In recent years, funding for New Zealand’s railway networks has been reduced, but the government has decided to invest in the most critical areas of the railway sector, this is reported by the railway transport news portal Railway Supply.

New Zealand is investing $284 million in railway transport

The budget for 2024 allocates NZ$466 million (approximately US$284 million) for the development of railway transport. This decision supports the aim to improve infrastructure despite a trend of declining funding over the past five years.

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The allocated funds are distributed among several key projects. Auckland’s railway network reconstruction receives NZ$159 million, while track renewal projects in Auckland and Wellington receive NZ$107 million.

The remaining portion of the budget will be invested in the Rail Network Investment Program (RNIP).

The state railway operator KiwiRail has welcomed these investments, despite the government’s need to manage expenditures.

KiwiRail CEO Peter Reidy noted, “Over the past three years, we have focused on raising the standards of our national railway network, and the government’s commitments in the 2024 budget will help us continue this work. Railways support 25% of exports, and modernizing our rail lines will help achieve the government’s goal of developing New Zealand’s export economy.”

The funding for railways in 2024 slightly trails the 2023 budget, which allocated NZ$569 million. However, this is significantly less compared to the period from 2019 to 2021, when over NZ$1 billion annually was allocated to the country’s railway network.

Nevertheless, investments in Auckland will support major railway projects, including network reconstruction, enabling more frequent train services across the urban network after the launch of the City Rail Link in 2026.

Additional funding in Auckland and Wellington will address issues stemming from historically insufficient metro network funding, supporting the completion of accumulated upgrade work.

Reidy highlighted, “Each year, capital repairs are needed for Auckland and Wellington’s metro networks, which are primarily used for suburban trains. Networks include complex track structures, overhead electrical lines, signals, and sophisticated telecommunication systems.”

These investments will also support projects to improve passenger and freight transport. Specifically, a new railway operations center will be opened in Auckland, consolidating all railway control services in the city under one roof.

Thus, despite the overall reduction in funding in recent years, the New Zealand government continues to support the development of railway transport, directing funds to the areas most in need. This will enhance infrastructure, increase train frequencies, and ultimately contribute to the country’s economic growth.

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