Introduction - National Rail Strategy

The Government was the owner and operator of virtually all of New Zealand's rail infrastructure, passenger and freight operations until 1993 when the rail network and operations were sold to Tranz Rail Holdings Limited. (Toll Holdings, as majority shareholder from 2003, renamed the company Toll NZ.) The Government retained ownership of the land on which the rail assets were situated and leased the land to the rail operator.

The Government repurchased the Auckland rail infrastructure in 2001 and the rest of the national rail network in 2004, to secure a vital part of New Zealand's transport infrastructure in the national interest. The New Zealand Railways Corporation (trading as ONTRACK) has held these assets since 1 September 2004, and is responsible for managing and operating the national rail network.

Crown ownership of the rail infrastructure provides the Government with the opportunity to ensure that the rail system is maintained and developed in accordance with its vision for an affordable, integrated, safe, responsive, and sustainable transport system, as set out in the New Zealand Transport Strategy.

With the Government's purchase of the national rail network, it is timely and useful to have a clear statement of its future intentions to take the rail industry forward. The National Rail Strategy, under the umbrella of the New Zealand Transport Strategy, provides a framework for strategic planning across the government rail sector. It provides a structure for planning the development of the rail network in a way that recognises the Government's focus on shifting commuter and freight traffic from road onto rail, where appropriate, to ease road traffic congestion, benefit the environment, and improve safety, personal security, and health.

The National Rail Strategy sets out the Government's rail policy objectives and priorities for action over the next ten years, and outlines key initiatives that are intended to achieve the outcomes sought. Within this framework, government rail sector agencies will be responsible for developing the detailed programmes and strategies required to achieve the objectives.

The National Rail Strategy focuses on growth in two key areas: freight, especially bulk and containerised; and urban passenger transport. It is in these areas that New Zealand's rail network is at its most efficient - relatively fast, low-cost movement of large amounts of uniform freight or large numbers of people. In addition, as parts of the rail network are relatively underutilised, there may be fewer capacity constraints compared to roads, so growth may be more readily accommodated.

Prior to the Government's repurchase, investment in the rail network had been at low and declining levels over a number of years, which led to problems with deferred maintenance, concerns about safety, and declining service capability. The rail infrastructure is receiving significant new investment in some areas which will improve the efficiency of the network, attract new freight flows, attract new freight flows and increase the number of commuters. In addition, because of increasing demand for efficient freight movement in New Zealand's growing economy, and growing congestion in both Auckland and Wellington, there will be natural growth in rail freight and urban rail passengers. The National Rail Strategy seeks to build on this foundation of growth, to maximise the Government's investment in rail, and to support objectives for transport as a whole.


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• Media Release 

 

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• National Rail Strategy (PDF v7.0, 557KB)