Rail Budget 2010
Last updated on
19/05/2011 11:33 a.m.
Overview
The government has committed to investing $250 million from Budget 2010 to support the KiwiRail Turnaround Plan in order to help increase New Zealand's economic productivity and growth.
The Turnaround Plan is designed to see the rail freight business become sustainable within a decade by getting it to a point where it funds its costs solely from customer revenue.
The Budget 2010 appropriation is the first round of government support for the objectives of the $4.6 billion Turnaround Plan. The government has committed in principle to a total package of $750 million over the next three years. Final decisions on funding will be subject to individual business cases and meeting the government’s performance measures.
The amount of freight being moved on New Zealand’s transport network will double by 2040 and all transport modes need to become more efficient to meet this demand. The government is committed to retaining and improving the rail freight network and is providing KiwiRail the capital investment to demonstrate it can become commercially viable and make a valuable contribution to the New Zealand economy.
To do this KiwiRail will need to focus on the areas where it can increase revenue, become more efficient and carry more – primarily bulk and long distance freight.