Rail

Rail is an effective mode of transport for high volume and heavy freight and carries approximately 15 percent of freight moved in New Zealand*. It carries large numbers of urban commuters in Auckland and Wellington with more than 18 million boardings in 2008. The rail system also reduces the pressure on New Zealand's roads and can provide safety, health and environmental benefits.

For these reasons it is important that the rail system operates as efficiently as possible. The government, through KiwiRail, now owns and controls not only the rail tracks and associated infrastructure, but also the majority of the rolling stock. The government wants rail to compete on a commercial basis with other freight and passenger transport modes, with services funded from customer revenue as far as possible and rail investments providing a rate of return.

There may be some circumstances where the benefits to road users or society in general may justify public funding. Where this occurs it is important that both the level of subsidy and services being bought are transparent.

It is proposed that the ownership of Metro Rail Auckland and Metro Rail Wellington will be placed with KiwiRail. This wll achieve further integration in the operation of the rail services and should improve efficiency.

The Ministry's focus over the short to medium term is to work to establish the appropriate governance, institutional, funding and legislative frameworks that will position rail to contribute positively to the transport system in the future.

The Ministry aims to make the New Zealand rail industry progressively safer and reduce the distress and trauma arising from death and injury in the rail sector.




*National Freight Demands Study 2008