Transport investment key to realising Tāmaki Makaurau Auckland’s potential

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16 April 2025 | 7 min | Article

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In this opinion piece, Cameron Law and Lauren Jewell share their perspectives on transport investment as a lever to unlock economic growth and productivity in Tāmaki Makaurau Auckland.

The opening of the City Rail Link in 2026 will be a transformative leap forward for Tāmaki Makaurau Auckland, adding to a legacy of investment that started with the first America’s Cup defence and continued through the revitalisation of Britomart, the hosting of the 2011 Rugby World Cup and the development of Commercial Bay. It feels like Auckland is maturing and stepping confidently onto the world stage.

Yet, while there’s lots of positives, there are also areas we need to work on – chief among them, raising our productivity and prosperity.

The 2024 State of the City report^[1] flagged prosperity (defined as the cities' ability to deliver sustainable, inclusive economic growth and well-being for all) as an ongoing challenge compared to our peers, driven by a range of factors, including stubbornly low productivity. A significant opportunity lies in improving our connectivity.

Key takeaways

Improving connectivity is a clear opportunity to lift productivity in Tāmaki Makaurau Auckland – specifically by investing in rapid transit
Around the world, cities have invested in rapid transit to address population growth, congestion, housing availability and a desire to unlock economic growth
Auckland has recent history of investing in public transport and city-shaping infrastructure to influence city dynamics, with the redevelopment of Britomart
City Rail Link will be a transformational change for the city when it opens in 2026, but we need to maintain this momentum on public transport investment

Transport as the catalyst for economic growth

Connectivity is about how easy it is for people to get around and reach other places. It’s important from a productivity perspective because it affects our choices about where we live, work and study, as well as how easily we can access goods and services. For businesses, better connectivity creates access to more customers and a broader talent pool.

Investing in transport is a major driver for economic growth. It reduces congestion, encourages urban development and agglomeration – that is, the enhanced productivity and innovation from bringing businesses and talent closer together.

Making a meaningful difference to connectivity in Auckland requires robust investment in public transport – particularly rapid transit, which is fast, frequent public transport that carries large numbers of people in corridors separated from other traffic.

Imagine the gains in productivity and quality of life if we could reclaim time spent in traffic for work, family, or leisure.

Traffic congestion is stifling our city’s potential, costing an eye-watering $2.6 billion each year and forcing the average Aucklander to spend 17 precious hours stuck in traffic every year^[2]. Imagine the gains in productivity and quality of life if we could reclaim that time for work, family, or leisure. While policies like time-of-use charging are steps in the right direction, they need to go hand in hand with a solid public transport network.

Efficient public transport options also free up space on our busy roads for those who have no option but to drive, such as tradespeople, couriers, business owners or freight services.

A common argument in New Zealand is that our population is too small to warrant significant public transport investment. But you only need to look across the ditch at cities like Adelaide, Gold Coast, and Brisbane, all of which have embraced light rail and bus rapid transit systems, improving connectivity and reshaping their urban landscapes. With our own Auckland population expected to grow to between 2.3 and 2.6 million by 2048^[3], the urgency for public transport investment has never been clearer.

The City Rail Link will unlock significant economic benefits when it opens in 2026, as will Eastern Busway in 2027, but we must seize the moment and consider additional transport projects that could further address congestion and boost productivity – like the Northwest Rapid Transit, Airport to Botany, or Avondale to Southdown that could further alleviate congestion and boost productivity.

Integrated transport and housing

Integrating transport and housing

Housing is another challenge that can be tackled with integrated transport solutions. This will require a multi-faceted, long-term strategy that includes coordinated infrastructure investment and some courageous calls on enabling denser development in city fringe and near transit hubs.

Rapid transport investment is a significant piece of the puzzle. Improved transport options influence land use, making areas adjacent to key public transport nodes more attractive to developers, driving demand for housing and offering undeniable economic benefits (provided we’re open to allowing denser and taller developments).

Take Sydney, for example. Anecdotally, apartments within a 500–600 metre radius of new metro stations often command price premiums of $200,000 to $400,000 compared to those further away; and single-family homes see even higher premiums.

This is because these areas encourage developers and drive demand. While Auckland hasn’t seen such stark disparities yet, the City Rail Link has the potential to change that, making living near a station a lifestyle choice to beat congestion into central Auckland.

Parkline Place, a landmark commercial and residential precinct, will sit over the entrance of Gadigal Station in Sydney CBD.

The NSW Productivity Commission found that building closer to Sydney's CBD can save up to $75,000 in infrastructure costs per new home^[4]. This solidifies the NSW Government’s commitment to aligning housing targets around transport links to deliver more well-designed, well-located homes in places where people want to live. Parkline Place as part of the Sydney Metro project exemplifies this commitment.

Many Aucklanders argue that we can’t afford to invest in rapid transit and density, but our current model of standalone houses connected by roads is unaffordable and locks future generations into long unproductive commutes. An urban form that makes greater use of rapid transit and transit orientated development will be more efficient and ultimately more affordable.

Apartment living isn’t for everyone, so what's important is providing a range of housing choices. To achieve this, we need an integrated approach to urban planning, allocating clear areas for development while aligning transport projects. This strategy will allow us to offer diverse housing choices tailored to residents’ preferences in well-connected locations, something we’ve observed at various scales, from Singapore to Australia.

Cameron Law and Laura Harris provide practical examples of alternative funding models in action and discuss common challenges faced in funding major infrastructure projects.

Discover how alternative funding models could help solve some of New Zealand's biggest infrastructure challenges.

Auckland’s City Rail Link first underground railway system.

Reflecting for future prosperity

Investment in rapid transit infrastructure can also unlock business growth by enabling businesses and people to interact seamlessly and thrive (agglomeration). The projected economic benefits of the City Rail Link are around $4.2B in increased productivity and economic output alone^[5] – on top of the transport and decongestion benefits.

This isn’t a new story. The creation of Britomart Station significantly boosted rail patronage and reshaped the city’s economic dynamic. What was once a north-south business axis along Queen Street has transformed into a vibrant east-west corridor facing the waterfront, drawing in businesses, driving up rents, and boosting demand for tenancies.

The City Rail Link is set to supercharge this growth once again, especially with Te Waihorotiu and Karanga-a-Hape stations on the way. Some exciting developments, like the Symphony Centre, are in the pipeline, but are we truly maximising the potential of City Rail Link (CRL)? Have we created an environment conducive to investment post-CRL? Are we capturing the financial gains that can come with these developments?

Towards a brighter future

Tāmaki Makaurau Auckland is an exceptional city with incredible potential. Fostering prosperity and stimulating economic growth must be our top priorities if we want to remain competitive and attract talent, tourism, and investment. This will require a concerted effort from both the public and private sectors to propel our city forward.

Maintaining our recent momentum in strategic transport investment will be key: we must push ahead with progressing the next major transport projects and seize the opportunities that arise from investment around our stations.

As we look to the future, let’s grab this moment to shape a thriving, connected and resilient Auckland, ensuring that the best days are yet to come.

This article was originally published in the NZ Herald’s Project Auckland Supplement on 26 March 2025.

References

[1] State of the City Report, 2024, Benchmarking Tāmaki Makaurau Auckland, Tātaki Auckland Unlimited

[2] Auckland’s Cost of Congestion, January 2025, Auckland Transport

[3] Auckland Plan 2050 Evidence report, June 2018, Demographic trends for Auckland: Data sources and findings, Auckland Council

[4] Building more homes where infrastructure costs less, August 2023, Comparing the marginal costs of servicing growth in different areas of Sydney, NSW Productivity Commission

[5] City Rail Link Benefits and Costs, How the CRL will deliver significant benefits for Auckland

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Cameron Law

Director, People, Movement & Place – New Zealand

Lauren Jewell

Industry Director, Precincts – Australia

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