The land was taken from the Tongariro National Park, not iwi. The trust land holdings were created at the same time, in part as a compensatory land swap for the power scheme.
Regardless of whether it is a road or not, nobody other than the Crown has the right to erect a structure on it.
At the same time, only the Crown has the right to bar access, and for the entirety of the "road's" existence, the Crown has chosen to not do so.
Edit to add XR500 said the same as I was typing
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