KiwiRail is passing on the full cut in the track user charge (TUC) to its rail freight customers, after Cabinet decided to reduce the charge as part of its cost of living programme.
The Government charges road and rail freight operators to help fund transport infrastructure, and both have been reduced by 36% for three months to assist households with the cost of living.
“These charges flow through to freight prices, so reducing them ultimately reduces costs for our customers and, through them, the households they serve,” says Executive General Manager Sales and Commercial Alan Piper.
“Rail freight customers span New Zealand, as we shift freight to and from our ports, serve the domestic market, and serve major industries like dairy and forestry.
“The reduction in TUC will relieve costs for our customers and the households they serve, and maintain price setting relativity between the road and rail freight sectors."
The reduction will be applied through to 30 June 2022.
“Rail remains the most fuel efficient land transport option with rail freight delivering 70% lower carbon emissions than road.”