The NZ Transport Agency Waka Kotahi board has this week confirmed co-investment arrangements for regional commuter train Te Huia, says Chief Executive Nicole Rosie.
NZTA will continue to co-invest in the Te Huia service between Hamilton and Auckland, with approximately $12.2m committed from the 2024/27 National Land Transport Fund (NLTF) for the remaining 2 years of the 5-year trial. This is a progressive reduction of the share that NZTA funds for the operation of the service.
Nicole Rosie says that funding pressure for land transport and a new draft Government Policy Statement on Land Transport (GPS) which outlines new priorities for NZTA, means on-going co-investment in these services had to be carefully considered.
“The draft GPS continues to prioritise effective public transport to provide commuters with more choice and to help to reduce travel times, congestion, and emissions. There is a need to link ongoing investment to service and commercial performance to make sure taxpayers’ money is being used in the best way,” says Nicole Rosie.
In August 2019 the NZTA Board endorsed a 5-year trial for Te Huia. This included co-investment which was approved until the end of June 2024. The start of the Te Huia trial was delayed due to Auckland rail network rebuild and various covid lockdowns and the trial is now timed to run until April 2026. As a result, further funding approvals were required.
“Performance for Te Huia as a start-up public transport service has been generally encouraging. While the service has gradually built patronage, Te Huia has not achieved all of the targets set out in the original business case.
“Our decision to progressively reduce the level of our co-investment aligns with the draft-GPS, takes into account current funding pressures and recognises the performance of the trial to date.
“Waikato Regional Council runs Te Huia and they will need to determine what the operational impacts could be. They will need to take some time to work through the impact of the Board’s decision on the service and their local co-investment share. NZTA will work closely with them and continue to support Te Huia for the remainder of the trial.”
The new co-investment arrangements for Te Huia come into effect from 1 July 2024.
