Government Pours $500m Into Land Buys To Fast-Track National Road Projects

The government will spend more than half a billion dollars acquiring properties to make way for a new wave of Roads of National Significance (RoNS) projects across New Zealand.

Transport Minister Chris Bishop confirmed that business plans worth $1.2 billion have been approved by the New Zealand Transport Agency (NZTA), with construction preparations now underway, RNZ reported.

“These investments are about unlocking housing, jobs, and better travel times while ensuring our transport network supports regional growth,” Bishop said, RNZ quoted.

According to NZTA, $515 million will be used for property acquisitions, while a further $675 million has been allocated for consenting, design, route protection, site investigations, and early works. All business cases have now been published on the NZTA website.

According to RNZ, the government said most of the latest business cases suggest higher cost-benefit ratios (BCRs) when the roads remain untolled, improving economic efficiency for commuters and freight.

Major Projects and Key Benefits

• Hamilton Southern Links– Expected to cut travel times by 14 minutes between Tamahere and western Hamilton. By 2055, the route will support access to 17,300 new homes and 7,100 jobs. The untolled BCR stands at 9 (rising to 2.3 with wider economic benefits).
• Petone to Grenada (P2G) and Cross Valley Link (CVL)– Peak travel savings of up to 23 minutes between Lower Hutt and Porirua, supporting 30,000 new houses in the wider region. The combined untolled/tolled BCR is 7, and 2.7 with wider benefits.
• State Highway 1 Wellington Improvements– Aims to reduce peak travel times to central Wellington, the hospital, and airport by 10 minutes, cutting variability by 40% and peak Harbour Quays traffic by 20%. The second Mt Victoria Tunnel could see 200 extra walking and cycling trips per day. NZTA will seek statutory approvals by July 2026 under the Fast-Track Approvals Act.
• Hope Bypass (Richmond)– Expected to cut 16 minutes from peak travel times, support 11,000 new homes, and reduce up to two injury crashes annually. The untolled BCR is 7, compared to 1.1 if tolled.
  Bishop said tolling decisions would be made later, based on NZTA’s investment case assessments.

Construction Progress and Next Steps

Several projects are already advancing, including State Highway 29 Tauriko West (Phase 1) and Ōtaki to North of Levin, both under active construction.

The Hawke’s Bay Expressway is expected to break ground in November, while a preferred bidder for Warkworth to Te Hana will be confirmed early next year. A contract is expected by mid-2026.

Meanwhile, the Cambridge to Piarere and Takitimu North Link Stage 2 have already received consents. Other projects, such as Mill Road Stage 1, Belfast to Pegasus and Woodend Bypass, and the SH16 alternative route, are currently navigating fast-track or designation processes.

The Roads of National Significance programme, first launched in 2009, is part of the government’s wider plan to enhance safety, reduce congestion, and boost economic connectivity across New Zealand’s regions.