Rail is a vital part of New Zealand’s transport network. It carries approximately 15 percent of New Zealand’s freight and more than 18 million urban commuters in Auckland and Wellington each year*. Rail can be an effective mode of transport for high freight volumes and for long haul freight. An efficient rail network can provide businesses with an affordable option for carrying freight long distances while providing critical links to and from ports, all of which are located within cities.

* National Freight Demands Study, 2008.

long-term outcomes^
The Ministry's planned programmes
of action              
Rationale                  Output*               Impact*                    
A B C D  Advise the government on the long-term role of rail in New Zealand’s transport system.   An agreed vision for the future of rail will provide essential context for subsequent work by KiwiRail and how it develops and operates in relation to freight and passengers.                   Advice to the Minister on the long-term role of rail in New Zealand’s transport system.     Clarity amongst all relevant stakeholders on the government’s long-term vision for rail in New Zealand.
B Develop and implement an operational model for the commercial success of KiwiRail freight operations, working closely with KiwiRail and Treasury.             The new operational model enables a sustainable KiwiRail freight business, keeping rail transport affordable for government and KiwiRail’s customers. Operational model and capital funding package to be agreed on by the government.             Increased commercial sustainability of KiwiRail. Improved services for freight customers.
A C D Implement operating models for metro rail services in Auckland and Wellington and monitor rail infrastructure upgrades in Auckland and Wellington. The new operational model will contribute to reliable and cost-effective passenger rail services in Auckland and Wellington. The agreed operating model for metro rail is in place. Contribution of upgrades within agreed project budget and timelines. Establishment of a funding framework for metro rail activities. Streamlined ownership and operating arrangements will improve efficiency and risk management of the significant public investment in urban passenger rail services. Improved services for communities.
B Establish and maintain appropriate governance, institutional, legislative, monitoring and evaluation frameworks for KiwiRail. Arrangements will ensure that KiwiRail operates effectively and efficiently as a State-owned enterprise, keeping rail affordable for the government. Amendment of institutional arrangements in place during 2011.

Establishment of Crown Ownership Monitoring Unit (COMU) regime to monitor and evaluate the government’s investment in rail.

Increased efficiency and improved commercial performance of the rail network.

Improved performance from government’s investment in rail.

D Develop rail safety initiatives to improve the safety of the rail system. Measures to improve rail safety will reduce deaths and injuries as a result of rail accidents. The planned growth in rail for both freight and commuter services manages the safety risk. Development and implementation of rail safety action plan. Reduced number of deaths and serious injuries as a result of rail accidents.


^ A-D show the relationship between the operating intentions outlined in this section and the government’s long-term outcomes for transport.

* If not stated otherwise, the output/impact refers to the timeframe of this Statement of Intent 2010-2013.

<< Road | Operating intentions | Aviation >>