hours to get home at night, and have to leave earlier in the morning.

"And it doesn't take into account the real, mounting frustration felt by Aucklanders."

Goff said he knew that frustration all too well.

Discover more

New Zealand

Major power outage in Tauranga

02 Aug 02:43 AM
New Zealand

One dead in car v truck crash

02 Aug 06:00 PM
Business

Firm wants 10,000 electric bikes in Auckland

02 Aug 06:00 PM
New Zealand

Crash causing major delays for airport-bound traffic

02 Aug 06:55 AM

He had to leave for work each morning at 5.45am, because if he left at 6.30am it would take twice as long.

In clear traffic his journey from South Auckland to the council offices took 30 minutes, but could stretch past two hours in bad traffic.

"We've got to look at some work on our road ways, but actually what we can do to make public transport a more accessible reality for more Aucklanders," Goff said.

Simply building more motorways was not the solution, he said.

"It's about busways, it's about light rail, it's about improving heavy rail services. It's about active modes of transportation, walking or cycling."

Goff said the council was already in talks with central government about what infrastructure projects could be brought forward, to ease the pain.

Advertisement
Advertise with NZME.

"We're working out the key spending areas, so it may be around the northwestern busway or it may be around the new Mill Rd highway south.

"It will certainly be around mass transport on the isthmus, because we're a gateway city and our gateway is becoming clogged."

Transport Minister Simon Bridges said talks with the council on what to do about Auckland's gridlock were well advanced.

"The Government is refreshing our Auckland Transport Alignment Project numbers with the council.

"Because of the stronger population growth that Statistics NZ is forecasting, that is going to see some projects shuffle forward.

Bridges' office released figures to the Herald, showing the newly opened Waterview Tunnel was already having an impact.

Advertisement
Advertise with NZME.

Today marks one month since the tunnel opened. The figures show 60,000 vehicles using it every day, and more than two million have travelled through it.

Bridges said that had dropped travel demand on State Highway 1 by 7 per cent.

Labour's transport spokesman Michael Wood said the report showed Auckland's congestion was among the world's worst.

"This is a disaster and underlines the need for fast, efficient public transport. The Government has done nothing to ease the congestion on Auckland's roads and this is now holding back our growth and prosperity."

KEY FINDINGS

• Gridlock is costing Auckland $1.9b a year, about 2 per cent of the city's GDP.

Advertisement
Advertise with NZME.

• The NZIER estimates $1.3 billion could be clawed back through better infrastructure.

• Average speed in morning peak traffic is 41km/h. If that was lifted to 56km/h, the Auckland economy would rake in an extra $3.5 million a day.

• Congestion is getting worse: a morning trip from Papakura to the city took an average 46 minutes in 2013, now an average 67 minutes.

Drivers quitting out of frustration

The stranglehold on Auckland's roads is making it a nightmare for those who drive for a living.

Hall's transport company executive director Grant Madill said the firm had to increase its truck fleet because the gridlock meant trucks couldn't manage the same number of trips in a day that they once could.

But the frustration of inching along in traffic meant the company was also finding it difficult to hire drivers, and losing the ones it had.

Advertisement
Advertise with NZME.

"We see the freight task increasing over the next 30-40 years, around 50 per cent," Madill said.

"If we haven't got our roading infrastructure sorted out well before then we're going to have some real problems."

Madill said the impact on his business was bad enough, but the pain was also spreading to customers, who were facing increased costs, as well as transport delays.

Madill said projects like the Waterview Tunnel were a good start, but a clear plan was needed for easing the choking congestion.

Save

    Share this article

Latest from Freight and logistics

Premium
Politics

Treasury 'got it wrong' predicting KiwiRail to fall short of financial target, Winston Peters says

23 Jun 05:00 PM
Freight and logistics

'It is a cash grab, plain and simple': 77% port fee hike sparks industry outrage

27 May 06:56 AM
Premium
Capital markets report

How Trump tariffs are clouding NZ's economic outlook

13 May 04:59 PM

Kaibosh gets a clean-energy boost in the fight against food waste

sponsored
Advertisement
Advertise with NZME.

Latest from Freight and logistics

Premium
Treasury 'got it wrong' predicting KiwiRail to fall short of financial target, Winston Peters says

Treasury 'got it wrong' predicting KiwiRail to fall short of financial target, Winston Peters says

23 Jun 05:00 PM

'Treasury were cautious given the economic conditions, but the company delivered.'

'It is a cash grab, plain and simple': 77% port fee hike sparks industry outrage

'It is a cash grab, plain and simple': 77% port fee hike sparks industry outrage

27 May 06:56 AM
Premium
How Trump tariffs are clouding NZ's economic outlook

How Trump tariffs are clouding NZ's economic outlook

13 May 04:59 PM
Premium
Stock Takes: Will reporting season see the end of a bear market?

Stock Takes: Will reporting season see the end of a bear market?

08 May 09:00 PM
Engage and explore one of the most remote places on Earth in comfort and style
sponsored

Engage and explore one of the most remote places on Earth in comfort and style

NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • NZ Herald e-editions
  • Daily puzzles & quizzes
  • Manage your digital subscription
  • Manage your print subscription
  • Subscribe to the NZ Herald newspaper
  • Subscribe to Herald Premium
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Bay of Plenty Times
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven Car Guide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP