Time to be bold!
- Info
- Nov 18
- 2 min read
Updated: Nov 18
NSX have submitted our Market Led Proposal to NIFFCo and we are waiting for feedback.
Meanwhile, NSX completed some analysis that shows moving the ferry terminal to Clifford Bay will save the economy capitalised savings of $3.6 billion, with the benefits going to passengers, road users, freight and logistics companies, ACC, the health system and ferry operators.
Here are the savings:
Commercial road user capitalised savings of $506.2 million, calculated over 50 years at a 5% discount rate. This is calculated by multiplying a rate for truck kilometres ($4 per kilometre) by the number of truck kilometres saved annually, PLUS time in sea savings LESS additional port user charges for a net saving. This is the benefit to the transport and logistics sector.
Private vehicle capitalised savings of $1440 million, calculated by multiplying the IRD per kilometre rate by the number of kilometres saved, PLUS time at sea savings valued at $49.43 per hour per passenger by the annual number of travelling passengers by 58 minutes (NZTA manual), PLUS accident savings based on avoided road fatalities, LESS additional port user charges.
Non-vehicle passenger capitalised savings of $896 million, calculated by multiplying a rate for time saved by the annual number of travelling passengers by 58 minutes at $49.43 per hour per passenger (using NZTA’s manual). The road and sea travel savings exceed the additional port user charges for non-vehicle passengers for a net savings of $896.0 million. This to the benefit of the travelling public and international and domestic visitors.
Ferry operator capitalised savings of $531.7 million, calculated by fuel savings ($220.9M) based on a like-for-like study of fuel consumption of the current ferry fleet, PLUS loan servicing which is the Present Value of $110M that recognises the avoided costs of Picton redevelopment that KiwiRail/Ferry Holdings is obligated to pay to underwrite the loan by MDC to PMNZ. PLUS, productivity savings from the shorter sailing time and lower non-fuel input costs. This is to the benefit of ferry operators.
Rail capitalised savings of $188.4 million, calculated by the present value of the depreciation cost of the rail corridor from north of Spring Creek to Picton.
Attached is a summary of our calculations.
Clifford Bay - Better, Faster, Safer, and a massive boost to the New Zealand economy.
