Back in April Auckland Transport released a summary of a business case they’d produced for internal use to help with their planning and procurement for the project. The new business case took into account all of the changes to the project that have been made over the years as well as AT’s improved understanding of the project and other changes within Auckland. The business case found the project has a Benefit Cost Ratio of 1.6-1.7 thanks to $2.96 – $3.2 billion in benefits coming from the project.
Last week the herald triumphantly announced that the cost of the CRL had blown out by a cool $500 million up to $3 billion but as I wrote following that article, the actual cost was $2.5 billion +/-20%. So it could be that when tendered the project comes in lower than currently expected. The cost blowout was overblown. While looking at some details for that article, I found that Auckland Transport had actually published the full business case online (8MB), not just the summary like they had earlier.
While the summary was useful, the full business case contains a lot of information and so with this post I thought I’d have a look at some of it.
The first thing that I noticed is the report pulls a lot of history and previous reports together as part of explaining why the project so important. Perhaps one day I’ll do a post in more detail about this info but if not, I’m sure it will be a useful resource for students and studies in the future.
The diagram below can take a bit to understand but shows roughly where, when and how construction will take place across the entire project.
Related to construction, this comment caught my eye as part of talk of altering some designations (page 50).
Changes to provide for the relocation of ventilation equipment at Aotea Station to Kingston Street and the associated relocation of the Bluestone Wall (approximately 3m to east)
I’m guessing in part this is about providing better footpaths along this part of Albert St.
This diagram shows the cross section for the bored tunnels. They say it needs an indicative internal tunnel diameter of 6.24m.
The report gives an indication as to the capacity the rail network will have once the CRL is built.
Once the principal constraint has been addressed, with the CRL turning Britomart into a through station, it will be possible to run up to 24 services per hour, each way, through the Link, with initial plans for 18 services per hour in the peaks. Ultimately, advanced systems and further investment might see that figure rise to 30 services per hour.
Currently Britomart is limited to 20 trains arriving per hour so we go from that to 36 an hour with the CRL initially and up to 24 in the future while we might eventually get up to 30 an hour. They say that whilst the actual operating plan will be confirmed closer to the opening date, the running pattern below is what they used for planning and modelling purposes.
They’ve say the planning is based modelled demand and capacity needed for each line. The western line is used as an example:
Figure 13 below shows as an example how train capacity was matched against predicted demand by decade by line, in this case the Western Line for 2023. The capacity line represents 6 tph x 3 car service starting from Swanson, 3 tph x 3 car service starting from Henderson and a 3 tph x 3 car peak overlay starting from Henderson. Similar analysis was carried out for other lines and decades.
Over time, as demand increases, as the fleet size is increased, an increasing number of trains can be lengthened to 6 car operation, and the span of operation of the peak overlay can increase from 1 hour to 3.
This suggests the plans are to only run 3-car trains at the opening of the CRL. As covered later, I think they’re underestimating just how popular the CRL will be and given we already have 6tph, some of which are 6-cars in length, and on some services they’re getting full I think AT will need to revisit this. I’m also personally unhappy that despite the CRL there is no service improvement past Henderson (or at Manukau).
One last interesting comment on this, they say “until sufficient level crossings are addressed on the western line, a Henderson – Otahuhu service has no capacity to operate”.
There has been a lot of modelling on patronage – although like most previous predictions we’ve seen I think they’re on the low side. The CRL will be transformational and change like that is hard to correctly predict when using models that are based on current habits.
The table below shows the current and predicted AM peak trips to the city (CRL includes the three CBD stations).
It is expected that about 40% of that growth (green) comes from people otherwise using buses (but they may still use a bus to get to a station), the remainder is from new trips or those who would otherwise have driven. I’m a bit sceptical about just how much impact the CRL will have for buses as from memory Britomart was meant to decimate bus usage but it has grown too. Also the table below shows where patronage is expected to change. It seems unlikely that some of those routes will see any impact at all, for example on Richmond Rd.
As part of the modelling, the future patronage projections were updated to reflect the surge in usage we’ve been seeing in the last few years – but only for the short term and so they decided to leave the long term predictions unchanged. They say that “it is clear that this is highly conservative” and my gut feeling is that after opening we’ll quickly see usage rise to hit 45 million rail trips a decade or more sooner than they suggest. The biggest limiting factor is likely to be that we won’t have enough trains due to the wrong modelling saying they aren’t needed yet.
The summary document talked about how just within the CRL footprint there was 4.9ha of developable land with a potential floor space of 210,000m² to 250,000m² and which has an estimated value of $1.2-$1.4 billion. The business case also looks wider development across the city enabled by the CRL. They say modelling suggests the CRL will increase the feasibility for new dwellings within rail station catchments by 41% from about 40,000 to around 57,000. It’s also worth noting that the Mt Eden figure excludes the land counted earlier as part of the CRL footprint.
As mentioned the CRL has a BCR of 1.6-1.7 depending on the growth scenario and using the standard NZTA evaluation manual. That BCR stacks up even under higher discount rates and cost sensitivity testing.
For those economist types, the report breaks down all of the various components of the benefits that have been calculated.
The table below shows the capital costs of the CRL inflated to the expected dollars of the day.
This shows the costs by year
Operating costs are estimated at around $50m per annum when the project opens rising to nearly $80 million by 2046. As a comparison, last I saw we spend around $100 million on running trains in Auckland and the report suggests that due to the CRL providing shorter routes there will be savings on the running costs outside of the tunnel. The estimate that in the first year there will be around $20 million in additional fares from the CRL but that will also be related to the anaemic growth they expect.
Overall I thought there was some fascinating additional information within the business case.