Transport Minister leaves door open for 22 new electric trains in lower North Island

Greater Wellington Regional Council chairman Daran Ponter and councillor Penny Gaylor are frustrated there is no money in the Budget for new trains they want. Photo / Supplied

The Transport Minister has left the door open for 22 new electric trains, after lower North Island mayors kicked up a stink they weren't funded in this year's Budget.

The four-car trains would replace "vintage" units and quadruple peak-time services between Palmerston North and Wellington on the Manawatū line, while doubling them between Masterton and the capital on the Wairarapa line.

The network is on the brink of bursting, which Greater Wellington Regional Council chairman Daran Ponter once illustrated by sending MPs and ministers a tin of sardines in the mail.

Ponter took advantage of a sardine special at Pak'nSave Masterton at the time, with brands ranging from Pams to Brunswick.

Now, Ponter and Horizons Regional Council, supported by 15 mayors, have written to the Transport and Finance Ministers after their $360 million Budget bid towards the $762m project failed.

They said they were surprised and disappointed.

"We are now working against the clock to replace our fleets of 50-year-old regional rail carriages, which will soon reach the end of their working lives," the letter said.

"The tender process for new trains must continue unabated so we look forward to engaging with you on finding ways to unlock Waka Kotahi and other funding for procurement."

Greater Wellington Regional Council chair Daran Ponter says lower North Island trains will be packed like sardines unless the Government spends up. Photo / Georgina Campbell

Ponter told the Herald the project has the total support of mayors from the lower North Island.

"It is unusual for councils to stand shoulder to shoulder on funding initiatives. In this case, it is indicative of the importance of regional rail to their communities."

Transport Minister Michael Wood wrote a letter in reply and said while the bid was unsuccessful due to competing priorities, ministers were mindful the long-distance passenger rolling stock was reaching the end of its economic life.

Service continuity was critical, Wood said.

He has asked Ministry of Transport officials, in preparation for Budget 2023, to continue working with the regional councils to look at the business case in more detail.

"This engagement may also consider issues of scope, cost share, and timing."

Both letters have been proactively released.

Green Party transport spokeswoman Julie Anne Genter said in a recent select committee meeting she was surprised the trains weren't funded while the Government continued with the Ōtaki to north of Levin expressway.

She noted the road had a benefit cost ratio (BCR) of 0.2 compared with the trains, which have a BCR of more than 1.

"How is it possible that we're going to spend 10 years, $1.5 billion on a little section of road that doesn't make that big a difference, but the Crown doesn't have $350m to start purchasing the electric hybrid trains that would enable massive mobility?"

Minister of Transport Michael Wood. Photo / Mark Mitchell

Wood said the general spend on rail under the Government has been substantial.

In respect to the 22 trains in the lower North Island, Wood said he has a positive view of the project.

"We weren't able to allocate expenditure towards it in this Budget round, that doesn't mean the Government has decided we won't be supporting it."