Home / Uncategorized / Detailed breakdown of the boost to rail from Budget 2019.


$331m: over two years to help address legacy issues on the rail network and help move the rail network towards a sustainable ‘steady-state’ condition.

This will include:

Increased investment in 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, to allow 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 create a better experience for freight customers, including 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 better allow KiwiRail to compete and grow its share of the freight market.

$375m: over two years towards replacing rolling stock that is at the end of its useable life and to upgrade maintenance facilities which are no longer fit for purpose.

This will include 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.

The busiest rail corridors these new wagons will be used on are Auckland-Tauranga, Auckland- Christchurch, and all lines serving ports (Napier, New Plymouth, Wellington, Timaru, Port Chalmers, Bluff – in addition to Auckland, Tauranga and Lyttleton).
The benefit is in replacing existing wagons that could potentially fail in service. The new wagons will generally be larger and able to carry more than the existing wagons. Re-purposed wagons would be used for forestry, predominantly in the North Island where harvests are expected to increase.

$35m: for KiwiRail to progress design and procurement of two rail-enabled ferries, to replace the three aging ferries currently used by Interislander.

$300m: for regional rail projects through the Provincial Growth Fund

KiwiRail is considering a range of rail projects around the country. KiwiRail is currently working out priorities and will be discussing options with the Government before applying to the Provincial Growth Fund.



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