KiwiRail is set for a $1 billion boost, including new trains and infrastructure, as part of the Government’s 2019 Wellbeing Budget.
This includes $375 million for new wagons and locomotives, $331 million to invest in track and other supporting infrastructure and $35 million to begin the process of replacing current ferries that are nearing the end of their lives.
This funding package includes $300 million from the Provincial Growth Fund allocated for investment in regional rail initiatives.
The Government says it provides opportunities to “grow and modernise New Zealand’s economy while ensuring a just transition to a low emissions future”.
Deputy prime minister and state owned enterprises minister Winston Peters says New Zealand’s national rail assets are a critical and valued part of the transport network.
“This funding will make KiwiRail more resilient and reliable through substantial investment in rail infrastructure, purchasing new locomotives and wagons, and beginning the process to replace the Interislander ferries.
“After 155 years of rail in New Zealand, the historic misstep of privatisation and the managed decline of the past decade, securing these assets for the future is especially gratifying,” Peters says.
Transport minister Phil Twyford says funding in this year’s Budget is just the first step to rebuilding rail as the backbone of the transport network, with a long-term national rail plan to be developed this year.
“Our goal is to have a stronger rail network that sees more freight moved by rail and fewer heavy trucks on our roads, as well as better public transport options to give commuters choice.
“Previous governments took a hands-off approach and left rail in a state of managed decline. That’s why we instigated the Future of Rail review to make sure we are taking a long-term approach to rehabilitating rail.
“Our New Zealand rail plan will outline the Government’s strategic vision and give a 10-year programme of indicative investments and benefits,” Twyford says.
KiwiRail will report on progress on implementing the Government’s vision for rail, and further funding will be considered in Budget 2020.
Budget 2019 also provides $405.5 million to cover the Crown’s share of forecast cost increases to build the Auckland City Rail Link, and finalises previous allocations of funding for the project.
The City Rail Link will provide the equivalent of 16 extra lanes of traffic into the city centre during peak times and the number of people within 30 minutes travel of Auckland’s CBD will double. The Rail Link is the largest ever investment in Auckland’s transport infrastructure.
