February 23, 2018
Embargoed Until Midday
KiwiRail welcomes Government’s boost to rail
KiwiRail Chief Executive Peter Reidy says today’s announcements of new projects in the Provincial Growth Fund are a
strong signal of the Government’s confidence in rail’s ability to drive regional economic growth for New Zealand.
“KiwiRail is committed to enabling sustainable and inclusive economic growth and the Government’s investment in
promoting rail in the regions will enable us to step up that work.
“This investment is a vote of confidence in our customers and our staff.
“The projects announced today – the re-opening of the Wairoa-Napier line and the upgrade of the Whanganui line – are
just the start.
“They are the projects that were ‘shovel ready’ and that we could begin straight away.
“The feasibility studies that were also announced today are an indication of the possibilities for future investment.
“We welcome this recognition of the contribution rail is making in adding value to New Zealand, not only through the
efficient movement of freight and people, but in all of the areas highlighted in the recent Value of Rail report
prepared by professional services firm EY.
“The benefits rail delivers include reducing congestion on roads, cutting carbon emissions, making our roads safer and
lowering spending on road maintenance and upgrades.
“Together they add up to more than $1.5 billion per year, and they are a key reason for the Government’s financial
investments today.
“Moving logs by rail takes pressure off the roads, and reduces greenhouse gases – each tonne of freight carried by rail
instead of heavy trucks means 66 per cent fewer carbon emissions.
“The Wairoa-Napier road is not designed to cope with the growing volumes of logs now that the ‘Wall of Wood’ is coming
on stream. Rail is the ideal way of getting that timber to overseas customers.
“We have estimated that using the Wairoa-Napier line to move the logs could take up to 5,714 trucks a year off the road,
and reduce carbon emissions by 1292 tonnes.
“KiwiRail already transports around 25% of the country’s exports and plays a critical role in regional tourism.
“However, there is a lot of potential to increase that contribution, and KiwiRail looks forward to realising that
potential.
“Today’s announcements are an important step in doing that,” says Mr Reidy.
ends