Kiwi Rail asked to tighten its belt

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The Rail Network Investment Programme (RNIP 2024-27) encompasses operations, renewals, maintenance and improvements. Maintaining reliability in the Auckland-Hamilton- Mt Maunganui “Golden Triangle” for freight services, and metro networks in Auckland and Wellington are the priorities, given spending constraints, says Kiwi Acting Chief Executive Rob Jager. It reflects the government objectives to reduce the three-year costs by $200 million and the 10-year forecast to between $4 and $5 billion.

Infrastructure New Zealand Chief Executive Nick Leggett says the North Island’s two largest cities simply cannot function without reliable daily passenger rail. 

“These networks move tens of thousands of people every day, and years of under-investment in core renewals and maintenance has impacted reliability, disrupted journeys, and ultimately eroded people’s confidence. This additional investment will also benefit freight transported by rail.”

The confirmation of funding for metro rail upgrades in both Auckland and Wellington should reassure train users in both major cities that there is a better focus on shoring up vital daily commuter services,” he says 

Leggett says the upgrade work announced is particularly important to get the Auckland network ready for the City Rail Link (CRL) in 2026.

 “You can’t expect to reap the full reward of a project like the CRL if your basic track infrastructure is fragile.”

  The RNIP has improved KiwiRail’s asset management maturity, knowledge of asset condition, and informed our intervention strategies, says Jager. 

“The remaining task ahead of us, however, is large, which when combined with a disciplined fiscal approach, means that it will still take us some years to restore a fully resilient and reliable national rail network,” he says.

“To reduce funding requirements, we have deferred a significant number of renewal works over the next two years. This is not the preferred and lowest whole-of-life cost option with increased maintenance requirements.

“These assets still need renewing in future RNIPs and, with escalation, will cost more to deliver. Similarly, we have not built in high contingency across the 10-year programme and our focus will remain on continued prioritisation of work to ensure we get best value for money,” says Jager.

The Draft National Infrastructure Plan sets out that around 60 percent of investment should be directed towards renewing and replacing existing infrastructure, says Leggett 

“The investment in the management of these assets [including rail]needs to be part of a bigger priority shift for New Zealand when it comes to making the most out of the infrastructure we have. More focus and better investment in expertise must be driven across all infrastructure assets. 

 “It’s not always the exciting, shiny, new stuff that’s most important. If we want safe and reliable services that enhance our productivity and community connections, we must invest in extracting the full value from the infrastructure we’ve already got.”

“The bigger picture is that New Zealand must be world leaders in excellent asset management, not the exception,” says Leggett. 


Enhancing the benefits of rail in Infrastructure 

Kiwi Rail’s latest Rail Network Investment Programme (RNIP) sets out a three-year investment programme (2024 -2027) and a 10-year investment forecast for the national rail network.

It incldes thousands of kilometres of track and associated infrastructure such as signals, tunnels and bridges, that provide the network for rail freight and passenger services in New Zealand. 

The programme has been developed by KiwiRail, guided by the Government Policy Statement on Land Transport 2024 (GPS).

 The investment focus set out in the GPS is to invest in the busiest and most productive parts of the existing rail network and to support efficient movement of freight. 

In addition, a priority is to invest in the metropolitan rail networks to support the efficient movement of people in Auckland and Wellington.

It also takes account of ministerial direction provided through Budget 2024, Regional Land Transport Plans and the New Zealand Rail Plan.

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