AGENDA NO.
2.1
BOARD PAPER
Investment and Operations Committee
Paper no:
14/02/113
Meeting date:
28 February 2014
Prepared by:
Bryan Patchett, One Network Road Classification Project Leader
Recommended by: Ernst Zollner, Group Manager (Strategy Communications and
Performance)
Board function:
Setting sector and organisational direction
Subject:
One Network Road Classification
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PURPOSE
1.
To seek formal adoption of the One Network Road Classification as operational policy of the
Transport Agency and confirm the re-classification of the state highway network using the One
Network Road Classification.
SUMMARY
2.
In December 2013 the Road Efficiency Group (REG) Governance Group endorsed the One
Network Road Classification (ONRC) as fit for purpose. The ONRC consists of an integrated
framework for categorising all roads and state highways and provisional customer levels of
service. This paper seeks the formal adoption of the ONRC by the Board as operational policy.
This will confirm it as an important building block in operationalising our strategic direction. It
will also help to support and underpin our work to encourage and incentivise sector uptake of
the ONRC.
RECOMMENDATION
3.
That the New Zealand Transport Agency Board
a) Agrees to adopt the One Network Road Classification (including the classification framework
and provisional customer levels of service) as operational policy that will guide all relevant
Transport Agency planning, investment, maintenance and operational decision-making.
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b) Agrees to replace the State Highway Classification System (including the classification
framework and provisional customer levels of service) with the One Network Road
Classification to guide all relevant planning, investment, maintenance and operational
decisions making regarding the state highway network, including the State Highway Asset
Management Plan.
c) Requests that the Chief Executive report the final customer levels of service and associated
performance measures to the Board for formal adoption at an appropriate time.
BACKGROUND
4.
In 2010 the Board adopted the State Highway Classification System (SHCS) and associated
customer levels of service to help the Transport Agency align planning, investment, and
operational activities across the state highway network. The state highway network was
classified into four categories and a high-volume sub-category. The SHCS and customer levels
of service have informed development of the State Highway Asset Management Plan (SHAMP),
and influenced our investment decisions through the Investment and Revenue Strategy used to
develop the NLTP 2012-15. The SHCS was presented by the Minister of Transport to Cabinet for
noting in November 2010.
5.
The priority driver for developing a new single national road classification has been the nationwide need to ensure the ongoing affordability of road maintenance and operations and the
findings of the Ministerial Road Maintenance Task Force Report. The task force concluded that a
national road classification could help to improve investment prioritisation.
6.
During 2013 the joint local government/Transport Agency implementation group, the Road
Efficiency Group (REG), developed an integrated national road classification, the One Network
Road Classification (ONRC). The ONRC (that includes an integrated framework for categorising
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all roads and state highways and provisional customer levels of service) was endorsed by the
REG Governance Group as fit for purpose in December 2013.
ROAD CLASSIFICATION
7.
The development of the ONRC involves, in the first instance, categorising roads based on their
function and role within the national road network. Determining the user experience that each
category of road should offer (i.e. the customer level of service), and the operational
performance measures required to deliver and maintain that customer level of service, are
subsequent considerations, that flow from the classification categories.
Functional classification and provisional customer
levels of service have been completed.
Performance measures are
currently in development by
REG.
Diagram 1: Three elements of the One Network Road Classification
8.
Fit-for-purpose customer levels of service are determined by considering the network
performance expectations of all groups of road users and the envelope of funding available for
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investment in the network. Road operation (and form) relates to the network environment
(urban or rural areas and geographical characteristics), the existing level of service currently
offered across the network, and what will be required to deliver and maintain the fit-forpurpose customer levels of service.
FUNCTIONAL CLASSIFICATION: CRITERIA & THRESHOLDS
9.
Drawing on lessons learned from international and domestic experience the REG has developed
an integrated national road classification that:
 balances the use of quantitative criteria (using nationally available data sets), with
qualitative criteria (recognising local/regional expert knowledge) when determining the
function of a local road or state highway
 is simple and transparent to apply
 can be periodically reviewed so it can evolve and incorporate economic value data as this
becomes nationally available.
10. The criteria and thresholds in the classification are proxies for determining the function(s) and
relative importance of roads in the context of the national network. The criteria are a mix of
proxies for measuring roads’ economic growth and productivity contribution, their social
contribution and their link and place functions. Quantitative thresholds relate to natural
breakpoints in data series, while applying thresholds for qualitative criteria requires pragmatic
judgment by local/regional experts.
11. A simple weighting mechanism has been incorporated into the functional classification that
requires roads to meet more criteria to be allocated into the higher categories. This helps to
ensure differentiation across the network.
12. The criteria and thresholds have been developed through analysis, sensitivity testing and
extensive regional testing with stakeholders and Transport Agency staff. By applying the
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criteria and thresholds, six categories (and two sub-categories) have been agreed for the final
classification. The categories and their weightings are:
1. National – Roads meeting at least three of the criteria above the national thresholds. (A
high volume sub-category has also been identified. In addition to meeting the national
criteria, these roads also have volumes of heavy commercial vehicles and/or typical daily
traffic above the high volume thresholds.)
2. Regional – Roads with at least two of the criteria above the regional thresholds
3. Arterial – Roads with at least two of the criteria above the arterial thresholds
4. Primary collector – Roads in this category must meet one criteria above the primary
collector threshold
5. Secondary collector – Roads in this category must meet one of the criteria above the
secondary collector threshold
6. Access – All remaining roads (including a low-volume sub-category of access roads).
13. Attachment 1 presents the full functional classification (including all criteria, thresholds and
weightings) for the Board’s adoption as operational policy to guide all relevant Transport
Agency planning, investment, maintenance and operational decision-making.
PROVISIONAL CUSTOMER LEVELS OF SERVICE
14. A provisional set of customer levels of service (CLOS) has also been developed for each
category of the functional classification, with a set of principles to inform their context specific
application.
15. In developing the provisional CLOS the REG has drawn on the levels of service and principles of
the SHCS, network operating planning thinking and recent work by Austroads on levels of
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service. They were also tested and refined through engagement with stakeholders and
Transport Agency staff.
16. The CLOS are intended to describe the ‘fit-for-purpose’ and differentiated customer experience
each category of road should provide to road users, over time, if the road is to fulfil its function
within the national network. The six CLOS variables are:
Mobility
1. Travel time reliability: the consistency of travel times that road users can expect.
2. Resilience: the availability and restoration of each road when there is a weather or
emergency event, whether there is an alternative route available and the road user
information provided.
3. Optimal speeds (safety and efficiency): indicates the optimal speed for each road. The
optimal speed is the speed that is appropriate for road function (classification), design
(including safety) and use. Optimal speeds support both safety and economic productivity.
Safety
4. How road users experience the safety of the road.
Amenity
5. Travel quality and aesthetics: the level of travel comfort experienced by the road user and
aspects of the road environment (e.g. cleanliness, comfort/convenience and security) that
impact on the travel experience of road users in the road corridor.
Accessibility
6. The ease with which people are able to reach key destinations and the transport networks
available to them – includes land use access and network connectivity.
17. They are to be applied subject to overarching and foundational principles to ensure that they
are appropriately interpreted and provide sufficient flexibility for their context specific
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application. The full set of provisional CLOS and principles are included in Attachment 2 for the
Board’s adoption as operational policy guiding all relevant Transport Agency planning,
investment, maintenance and operational decision-making.
18. The CLOS are provisional because they require ongoing refinement through an iterative testing
process, as performance measures are developed by the REG. They will also be subject to
value for money testing as the NLTP 2015-18 is developed. The CLOS will be amended, if
required, to ensure they drive appropriate value for money investment decisions by all road
controlling authorities.
19. The final CLOS and performance measures will be reported to the Board for adoption at an
appropriate time during 2014.
ADOPTING THE ONE NETWORK ROAD CLASSIFICATION
20. Formally adopting the ONRC confirms it as an important building block in operationalising our
strategic direction. It will assist with:
 integrating one effective and resilient network for customers – by supporting one network
approaches across the sector with a common framework and language, and supporting
clustering and collaboration for efficient delivery
 shaping smart, efficient, safe and responsible transport choices – by assisting with
implementation of the national speed management programme across the network
 delivering efficient, safe and responsible highway solutions for customers – by helping to
deliver consistent and differentiated customer levels of service on the State highway network
 maximising effective, efficient and strategic returns for New Zealand – by helping align
investment with agreed outcomes to drive value for money.
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21. Of particular significance are the:
 re-classification of the state highway network using the ONRC (replacing the state highway
classification system)
 incorporation of the ONRC into our investment signals to the sector and revised Investment
and Revenue Assessment Framework for developing the NLTP 2015-18.
22. In addition there is a wide range of other projects that will be influenced by the ONRC.
Examples include implementation of the national speed management programme, network
operating planning, network performance monitoring and the FAR Review.
Reclassifying the state highway network
23. Applying the ONRC to the state highway network will see all highways in the top three
categories of the current SHCS map over to the new top three ONRC categories (and high
volume sub-category). Some state highways in the lower SHCS categories are re-classified
using the new ONRC system. In general, this involves highways in the lowest SHCS category
being further differentiated because the new ONRC has six categories (with two subcategories), where the SHCS had four categories (and one sub-category). Table 1 illustrates
how the ONRC categories map on to the SHCS.
Table 1: Mapping SHCS categories onto ONRC categories
State Highway Classification Equivalent One Network Road Change to highway classification
System categories
Classification categories
National strategic high-volume
National high-volume
No change
National strategic
National
No change
Regional strategic
Regional
No change
Regional connector/ Regional
distributor
Arterial
Highways re-classified among these three
categories – details are provided in
Primary Collector
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Secondary collector
Attachment 3.
Note: there are no state highways in the ‘Access’ or ‘Access low volume’ categories.
24. The one significant implication of the application of the ONRC is that State Highway 22, Drury
to Pukekohe, moves up to become a regional route as it meets two criteria for the regional
category.
25. Attachment 3 provides a table detailing the categorisation of each state highway as a result of
the ONRC and maps illustrating the state highway network categorised using the current SHCS
and new ONRC.
26. The development of the 2015-18 SHAMP is at a point where we have sufficient flexibility to be
able to adopt the ONRC without any significant impact on our programme. We will be working
through the implications of the ONRC CLOS on the overall cost of the state highway
programme. However, as the ONRC CLOS largely reflect the existing provisional State Highway
Classification levels of service we do not consider that adopting the ONRC as part of the SHAMP
would result in a significant impact on the cost of operating, maintaining or improving the state
highway network. We will confirm this with you once the SHAMP development has progressed
further.
Investment signals and the ONRC
27. Approved organisations have been advised that the ONRC will be used to shape investment
decisions for the 2015-18 NLTP as one of the messages included in The NZ Transport Agency’s
Early Planning and Investment Signals (November 2013). The classification system has been
published on the website[1] together with a guide on how to apply it[2]. Other tools and
[1]
http://www.nzta.govt.nz/projects/road-efficiency-group/docs/functional-classification.pdf
[2]
http://www.nzta.govt.nz/projects/road-efficiency-group/docs/onrc-guidelines.pdf
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assistance is being provided to approved organisations to enable application of the ONRC to
their networks.
28. While all approved organisations may not be able to incorporate the ONRC for the 2015-18
NLTP, we expect transition plans to be in place to enable full incorporation for the 2018-21
NLTP. Changes to parts of the network as a result of delivering fit-for-purpose customer levels
of service will also need to be managed as part of the transition.
29. Our Investment and Revenue Assessment Framework, that is used to give effect to the
Government Policy Statement on Land Transport, will also be revised to incorporate references
to the ONRC (replacing current references to the SHCS and local classifications where
appropriate).
RISKS
30. The key risk regarding the successful roll-out of the ONRC is that the policy implementation
work, including development of the performance measures needed to optimise investment, will
not be completed in time for inclusion in the 2015-18 NLTP, and not be accepted by road
controlling authorities.
31. These risks were reported to you in the Quarterly results and insights report for Quarter Two.
They were assessed as being likely with a moderate impact.
32. Risk treatment measures that are in place or planned are:
 developing an investment policy approach to respond to the ONRC
 supporting the engagement process on the ONRC and performance measures in the regions
 aligning understanding of the ONRC with road controlling authority partners, LGNZ, SOLGM,
IPWEA, and its use in investment decisions.
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FINANCIAL IMPLICATIONS
33. The ONRC and its associated provisional CLOS are intended to help improve asset management
planning and investment prioritisation. This will help to ensure ongoing affordability of road
maintenance and operations across the country. The CLOS will remain provisional as they are
refined and tested through development of performance measures and preparation of the
2015-18 NLTP, to ensure they drive appropriate value for money investment decisions by the
Transport Agency (as both an investor and Road Controlling Authority), and by other Road
Controlling Authorities.
34. Specific implications of the ONRC on the overall cost of the State Highway programme will be
worked through and confirmed with the Board. However because the provisional CLOS of the
ONRC largely reflect the existing SHCS levels of service we do not consider adopting the ONRC
will result in a significant impact on the cost of operating, maintaining or improving the State
Highway network.
COMMUNICATION AND ENGAGEMENT
35. The ONRC has been developed by the REG using a collaborative process between local
government and the Transport Agency. Two rounds of sector engagement were undertaken
involving 300+ people attending workshops in 10 locations around the country.
36. Further regional stakeholder engagement will be completed in the first half of 2014, as the
provisional CLOS are tested and performance measures are collaboratively developed by the
REG.
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37. The REG is also putting in place an engagement programme to be jointly implemented by LGNZ
and the Transport Agency to support sector uptake of the ONRC.
38. Communication and engagement with the sector on the speed management project, the NLTP
investment signals and development of the SHAMP will also incorporate messaging about the
ONRC.
ATTACHMENTS
39. There are five attachments:

Attachment 1: ONRC - Functional classification and explanation of criteria

Attachment 2: ONRC - Provisional Customer Levels of Service

Attachment 3: Tables of state highways by SHCS and ONRC classification

Attachment 4: North and South Island maps of SHCS and ONRC
 Attachment 5: Maps of main urban areas – SHCS and ONRC
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