Hon Steven Joyce

Minister of Transport

10 March 2011 Media Statement
Good news for Wellington metro rail users

The Government, the Greater Wellington Regional Council and NZ Transport Agency have agreed in principle a package deal that will complete the rebuild of Wellington commuter rail services.

The package includes a commitment by the government to fund an $88 million renewal of the rest of the signalling and traction assets on the network, and a commitment by GWRC to takeover and refurbish the 30 year old Ganz Mavag units at a cost of $80 million, which will be supported with an operating subsidy from NZTA.

Transport Minister Steven Joyce says both the government and GWRC are determined to bring Wellington’s metro rail back up to a high and reliable standard.

“The Wellington rail network has been a considerable and ongoing source of frustration for many commuters. This package, coupled with the previous investments from Government and the Council, including the new Matangi units, will transform the service into a modern reliable public transport option.

“The government and the GWRC have been working together for some time on a rail funding and ownership package that fairly shares the costs and responsibilities for delivering these and any future improvements to Wellington’s rail system.

The funding and ownership package includes:

• The Matangi and Ganz Mavag trains operating on the network will be held in a Rolling Stock Owning Company majority owned by GWRC

• GWRC to take over ownership and responsibility for stations (other than Wellington Station), car parks, train stabling and the electric train depot

• The Crown (through KiwiRail) to retain ownership of the metro rail track network, the traction and signalling assets, and responsibility for ongoing investment in the upgrade of these assets.

• GWRC to pay a track access charge to KiwiRail (with subsidy from the NZ Transport Agency) that reflects the fair cost of maintaining the tracks and other assets.

Mr Joyce says this proposal will complete a substantial upgrade which will improve the efficiency and quality of Wellington’s commuter rail services.

“One of the significant shifts in the package is that GWRC will become the owner of much of the above-track infrastructure, including the rolling stock and most of the stations.

“This change will give GWRC more independence and flexibility into how they configure their services, alongside the NZTA as co-funder.

“NZTA will also be adjusting its funding rates as part of this package to be consistent with their support for other passenger transport services. For the first time they will extend the operational subsidy to include asset depreciation and replacement, with the quid pro quo being a move to a 50% funding rate over ten years starting in 2012 (the rate is currently 60%).

“New trains, double tracking to Waikanae and a third track into the Wellington terminus have been a great start, but there is more that needs to be done to provide a modern network and better services to commuters.

“I am pleased to see KiwiRail Group and the NZ Transport Agency also working together on this proposal and thank them for their ongoing support. This is a very positive step towards ensuring the long-term sustainability of Wellington metro rail.”

Final details of the agreement and the exact level and timing of Crown funding will be confirmed as part of Budget 2011.

ENDS

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