How KiwiRail is optimising funding to improve the New Zealand rail network

With its fast-growing urban centers, challenging geology, and topography, the case for developing New Zealand's rail network is growing. However, with a shallow industry resource pool, expanding the aging network to move more people and freight presents significant challenges.

Peter Reidy, Chief Executive of KiwiRail, highlights that much of the infrastructure—3700km of track, 106 tunnels, and 1367 bridges—is over fifty years old. Upgrading the network amid resource constraints will require a collaborative approach across the transport sector.

"There are challenges everywhere, so we all need connected thinking and close collaboration to identify the trade-offs, risks, and gaps between all the different intersections that exist within major transport projects—whether that is a new bridge, roundabout, or branch line."

Good Track Record

New Zealand has demonstrated its ability to overcome challenges through collaboration. For example:

• Kaikōura Earthquake (2016): Teams rebuilt State Highway 1, the Christchurch to Picton line, and associated services with clear political direction and shared vision.
• Pūhoi to Warkworth Highway Project: Delivery partners worked with private and public investors to improve the highway's pavement system, achieving lower maintenance costs and better passenger experiences.

Integration is Essential

An integrated transport network is key to reducing supply chain costs and ensuring export competitiveness. Peter Reidy emphasizes the importance of collaboration across transport modes:

"Customers and supply chains both need different transport modes working together. This involves an integrated approach to transport planning, right from the outset, with all parties understanding the trade-offs and risks."

Rail plays a critical role in meeting sustainability targets, avoiding congestion, and reducing emissions. For instance:

• Metro rail services in Auckland and Wellington save 20 million hours of driving annually.
• Rail contributes $3.3 billion to the New Zealand economy each year, including $1 billion in GDP and $2.3 billion in public benefits.

Overcoming Constraints

Despite its advantages, rail has historically been underfunded, leading to network deterioration. Since 2019, a $9 billion investment has enabled KiwiRail to restore metro and freight networks, improving safety and reliability.

Transformative projects like the City Rail Link aim to enhance passenger experience and journey times. However, success will depend on reliability, minimal disruptions, and frequent services.

Further Insight

Peter Reidy will share more about KiwiRail's priorities at the New Zealand Rail Conference, hosted by Informa Connect. The event will take place on 16-17 October at the Aotea Centre, Auckland.

Register your tickets here.

About Peter Reidy

Peter Reidy is the Chief Executive of KiwiRail, leading major projects and upgrades across New Zealand's rail network. With extensive leadership experience in Downer Group and government initiatives, Peter has been instrumental in delivering over $3 billion of government investment in rail infrastructure.