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The Government has set aside $ 1.2 billion for the New Zealand rail system in the 2020 Budget, including money to help replace the Cook Strait ferries.
There will be $ 246 million to invest in the rail network, $ 421 million for new wagons and locomotives, and $ 400 million to replace old Interislander ferries and port infrastructure.
The $ 421 million investment in rolling stock included the Auckland European Train Control System, which would provide safer and more reliable services on the Auckland metropolitan rail network.
The funds were announced Thursday as part of the $ 16 billion in spending announced in the 2020 Budget to combat the Coronavirus accident.
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KiwiRail currently employs almost 4,000 people.
“The railroad is a fundamental part of our integrated transport network,” said state business minister Winston Peters.
“Investment is not only essential to deal with decades of underinvestment, but increased investment in rail will play an essential role in our post-closure economic recovery.”
The government wants to spend on infrastructure projects to help keep kiwis in jobs, and a Covid-19-induced recession is expected to result in a sharp rise in unemployment in the coming years.
KiwiRail currently employs nearly 4,000 people, and its CEO, Greg Miller, is part of an infrastructure industry group that reports to the government on “shovel-ready” projects.
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The Government will allocate $ 400 million to replace the old Interislander ferries and port infrastructure.
“Investment in rail infrastructure is not only helping to secure the thousands of existing jobs at KiwiRail, but it will be a huge boost for New Zealand’s civil engineering and construction sector, with hundreds of contractors and their material suppliers, needed across the country for track renewal, mechanical facility improvements and ferry terminal projects, “Peters said.
New Zealand needed a robust and reliable rail system to support freight and make cities move, and help reduce the country’s emissions, said Transport Minister Phil Twyford.
The proposed changes to the Land (Rail) Transportation Bill would allow investment in the network to be channeled through the National Land Transportation Fund (NLTF), Twyford said.
KiwiRail’s ability to access another $ 148 million in Crown NLTF funds depended on the bill being passed and taking effect. If the bill is not passed, more Crown funds are likely to be needed to support the establishment of a reliable and resilient rail network, the Treasury said.
