For the land transport system to work effectively, we need to ensure all travel options are playing to their strengths. A well-maintained rail network contributes many benefits for people in New Zealand, including reduced congestion and emissions, and improved safety and resilience across the land transport system.
NZTA was part of the Future of Rail review led by the Ministry of Transport. In 2021 (at the completion of the Future of Rail review), the previous Government released the New Zealand Rail Plan (the Rail Plan) which sets out a long-term vision for rail.
The Rail Plan outlines the commitment to the significant investment needed to achieve a resilient, reliable and safe rail network. We were involved in the development of the Rail Plan, alongside the Ministry of Transport and KiwiRail.
The Rail Plan sets out two strategic investment priorities for delivering a resilient and reliable rail network:
To support the implementation of the Rail Plan, legislation was passed introducing a new funding and planning framework for the heavy rail track network under the Land Transport Management Act 2003.
The changes mean KiwiRail can receive funding from the National Land Transport Fund (NLTF) for investment in the rail network. KiwiRail owns the rail network and is responsible for its management, operation and maintenance.
NZ Rail Plan on the Ministry of Transport website (external link)
The Government Policy Statement on land transport 2024-34 (GPS 2024) sets the strategic direction for rail in line with the overarching priority of economic growth and productivity, whereby investments should be focused on the busiest and most productive parts of the rail freight network to support the efficient movement of freight.
This new focus directs network maintenance investment to areas where large volumes of goods are moved between major cities, particularly within the Auckland, Hamilton and Tauranga triangle. GPS 2024 also confirms the ongoing priority of completing major metro network renewals and upgrades to realise the benefits of previous investments in major public transport infrastructure.
GPS 2024 on the Ministry of Transport website (external link)
KiwiRail is required to prepare a Rail Network Investment Programme (RNIP) every three years to be eligible for funding from the NLTF. The RNIP must take into account the purpose of the LTMA, as well as the current GPS on land transport. The RNIP sets out the rail network activities that KiwiRail proposes, and that require investment from the NLTF.
The development of the first RNIP 2021 – 24 was guided by the GPS 2021 and the NZ Rail Plan.
The first RNIP was approved under the previous Government at a total cost of $1.35 billion, noting the final approved cost was $1.56 billion following a series of amendments. This included funding over the period 2021 -24 for the following:
As required under s22C and s22G of the LTMA, we provided advice to the Minister on the RNIP 2021 -24 and recommended that the Minister approve the RNIP, pursuant to s22B of the LTMA and KiwiRail’s request for funding for rail activities pursuant to s22F of the LTMA.
The development of the second RNIP 2024 – 27 was guided by the GPS 2024. It will be approved later in 2024 following further analysis.
Overview of the assessment methods
We have assessed the 2024-27 RNIP using a combination of approaches:
Our assessment method for the national renewal and maintenance programme focused on KiwiRail’s underpinning asset management approach and methodology as well as the RNIP itself. This is consistent with the ‘activity management’ based approach we take with all councils (and ourselves) for the assessment of these types of programmes. The assessment considers the proposed programme of work required to achieve or maintain a pre-determined level of service and we have utilised our internal asset management expertise to focus on the matters we consider to be important such as:
Our assessment method for metro improvement projects is based on the business case approach and our Investment Prioritisation Method.
Investment Prioritisation Method (IPM) 2024–27 [PDF, 728 KB]
We use the Investment Prioritisation Method because the Public Transport Infrastructure activity class is available and contestable across all councils and all public transport modes (unlike the Rail Network activity class which is reserved to KiwiRail). Using this approach ensures we are consistent with the way we assess all other activities requesting funding from this activity class.
Once each individual activity is assessed, the resultant investment profile determines its investment priority rank (1-13; 1 being the highest). The amount of available funding in the activity class then determines which activities we will recommend for funding. As noted, this approach ensures consistency, particularly with other activities included in the Wellington and Auckland Regional Land Transport Plans.
The LTMA requires KiwiRail to approve one or more procurement procedures that will apply to the delivery of rail activities and to consult with Waka Kotahi before approving its procurement procedures.
KiwiRail provided us with its procurement procedures that cover outsourced expenditure required to deliver rail activities in the RNIP.
We reviewed the procurement procedures and concluded that they are consistent with the Government Procurement Rules (GPR) and the advice provided by the Ministry of Business, Innovation and Employment (as the government Procurement Functional Leader).
KiwiRail: Procurement Procedures Manual(external link)
The Land Transport Management Act (LTMA) requires NZTA to monitor the delivery of approved activities in the Rail Network Investment Programme (RNIP), and the extent to which the RNIP is consistent with the Government Policy Statement on land transport.
We are required to report annually on these findings to the Minister of Transport.
