Horizons and Greater Wellington Regional Councils have secured $5 million in funding from Waka Kotahi NZ Transport Agency to pursue a detailed business case, and begin the purchase of regional passenger trains.
Waka Kotahi is fully funding the project that will enable the councils to complete a detailed business case around the purchase of new trains, expected to cost $300m.
Horizons Regional council chair Rachel Keedwell says this is a solid green light for getting regional passenger rail moving again.
"The funding will help address capacity issues in the next five years and enhance connections between the Manawatū and Wellington rail corridor."
"While one of the main aims of the new trains is to deal with capacity issues in the immediate sense, we also expect the new trains will aid population and growth over the next 10-15 years and provide more comprehensive options for people wishing to travel between the two regions.
"The Capital Connection has seen an annual average growth of 3.1 per cent over the past four years and is fast approaching full capacity.