New Zealand rail operator KiwiRail is starting negotiations for a new funding package for 2017-2020. The company is looking for a small number of rail upgrade projects that will demonstrate that there is a “value of rail” to New Zealand beyond purely commercial returns.
One of the projects is the extension of the railway network by three kilometres in Wiri, South Auckland, which could unblock a major rail freight and passenger bottleneck and help alleviate road congestion.
KiwiRail received from the state a $400 million two-year commitment, ending June 2017, to fund various high-cost capital works, including refurbishment of two major tunnels, at Otira and Kaimai. The funding was granted after the December 2014 KiwiRail Commercial Review, which became the basis for a government decision to maintain a national rail network, despite it having no prospect of running profitably.
Share on:
