KiwiRail’s rail network rebuild in Auckland blows out to $550 million

KiwiRail is undertaking a major rail rebuild in Auckland. Photo / Alex Burton

KiwiRail says it needs a further $150 million to finish the rail network rebuild in Auckland – taking the cost of the project to $550m.

Full replacement of railway foundations, tracks and sleepers over the entire network to bring it up to standard ahead of the opening of the City Rail Link (CRL) was budgeted to cost $330m.

But last week it emerged KiwiRail chewed through this budget doing work on the eastern line tracks, which was stage two of the project, and received $75m from NZ Transport Agency Waka Kotahi to do the western lines from Newmarket to New Lynn.

KiwiRail’s Dave Gordon, who oversees capital projects, said today about $150m was still needed to finish the job, adding the money was not currently funded.

The rail rebuild in Auckland is being done now to have the network ready for when the City Rail Link opens in 2026. Photo / City Rail Link

The state-owned rail company is two-thirds through the disruptive rail upgrade.

Gordon said an encouraging statement is in the draft Government Policy Statement (GPS) for transport to ensure readiness for the CRL.

Transport Minister Simeon Brown said last week the Government was “working through a number of funding issues with KiwiRail”.

Brown said: “At this stage, we’re really focused on... they say there’s some issues, so we’re working through what’s needed.”

He said the GPS prioritised funding for rail in Auckland.

Gordon revealed the funding shortfall at a media briefing before the opening of a new train control centre at Ellerslie in Auckland that will see teams from KiwiRail, Auckland Transport and Auckland One Rail working closer together to improve train services across the city.

KiwiRail chief executive Peter Reidy. Photo / Mark Mitchell

KiwiRail chief executive Peter Reidy said the control centre will mean all the right people will be able to work closely and better manage any disruptions for the benefit of commuters.

The centre was opened by Brown who said the recent train disruptions in Auckland have highlighted how important it is that KiwiRail and Auckland’s rail agencies work together to ensure Auckland commuters are getting to where they need to be on time.

“Users of the passenger rail networks in Auckland and Wellington have suffered through significant service disruptions in recent years. These disruptions have been unacceptable and have made important public transport links unreliable for commuters,” Brown said.

He said the Government will be reviewing the model for passenger rail in Auckland and Wellington, including how it is funded and who pays for what, and make decisions later this year.

Earlier this year, KiwiRail’s also applied speed restrictions on parts of the metro network due to heat.

Bernard Orsman is an Auckland-based reporter who has been covering local government and transport since 1998. He joined the Herald in 1990 and worked in the parliamentary press gallery for six years.