Govt Commits $1.36B Rail Investment to Rebuild and Modernise Network

Minister Peters underlined the importance of rail to New Zealand’s economic identity, tracing its roots back to 1863 when the first tracks were laid.

 

The Government has finalised the 2024/25–2026/27 Rail Network Investment Programme, allocating $1.360 billion over three years to restore and upgrade New Zealand’s railway system. Rail Minister Winston Peters says the programme is a “no-nonsense rebuild” of a critical national asset, designed to strengthen infrastructure, support regional economies, and safeguard the movement of exports.

A Strategic Commitment to Rail

Minister Peters underlined the importance of rail to New Zealand’s economic identity, tracing its roots back to 1863 when the first tracks were laid. “Rail has built New Zealand into an export nation—connecting hinterlands to ports and communities to each other,” he said. The Government’s investment reflects a broader strategy to treat rail with the same priority as roads, ensuring it receives sustainable and consistent funding.

Focus on Core Infrastructure

The programme funds the essential “grunt work” that keeps the rail system functioning. Track teams across the country will be relaying kilometres of rail, replacing ballast rock and sleepers, upgrading culverts to withstand floods, and reinforcing bridges and slopes against erosion. Modern telecommunications and signalling systems will also receive attention to improve the safety and efficiency of train movements nationwide.

This back-to-basics approach ensures the rail network remains resilient against natural disasters and capable of supporting the country’s export-driven economy.

Building on Previous Reforms

The latest programme builds on reforms from 2020, when the Government introduced legislation to fund rail through a three-year cycle—similar to road funding. That change laid the groundwork for sleeper-by-sleeper renewal of an aging network.

Major progress has already been made with the development of train control centres in Upper Hutt and Auckland, designed to be disaster-resilient, along with investments in thousands of new wagons, shunting units, and locomotives. The procurement of new rail ferries has also secured the long-term future of inter-island connectivity.

Regional Investment Highlights

Every region will benefit from the new programme, with extensive works planned across both the North and South Islands:

• Northland: Re-sleepering, re-railing, culvert renewals, and bridge upgrades.

• Auckland: Track upgrades, turnout replacements, and yard renewals at Westfield.

• Waikato & Bay of Plenty: Upgrades to electrified sections of the North Island Main Trunk, culvert and slope protections, bridge works, and a business case for electrification expansion within the “golden triangle.”

• Hawke’s Bay: Major track renewals, level crossing safety upgrades, and resilience works at the Ormondville Viaduct.

• Taranaki & Manawatu-Whanganui: Over 10km of track renewal, bridge repairs, culvert upgrades, and improved telecommunications.

• Wellington: Track renewals and telecommunications upgrades.

• South Island regions (Marlborough, Canterbury, West Coast, Otago, Southland): Extensive sleeper and rail replacement, culvert works, coastal protection, bridge strengthening, level crossing resealing, and telecommunication upgrades. The West Coast’s Otira Tunnel and multiple viaducts and bridges will undergo significant works to ensure long-term resilience.

Across all regions, minor renewals, ballast top-ups, rail grinding, and de-stressing will form part of the rolling maintenance schedule.

Economic Backbone for the Future

Minister Peters stressed that this investment is about ensuring rail is not left to “waste away on the side of the road” but instead continues to play a central role in national productivity. By making long-term commitments to rail, the Government expects to reinforce supply chains, cut costs for exporters, and ensure safer, more reliable services for freight and passengers alike.

“This is the type of basic day-to-day investment that makes the economy work,” Peters said. “It’s about strengthening the foundation of New Zealand’s transport system, one sleeper at a time.”