The Government’s vision is for a multi-modal system that gives people a range of transport options that are accessible, frequent and affordable.

Significant central and local government investment has been provided to metro rail in the past 10 years.

The Government has provided substantial investment to support a resilient and reliable rail network through the PGF and the GPS: 

  • The Government recently provided investment to support metro rail through introducing the Transitional Rail Activity Class in the Government Policy Statement on Land Transport (GPS) which provides up to $815 million for passenger rail, supporting metro and interregional rail services that assist passengers accessing major employment and housing areas
  • the PGF has committed around $183 million to a range of rail projects to date (refer to the table next page)
  • the Crown funding commitments to the City Rail Link.


Through Budget 2019, Cabinet has agreed to provide a total of $1.042 billion as the first instalment for rail investments across the next decade. This amount includes:

  • $741 million to support a resilient and reliable rail network, with further funding requests to support rail expected in subsequent Budgets, comprising:
    • investment of $331 million for the period of 2019/20 and 2020/21, to predominately invest in track and other supporting infrastructure
    • $375 million for rolling stock to support rehabilitation of these assets
    • $35 million has been provided to fund the procurement phase for replacing the current ferries and landside assets
  • $1 million operating funding to support the implementation of the Future of Rail review
  • $300 million for regional rail provided from the PGF.

Funding from Budget 2019 also includes $405.5 million in funding to cover the Crown’s share of potential cost reforecasts associated with Auckland City Rail Link and $134 million for a scope change to cater for forecast patronage growth (this is in addition to the $1.7 billion that has already been appropriated in prior budgets).

Provincial Growth Fund projects for rail

Project name


Funding amount


Wairoa to Napier Railway

Hawke’s Bay


Repairs to the Wairoa-Napier line

Wairoa to Napier Railway - additional storm damage

Hawke’s Bay


Supplementary to the above following storm damage.

Rail Freight Opportunities - Whanganui Rail Upgrade




Rail Freight Opportunities - Kawerau/Murupara

Bay of Plenty



Rail Freight Opportunities - New Plymouth Eastgate




Rail Freight Opportunities - South Port




North Auckland Line Geotechnical works




Hokitika to Westport feasibility

West Coast



Rail Tourism Opportunities

Canterbury/West Coast


Improving KiwiRail’s tourism offering on the TranzAlpine and Coastal Pacific rail services.

KiwiRail Palmerston North Regional Economic Growth Hub



Design and land acquisition for multimodal distribution hub in Palmerston North

The Restoration of the Gisborne to Wairoa Railway Line Feasibility Study

Hawke’s Bay / Tairawhiti



Tairawhiti Railway Tourism Feasibility (Steve Breen / Jacque White / Adam Hughes)




KiwiRail Working Capital



Investment in network maintenance across NZ, including surge regions, as an efficient rail network is essential for regional economic development and productivity. Appropriated under non-departmental capital expenditure.

North Auckland Line Rail Study




Regional Rail Investment (Budget 2019)



Potential opportunities for investment will be considered through the usual Provincial Growth Fund approval processes

Total: $483,380,000