Funding deal for new trains welcomed; builders short-listed

A co-funding agreement to purchase 18 four-car trains and associated infrastructure for the lower North Island has been welcomed by Greater Wellington and Horizons regional councils.

The deal announced today between the Government, the New Zealand Transport Agency Waka Kotahi, KiwiRail and the councils is based on a detailed business case prepared by Greater Wellington, and will lead to the doubling of peak-time passenger services on the Wairarapa and Manawatū rail lines.

Greater Wellington chair Daran Ponter and Horizons chair Rachel Keedwell say the new trains will enhance regional development.

“We appreciate the confidence the government has placed in our councils to increase the frequency of rail services in the lower North Island. This is what Regional Deals could look like,”  Cr Ponter says.

“By improving commuter connections to Wellington, Palmerston North and Masterton, the new trains will support and sustain growth in the Wairarapa, Kāpiti, Horowhenua and Manawatū.” 

“They’ll also help to reduce road congestion,” Cr Keedwell says. “The trains will assist more people to live in our regions by making it easier to access work, education and recreation in urban centres.” 

Procurement of the new trains is being managed by Greater Wellington, who has approved a short-list of three suppliers. Each company has been requested to submit a proposal to design, build and maintain the trains over 35 years.

The short-listed companies are:

• Alstom Rail Transportation New Zealand Limited
• Construcciones y Auxiliar de Ferrocarriles S.A.
• Stadler Bussnang AG

“The councils’ preference is to acquire hybrid trains, but we’ll consider other propulsion methods like diesel during the procurement process,” Cr Ponter says.

“All three companies have experience building hybrid trains and supplying the New Zealand rail industry.” 

Hybrid trains, or Independently Powered Electric Multiple Unit vehicles, charge their batteries while running on electrified track. The batteries start powering the trains when overhead power lines stop and can be topped-up by diesel generators onboard.

“The new trains will replace the existing fleet of 50-year-old carriages which are coming to the end of their working lives,” Cr Keedwell says. 

“We look forward to our collaboration growing to include a commercial partner who’ll build modern rolling stock to serve lower North Island communities for decades to come.” 

The contract to build and maintain the trains is due to be awarded in early 2025, with the new trains expected to start delivering a higher frequency of rail services from 2029.

The co-funding agreement includes finance for a maintenance depot in Masterton, and station improvements. 

KiwiRail Chief Planning and Asset Development Officer David Gordon says the agreement allocates funding for KiwiRail to deliver track infrastructure, stabling and platform upgrades. 

“In the next few years, we will also be building passing loops on the Wairarapa and Manawatū lines to support the new trains,” Mr Gordon says.

“This will be a big step forward for public transport in the lower North Island. It’s an exciting investment that will help bring regions closer together and offer people more transport choices.”