Train commuters and businesses moving goods around the country will see more reliable rail services, thanks to the Government’s investment of NZD 604.6 million for rail upgrades and renewals through Budget 2025.
The funding provides NZD 461 million to maintain and renew the rail freight network and NZD 143.6 million to replace and upgrade the Auckland and Wellington metropolitan rail networks. This will deliver a more productive, efficient, and reliable rail network that supports economic growth and productivity.
“We want railways to succeed for this country – rail freight backs our business, and business backs our cities and provinces,” said Rail Minister Winston Peters and Transport Minister Chris Bishop.
Rail currently moves 13 percent of national freight and a quarter of New Zealand’s exports. It complements its road freighters’ short-hauls by doing the heavy-haul weights and long-distance runs, and being the efficient clearing house so coastal ports can handle more export ships.
The Rail Network Investment Programme for 2024-2027 is now funded, which means maintenance, network operations, asset renewals, and modest improvements are funded.
This programme replaced decades-old bridges, culverts, and other assets with infrastructure that will last for generations to come. It also provides the bedrock for growth by commercially funded freight operations that move our goods.
“We have a legacy for rail freight, and this builds on it. The Northland line is upgraded from Swanson to Whangārei, new locomotives and shunts are arriving, new wagons are serving customers, and more are being assembled in Dunedin. Rail ferries are being secured on the Strait.”
The Government is also funding critical network renewals in Auckland and Wellington.
“Metro rail investment in Auckland and Wellington will improve the level of service for passengers by addressing overdue and critical renewals work. A backlog of overdue renewals has made services less reliable, with commuters experiencing ongoing disruption in recent years,” said Bishop.
“Piecemeal network maintenance has increased overall costs and has not delivered the high-performing metro service that our cities need to flourish. The poor state of our metro networks has flow-on impacts for performance. For example, temporary speed restrictions are often needed as a safety precaution, leading to increased travel times and disrupting service schedules.”
The budget investment will continue to support the delivery of more reliable, efficient networks that can be maintained, ease congestion on the busiest parts of the network, and allow for increased future demand.
It will also ensure a better experience for commuters who already make 24 million journeys on the networks each year.
“Auckland Council and Greater Wellington Regional Council will also need to meet their fair share of costs to deliver the services we want for metro rail.”
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