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Freight & Logistics

KiwiRail calls for ‘funding certainty’ 

KiwiRail chief executive Peter Reidy says the Government Policy Statement on land transport provides clarity on investment priorities and "constructive engagement" with the transport minister regarding the rail network continues. 

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Peter Reidy

KiwiRail chief executive Peter Reidy says the Government Policy Statement on land transport provides clarity on investment priorities and “constructive engagement” with the transport minister regarding the rail network continues. 

Reidy says rail plays a critical role in New Zealand’s multi-modal transport system contributing up to $2.1 billion in “often unseen” benefits annually – from emissions reduction to congestion relief and road maintenance cost savings.

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“It isn’t road versus rail, but the two working together to deliver a resilient and efficient outcome for New Zealand.

“The draft GPS focus on metropolitan networks and the golden triangle of Auckland, Waikato, and Tauranga is welcome, as is retaining the integration of rail infrastructure within the land transport planning system.

“Funding certainty is important for our customers as it allows us to plan rail maintenance and improvements efficiently and cost-effectively. It means we can have the right materials and skilled staff to do work, at the right time.

“To deliver a safe, resilient, reliable national rail network, we will need the funding top-ups referred to in the GPS, and we will continue to engage with the Government on this,” Reidy says. 

KiwiRail will submit in the consultation process, he says. 

“I encourage customers and communities who rely on New Zealand’s multi-modal transport network to submit their views as well.”

According to the draft GPS, the Government says its focus will be to invest in maintaining the network between the “busiest and most productive” parts of the existing rail network – between Auckland, Hamilton and Tauranga. 

“While rail freight network investments will remain within the GPS, rail infrastructure will no longer be cross- subsidised from revenue generated from road users. 

“It is unfair to ask people using the roads to fund rail infrastructure.

“Rail investments will continue to be supported and funded through the Rail Network Investment Programme as agreed by Cabinet. 

“Track User Charges paid by rail users will be used to support these investments,” it says.

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