Budget 2026 funding brings value for money focus
The Government’s significant three-year investment in the national rail network will support greater efficiency and taxpayer value for money.
In Budget 2026 up to $1.075 billion has been allocated to the next three-year Rail Network Investment Programme (RNIP 2027 – 2030) for national railway renewals and maintenance. An additional $106.9 million has been allocated for ongoing renewals in the Auckland and Wellington metro network for FY28.
“This is a great outcome for rail in New Zealand and we are thankful for the Government’s ongoing support,” KiwiRail Chair Suzanne Tindal says.
“This is a significant investment in the national rail network and KiwiRail is committed to continuing our efforts to embed new ways of working that deliver better labour productivity and asset utilisation.
“We welcome the Government’s expectation that our infrastructure work is carried out efficiently and that we deliver greater value for money to the taxpayer.”
KiwiRail Chief Executive Peter Reidy says having full funding for the next RNIP from the start gives KiwiRail the certainty to be strategic about rail network maintenance across the country and better manage costs.
“We will be able to scope and plan work well in advance and resource that work appropriately, which reduces costs and delivery risks. This funding certainty will allow KiwiRail to continue improving efficiency in the way we maintain the network, including using standardised designs and bulk procurement.
“Rail is a fuel efficient and lower carbon transport choice for our customers and the RNIP funding will give them the confidence in ongoing network reliability that is needed get more freight on rail.
“We’re very appreciative of this strong Government support, especially in these fiscally constrained times. With this funding and our focus on improving how we work, we will be able to deliver the value for money and the reliable, consistent freight services for customers that underpin our growth targets.”
Mr Reidy says the $106.9m investment in the Auckland and Wellington metro network continues the upgrade work undertaken in recent years after decades of under-investment.
“This ongoing investment in both metros is key to the improved service reliability that will grow rail public transport and help relieve road congestion in Auckland and Wellington.”
“Our work in recent years to modernise both metro networks is well progressed, and our ongoing upgrade work will be carried out overnight and at low-patronage times to minimise disruption to passengers.
“The ongoing track, bridge, and other improvements in the metros are important to maintaining more frequent trains in Auckland when City Rail Link opens later this year and supporting Wellington’s aspirations to run more frequent trains in the future.”
The RNIP was introduced in 2021. The second three-year RNIP is entering its final year. Development of the third RNIP is progressing and will go to NZTA and Ministers for approval next year.
KiwiRail has begun work on how the Budget 2026 $106.9m metro renewals funding will be split between Auckland and Wellington and we will be engaging with public transport providers Auckland Transport and Greater Wellington Regional Council. The proposed work bank and funding split will be shared with Ministers later this year.