Wellington is set for its biggest transport transformation in decades as the Government confirms plans for a long-promised second Mt Victoria Tunnel, a duplicate Terrace Tunnel, and a new extra lane through the city. The massive upgrade, estimated to cost between $2.9 billion and $3.8 billion, promises to ease congestion, improve travel times, and create safer routes for walkers and cyclists across the capital.

Transport Minister Chris Bishop said the long-awaited project will finally “unlock Wellington’s movement, connecting the city, hospital, and airport more efficiently.” He added that work is expected to begin in 2026, marking a major milestone after years of delays and debate.

The plan, led by Waka Kotahi NZ Transport Agency, is part of the SH1 Wellington Improvements project, one of the Roads of National Significance. It will reshape how people move through the city by providing extra tunnel capacity, removing choke points, and improving safety. For many Wellingtonians who have spent years crawling through traffic jams on their daily commute, this announcement offers a long-awaited sense of relief.

At the heart of the project is the new Mt Victoria Tunnel, which will sit beside the existing one. The new tunnel will carry two lanes of eastbound traffic and include a separated 3.6-metre-wide shared path for walking and cycling. The current tunnel, which opened in 1931, will be upgraded and used for two lanes of westbound traffic. Once completed, the upgrade is expected to cut travel time delays by up to 40 percent, improving reliability for everyone from commuters to freight drivers.

Another major feature is the duplication of the Terrace Tunnel. A new two-lane southbound tunnel will be built alongside the existing one, which will be upgraded to carry two northbound lanes. These twin tunnels are designed to reduce bottlenecks and improve traffic flow between the motorway and central-city streets.

Beyond the tunnels, the project will also transform key city corridors. Vivian Street will be widened to three lanes, ending on-street parking but improving efficiency. Karo Drive will also gain an extra lane near the Willis Street lights to smooth the flow into the Terrace Tunnel. Around the Basin Reserve, a grade-separated design will allow State Highway 1 traffic to move directly between the Mt Victoria Tunnel and Arras Tunnel without interfering with local vehicles. New walking, cycling, and public transport connections will also be built through this busy area.

On the eastern side of the city, Ruahine Street and Wellington Road will be widened to two lanes in each direction, helping to improve travel between the central city and the airport. Together, these upgrades are expected to deliver faster and safer journeys while reducing traffic pressure on local streets.

Although the plan comes with a high price tag, officials believe the benefits will be worth it. The investment case shows travel time savings of up to 11 minutes during peak hours and a significant boost in reliability across the SH1 corridor. It also forecasts fewer accidents, lower vehicle emissions from smoother traffic flow, and a stronger link between Wellington’s key destinations.

Tolling has been proposed as part of the funding package. The Government’s transport policy directs Waka Kotahi to consider tolls for all new major roads, helping to share the cost between users and taxpayers. Public consultation on tolling will happen after funding and final approvals are confirmed. While some Wellingtonians may not welcome the idea of paying to drive through the tunnels, others see it as a fair trade for quicker and safer trips.

For many residents, the most exciting feature is the new walking and cycling path through the Mt Victoria Tunnel. The existing shared path has long been criticised as narrow and unsafe. The new 3.6-metre-wide route will finally offer a safe, comfortable link between the city and eastern suburbs. As Minister Bishop said, “This project isn’t just about roads. It’s about making it easier for everyone to move—whether they’re driving, biking, or walking.”

The SH1 upgrade has been discussed for years under earlier transport programmes, but progress has often stalled due to cost and environmental concerns. A longer tunnel option running from the Terrace Tunnel to Kilbirnie was once considered but found to be too expensive, with a cost estimate of up to $7.5 billion.

With the current plan, officials hope to strike the right balance between affordability and impact. Construction will be staged carefully to limit disruption in the busy central city, though challenges remain. Managing traffic while digging two major tunnels and widening key streets will be a complex task.

Still, the overall mood in Wellington is cautiously optimistic. The city has long struggled with limited transport routes squeezed between hills and harbour. For years, congestion and delays have tested the patience of commuters. Now, there’s finally a clear plan and a firm timeline.

If everything stays on track, construction will begin in 2026, setting the stage for a new era in how Wellington moves. For the capital’s residents, workers, and visitors, this upgrade could mark the start of smoother, safer, and more connected journeys—something the city has been waiting for far too long.