KiwiRail is putting more than 100 new locomotives and 900 new container wagons on track as part of the Government’s so-called Wellbeing Budget which is investing $1 billion into rail.
Deputy prime minister Winston Peters says rail has faced years of decline.
“We’re addressing the last three decades of under-investment in our rail system, and enabling growth that will ensure rail is sustainable.
“Part of the funding package will go towards replacing the tired and worn-out 50 year old locomotives in the South Island. We’ve kick-started the replacement process for more than 100 locomotives. New locomotives mean more reliable services and less maintenance costs.
“In addition, 900 flat-top container wagons will be replaced with new, larger ones in our busiest corridors, giving KiwiRail a more competitive freight service,” Peters says.
Finance minister Grant Robertson says investing in rail is important for a low emissions future.
“Rail has huge benefits for New Zealanders’ wellbeing, including unlocking regional economic growth, reducing emissions and congestion, and preventing deaths and injuries.
“Our Government is already helping create 40 new jobs at KiwiRail’s Hutt Workshops through our investments in rail, including the new Hamilton to Auckland commuter service,” Robertson says.
Transport minister Phil Twyford says the Government wants to see rail as the backbone of the transport network.
“After the chaos for Auckland commuters last week, it’s important to reassure New Zealanders that we are investing in tracks, bridges, tunnels, signals and control systems around the country to make train services more reliable.
“But we can’t wait for the Budget every year to make sure KiwiRail has the resources to keep their services on track. We plan to integrate rail alongside roads, motorways and all transport investments so that decision-makers can consider it alongside all transport options and invest in the best option.
“Our Rail Plan, which will be released later this year, will outline the Government’s strategic vision and give a 10-year programme of indicative investments and benefits,” Twyford says.
On top of the Budget’s $300 million for regional rail, the Provincial Growth Fund has already given $183 million to rail to create growth in the regions.
This included the re-opening of the Napier to Wairoa line, which will play a big role for the local forestry sector and is expected to replace 15,000 truck journeys each year on the region’s roads.
It has already created four jobs and KiwiRail expects to recruit even more staff.
The $1bn Budget boost to rail includes $331m over two years:
– On tracks, bridges, tunnels and signals around the country – such as continuing important work required on the Kaimai Tunnel, upgrades to the train control system, and general track renewals.
– Investment in handling equipment (hoists and generators) mainly at Westfield/Southdown in Auckland. This allows for more efficient processing of freight at the largest inland port in New Zealand. The Southdown site is a crucial link in moving freight to and from the Auckland and Tauranga Ports.
– Mechanical renewals for existing rolling stock (replacing parts) and the plant and equipment required to do this.
– A new freight reservation, booking and tracking system for customer use. This new system will help freight customers with real-time tracking of their goods. Currently only 16% of all freight (and 25% of exports) are moved by rail. This type of system is industry standard today and will allow KiwiRail to compete and grow its share of the freight market.
$375m over two years to replace rolling stock and to upgrade maintenance facilities:
– Final payment on 15 new locomotives for the North Island (arrived in NZ in October 2018).
– Starting to replace KiwiRail’s oldest 48 long-haul locomotives, predominantly in the South Island, 52 short-haul locomotives across the country, and a small number of electric short-haul locomotives.
– Replacing 900 flat-top container wagons. These will be used in the busiest corridors, allowing the worst of the 900 existing wagons to be retired with a small portion of those being re-purposed to carry logs.
– Major upgrades at the key Hutt and Christchurch maintenance facilities – to improve efficiency and safety.
$35m on ferries:
– KiwiRail is to replace the three aging ferries currently used by Interislander. In addition to the design work KiwiRail will be investigating various options for financing the purchase of the ferries.
– The Cook Strait ferry crossing is essentially an extension to State Highway 1 and the main trunk line. Each year the Interislander ferries transport about 800,000 passengers, about 2.7 million lane metres of cars and trucks and 450,000 lane metres of train wagons.
$300m for regional rail projects through the Provincial Growth Fund
– KiwiRail is considering a range of rail projects around the country and is currently working out priorities and will be discussing options with the Government before applying to the Provincial Growth Fund.
