Source: New Zealand Government
Good morning.
Thank you for the invitation to address this conference. Foreign Affairs responsibilities require us to be elsewhere today, so it is with regret that this address to you all must be delivered in this format.
Let us begin by acknowledging the board members and management of the Australasian Railway Association; leaders from KiwiRail, Metlink, Auckland Transport, Auckland One Rail, infrastructure firms, and heritage operators, as well as our Australian freight and metro counterparts.
As the Minister for Rail – that’s for rail – the chance to share our record and vision was not to be missed.
We had responsibility for rail during the 2017-2020 term and we turned things around. Contrast our legacy for rail with any other and you will see who is out in front.
We are rebuilding rail
In 2020, we changed the law – rail is now funded like roads. A common-sense reform.
We funded the third main line between Wiri and Westfield – Auckland’s busiest rail section – and planning is underway for a fourth main line across the whole Auckland southern corridor. New stations are being built in South Auckland and electrification has extended commuter trains to Pukekohe.
Northland’s line can now take standard-weight trains and hi-cube containers. Marsden Point’s spur – stalled under the previous Government – is now in Fast Track legislation, alongside the Avondale-Southdown corridor.
Remediation and upgrades are occurring across Auckland and Wellington, lifting the quality, reliability and frequency of services. A city rail link in Auckland’s centre and new trains in Wellington.
Our regional investments are also about positioning New Zealand for global trade: port connections, less truck congestion, and more freight competition.
Just a fortnight ago, the Honourable Shane Jones announced $8.2 million to fund a three-track rail siding connecting Southern Link Logistics to the network.
Freight is about getting from A to B. Freight is the lifeblood of our economy. It’s no good making something if it doesn’t go to a customer.
Inland freight hubs mean local road freight operators and rail freight can feed regional goods into the hub, and have rail take the combined heavy haul to port.
Rail is the clearing house for busy ports, moving vast quantities so ports can handle more ships. More ships enable more exports, more imports, more trade.
And, last week, we announced in Budget 2025 the commitment of $604 million for rail. $461 million for the national network, and $143 million to the metro networks in Auckland and Wellington.
Both investments continue our focus on arresting the decline of the networks, contributing to better reliability.
Freight must pay its way.
KiwiRail must cover all its operating and capital costs—just like any other business. Freight volumes are down, as they are across the board.
So the turnaround begins with cost. Competitive pricing requires leaner operations, better use of its assets and better, more responsive systems for customers.
The second issue is reliability. Big players like Fonterra get a good service from KiwiRail – but KiwiRail must compete on speed and certainty for domestic and export freight.
We know that KiwiRail is alive to these issues. They are hungry for customers, and as shareholders we are as eager as their customers are to see that lift in performance.
We’re doing our part. Sixty-six new locomotives from Spain will replace the South Island fleet and support the North Island fleet.
We’re refurbishing the Hamilton-Palmerston North electric fleet, and planning is underway on electrifying the line to Mt Maunganui. Electric engines haul heavy weights, cost little to run, and emit nothing.
We’ve rebuilt Dunedin’s Hillside Workshops and new wagons are rolling out of there. A total of 1,350 wagons will be assembled, creating local jobs and capability, and wagons to reliably move customers’ freight.
It is on KiwiRail to deliver a strong freight business on the back of our investment. You will be measured on volumes, reliability, and earnings. Succeeding will open the door to new customers and then we can truly begin to rebalance transport in this country.
It is up to freight movers to come to the party, too. The Government is making the investment in rail that’s needed, so use it. The greater the use of the rail network, the greater the savings on reduced road congestion and road maintenance costs.
Every person who sees a wagon of logs moving by rail is a person who is not stuck behind a logging truck on the road.
Finally: the ferries.
We shut down the bloated iReX project. No Taj Mahal in Picton, no Opera House in Wellington. Just safe, reliable efficient ferries for road and rail – by 2029 – and infrastructure that works.
Ferry Holdings has two jobs: deliver ferries by 2029 and build low-cost infrastructure to serve them. Picton will get dual linkspans and faster load times. In Wellington, we’ll build on what’s already there. Rail is a primary customer across Cook Strait, and it will be served.
We will deliver, and rail is here to stay.
In closing: We back rail. Not with words, but with deeds.
But do not mistake this for unquestioning support. Let iReX be a lesson to the whole rail system: we do not tolerate waste.
As rail people, the delivery is up to all of you and your teams at this conference.
All of New Zealand expects you to succeed.
Thank you and have a great historic conference.
