NSX is an economic boom for Marlborough and New Zealand
- Info
- Sep 10
- 1 min read
NorthSouth Express (NSX) consortium has today released part of an economic assessment of the benefit cost ratio for the development of its ferry terminal and port at Clifford Bay which shows a standard BCR of 1.66 using an 8% discount rate and not including wider economic benefits.
The report has been prepared by Andrew Cooper of Cooper Associates who did the 2013 Clifford Bay economic case for the Ministry of Transport when KiwiRail was developing and promoting the new port.
The report updates the economic model and demonstrates a material uplift from 2013 BCR of 1.29.
NSX spokesperson, Stephen Grice said the consortium was pleased with the Cooper Associates report as it provides credible continuity of analysis and it shows Clifford Bay was a good idea in 2013, and it is even stronger in 2025.
The improvement is driven primarily by the higher assumed capital expenditure required to maintain inter-island ferry services at Picton and updated NZTA social benefit values related to enhanced travel time and operating cost savings.
“This is appropriately a very conservative re-assessment by Cooper Associates but still the BCR comes in much higher and as a comparator is much higher than say the Waikato Expressway which has delivered major economic benefits to New Zealand and the regions,” Grice said.
Sensitivity of NSX economic analysis on the discount rate
Sensitivity combined scenarios | 8% | 6% | 2% |
Base scenario | 1.66 | 2.03 | 3.20 |
Low benefit scenario | 1.15 | 1.46 | 2.47 |
High benefit scenario | 2.37 | 2.84 | 4.21 |
ENDS
