The New Zealand Government has announced a $604 million investment in rail as part of this year’s budget.
In total, $461 million will go towards maintaining and renewing the country’s rail freight network, while $143.6 million will be invested in upgrading the Auckland and Wellington metro networks.
Speaking to the press at Wellington Railway Station yesterday, Transport Minister Chris Bishop said the investment in the metro networks will improve the level of service for passengers by addressing “overdue and critical” renewals work.
“We need to be honest about the fact that there is a backlog of overdue renewals that has made our services less reliable, with commuters experiencing ongoing disruption in recent years,” he said.
“Piecemeal network maintenance has increased overall costs and hasn’t delivered the high-quality metro rail service that our cities need to flourish.”
Rail Minister Winston Peters said efficient freight connections are the “lifeblood” of New Zealand’s economy.
“Rail is the clearing house of our ports, efficiently emptying their yards so they can handle more ships. More ships enable more exports – more exports, more trade.
“$461 million for the Rail Network Investment Programme means that the 2025–2027 nationwide infrastructure programme is fully funded.
“This programme replaces decades-old bridges, tollbooths and other assets from infrastructure to last for generations to come, and provides the bedrock for growth for the commercially-funded freight operations to move our goods.”
The funding has been welcomed by KiwiRail Chief Executive Peter Reidy.
“This significant investment will continue to enable KiwiRail to grow through the delivery of efficient, reliable freight services for export, import, and domestic freight customers, and help deliver reliable journeys for commuters in Auckland and Wellington,” he said.
“The Budget commitment, combined with KiwiRail’s focus on improving productivity and asset utilisation, is key to a sustainable rail network for the future.”
Reidy said the $461 million cash injection for freight rail will allow KiwiRail to “plan and effectively manage” its work programme.
“It also provides certainty for our freight customers who rely on rail as a lower-carbon choice for moving all types of freight,” he said.
“In recent years, we have focussed on raising the standard of the national rail network for more reliable freight services to get our customers’ goods to market. Rail carries 25 per cent of exports and upgrading our rail lines will contribute to the Government’s goal of growing New Zealand’s export economy.
“KiwiRail did not seek Budget funding for our commercial freight business, as new locomotives and wagons are arriving in the next few years to replace much of our aging fleet, thanks to previous shareholder investment to boost our ability to serve the market.”
Reidy said the $143.6m for Auckland and Wellington’s metro networks will go towards replacing aging infrastructure that results in track faults, which can delay or cancel passenger trains.
“Work will include replacing end-of-life turnouts (which allow trains to switch between tracks), worn sleepers and rail and improving track foundations.
“Work will also be done on improving drainage in the rail corridor, and in Wellington there will be additional slope and coastal protection, to improve resilience so that people who take the train will be less affected by weather events.”
He said that while good progress has been made in recent years, there is still a lot of work to do to get the metro networks up to standard.
“This Budget 2025 investment will help deliver more reliable trains for the people of Auckland and Wellington and set the stage for more frequent trains to come.”
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