Benefit of rail
Rail is critical for the economy, boosting productivity and providing additional value to New Zealand.
Benefits delivered to all New Zealanders through social, environmental and economic values have been quantified in The Benefit of Rail to New Zealand report, released by the Australasian Railway Association in August 2024.
This report expands the previous value of rail studies to include growth domestic product (GDP) output impacts if rail did not exist.
A huge contribution
This conservative value measures what the economic impact would be on the roading network and New Zealand more broadly if rail disappeared tomorrow. The savings far exceed what the Government puts into rail each year.
Rail is also an inherently low emissions mode of transport, with on average 60 percent fewer carbon emissions than heavy road freight.
Benefits worth $3.3 billion
The total value of rail in New Zealand is estimated to be $3.3 billion each year, from:
- reduced congestion by taking cars and trucks off our roads
- reduced greenhouse gas emissions and air pollution
- improved road safety, including fewer injuries and fatalities
- lower road maintenance costs for tax and rate payers
- fuel savings
- contributes $1.0 billion to GDP
These benefits are only set to grow as KiwiRail delivers investment into the rail network with $9 billion of government funding and attracts greater passenger and freight volumes.