The Government has committed almost $3 billion in Budget 2026 funding for major road and rail infrastructure projects, including the extension of the Waikato Expressway and fully funding KiwiRail’s planned network investments through to 2030.
Transport Minister Chris Bishop says Budget 2026 includes $1.773 billion for the Cambridge to Piarere Road of National Significance, extending the Waikato Expressway along one of the country’s most important freight corridors.
At the same time, Rail Minister Winston Peters and Bishop announced up to $1.075 billion for KiwiRail’s planned network investments between 2027 and 2030, alongside $106.9 million for metropolitan rail renewals in Auckland and Wellington.
Bishop says the new four-lane 16-kilometre Waikato Expressway extension will improve safety, resilience and freight reliability between Cambridge and Piarere.
“State Highway 1 between Cambridge and Piarere is a critical freight and economic link connecting Auckland, Waikato and the Bay of Plenty with the central and lower North Island,” Bishop says.
“This project has been talked about for years. Now we’re getting on with it.”
The project will connect the existing Waikato Expressway to the SH1 and SH29 intersection at Piarere and include a grade-separated interchange near Karāpiro Road.
Bishop says the corridor is critical to the upper North Island economy.
“The Golden Triangle between Auckland, Waikato and Tauranga is home to more than half of New Zealand’s population and around 60 per cent of the country’s gross domestic product. This corridor is critical to New Zealand’s economic growth.”
The Government says the project has a benefit-cost ratio of between 2.7 and 3.1 and is expected to reduce deaths and serious injuries by about 70%.
Consents for the project were granted in September 2025, with early works already underway following NZTA Board approval in December.
Meanwhile, Peters says the Government’s rail investment package puts rail infrastructure on a more stable long-term footing.
“New Zealanders invested sweat, blood and tears to build their national rail network, but previous Governments let it rot,” Peters says.
“We are putting New Zealanders’ rail assets to work once again.”
Peters says this is the first time a government has fully funded a three-year rail investment programme upfront.
“Rail infrastructure is funded like the State Highway network thanks to our law reforms when last responsible for Rail, and this is the first time a government has fully funded a three-year programme up front to put rail on the same sure footing as many other infrastructure categories.”
KiwiRail will use the Budget allocation alongside about $60 million in annual Track User Charges contributed by freight customers to prepare the 2027-2030 Rail Network Investment Programme.
Peters says rail freight performance and reliability have improved following increased investment and operational changes.
“Rail freight covers its own costs by competing commercially and we are now seeing rail freight volumes, revenues, profits and reliability improve after a concerted effort to deliver a strategy that makes best use of national rail assets,” he says.
The Government says rail infrastructure spending already allocates 66 cents of every dollar towards maintenance and renewals.
The additional $106.9 million for metropolitan rail renewals will continue upgrades across Auckland and Wellington’s rail networks, including track, sleepers, ballast, slope remediation and formation works.
Bishop says the investment is aimed at improving network reliability and resilience.
“Thousands of people rely on trains every day to get to work, school, appointments and events. They deserve services that are reliable, resilient, and able to keep pace with growth in our biggest cities,” he says.
“Auckland and Wellington have suffered from historic under-investment in their metro rail networks.”
Bishop says reliable metro rail helps improve transport choice and reduce pressure on urban roads.
“Reliable metro rail matters. When trains run well, more people have a real choice about how they travel, pressure comes off busy urban roads, and transport networks work more efficiently.”
The Government also confirmed Budget 2026 will return $7 million in unspent funding from the Hillside Workshop redevelopment programme after improved wagon assembly efficiencies reduced projected build volumes from 1,500 wagons to 1,350.
