8 Jul 2021

Rail network investment plan tipped to give KiwiRail certainty

11:37 am on 8 July 2021

A three-year investment plan for the rail network is expected to create sustainable jobs and certainty for KiwiRail.

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Photo: RNZ / Samuel Rillstone

The first Rail Network Investment Programme (RNIP), which details a $1.3 billion investment to maintain and improve rail lines across the country over the next three years, will give priority to improving the basics.

"It covers the important work of replacing ageing bridges, worn-out tracks and the civil works necessary to ensure that our national rail network is up to standard so that the thousands of train services we run are reliable," group chief executive Greg Miller said in a statement.

"With 70 percent fewer emissions than road transport, getting more freight onto rail offers a real opportunity to reduce New Zealand's transport emissions."

Miller said the three-year investment plan would provide certainty for KiwiRail.

"Instead of having to go to the government every 12 months for funding to maintain the network without knowing if we will get more money the next year, we now have certainty of funding and a three-year plan.

"That's essential for any infrastructure business and it means we can confidently take on the staff we need, knowing there is a pipeline of work ahead of us."

He said KiwiRail had 1200 track staff already working 24/7 across the country, but would need to increase that by 15 percent to carry out the work, as well as taking on more trainees.

In addition, he said the investment would support numerous civil contractors and material supply businesses.

"Having a solid plan also gives KiwiRail a massive procurement advantage," he said adding the business would be able to purchase some materials in bulk, three years at a time.

Miller said the improvements would lift customers' confidence in the rail component of the supply chain.

Read the Rail Network Investment Programme here.

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