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Home / New Zealand

Disbelief Government considering Wellington mega tunnel after axing ferries

Georgina Campbell
By Georgina Campbell
Senior Multimedia Journalist·NZ Herald·
15 Apr, 2024 04:14 AM6 mins to read

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Infrastructure Minister Chris Bishop announced a possible 4km long tunnel may be built to cut congestion in Wellington. Video / Mark Mitchell

There’s disbelief the Government is considering a mega tunnel underneath Wellington, that will cost several billion dollars, after axing the Cook Strait mega ferry project due to cost blowouts.

This morning the Herald revealed the Government is mulling twin two-lane tunnels running north of the existing Terrace Tunnel to Wellington Road.

New Zealand Transport Agency Waka Kotahi officials are investigating the cost and technical feasibility of the 4km tunnel.

Greater Wellington Regional Council transport committee chairman Thomas Nash said it was astonishing this could be a priority for national transport funding.

“For the cost of what would be New Zealand’s longest road tunnel, we could get new inter-islander ferries and terminals, or surface light rail in Auckland or do most of the upgrades to triple passenger rail in Wellington.”

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The Government has refused to give KiwiRail more money for its mega ferry project - leaving the plan to replace the ageing Interislander fleet dead in the water. Overall costs, including new terminals and wharf upgrades, had ballooned to almost $3 billion.

Labour Transport spokesman Tangi Utikere said cancelling the urgently needed Cook Strait ferries and announcing the prospect of another tunnel in Wellington was not good decision-making.

“Nicola Willis and Simeon Brown keep telling people there is no money for ferries or public transport, and yet they seem to have no problem exploring another tunnel under Wellington.”

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It’s unclear how much a long tunnel would cost but Nash understood initial estimates could be as much as $10b - three times the cost of the cancelled mega ferry project.

In comparison, Auckland’s 2.4km Waterview tunnel cost $1.4b and the 3.45km City Rail Link project will cost $5.5b.

The investigation into the long tunnel is happening in parallel with a second Mt Victoria tunnel and upgrades around the Basin Reserve estimated to cost $2.2b.

Auckland's 3.45km City Rail Link project will cost $5.5b.  Photo / Corey Fleming
Auckland's 3.45km City Rail Link project will cost $5.5b. Photo / Corey Fleming

Nash said the fact ministers were now looking at a long tunnel suggested they could now see the proposal to simply double the Mt Victoria tunnel for cars would not solve any problems.

“It doesn’t help public transport, doesn’t support more housing and makes little or no difference to most drivers. We need to focus on doing the transport basics well in Wellington. Bus ridership is growing fast so let’s put in more bus lanes and bus priority at intersections.

“Rail use is constrained by much-needed maintenance and renewals so let’s fund that. First, get all those priorities properly under way and then we can talk mega projects.”

Finance Minister Nicola Willis said Nash has never met a road he didn’t hate.

“It is possible to have good roads - tunnels even - as well as ferries, so long as we prioritise investment carefully and stop wasting time and money in the byzantine consenting and consultation quagmire the Greens seem to cherish so fondly.”

The Government was going to get on and build the good things Wellington deserved after years of “faffing about” by Labour and the Greens, Willis said.

Consultant says tunnels can be engineered for earthquake risk

Agite Consulting partner Greg Pollock would not get into a debate about how much a long tunnel might cost.

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“What we need to look at is what value it unlocks for the city and in my view, what it unlocks is affordable housing, redevelopment, and more walkable streets which are currently packed with congestion. We need buses moving through the city more easily so our public transport system works better. We need a balanced transport network.”

Pollock acknowledged cost was a factor but said a well-considered project should release significant value in terms of the city’s future.

A tunnel that’s twice as long does not mean it is twice as expensive, he said.

As for building such a significant tunnel in a city exposed to earthquake risk, Pollock pointed out New Zealand was not the only country located on the edge of the Pacific Plate.

“Japan has tunnels like this all over the country. They can be engineered. That’s what the investigation should be drawing out and we shouldn’t use seismic issues as a reason not to invest in our city.”

Wellington Mayor Tory Whanau wants to know what the climate change impact of a long tunnel will be. Photo / Mark Mitchell
Wellington Mayor Tory Whanau wants to know what the climate change impact of a long tunnel will be. Photo / Mark Mitchell

Wellington Mayor Tory Whanau said people needed to have low-emission modes of transport.

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“As with any new transport project, I would like to see what the climate change impact of the work will be.

“However, I am interested in looking at opportunities this would deliver for the city in terms of freeing up surface-level road space for housing, walking, cycling and public transport as well as any urban development opportunities. I also want to ensure the Government keeps water reform as a top priority before this work proceeds.”

Labour leader Chris Hipkins told Newstalk ZB Wellington Mornings host Nick Mills it would be challenging to get construction under way on the mega tunnel within the Government’s term.

“It’s a nice idea. If the economics of it stack up and if they can get it under way sooner rather than later then, you know, good luck.”

Hipkins says Government cancelled ferries out of spite

Hipkins also did not miss the opportunity to take a swipe at the Government over the state of Cook Strait.

“Cancelling the ferries out of spite was just a stupid decision because somewhere along the way, they’re still going to have to buy new ferries.”

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KiwiRail signed a $551 million fixed-price contract for the mega ferries with a South Korean shipyard in 2021 that now has to be cancelled.

Last week the Herald revealed members of the ministerial advisory group looking into the future of KiwiRail’s Cook Strait ferry service have been paid more than $80,000 between them since being appointed just two months ago.

Hipkins said that was “stupid” spending.

“Why would they cancel the project before reviewing it? You know, surely, because what if the review comes back and says actually the new ferries were a good deal and it’s the land-side infrastructure that’s the problem.

“Nicola Willis is going to look stupid. Of course, it won’t come back and say that because they’re hand-picked to give a recommendation that Nicola Willis will be comfortable with.”

Hipkins doubted Hyundai Mipo Dockyard would be keen to engage should the group recommend building smaller ferries instead.

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“My pick is that the [South] Koreans will say no, we’re not interested in building any new ferries for you because you’ve jerked us around so much.”

Willis has said paying the advisers was hundreds of millions of dollars cheaper than going ahead with a failed project with large cost escalations.

“The alternative is that we continue to rely only on KiwiRail for information and advice and our concern as a Government was, given KiwiRail got us into this mess, it wasn’t appropriate to simply rely on their advice.”

Georgina Campbell is a Wellington-based reporter who has a particular interest in local government, transport, and seismic issues. She joined the Herald in 2019 after working as a broadcast journalist.

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