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Toll roads

Updated: 3 December 2009

Toll roads

In 2009, New Zealand’s first new toll road opened to the public - offering motorists a faster, safer and more direct route between Orewa and Puhoi, north of Auckland. Charging for the use of the Northern Gateway Toll Road enabled the route to be built earlier than otherwise possible - delivering considerable safety, travel time and other benefits to road users. This project introduced to New Zealand a sophisticated electronic toll system that allows traffic to flow freely without the need to change lanes or stop.

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Planning to use the Northern Gateway Toll Road?

Find out how to pay the tolls and how they are collected from our Northern Gateway Toll Road website.

Why toll funding?

Funding activities through the use of tolls provides us with an added source of funding to what is available through the National Land Transport Fund (NLTF). The NLTF collects funds from sources such as fuel taxes, motor registration fees and road user charges.

Other sources of alternative funding include public-private partnerships and third party contributions.

The Land Transport Management Act 2003 (external link) opened the way for toll roads as part of the government’s approach to more integrated transport planning. It enables road controlling authorities to bring forward the construction of new roads.

The criteria for a toll road

In assessing potential toll road projects, we investigate whether:

  • they meet the government’s priorities as set out in the Government Policy Statement on Land Transport Funding (external link) and the New Zealand Transport Strategy (external link)
  • the project size makes them viable. Projects with low estimated construction costs are only considered if they are accompanied by high public acceptance for tolling
  • the number of vehicles expected to use the road (and therefore pay the toll) at least cover the toll-collection costs
  • the toll revenue makes a meaningful contribution to the road’s construction costs (after deducting the operating and maintenance costs of the road and the tolling mechanisms).

We also consider whether:

  • it would be physically or practically possible to charge tolls
  • the project is already well advanced and nearing the start of construction, with consents approved based on it being an un-tolled road
  • we have enough information to undertake more detailed screening.

The criteria for a toll payment system

We have three key objectives for all toll projects, which also provide a guide for the toll charging system:

  • Toll systems should be compatible and interoperable nationwide, so that data can be exchanged quickly and easily and users can be assured of a consistent system wherever they drive.
  • All toll projects should use fully electronic collection systems that enable traffic to flow freely at all times.
  • An integrated back office should process all transactions and manage the systems from a national perspective, providing a single point of responsibility for payment, billing and enforcement.

We also require a tolling system to be capable of:

  • evolving to meet technological developments
  • integrating with other road pricing initiatives and the government’s policy for providing travel choice through travel demand management.

The electronic toll collection system implemented for the Northern Gateway Toll Road met these criteria.

Before decisions are made to toll a road, we consult with the public, the transport industry, other government agencies, territorial authorities (councils) and interested groups.