18 October 2011

Capital Connection fare increase

Fares for the Capital Connection will increase from 1 November 2011.

“KiwiRail is committed to continuing the Capital Connection, but we are currently operating the service at a loss. There is no subsidy for operating the service and while we were hopeful it would remain commercially viable after the extension of the Kapiti line to Waikanae and introduction of Matangi to the line, we are now seeing a worrying trend,” says KiwiRail’s General Manager Passenger Dr Deborah Hume.

The fare increase is the first step in lifting the viability of the service, which also needs support from more passengers and/or a grant from another source to bridge the gap in revenue.

The fare increase for the Capital Connection service is in line with the 5 percent fare increase for Tranz Metro service’s multi-trip and monthly fares which is also taking effect on 1 November.

The fare increases range between 0 percent and 8.7 percent, and the net average increase is 4 percent.

“The changes in fares coincide with a recently conducted onboard survey which indicated a genuine appetite for a premium commuter service from Palmerston North, Waikanae and Paraparaumu, as well as the desire for the introduction of a quarterly pass.

“As a result, KiwiRail is introducing a quarterly pass in January 2012 as part of the changes to the service and is looking at other ways to grow patronage.
“The focus of this year’s fare increase is on monthly trip and the new quarterly trip tickets, which provides a further discount over a monthly pass.
“Most Capital Connection trips are made with multi-trip tickets or monthly passes. These fares will increase generally by about five percent, with higher increases for the less purchased single trips,” Dr Hume says.

While there will be a 5 percent increase for monthly passes from Palmerston North, Levin and Otaki, there is no increase in monthly passes for people getting on the Capital Connection at Waikanae or Paraparaumu.

“Continued support and additional growth from passengers boarding the Capital Connection at Waikanae and Paraparaumu, in particular, is extremely important. Without this support the commercial viability of the entire service becomes very challenging. We have had to ensure that Capital Connection monthly fares from Waikanae and Paraparaumu remain competitive with Metro fares from these stations,” says Dr Hume.

Additionally, KiwiRail is looking at ways to grow patronage for the Capital Connection service, including adding Porirua as a stop with minimal impact on arrival times into Wellington or into Paraparaumu, to test the market that lives on the Coast and travels to Porirua. This will be introduced to the service on a trial basis in the New Year.

“KiwiRail is committed to continuing the Capital Connection, but we need it to be commercially viable, and that requires decent passenger numbers and fares that reflect the true cost of running the train and the level of service provided,” Dr Hume says.
For more information about the fare changes please go to the Tranz Scenic website www.tranzscenic.co.nz

ENDS

Notes to reporter:

As a premium commuter service, the Capital Connection provides spacious seating, tables and power points for laptops to allow people to work, toilets, a fully licensed café and dedicated Train Managers who only work on the Capital Connection service.

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