Strategic fit for investment management

Introduction

This section sets out the guidance on assessing strategic fit for activities within the investment management activity class.

The investment management  activity class comprises three types of activities:

• Work category 001: - Regional land transport planning management
• Work category 002: - Transport model development
• Work category 003: - Activity management planning
• Work category 004: - Programme business case development
• Work category 811: - Sector research
• Work category 911: - Management of the funding allocation system (Transport Agency only)

Transport planning default strategic fit

By default, the strategic fit rating for transport planning activities are;

• for Work category 001: Regional land transport planning management, the default is high and there is no requirement for further assessment.
• for all other transport planning work categories, the default is low.

Requirements for medium rating – Transport planning

A medium rating for strategic fit may be given where the activity applies best practice planning and processes including adopting a coordinated approach with relevant stakeholders and:

• is focused on significant change A significant change in strategic context The Strategic Context represents the alignment of the proposed investment with the business problem owner’s priorities, regional and national priorities, other programmes and strategies and other organisations’ priorities (if relevant).
  
  It includes:
  the assumptions or view of the future, including transport and population growth, economic and industry change statistics, etc. 
  
  
  * underlying/umbrella strategic documents, such as the Government Policy Statement on Land Transport or regional strategies, to position the outcomes sought within the strategic assessment against wider national and regional outcomes.  A problem with perceived significance may be identified in the strategic assessment but, when placed within a wider strategic context, it is acknowledged that it is not of high significance and does not present value for money Selecting the right things to do, implementing them in the right way, at the right time and for the right price. for investment at this time.
  
  * the proposing organisation’s objectives.
  is:
  
  
  * a change in planning assumptions in relation to demographic (i.e. population or age profile changes) projections as a result of the next official census, or
  
  * a change in planning assumptions relating to the nature and shape of dominant industries in the region, or
  
  * a need to alter a region's RLTS or RPS to address impacts of projected sea level rises, coastal erosion or significantly increased flood risk in areas where key networks are at risk, or
  
  * a legislative requirement to renew a region's RLTS or RPS.
  Significant change pressures within the context of regional growth are:
  
  
  * a change in planning assumptions relating to the nature and shape of dominant industries in the region, or
  
  * impacts from sea level rise, coastal erosion or significant flood risk from climate change that threatens or is projected to threaten local and or key state highway networks. in actual or predicted transport demand or performance, and its drivers such as changes in industry, population, technology, energy and climate , where these changes are not accounted for in existing strategies and plans; AND

• ensures:
  • integration of modes, transport and land use planning issues and other infrastructure planning
  • making better use Making better use of existing services and infrastructure means fully considering and analysing existing services and use of infrastructure and identifying opportunities for change without significant additional expenditure. of existing transport capacity, including services and infrastructure
  • managing adverse environmental effects from land transport; AND

• considers:
  • wider transport network performance & capability
  • safety
  • value for money Selecting the right things to do, implementing them in the right way, at the right time and for the right price.
  • environmental and public health outcomes

Requirements for high rating – Transport planning

A high rating for strategic fit must only be given where the activity meets the requirements for a medium rating AND,

• makes improvements to whole-of-network, long-term local, regional and national planning in response to significant changes in actual or predicted transport demand or performance, and their drivers such as changes in industry, population, technology, energy and climate; AND

• addresses one or more of the following:
  • easing of severe congestion Severe congestion congestion is where the volume to capacity ratio exceeds 80% for 5 days per week over at least a 1 hour time period that affects at least 1.5 km of a route.  For information on the volume to capacity ratio, see Appendix A3 of the NZTA's Economic Evaluation Manual is where the volume to capacity ratio exceeds 100% for 5 days per week over at least 1 hour in a time period on at least 3 km of a route and the average annual daily traffic (AADT) is greater than 20,000 vehicles per day.
    For information on the volume to capacity ratio, refer to Appendix A3 of the NZTA's Economic Evaluation Manual  
  • optimised levels of service, operation and management of networks
  • journey time reliability The reliability of trips on the network, as defined in section A4.5 of the NZTA's Economic evaluation manual. Improvements in journey time reliability Journey time reliability is the reliability of trips on the network, as defined in section 3.5 of the NZTA's Economic evaluation manual, volume 1. Improvements in journey time reliability will reduce the level of unpredictable variations in journey times, which are experienced for a journey undertaken at broadly the same time every day. will reduce the level of unpredictable variations in journey times, which are experienced for a journey undertaken at broadly the same time every day.
  • reduction in deaths and serious injuries in areas identified as being of high crash risk

Sector research Programme Interrelated and complementary combination of activities that, when delivered in a coordinated manner, produce synergies – can span more than one work category and more than one activity class, e.g. a programme could include a road improvement and public transport improvement activities.

The purpose of Sector research is to acquire new knowledge so that it can be applied by transport decision makers to deliver more effective, efficient and economic transport solutions.

The research programme is a nationally delivered programme managed by the Transport Agency.

The Transport Agency Research Programme Framework provides research objectives, and approach to research investment, and seeks the activities required to achieve these objectives.

The framework is centred around five research areas for land transport, provides research objectives for each of the research areas, and lists research output areas of high and medium strategic fit, although the current focus is on high strategic fit. In addition, it aligns the programme with the work of transport decision makers, namely the Transport Agency, Ministry of Transport and Approved Organisations.

A default profile of High Strategic fit and High effectiveness is applied to the programme as a whole.

Management of the funding allocation system

Management of the funding allocation system is the activity that incorporates the processes, tools and systems required to plan, optimise and deliver the NLTP A National Land Transport Programme Interrelated and complementary combination of activities that, when delivered in a coordinated manner, produce synergies – can span more than one work category and more than one activity class, e.g. a programme could include a road improvement and public transport improvement activities. adopted by the NZTA under section 19 of the LTMA, as from time to time amended or varied , thereby giving effect to the Government Policy Statement on Land Transport and complying with the Land Transport Management Act.

The activity is developed and managed as a nationally delivered activity as part of the Transport Agency business planning and financial management, and is incorporated within the Transport Agency’s Statement of Intent agreed with the Minister of Transport.

A profile of High Strategic fit and High effectiveness is applied to the programme when developed as part of the Agency’s Statement of Intent.