PHOTO:🏗️ Wellington’s Biggest Transport Overhaul in Decades Is Here. FILE.
Wellington is officially gearing up for one of the largest infrastructure transformations in New Zealand history, with NZTA/Waka Kotahi unveiling a $2.9–$3.8 billion plan to rebuild the entire State Highway 1 corridor from the Terrace Tunnel to Kilbirnie.
Artist’s visualisation of a second Mt Victoria Tunnel in Wellington. Photo: NZTA / Waka Kotahi
At the centre of the project?
👉 A brand-new two-lane Mt Victoria Tunnel
👉 A second Terrace Tunnel
👉 A complete redesign of the Basin Reserve traffic system
And yes — the proposal will affect parts of Wellington’s Town Belt, prompting heated discussions across the city.
This huge package is being considered for fast-track approval, signalling the government’s intent to finally fix one of the capital’s most notorious bottlenecks.
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🚦 What’s in the $4B Tunnel Plan?
🕳️ A Second Mt Victoria Tunnel
The new eastbound tunnel (towards the airport) would be built north of the existing one and include:
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🚗 Two dedicated airport-bound lanes
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🚶♀️🚴 A 3.6m shared walking & cycling path
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🌳 Use of Town Belt land
The current Mt Victoria Tunnel would switch to two westbound lanes heading into the CBD.
But the changes don’t end inside the tunnel.
Wellington’s proposed new Mt Victoria tunnel’s western entrance (left) and eastern entrance (right). Photo: NZTA / Waka Kotahi
🚧 Major Road Widening Through Hataitai & Kilbirnie
NZTA plans to widen:
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Ruahine Street
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Wellington Road
Both would become two lanes each way, removing one of Wellington’s worst pinch points.
To do this, NZTA says it will need to purchase land at the northern end of Kilbirnie Park.
A new Hataitai Park Bridge over SH1 is also in the works.
Photo: NZTA / Waka Kotahi
🕳️ A Second Terrace Tunnel
A new southbound Terrace Tunnel would be built east of the current structure.
The existing tunnel becomes northbound only, transforming the flow through Te Aro and the motorway on-ramp.
However, NZTA says the walking track from Kumutoto Lane up to the grassed lookout will be removed to allow widening.
🏟️ Basin Reserve Traffic Revolution
The plans propose an overhaul bigger than the 2014 flyover debate.
Key changes include:
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🔄 Two-way traffic circling the Basin Reserve (instead of the current one-way loop)
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🚶 Maintained pedestrian routes
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🏛️ Relocation of the historic Home of Compassion Crèche
NZTA calls it a “major roading upgrade” that will dramatically change how vehicles and people move through one of Wellington’s busiest intersections.
🏙️ Wellington Mayor: “We Need Big Conversations”
Mayor Andrew Little says he supports the overall vision, but warns that:
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Homes and businesses will be affected
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Traffic patterns will change significantly
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The plan requires giving up two hectares of the Town Belt
Little says the Town Belt is a “very special feature” and any loss must be thoroughly consulted on.
📢 What Happens Next?
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📝 Public feedback opens today via online survey
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🏛️ Public information days begin 23 November at Harbourside Market
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🚦 Fast-track approval being considered
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🧩 Detailed designs still subject to change
Wellingtonians are being urged to attend the public sessions — especially residents in Hataitai, Kilbirnie, Newtown, Te Aro and Mt Victoria who could be directly affected.
🧭 Why This Matters for Wellington Property Owners
A project of this scale has huge implications for:
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Property values
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Commute times
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Noise and vibration impacts
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Traffic volumes on local streets
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Business access
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Town Belt use and recreation
Infrastructure projects of this magnitude historically increase long-term land value — but create years of disruption.
If approved, construction is expected to last several years.
SOURCE: RNZ