Capital Connection fare to increase

Media release
17 October 2014
Capital Connection fare to increase for travel from 1 November 2014

KiwiRail has today announced that Capital Connection fares for passengers travelling from Levin, Shannon and Palmerston North will increase for travel from 1 November 2014.
Manager KiwiRail Scenic Journeys Gavin Rutherford said that KiwiRail has conducted its annual review of the fare structure, and after careful consideration, ticket prices will increase by an average of 7.3 per cent. The increase will range between zero and 17 per cent for customers depending on where they board the service.

“KiwiRail has made the decision to increase the fares in order to minimise losses that the company incurs by delivering this service. We acknowledge that there is public support for the Capital Connection, but we have been open and candid about the fact that as a business, our services have to be commercially viable,” say Mr Rutherford.
“KiwiRail made the decision in 2013 to continue the service for two more years. We have advertised in the local newspapers and on radio in Manawatu, placed flyers and posters on board the service, at stations along the route and at the I-Site in Palmerston North.”

“However unlike commuter rail services in Auckland and Wellington that receive subsidies from the relevant regional councils, we receive no additional funding for this service, and therefore it continues to make losses.”

The Capital Connection posted a loss of just over $400,000 and had a drop in patronage of 4.4 per cent for 2013-14. Even with the fare increase, the service is still forecast to lose $584,000 for this financial year, and this is forecast to be $671,000 if prices remain the same.

Based on these results, passenger numbers need to increase by more than 70 passengers per service if it is to be sustainable.

Mr Rutherford says that the price increase for those travelling from Levin, Shannon and Palmerston North will help reduce losses as KiwiRail continues its efforts to improve the profitability of this service.

“Not only does KiwiRail need the continued support of customers in Palmerston North and Levin, but maintaining support from passengers boarding at Waikanae and Paraparaumu, in particular, is extremely important.

“We have had to ensure that Capital Connection fares remain competitive with the subsidised Metro fares and this is the reason why fares between Wellington and Otaki remain unchanged.

“KiwiRail has not made any decisions about the long-term future of the services and we are doing all that we can to keep the service running. We thank our passengers for their patronage and continuing support,” says Mr Rutherford.

Capital Connection fare increases and new ticket prices for customers travelling between Wellington, Levin, Shannon and Palmerston North -

ENDS

© Scoop Media