Back on track

Government’s $35m boost for KiwiRail

The Government has provided KiwiRail with an extra $35 million to restore its fleet of ageing electric locomotives on the North Island’s main trunk line.

The money will be used to refurbish the 30-year-old trains during the next four years. Only eight of the units are currently operational and they had been due to be decommissioned in March 2019 following a decision by the KiwiRail board in December 2016.

Deputy Prime Minister Winston Peters, also Minister of State-owned Enterprises, said refurbishing the trains, rather than replacing them with modern diesel units, was the right decision long-term.

“By refurbishing these locomotives here, we’re creating jobs in KiwiRail’s Hutt Workshop and supporting our local rail industry. It just makes sense,” Peters said in a joint statement with Transport Minister Phil Twyford and associate minister James Shaw.

The $35m refurbishment cost is almost three times the figure touted by unions and other groups who had argued against ending the electric service. It is additional to funding the Government has already announced for regional rail upgrade projects and commuter service upgrades.

KiwiRail had favoured replacing the electric units with modern diesels as part of a strategy to improve reliability and speed on the Auckland to Wellington link.

Acting chief executive Todd Moyle said the 2016 decision had not been taken lightly and reflected the funding available to the company at the time. “The Government has shown a clear commitment to rail, including NZTA funding business cases for further electrification of the Auckland rail network from Papakura to Pukekohe and adding a Third Main line in Auckland,” he said.