It's a no-brainer !
- Info
- Dec 2
- 2 min read
Updated Benefit Cost Ratio report from Cooper Associates
North South Express Consortium today released an updated independent Benefit Cost Ratio (BCR) report for the development of Clifford Bay as a ferry port and terminal. It is updated using new costings released last week by the Government for the construction of a new wharf at Picton.
“The higher costs for development of a new wharf in Picton has increased the BCR from 1.7 to 1.86 which is a material increase in what was already the highest ratio for any proposed infrastructure project in New Zealand,” NSX Managing Director Stephen Grice says.
“Developing Clifford Bay removes the development cost of new infrastructure in Picton and has a big impact on the net benefits that will be enjoyed by the New Zealand economy if Clifford Bay is developed.
“As the estimated costs to develop new Picton infrastructure goes up so does the net benefits of the alternative at Clifford Bay,” Grice says.
The 2013 Business Case by the Ministry of Transport (MOT) found a BCR of 1.29 when the costs of maintaining Picton were estimated at $80 million over 10 years.
“The 2013 MOT report calculated a net present value for a port at Clifford Bay at $150 million. Now the costs of a new build at Picton are $531 million and at least a 50% share of a contingency of $415 million. It’s clear the costs are now escalating significantly which makes the case for Clifford Bay even stronger.
“We continue to push for officials to create a level playing field and to compare the development of Picton and the development of NSX at Clifford Bay side by side, using fiscal, economic, commercial and safety criteria. It’s a no-brainer,” Grice says.
Updated report is below.
ENDS
