Wellington’s airport has joined a powerful coalition of regional business associations, collectively urging the government to press ahead with a multi-billion dollar transport overhaul for the capital. The proposal includes two new tunnels and a significant redesign of the road network around the Basin Reserve, a project they argue is critical for the region's economic future.
In a direct appeal to Finance Minister Nicola Willis, the group stated that the city's primary transport corridor is “no longer fit for purpose”. The letter was signed by Wellington Airport chief executive Matt Clarke, alongside the chief executives of the Wellington, Hutt Valley, Kāpiti Coast, and Wairarapa chambers of commerce. They warn that whenever the current network slows, the movement of freight and services across the entire lower North Island suffers.
The ambitious project aims to construct a new Mount Victoria tunnel and a new Terrace tunnel, reconfigure the road layout at the Basin Reserve, expand Vivian Street to three lanes, and implement major changes in Hataitai, including a new overpass. The business leaders contend that these upgrades are essential for a modern capital city that serves as a vital economic hub.
The business case for expansion
The core argument from the business community is centred on reliability and future-proofing the city’s network. “These projects address three of the most significant transport bottlenecks in the capital and are critical to improving how people, freight and services move into and through Wellington,” the letter states. The current Mt Victoria tunnel, opened in 1931, is a frequent point of congestion, and a single breakdown or accident can bring traffic to a standstill for hours. This has flow-on effects for commuters and the supply chains that rely on predictable travel times from the port and airport.
The groups believe that enhancing travel time reliability will strengthen these supply chains, bolster tourism and the city's ability to host major events, widen the pool of available labour for businesses, and ultimately foster greater confidence for new investment in the region. Wellington has been plagued by infrastructure issues in recent years, from burst water pipes to uncertainty over long-term transport solutions.
Even business leaders from further afield see the direct benefits. Ben Jamieson, chairperson of the Kāpiti Coast Chamber of Commerce, said the project is crucial for his region. He highlighted its importance for the local tourism industry and for the many Kāpiti residents who commute to Wellington for work. “The flow of people in and out of Wellington hugely affects Kāpiti,” he said.
A history of transport indecision
The debate over a second Mt Victoria tunnel is not new, having been a contentious issue in Wellington politics for decades. The current proposal is part of a wider suite of transport projects for the city, the details and costs of which were recently released by Waka Kotahi New Zealand Transport Agency (NZTA). More information on the government's plans can be found on the official NZTA project website.
This latest push from the business community comes after years of shifting priorities. Previous governments have championed different approaches, including the extensive “Let's Get Wellington Moving” plan which had a stronger focus on public and active transport. However, the new government has signalled a renewed focus on roading infrastructure as part of its economic strategy.
An airport-commissioned survey from last November suggested a clear majority of Wellingtonians supported a second Mt Victoria tunnel and changes at the Basin. However, this poll was conducted before NZTA released its detailed designs, which revealed the full scope of the disruption and the estimated multi-billion dollar cost. For many Wellingtonians, the debate over transport funding is a constant presence, particularly as households face new water charges and pressures on other council services mount.
Community division and political pushback
Despite the strong business backing, the project is far from universally popular. Analysis of public feedback gathered by NZTA shows a city divided. While 44 per cent of respondents believed the region would be better off with the project, 40 per cent felt it would be worse off. When asked about personal impacts, the split was more negative, with almost half of all respondents saying it would make things worse for them personally, compared to 41 per cent who saw a personal benefit.
The concerns are most acute in the suburbs that will bear the brunt of the construction. In Hataitai and Kilbirnie, which sit at the eastern portal of the Mt Victoria tunnel, nearly three-quarters of residents believe they will be personally impacted by the decade-long construction phase. This compares to just 44 per cent of residents elsewhere.
The plan has also drawn sharp criticism from the Green Party. Rongotai MP and the party’s transport spokesperson, Julie Anne Genter, said it was “hardly surprising” that the airport was lobbying for a project that would directly benefit its own balance sheet. While she agreed that Wellington needs certainty on its transport future, she questioned the project’s fiscal prudence and effectiveness.
The fact the project [the airport] is asking for costs approximately twice the entire value of the airport should raise eyebrows. There are better transport solutions for our city and our region that would be faster to deliver; improvements to public transport combined with congestion pricing would deliver travel time reliability within weeks (not years), at much lower cost.
What lies ahead for Wellington's transport future?
Ms Genter’s alternative vision, which would see the city invest more heavily in public transport and introduce a congestion charge to manage demand, reflects a competing philosophy for urban development. Proponents of this model argue that building more roads simply induces more demand, leading to the same levels of congestion within a few years, a phenomenon well-documented in other cities worldwide. This approach aligns more closely with a push toward a sustainable, low-emissions future.
The united front from the business community places the decision squarely in the hands of the government. Finance Minister Nicola Willis must now weigh their calls for a major infrastructure investment against a divided public, fierce political opposition, and the project's enormous price tag. The decision will not only shape Wellington's physical landscape for generations but will also send a clear signal about the government’s priorities for transport, economic development, and climate action.
With the capital’s leaders on one side and a significant portion of the community on the other, the path forward remains uncertain. The government’s choice will likely be revealed in its upcoming budget and policy statements, which will determine whether Wellington commits to building its way out of congestion or seeks a different route entirely.
