At its meeting yesterday, Council requested further information to support its consideration of the proposal as part of the 2027–2037 Long-Term Plan.

ORC public transport portfolio co-lead, Cr Alan Somerville, says the investigation provides a clearer picture of what a regular bus service could offer South Otago communities, alongside the costs and funding considerations involved.

The investigation responds to direction in ORC’s 2025/26 Annual Plan to explore options for improving public transport connections for South Otago communities, where travel to Dunedin and the airport largely relies on private vehicles.

“The investigation has looked at how a service could connect Balclutha and surrounding communities with Dunedin, including the airport, and what it would take to make that happen.

“Council has asked for further information, so the proposal can be considered alongside other priorities also being considered through the Long-Term Plan. No decision has been made to introduce the service, but this gives us a basis for further consideration.”

The investigation identifies a service operating three return trips a day, seven days a week, using one bus as the preferred option. It would connect Balclutha, Milton, Waihola, Allanton, East Taieri, Mosgiel, central Dunedin, and potentially Dunedin airport.

The proposed service would provide connections throughout the day for people travelling for work, shopping, appointments, and other activities, with a similar level of service to the existing Palmerston-Dunedin bus service.

The investigation estimates the service could attract around 21 passengers per trip and generate approximately $232,000 a year in fare revenue. These are indicative estimates, rather than confirmed demand or revenue forecasts. Early discussions with community representatives and partner organisations also indicated support for better transport connections in South Otago.

The proposed service is anticipated to cost approximately $589,000 a year to operate, with a further $100,000 in initial implementation costs. A potential two-year trial could be funded through a combination of passenger fares, ORC funding, and co-funding from NZ Transport Agency Waka Kotahi.

Cr Somerville says the costs and potential funding arrangements will be important considerations as Council looks at the proposal alongside other transport priorities.

“People in South Otago have limited options for travelling to Dunedin without a private vehicle. Existing commercial services operate limited schedules and may be cost-prohibitive for some people.

“A regular bus service could offer another way to get to work, education, healthcare, social activities, and the airport. The investigation helps us understand the potential benefits, while also recognising that any service would need to be affordable and funded.”

Further information will be prepared to support Council’s consideration of the proposal through the 2027–2037 Long-Term Plan. Any future trial would depend on further Council decisions and securing the necessary funding, including potential co-funding from NZ Transport Agency Waka Kotahi.

If progressed, the service could be considered for implementation between 2030 and 2033.