Hon Steven Joyce
Minister of Transport
5 July 2011 Media Statement
Wellington rail package confirmed

Transport Minister Steven Joyce has welcomed the signing of an asset transfer agreement between Greater Wellington Regional Council (GWRC) and KiwiRail.

The agreement is part of a funding and ownership package to complete the rebuild of Wellington commuter rail services.

The package includes Government funding of $88.4 million to renew the rest of the signalling and traction assets on the network. GWRC will take over and refurbish the 30-year-old Ganz Mavag units at a cost of $80 million, which will be supported with an operating subsidy from the NZ Transport Agency (NZTA).

The complete funding and ownership package comprises:
• Government funding of $88.4 million to renew the rest of the signalling and traction assets on the network.
• GWRC retaining ownership of the Matangi train fleet.
• GWRC taking over ownership of the Ganz Mavag and English Electric trains from KiwiRail and committing to upgrade the Ganz Mavag units at a cost of $80 million.
• GWRC taking over ownership and responsibility for stations (other than Wellington Station), train stabling and the electric train depot.
• The Crown (through KiwiRail) retaining ownership of the metro rail track network, the traction and signalling assets, and responsibility for any further investment in the upgrade of these assets.
• GWRC will pay a track access charge to KiwiRail, partly subsidised by NZTA, that reflects the fair cost of maintaining the tracks and other assets.

"This agreement enables the completion of a substantial upgrade programme that will improve the efficiency and quality of Wellington’s commuter rail services," says Mr Joyce.

"GWRC is now the owner of much of the region’s above-track rail infrastructure, including the rolling stock and most of the stations. This will give them far more independence and flexibility in how they configure their services, alongside the NZTA as co-funder," Mr Joyce says.

NZTA has adjusted its funding rates as part of the package to be consistent with their support for other passenger transport services. Their operational subsidy has been extended to include asset depreciation and replacement, with the quid pro quo being a move to a 50 per cent funding rate – down from the current 60 per cent rate - for new approvals over ten years starting in 2012.

"Commuters have put up with the shortcomings of the Wellington rail network for a very long period of time. While new trains, double tracking to Waikanae and a third track into the Wellington station have been a great start, more needs to be done to provide a modern network and better services.

"This package, coupled with the previous investments from Government and GWRC, including the new Matangi units, will transform the service into a modern reliable public transport option," Mr Joyce says.

ENDS

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