Budget 2025 Continues Solid Investment In Rail
A $600 million investment in Budget 2025 continues strong backing for New Zealand's rail network as a key part of New Zealand's transport system and to support the Government's economic growth strategy, KiwiRail Chief Executive Peter Reidy says.
'KiwiRail is delighted by the announcement today that $461 million is being invested in the national rail network and a further $143.6 million in the Auckland and Wellington metro networks.
'This significant investment will continue to enable KiwiRail to grow through the delivery of efficient, reliable freight services for export, import, and domestic freight customers, and help deliver reliable journeys for commuters in Auckland and Wellington.
'The Budget commitment, combined with KiwiRail's focus on improving productivity and asset utilisation, is key to a sustainable rail network for the future.'
Mr Reidy says the $461 million funding commitment means the three-year Rail Network Investment Programme 2024-27 is funded so KiwiRail can efficiently look after the national rail network.
'This provides certainty for us to plan and effectively manage our work programme. It also provides certainty for our freight customers who rely on rail as a lower-carbon choice for moving all types of freight.
'In recent years, we have focussed on raising the standard of the national rail network for more reliable freight services to get our customers' goods to market. Rail carries 25 per cent of exports and upgrading our rail lines will contribute to the Government's goal of growing New Zealand's export economy.
'KiwiRail did not seek Budget funding for our commercial freight business, as new locomotives and wagons are arriving in the next few years to replace much of our aging fleet, thanks to previous shareholder investment to boost our ability to serve the market.'
Mr Reidy says the $143.6 million for the metros means KiwiRail will continue addressing overdue rail infrastructure renewals in Auckland and Wellington to 2027, overcoming historic underinvestment in both cities where maintenance funding has not kept pace with the increased wear and tear as metro patronage has grown.
'We will continue replacing aging infrastructure that results in track faults, which can delay or cancel passenger trains. Work will include replacing end-of-life turnouts (which allow trains to switch between tracks), worn sleepers and rail and improving track foundations. Work will also be done on improving drainage in the rail corridor, and in Wellington there will be additional slope and coastal protection, to improve resilience so that people who take the train will be less affected by weather events.
'While we have made good progress in recent years, there is still a lot of work to do to get the metro networks up to standard. This Budget 2025 investment will help deliver more reliable trains for the people of Auckland and Wellington and set the stage for more frequent trains to come.'
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