City Zone boundary: Analysis of options for Orakei station
Although submissions were generally happy with the proposed zone boundaries, limited concerns
were raised at the proposal to locate Orakei rail station in the Isthmus zone. This would result in rail
passengers from Orakei to Britomart being charged a 2-zone fare, compared with the current 1-
stage fare on rail. The impact of this is an increase from $1.70 to $3.00 for an adult HOP passenger.
The October 2014 Integrated Fares Business Case report specifically addressed the location of the
city centre zone boundary, and noted that it will have an impact on the cost of travel for customers
located close to the boundary. The report included the following assessment of the options
considered:
Option
Comment
Retain the current 1 stage
Minimises impact on existing customers, although there are some
boundary
anomalies with the current boundary, especially in Orakei where
the bus and rail stage boundaries are in different locations.
Generally retain the current 1
Minimises impact on most existing customers, and provides a more
stage boundary but adjust
coherent and consistent boundary by removing current anomalies
where existing anomalies
(e.g. aligning the bus and rail boundary in Orakei, and shifting the
Mt Eden boundary to the village centre). This will affect some 1
stage passengers who will now face a 2 zone.
Draw a tighter city-centre
Would result in a more coherent definition of “city centre”, but
zone, by aligning the boundary
would shift a number of residential areas which currently enjoy a 1-
with the current Inner Link bus stage fare to the city centre outside the boundary (especially in the
route.
inner western suburbs such as Grey Lynn and Kingsland). Many
users from these areas would incur a significant increase in fares
(i.e. 1 stage to 2 zone), with a risk to patronage.
Extend the city centre zone to
This would also result in a more coherent and recognisable
include a larger area, with a
boundary, but would have some negative revenue impacts as a
boundary along the St Lukes-
significant number of existing 2-stage trips would become 1-zone.
Balmoral-Greenlane corridor
The report recommended the second option, that the boundary be drawn to generally coincide with
the current stage boundary for a 1-stage bus trip from the city centre, but to remove the current
boundary anomalies (see Figure 1). This approach enables bus and rail fares to be aligned, while
minimising the financial impact for most current 1-stage customers, and minimising potential revenue
and/or patronage losses.
At Orakei, the boundary is drawn on the western side of Hobson Bay. This reflects the current fare
stage for buses and uses the natural geographic boundary. This boundary places Orakei rail station
in the Isthmus zone, which addresses the current misalignment of rail and bus fare boundaries in this
area. However, it means that rail travel between Orakei and Britomart, currently a 1-stage fare, will
now be a 2-zone fare.
This increase has generated negative comments in the submission process. Some submitters have
called for Orakei to be included in the City zone; others have suggested that Orakei station be treated
as an overlap between the City and Isthmus zones (similar to Newmarket). These options are
considered below.
Figure 1: Proposed city centre zone boundary map
Options considered
Option
Zone boundary description
Orakei to city centre fare
1. Current proposal
Zone boundary as shown in Figure 1
2 zone fare for both bus and rail
(Orakei in Isthmus
above.
Zone)
2. Orakei station in
Zone boundary as shown in Figure 1
1 zone fare for rail
City Zone
above, but Orakei Station is treated as part 2 zone fare for bus
of City Zone. This effectively retains the
status quo.
3. Shift City Zone
Zone boundary shifted east to include
1 zone fare for both bus and rail
boundary east
Orakei Station and surrounding bus stops
4. Orakei Station as a
Zone boundary as shown in Figure 1
1 zone fare for rail
zone overlap
above, but Orakei Station is treated as part 2 zone fare for bus
of both City and Isthmus Zones
Evaluation
Simplicity
An important driver of the zone fares system has been simplicity: a fare system that is easy for
customers to understand, with zone boundaries that are logical, and removing existing fare
anomalies and wherever possible. The boundary at Orakei was chosen to follow a natural
geographic boundary (Hobson Bay), and to remove the current anomaly where bus and rail fares
form the same location are different. Options 2 and 4 would perpetuate this anomaly; Option 3
would allow bus and rail fares to be aligned, but there is no clear and logical boundary which
includes Orakei in the City zone. Option 1 is therefore preferred as the simplest and most coherent
option.
Equity
Boundaries have been drawn at locations roughly equidistant from the city centre. This approach
has been generally well received in the consultation process (in contrast to the last RPTP, where
submitters were concerned at perceived inequity of similar distance trips attracting different fares).
The proposed City Zone boundary maintains a reasonably consistent “crow-fly” distance from the
city centre, as illustrated in Figure 2.
Zone overlaps have been located at key travel destinations or interchange points that are on or near
to zone boundaries (e.g. Newmarket), to allow passengers to access those destinations from both
sides of the boundary without paying an additional fare. Orakei is not a significant travel destination
or interchange. Including Orakei as an overlap zone (Option 4) may therefore be seen as “special
treatment” and inequitable, and could create a precedent for other locations to request similar
treatment.
Figure 2: Proposed city centre zone boundary distance overlay
Impact on existing customers
Orakei station has around 140,000 annual boardings. Of these 110,000 (78%) travel a single stop to
Britomart. Under Option 1, these passengers (about 400 per weekday) will face an increase in their
fare from the existing 1 stage fare to a 2-zone fare. Conversely, fares for passengers travelling south
will decrease.
Impact on travel behaviour
The station has a park and ride facility with approximately 200 spaces, which is generally full by
around 7.30am on weekdays. This suggests that up to 50% of Orakei boardings are from park and
ride. Surveys of the origins of park and ride users show that many drive a significant distance to the
facility, no doubt motivated by the lower fare than is charged at other closer stations or bus stops.
Under zone fares, this price differential will be removed, and passengers more likely to use services
closer to their homes. This should reduce demand on the park and ride facility, and local traffic.
The New Network proposals for the central isthmus include an increased number of feeder bus
services that will connect with the train at Orakei. Patronage on these services would be adversely
impacted if the fare from Orakei station to the city centre was cheaper than the feeder-rail
combination fare.
Revenue impacts
The revenue estimates for the new fare system have assumed that Orakei-city centre rail passengers
will pay a 2-zone fare in future. Reverting to a 1 zone fare would result in reduced system revenue
of around $300k p.a. Option 3 which would also result in a loss of bus revenues of around $40k p.a.
There are other objectives to consider such as farebox recover which for Auckland rail is still low.
Furthermore, the ‘artificial’ 1 stage fare has led to a substantial amount of park n ride travel to
Orakei to avoid a stage fare.
Summary evaluation
The table below summarises the option evaluation by showing how Options 2, 3 and 4 perform
against the current proposal. Each of the alternatives has a positive financial impact on existing city-
bound customers from Orakei, as they would have lower fares than the current proposal. On all of
the other criteria, however, Option 1 is preferred. It will enable a simpler and more equitable fare
system, with mainly positive impacts on travel behaviour, and will retain system revenues.
The negative fare impacts are on a relatively small number of existing passengers (about 400 per
weekday), approximately half of whom use the park and ride facility to take advantage of the low
rail fare, which is an anomaly in the current system.
Option
Simplicity
Equity
Impact on
Impact on
Revenue
existing
travel
impacts
customers
behaviour
1. Current proposal
(Orakei in Isthmus Zone)
2. Orakei station in City
xx
x
+
x
x
Zone
3. Shift City Zone
x
x
++
x
xx
boundary east
4. Orakei Station as a
x
x
+
x
x
zone overlap