$600 million for Auckland rail good step towards $2.3 billion public transport funding deficit

"The New Zealand Council for Infrastructure Development has commended today's announcement by Government that it will invest up to $600 million to upgrade Auckland's rail track infrastructure.

"This is a really good start" said NZCID CEO Stephen Selwood "and was essential to ensure the future viability of the rail network for both freight and passenger transport services."

"The next challenge will be secure the funding for the rolling stock and station upgrades that will enable the Auckland Regional Transport Authority to meet the passenger transport mode share targets set out in the Regional Land Transport Strategy launched just last week.

"That strategy hopes to achieve 11% peak journeys by public transport by 2016, up from 7% currently, but is dependent upon finding $2.3 billion in funding for public transport services.

"Under current funding allocations, public transport and travel demand management have a shortfall of $1 billion on the amount required by the regional strategy. On top of that, ARTA have estimated a further $400 million in capital investment and $900 million in operational spending would be needed for public transport patronage to double to the required 105 million passenger trips by 2016.

"Today's announcement confirms up to $600 million of that funding deficit.

"Possible options for raising the remaining $1.7 billion include:

diverting money budgeted for roads into public transport

additional government funding

increasing regional rates and levies

road tolls

Given that Transit New Zealand are already short of up to $1 billion needed to build the Auckland Western Ring Route by 2016, or sooner, a combination of the latter three funding options seems the most likely scenario." Mr Selwood said.

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