This story first appeared in the June issue of AutoTalk – CLICK HERE to download the magazine FREE
KiwiRail is set for a $1 billion boost, including new trains and infrastructure, as part of the Government’s 2019 so-called Wellbeing Budget.
This includes $375 million for new wagons and locomotives, $331m to invest in track and other supporting infrastructure and $35m to begin the process of replacing 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.
Renewable energy
Budget 2019 also invests $27 million to establish the National New Energy Development Centre in Taranaki while helping New Zealand move towards clean, affordable, renewable energy and away from fossil fuels.
However, reports indicate the new budget doesn’t mention any “feebate” scheme or incentives for encouraging electric vehicle uptake as hoped for by EV advocates like Drive Electric.
Although a further $20 million over four years is designed to establish a new science research fund for cutting edge energy technology to study the likes of organic photovoltaics, super conductors, nanotechnologies and inductive power, says research, science and innovation minister Megan Woods.
Woods says the centre will work closely with industry to test and trial technologies across a range of new energy forms such as offshore wind, hydrogen, solar, batteries, geothermal, and waste-to-energy.
Budget 2019 allocates $157 million over four years into innovation, with initiatives to support businesses to become more productive and develop high value low-emissions products.
This includes $26 million over four years to help support, incubate and grow start-ups.
Woods says start-ups are the way New Zealand will continue to develop unique, world-first and ground-breaking ideas.
“Having sustained support will mean that innovators can more effectively commercialise science and research and turn ideas into products and services that can then be successfully brought to market.”
The Government is setting into law greenhouse gas reduction targets to meet the Paris Agreement goal of keeping temperature rise to no more than 1.5 degrees.
The budget provides $107 million to ensure the economic transition required to deliver those emission reductions is effective, efficient and just.
Climate change minister James Shaw says the funding will mean the Climate Change Commission can provide the advice, guidance and monitoring New Zealand needs to reduce greenhouse gas emissions, in line with our goal of limiting global warming.
“The budget also includes funding to implement an Emissions Trading Scheme [ETS] auctioning platform.
This is welcome as having an effective ETS is a vital component of achieving a just transition.”
Budget misses the mark on road freight
Road Transport Forum chief executive Nick Leggett says it’s “concerning to see so much money being pumped into rail”.
“As a trading nation that is moving goods around 24 hours a day, seven days a week, road transport is the lifeblood of our economy.
“Trucks transport around 90% of New Zealand’s total freight by weight, with 7% going by rail and the rest by air and coastal shipping.
Your food, clothes, furniture, cars, whiteware and appliances, office products, technology, and pretty much everything else, has travelled via truck at some point to get to you.
“The truth is that there is a lot of money going into rail that will probably not shift the freight task in any measurable direction away from roading.
“This push to revive a rail freight network that has essentially failed in the past and as a consequence, has become run-down, at the expense of the already functioning road freight network, doesn’t feel visionary.
“If ever, it will be a long time before there is any evidence of more freight being moved by rail and fewer heavy trucks on the road.
“In the meantime, road conditions will worsen without investment and that will impact road safety and the economy.
It all feels fine when we have a strong economy, but we require the Government to be investing now in modes that will carry and build our nation when things slow,” Leggett says.
“With the budget also pouring more money into forestry, it seems extraordinary that the Government hasn’t considered what happens to all those trees when they are harvested.
“They go off shore, to boost our export earnings, and they get from the forest via logging trucks – heavy vehicles that need good roads.”
