Auckland Rail Upgrade

The government has approved funding of $500 million for the purchase of electric trains to run on the Auckland rail network.

KiwiRail will be the procuring authority for the new trains and is expected to be in a position to issue a Request for Tender in early 2010.  The first electric trains are expected to be operating on the network from 2013.

The $500 million, by way of a loan to KiwiRail, brings the Crown’s investment in the development of Auckland’s metro rail system to $1.6 billion, which comprises:

• $600 million for Project DART
• $500 million for the infrastructure required to support electrification
• $500 million for purchase of electric trains

The upgrade and electrification of the Auckland rail network will provide for more frequent trains at peak times and help to meet future passenger demand.

Read Transport Minister Steven Joyce's media release on the beehive website.

Questions and Answers

What is this announcement about?

The government has approved funding of $500 million to enable the procurement of new electric trains for Auckland.

The $500 million will initially be provided to KiwiRail as a loan.  Final decisions as to whether the funding will be provided as a loan or equity will depend on other work on KiwiRail’s capital structure.

Work is already underway on electrifying the urban rail network - a $500 million project to erect power lines, provide new signalling and adapt bridges for electric power cables. This next lot of funding will enable the procurement of up to 114 new electric trains to operate on the modernised network.

What does the electrification of Auckland’s rail network involve?

The government is investing heavily in Auckland rail to improve public transport. Work on electrification of the network and buying electric trains is part of $1.6 billion going into improving the Auckland rail system.

Broken down into its elements:

• Electrification involves erecting power lines, new signalling and adapting bridges for electric power cables at (a cost of $500 million)
• Procuring the trains to run on these lines (a further $500 million)
• In addition to this electrification work, KiwiRail is progressing a $600 million upgrade to Auckland’s rail network to improve safety, reliability and reach.

The government's investment in Auckland rail, totalling $1.6 billion, is outlined below:

• DART (Developing Auckland’s Rail Transport)
  A programme of improvements to rail infrastructure to enable more frequent and reliable services and improved pedestrian safety around the Auckland rail network. Budget is $600 million.
• AEP (Auckland Electrification Project)
  Building the infrastructure required to support the electrification of the Auckland metropolitan rail network. Budget is $500 million.
• New Electric Rolling Stock
  Purchase of new electric trains and a maintenance depot. Budget is $500 million.

The current upgrade work is on track to deliver major improvements to the system, in partnership with the Auckland region which, along with the NZ Transport Agency, is investing in new and upgraded rail stations on the network.

What will electrification achieve?

The electrification of the network will provide for more frequent trains at peak times and additional capacity to help to meet passenger demand until the mid-2020s.  

This will support both the local and national economy by helping to keep the country’s largest city moving.

What will the benefit of the new Electric Multiple Units (EMUs) be?

When the acquisition of electric rolling stock is complete, Auckland will have a more modern and more reliable rail network able to carry more people. It will encourage more people to use rail.

How will the funding for procuring the units be made available?

The funding will be made available from the Crown to KiwiRail. The money will be administered through a rolling stock company (owned by KiwiRail) to keep the transaction separate from KiwiRail’s other responsibilities.

Wasn’t funding committed by the previous government?

The previous government agreed to the introduction of a regional fuel tax to help the Auckland Regional Council (ARC) fund the purchase of new electric rolling stock, and other public transport infrastructure.

In March 2009 the new government revoked the Auckland Regional Fuel Tax Scheme as it was an expensive and inefficient means of collecting revenue.

The Auckland regional fuel tax was set at 2 cents per litre of fuel from 1 July 2009, 5 cents per litre of fuel from 1 July 2010 and 9.5 cents per litre of fuel from 1 July 2011, and would have applied for 30 years to June 2039.

This was in addition to scheduled national increases in fuel taxes planned by the previous government of 1.5 cents per litre each year for the next three years, to meet increased spending planned for the National Land Transport Fund.

The government instead intends to own and fund Auckland’s new rolling stock via KiwiRail.


Why is this not being progressed as a Public Private Partnership (PPP)?

Careful consideration was given to a PPP as a way of procuring the EMU package.  However it was decided that a PPP would be particularly complex given the number of stakeholders involved, and the costs would likely outweigh the benefits.

Will this affect fare prices?

Setting fares is the responsibility of the Auckland Regional Transport Authority (ARTA).  It is expected that ARTA will adjust fares at relevant times to reflect improved services.

Who will undertake the procurement process?

KiwiRail will undertake the procurement in consultation with ARTA.

When will procurement of rolling stock begin?

Depending on the degree of new information that needs to be included in existing tender documentation, KiwiRail is expected to be in a position to issue a Request for Tender in early 2010.

How many electric units will there be?

Up to 114 24-metre long Electric Multiple Units will be bought. ARTA will also potentially need to lease up to 13 electric locomotives either from KiwiRail or another supplier.

ARTA’s original proposal was for 140 20-metre long electric units with a similar number of electric locomotives. However, further investigation has shown longer higher-capacity trains will be able to operate on the upgraded network, which will be more cost effective and efficient - reducing the total number required.   ARTA’s budget of $500m for the new trains and maintenance depot is unchanged.  The final numbers and length of trains will  be determined by the tender process.

When will the new trains arrive?

New electric units will begin to arrive in 2013.

Where would the EMUs operate?

Initially (and subject to final fleet configuration) the EMUs will operate on the Western and Eastern lines. within the electrified network between Papakura and Swanson.   SA carriages pulled by electric locomotives will operate on the Southern Line. This is consistent with ARTA’s original proposal.

Who will own the electric units?

The government will own the new rolling stock, which will be held in a separate rolling stock company as a subsidiary of KiwiRail.

Who will operate them?

Metro rail services will be contestable in both Auckland and Wellington. The future operator for Auckland will be dependent on contracting decisions by the new Auckland Transport Agency in conjunction with the NZ Transport Agency.   (The Auckland Transport Agency will be established under the Auckland Council on 1 November 2010).

What are the next steps in the procurement process?

KiwiRail, in consultation with stakeholders, will issue a Request for Tenders as early as possible next year. A contract for new trains will be awarded later in the year.

Will this process be affected by the 2011 Rugby World Cup (RWC)?

Improvements to Auckland’s current rail network and the construction of the electrified infrastructure will take into consideration hosting of the RWC.  Improvements to the network are already being made to ensure the rail network will run smoothly (eg improvements to Kingsland and Morningside stations). The procurement process for new electric trains will be unaffected by the RWC.

Consistent with decisions taken by the previous government, there is no intention to have new electric trains running on the network during the RWC.