The systemic challenges impacting New Zealand’s rail network development

New Zealand’s Wellington rail network is undergoing significant development to improve its resilience, reliability, and prepare for more frequent services.

Funded by major government and local investment, the network will see improved track foundations and drainage, updated components, and enhanced coastal and slope protection.

This work complements Wellington Metro Upgrade Program by KiwiRail, which has been building new infrastructure to allow for more trains to travel on the network.

The efforts are part of a broader strategy to boost New Zealand’s rail network for both passengers and freight, contributing to economic growth and the country’s emissions reduction targets.

But, with post-pandemic passenger patronage still low, what will it take to see rail do more heavy lifting in an integrated transport network?

Ahead of the New Zealand Rail Conference we spoke with Fiona Abbott of Metlink and Andy Lyon of KiwiRail to find out.

Collaborative approach

Collaboration between the asset and service owners is essential for effective asset management and driving the policy settings that will help bring Wellington’s network up to speed with passenger expectations.

Currently, KiwiRail as the rail asset owner and Metlink, Wellington’s public transport authority, share responsibility for the rail passenger service outcomes – and this division of financial and logistical decision-making poses challenges in terms of change management.

“With assets and services managed separately, we will need to work well together to justify and communicate big system-wide developments,” Fiona said. “Reliability and patronage are directly correlated – and we have a large task on our hands to address system outages.

“There’s also the bus replacements – anyone would prefer a train over a bus – but bus replacements play an important role in keeping the network moving during upgrades or unplanned disruptions.

“We can’t have an asset management framework for KiwiRail and a separate service management framework for our organisation. We’ve got to find a way to bring those two things together and deliver the service our passengers deserve,” she added.

Integrated transport approach

Overlaying this, rail needs an integrated approach with road, in which it is viewed as a complementary transport mode – not as a competitor.

If road and rail are not balanced in policy decisions, Fiona warns that rate payers will pay the price.

“Currently, New Zealand – like everywhere else – has a cost of living crisis and some of those escalating costs are heading firmly and squarely towards local government and ratepayers, to the extent that infrastructure is becoming unaffordable. At the same time, we are resisting having to increase what people pay,” she said.

“If, in the future, we have a road-heavy policy and expect more rail patronage, we won’t get it, because the network hasn’t been invested in. Rail will become less attractive to passengers, and subsequently funders. In the meantime, private vehicle travel will entice more people, but we will still end up having to build more roads because we are congesting them,” Fiona said.

“So, from a policy settings perspective, there needs to be an integrated approach to transport where it doesn’t become ‘either or’ – it becomes a total package. We need a situation where our collective investment in rail is actually realised and beneficial, versus piece meal and an ‘It’s not working, let’s invest somewhere else’ attitude.”

Solid asset management plan

While both modalities should be prioritised, Andy highlights that investment alone is not enough. He says a long-term asset management plan is also needed to guide future rail spend.

“It’s not as easy as just dropping a whole load of dollars in your lap and thinking go build some stuff and it will be fine. What we’ve learned in building infrastructure, is that the condition of existing assets is what underpins a reliable metro rail network,” he said.

Realistic investment expectations

Similarly, Andy highlights the need to balance efficiency and effectiveness in rail investment, claiming capital injections can be both a “blessing and a curse”.

“When it comes to infrastructure development, you want to think slow, act fast. When a sudden funding injection requires you to spend quickly it is hard to deliver the best value for money – and on a live rail network you can only do that through disruption which can undermine the passenger experience.

Better communication

To cope with the ‘feast or famine’ nature of investment rail has historically seen, Fiona claims better advocacy and public communication is needed.

This will ensure rail’s survival across political cycles, she argued.

“When you’re trying to manage a major national asset, you need sustainable, long-term investment.

“There is obviously a lag between under investment and actually seeing the ramifications, and so we’ve got to get better at conveying that.”

Fiona praises KiwiRail’s approach to communicating network updates, and says the agencies are working together to share messaging about the improvements that are coming, and what it takes to get there.

“There is a real story to be told about how a rail network works and the level of investment required to maintain it – it has to be collective, compelling, and told in a way that people can understand and engage with it.

“We also need to keep communicating the broader vision. We’re very good at telling people what work is being done, but we’re working on improving the ‘why’ and what they’ll get out of it. We want our passengers to understand that disruption from network upgrades will be worth it.”

Join the discussion

Sharing more on this topic, Fiona and Andy will join a stellar line-up of speakers at this year’s New Zealand Rail Conference, held 22-23 October 2025.

Themes this year include Manawaroa (resilience), Pono (reliability), and Toitū (sustainability).

Learn more and register your tickets here.

About the speakers

Fiona Abbott is Senior Asset and Infrastructure Manager for Metlink, the transport authority run by the Greater Wellington Regional Council. Andy Lyon is General Manager – Wellington Metro, KiwiRail.