Mercury Lane entrance for Karangahape station

Mercury Lane will be the entrance for the Karangahape station. Photo / Supplied

Auckland Transport has decided that Mercury Lane will be the entrance for the Karangahape station on the city rail link with future proofing for a second entrance at Beresford Square.

The decision to go with Mercury Lane is expected to shave $30 million off the $2.5 billion cost of the rail project.

Carol Greensmith, Auckland Transport's city rail link communications manager, said a key reason to build the Mercury Lane entrance first was the lack of construction space at a later date.

Mercury Lane also had more opportunities for regeneration and residential intensification.

Ms Greensmith said the Mercury Lane entrance was opposite Cross St and provided an opportunity to link with a proposed light rail stop in Upper Queen St.

Beresford Square had no opportunity for development above the entrance and constraints for regeneration because of nearby heritage buildings. A station shaft will be built under Pitt St for a future Beresford entrance.

The Karangahape station will be 25m below ground at the Mercury Lane entrance 33m below Beresford Square.

An estimated 12,000 people a day will use the Karangahape station in 2026, rising to 20,000 a day in 2046.

Karangahape Rd Business Association chief executive Barbara Holloway was comfortable with the decision to build the Mercury Lane first, given plans to turn Beresford St into a public square and shared space for cars and pedestrians.

Councillor Mike Lee, who sits on the Auckland Transport board, said he was happy with the entrance at Mercury Lane but wanted it to front K' Rd.

In August last year, Auckland Transport scrapped a new underground station at Newton and made changes to the above-ground Mt Eden station, reducing the project cost from $2.86 billion to less than $2.4 billion.

Since then, the cost has crept up to $2.5 billion.