Extra $1.2b for new ferries and rail system
The Government has set aside $1.2 billion for New Zealand’s rail system, including money to help replace the Cook Strait ferries.
There will be $246 million to invest in the rail network, $421m for new wagons and locomotives, and $400m towards replacing the three ageing Interislander ferries and port infrastructure.
The $421m rolling stock investment included Auckland’s European
train control system, which would provide safer and more reliable services on the Auckland metropolitan rail network.
The money came on top of the Government’s $1b investment in Budget 2019, said KiwiRail chief executive Greg Miller.
The capital funding promised for the new Interislanders highlighted how important the ferry connection was, he said.
‘‘Our Cook Strait ferries are an extension of State Highway 1, moving 800,000 passengers and up to $14b worth of road and rail freight between the North and South Islands each year.
‘‘They are a must-have for NZ Inc. The two new rail-enabled ferries will be more advanced, have significantly lower emissions and last for the next 30 years.
‘‘This is a once-in-a generation investment and I am thankful for the Government’s support. It gives us the security to go out to international tender to build the ships, which we hope to see arriving on our shores in 2024 and 2025.’’
The Government wants spending on infrastructure projects to help keep Kiwis in jobs, with a Covid-19-induced recession expected to result in a steep rise in unemployment in coming years.
KiwiRail employs almost 4000 people, and Miller is on an infrastructure industry group reporting to the Government about ‘‘shovel ready’’ projects.
State Owned Enterprises Minister Winston Peters said after decades of under-investment, further investment would play an essential role in our economic recovery post-lockdown.