Rail has been a winner from Budget 2022, the head of KiwiRail says, and now has the tools to rebuild the network after "decades of underinvestment".
An artist impression of low-emission locomotives that have been purchased as part of a ten-year rail overhaul plan requested from KiwiRail by the government, which received more funding today. Photo: Supplied
KiwiRail acting chief executive David Gordon said $661.5 million allocated by the government to rail this year added to a recently begun rebuild of the system, and allowed for more improvements to ensure an efficient and commercially viable rail system.
KiwiRail was required to design a 10-year investment plan for the national rail network, which began in 2021, funded by budget allocations to the National Land Transport Fund in 2020 and 2021.
"KiwiRail is working ... to improve tracks, bridges and other rail infrastructure, through the Rail Network Investment Programme. We are working to lift the standard of our national network to ensure it is resilient and reliable, after decades of underinvestment.
"Previous budgets funded the first three years of the programme, and Budget 2022 builds on this by funding the fourth year (2024/25). It gives us a solid level of funding certainty, which means we can better plan our work, manage costs and ensure we have the staff to carry it out."
Gordon said trains could transport goods with 70 percent lower emissions compared to heavy road transport. And tracks that were up-to-scratch and reliable into the future could enable more freight to be moved by rail, reducing transport emissions.
"We are very thankful for the government's support, which has been substantial. It is setting up rail in New Zealand for a bright future."
Budget 2022 Spending on rail:
- $312m for the National Land Transport Fund for upgrades to the national rail network in 2024/25
- $349m for replacement locomotives and freight wagons
- Further funding to progress Auckland Light Rail
KiwiRail planned to buy 29 light-duty locomotives, as well as specialist wagons and other purchases that "will make our wagon fleet more versatile".
"This funding marks the completion of our asset replacement and facility upgrade programme, which has already received $1.6 billion funding through budgets 2019 to 2021," Gordon said.
"It is bringing KiwiRail's end-of-life locomotive and wagon fleet into the twenty-first century century,' which meant a more efficient network, better low-emission freight options, and a strong commercial future for rail."
Gordon said KiwiRail had received $3.5 billion in national Budgets from 2019 to 2021, and other rail projects had been funded separately, through programmes like the NZ Upgrade Programme, and the Provincial Growth Fund.
Earlier Budget funding to KiwiRail's 10-year investment plan had already paid for 57 low-emission locomotives for the South Island (due to arrive in 2024), 16 zero-emission shunt locomotives (in use already), more than 1300 freight wagons, and future purchases of larger low-emission shunts, as well as seismic strengthening and updates to maintenance facilities.
"We are in the process of rebuilding Dunedin's Hillside Workshops, where we expect to begin assembling around 1500 more wagons late next year, creating new skilled jobs," Gordon said.
