Government commitment to investment in rail

IN MAY 2021 THE NEW ZEALAND RAIL PLAN WAS RELEASED. IT OUTLINES THE GOVERNMENT’S VISION FOR THE NEW ZEALAND RAIL NETWORK AND THE IMPORTANT ROLE THAT IT WANTS RAIL TO PLAY IN A MULTI-MODAL TRANSPORT SYSTEM. BY JOANNA HEARD

The Government is committed to two key investment priorities. Firstly, supporting investment in the national rail network to restore rail freight and provide a platform for further investments in growth. Secondly, investing in the Auckland and Wellington metropolitan rail networks to support growth and productivity in our largest regions. The Rail Plan also reinforces other existing investment priorities for rail, including those found in the Auckland Transport Alignment Project, and the New Zealand Upgrade Programme. It also reflects regional rail investments and supports our inter-regional rail passenger services in New Zealand, like the recently launched Te Huia. The Rail Plan will guide future investment decisions taken by the Government under the Government Policy Statement on Land Transport 2021 (GPS), and through future Budgets for Crown investment.

New planning and funding framework for rail

The Rail Plan is an output of the Future of Rail review, which recognised that significant parts of the rail system were in a state of ‘managed decline’. The Government recognised the benefits that rail could deliver to New Zealand, including emissions reductions, congestion reduction, safety benefits, and supporting productivity and jobs in our regions. However, in order to deliver these benefits, the Government needed to plan and fund rail differently. Remedial investment was needed, but this alone was not sufficient. A long-term planning and funding approach was required to guide investment in the system, and integrate it into the overall approach to the land transport system under the Land Transport Management Act 2003 (LTMA). The Government made changes to the LTMA last year to bring rail into the land transport management system and allow the network to be funded through the National Land Transport Programme (NLTP), with the support of Crown funding and track user charges. KiwiRail’s freight, logistics and tourism businesses will continue to be expected to run commercially and will be funded as they are now through the Crown if required. As part of the changes to the LTMA, KiwiRail is required to prepare a Rail Network Investment Programme (RNIP) that will be considered by the Minister of Transport, in consultation with KiwiRail Shareholding Ministers, by 1 July 2021. The RNIP will then form part of the upcoming NLTP. KiwiRail has also joined the Regional Land Transport Committees in Auckland and Wellington to support rail and transport network planning in those regions, which currently have commuter networks. This is important to support regional planning processes and more integrated land transport planning.

Public feedback on the draft Plan

Public feedback on the draft Rail Plan was sought from March to May 2020, alongside the draft GPS. Due to the COVID-19 alert level measures in place at that time, face-toface engagement was not possible, and the Ministry of Transport made content available on its website. Despite this there was significant feedback and the draft Rail Plan received over 1,100 submissions from a range of stakeholder groups. The feedback was a key consideration in finalising the Rail Plan. The majority of submitters supported the intent of the Rail Plan and the Government’s proposed investment. However, submitters also sought a greater level of ambition from the Government for the rail network, including freight rail, inter-regional connections, and in existing and new metropolitan rail networks. The Government acknowledges the significant ambition for rail in New Zealand and sees the Rail Plan’s investments as an important first step for the rail network. The investment proposed in the core network creates a platform from which to consider further investments for New Zealand.

There were also a range of other comments on the amendments to the LTMA, and changes to the overall structure of the rail system. We expect further work on the rail system to continue in the coming years.

The Government acknowledges the significant ambition for rail in New Zealand and sees the Rail Plan’s investments as an important first step for the rail network. Photo: KiwiRail