A number of international stories have caught my attention recently. I’ve been thinking about how they relate to NZ and Auckland in particular. The more I’ve reflected on them the more I’ve become convinced that the future is very uncertain technologically (more than anytime previously) and of critical importance will be our need for a flexible, efficient, transport system.

First this article in the Telegraph in the UK about the new High Speed Rail line between London and Birmingham:

The project has provoked anger from people all along the route. Since it was announced by the Labour Government in March nearly 60 action groups have been set up to oppose the plans.

 The protesters are a well-informed, articulate, middle class lobby determined to fight the project.

 “Middle England is on the march and we mean business,” said Steve Rodrick, chief officer of the Chilterns conservation board which is responsible for a designated area of outstanding natural beauty (AONB) that would be ripped apart by the rail link.

 The project is causing tension within the coalition Government which backs the scheme.

 The “preferred” route runs through Conservative heartlands, and local MPs, including ministers and whips are opposed to the project but under pressure to toe the party line. The speaker of the House, John Bercow, also opposes the plans.

 One senior Tory MP told The Sunday Telegraph: “This is a huge, expensive vanity project that makes no sense at all.”

 Residents along the route admit that, initially, their concern was aroused by “Nimbyism” – the threats to their homes, businesses and stunning views.

 But they say that, after looking at the project in detail, they have found that the economic and environmental cases for the new route simply do not stack up.

 The project goes out for consultation early next year and, if approved, a bill will be presented to Parliament in 2013.

 Construction is expected to start in 2015 at the earliest but the London-Birmingham leg would not be completed before 2025. Two more branches, to Manchester and Leeds, would follow at a total cost of over £30bn.

 Supporters said that HS2, as the scheme is called, would bring thousands of construction jobs and economic benefits to the regions.

 But opponents said the non-stopping high-speed trains would benefit London rather than the provinces. Geoffrey Robinson, the Labour MP for Coventry South, said Coventry would become a “backwater”.

Next was an article, again from the Telegraph, about China’s High Speed Rail lines:

It was the fastest speed recorded by an unmodified conventional commercial train. Other types of trains in other countries have travelled faster.

State television footage showed the sleek white train whipping past green farm fields in eastern China. The 824-mile-long line is set to open next year, 12 months ahead of schedule. It will cut journey times between Beijing and Shanghai from the current 10 hours to under five hours. The line is expected to carry 80 million passengers a year.

The project costs £21 billion and is part of a government effort to link many of China’s cities by high-speed rail and reduce overcrowding on heavily used lines.

China already has the world’s longest high-speed rail network, and it plans to cover 8,125 miles by 2012 and 10,000 miles by 2020.

The drive to develop high-speed rail technology rivals China’s space programme in terms of national pride and importance. Railway officials say they want to reach speeds of over 500kph (312mph).A specially modified French TGV train reached 357.2mph during a 2007 test, while a Japanese magnetically levitated train sped to 361mph in 2003.

I found these two articles interesting because it is the difference in starting points that causes one project to make sense and the other not to and they mirror the situation in Auckland. What do I mean?

Well in China they are upgrading what was a largely diesel, early 20th century network into the world’s most extensive modern network, in the world’s most populous nation. It makes sense to halve the time between China’s two biggest cities, however London dominates England and it does not make sense to spend 17,000,000,000 pounds to reduce the travel time between Birmingham and London by 35 minutes. In short England’s train system is already modern and it’s relatively quick, what the line needs is easements, and more trains of a more modern standard. How does this relate to Auckland?

Our roads. Given our population our roads are the equivalent of England’s rails. We have spent most of our transport money on roads for the last 60 years, the are already of a modern, first world standard, but when we look at rail we are starting with a early 20th century, diesel network, there is bang for the upgrading buck. This is the reason HSR2 in England doesn’t make sense as proposed and why Puhoi to Wellsford as proposed doesn’t make sense, they are starting development of developed networks, I believe this is why Puhoi has such a poor BCR when compared to the CBD rail link. As quality improves it becomes a case of spending ever larger amounts of money to chase diminishing returns. Operation Lifesaver is the appropriate measure in Auckland.

I occasionally read the NY Times. It is generally a very “left” newspaper. In fact its nickname is “Pravda” due an article published many years ago somewhat sympathetic to Communism, which is why the following article published by them was quite shocking to me, it is literally anathema to the paper’s principle message:

Just as it seemed that the world was running on fumes, giant oil fields were discovered off the coasts of Brazil and Africa, and Canadian oil sands projects expanded so fast, they now provide North America with more oil than Saudi Arabia. In addition, the United States has increased domestic oil production for the first time in a generation. Meanwhile, another wave of natural gas drilling has taken off in shale rock fields across the United States, and more shale gas drilling is just beginning in Europe and Asia. Add to that an increase in liquefied natural gas export terminals around the world that connected gas, which once had to be flared off, to the world market, and gas prices have plummeted.

Energy experts now predict decades of residential and commercial power at reasonable prices. Simply put, the world of energy has once again been turned upside down.

The whole article is very interesting and if you have time please read it here. Usually I’d think it was a pro-oil story from a pro-oil publication but to me this article being in the NY Times is of the same magnitude as The Guardian coming out to say they got Climate Change wrong. Reading the article you’ll notice that they talk about Natural Gas (NG) a lot, barrel of oil equavilent (BOE) isn’t same as oil, and shale oil. So if there is more accessible energy than we thought to ease an oil peak it seems we will still need; energy efficient transport, transport that runs on NG and investment in infrastructure where we can receive flexibility, make big gains without huge expenditure and get value for money.

To me that means in the short term we need to be pursuing the network effect for the buses (integrated with the rail system), integrated ticketing, a basic region wide cycling system and the CBD rail loop. It’s about using what we have better and making big gains for little expenditure.

I think we need to have a discussion about how far ahead we plan in future in a world that increasingly is changing faster technologically and we need to have a discussion if our very socialised transport system can adapt as fast as we need, I think GPS road pricing and the elimination minimum parking requirements are the first steps we should look at in this department.

Thoughts?

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20 comments

  1. Yes. The description of shale gas drilling in the NYTimes article refers to a process of ‘fracking’. This is where some form of pressurised liquid is forced down into shale rock to release gas trapped in the rock.

    What the article merrily glosses over in its rush to a bright engergetic future is that the liquid used in fracking is made up of parts water, chemicals and sand. The chemicals are toxic, and the liquid is finding its way into water tables which supply drinking water to many towns and cities in the area being ‘fracked’, rendering the water toxic.

    If you read the Energy Bulletin website (an aggrogator website), you’ll see plenty of recent articles about fracking.

    But back to your main point – I agree with your analogy. Our roads are very well maintained and constructed. I’ve advocated for switching expenditure on roads for 2 years to PT infrastructure as the roading network can cope for that length of time without the many billions being currently spent on it.

    1. Funny that you raise the fracking issue as I was watching a TV programme just last night discussing the health problems that this method of gas extraction is causing in many US towns – not only that but the water tables also become contaminated leading to tap water literally burning if lit – skip to 3.40 too see that (the video is in German so may be otherwise meaningless apologies)

      http://mediathek.daserste.de/daserste/servlet/content/6056834?pageId=&moduleId=329478&categoryId=&goto=&show=

      1. The Wainui Stream in Lower Hutt once caught fire. Burning water is entirely possible, if levels of the right (wrong?) chemicals reach sufficient concentrations. One doesn’t want to think about the consequences of drinking said water. Or of it being used to vainly attempt to fight a fire.

        1. Sure, but my point was that if we are going to start going down the track of fracking to sustain our car habits then we’ll have to accept things like polluted groundwater – the burning tap water was something that had started happening after fracking was begun in the area.

  2. My opinion is that we are unlikely to face an energy crisis that will force people to dump cars in favour of public transport. It is only a matter of years until electric or hydrogen vehicles are made economic enough. There is likely to be a space crisis however. Electric or hydrogen cars are unlikely to require less space, therefore unless we are prepared to start ramming motorways through inner suburbs we will be stuck with existing roads.

    1. The last time petrol prices rose above $2 we saw a large spike in PT, and much of that increased PT usage was maintained afterwards. Besides, the aim is never to replace all of the roads in NZ, no one has ever suggested that but to provide efficient alternatives that reduce people’s need to spend large amounts of their income on petrol and car maintenance. However, ironically Joyce is the one proposing to replace our existing highways with gold plated super-highways, rather than investing much smaller sums on upgrading inter-regional rail lines to reduce the pressure on the existing roads.

    2. Given the average age of the NZ vehicle fleet, just how long do you think it’ll take for non petroleum-powered vehicles to filter through the market? We still have plenty of cars out there without air bags, or even ABS, never mind things like EBD and stability control. Now you think alternative-power cars will be miraculously make their way to our shores in such numbers as to be affordable to those who most need them: those on low incomes? Reality check: the poor are poor, they can’t afford new cars. If they can’t afford a new car, and can’t afford to use their old car, they’re kinda screwed.

  3. James- when you say ‘only a matter of years’ you may need to be more specific. You can get electic cars now, but at a cost. It will be an awfully log time before they will be as economic as oil currently is.

    1. When you say ‘awfully long time’ you need to be more specific. I’m not going to be more specific because there are so many factors at play here, petrol prices, material costs, public perception etc. It could be 10 years it could be 20 years. The point that I was trying to make is that from a public transport perspective it is best to plan for a future in which cars are still widely available but the area needed to drive them is a finite resource without dramatic urban redesign.

  4. Alternative power sources will never be economic as long as oil fuels still are. That’s a simple outcome of market forces.
    The real issue IMHO is, apart from the old
    issues of space, congestion and efficiency, how do we manage the transition period? What happens if petrol rises from $2 a litre to $8 a litre over 18 months or so? How long would it take to replace the nation’s fleet of three million vehicles? Something like fifteen years at current replacement rates, fifteen years of four hundred bucks a tank?! What would the economic impacts of acellerating replacment that be? Can the world actually handle ramping up vehicle production four or five fold?

  5. I really hate NIMBYists. I feel the Puhoi residents should be given a big medal for merely supporting an interchange near them on the Holiday Highway rather than stopping it altogether (although I have to say stopping it could be a good thing).

    I worry that even though the CBD tunnell is underground some NIMBYists might still oppose it. I also feel the lack of NIMBYists could be key to Chinas rapidly growing high speed rail network (as well as its fast growing economy).

  6. I don’t think there are a lack of NIMBYists in China, they just know what happens when you protest – your family gets a bill for a single .22 calibre bullet…

  7. Talking of electric cars flooding the market and china, I think thats where we can look ahead for affordable electric/hybrid cars.

    Already, in Beijing, if you want to buy a motorised cycle, it has to be electric. There is one car company there that plans to be the biggest car manufacturer in the world within the next 10yrs – and that’s by making electric cars. That’s where they are heading – and fast.

    The sheer economies of scale that can be achieved in that economy alone – even before talking lower cost of labour – will spill over into supplying the global market.

    Of course, you still have to have the grid to power the electric-only ones. But it wouldn’t surprise me if we have “affordable” options in about 5yrs time.

  8. That NYT article is like saying fairy dust will come right to save us…. there are so many problems with ‘unconventional hydrocarbons’ the chief one being that many of these deposits yield a very poor EROI- Energy Return on Investment. And that’s Energy investment, not just financial investment. It takes a huge amount of oil or gas or electricity and often water to extract any usable hydrocarbons form these unconventional sources. It ain’t just drill and suck. What is peaking, or rather has peaked, is high quality accessible oil. Even in Saudi Arabia they’re getting down to dirty heavy muck that needs huge and tricky refining. They’re dreaming. Go to this site, here is just one of many articles outlining these problems at a thorough technical level:
    http://www.theoildrum.com/node/7216. There are many more.

  9. Nowhere does the NYT article say fuel will be cheap in future. Just look now what the price is today – $2.
    And this price factors in all these new discoveries.
    Also note that we have an oil price of $90 when US and Europe are still seriously in the dulldrums economically which mean much lower energy demand than normal.
    Even a $2 price challenges many families budgets, we dont need a petrol price of $10 to cause concern. An easily foreseeable price of $3 will cause huge problems in car dependant cities such as Auckland.

  10. I think that expecting that petrol will reach $8/litre in 18 months is probably a little hard to believe because that would be a price increase of a whopping 400% in only 18 months.

    But it would be worth illustrating the effect that fuel price increase will have on our wallets so I created this spreadsheet. You can download it from this address: http://www.kaneanddebs.co.nz/forum/fuelprice.xls

    The main point with the spreadsheet is to determine what percentage of our income will we spend on petrol over the next 20 years?

    Obviously it is impossible to ascertain all the factors in the equation but you can fairly easily get a grasp of how big the problem might be.

    See at a very conservative increase in fuel price of 5% per year, we will be spending 17% of our income on petrol in the year 2030 compared to only 14% now.

    But if we adjust the average yearly fuel price increase to 7%, then by 2030, we’ll spend 25% of our income on fuel. Given that this change is over a 20 year timeframe, it will be a gradual change that most people will probably just learn to live with.

    But ramp up that increase to 10% per year, then the figures look frightening – 44% of our income will be spent on fuel by 2030.

    And finally, a 15% increase per year (which might not be all that inconceivable), then we will spend MORE THAN WE EARN on fuel – 108% to be exact!.

  11. “it does not make sense to spend 17,000,000,000 pounds to reduce the travel time between Birmingham and London by 35 minutes.”

    It’s not just time saving, but also capacty. The west coast mainline will be at capacity by early 2020s. I think it makes sense to build it on timesavings alone. When looking at the cost, you have to consider how many people are going to use that line, i bet it has a better BCR than the holiday highway!

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