Public-private partnerships mooted for Auckland trains: Joyce

Wednesday 27th May 2009

Transport Minister Steven Joyce instructed his ministry to investigate the use of a public-private partnership to fund the electrification of Auckland’s rail-system.

Joyce said the Australian model of PPPs to fund rail stock is a “sensible way to procure this kind of expensive, long-life asset.” He raised three options to pay for the networks’ development, the other two being an increased state investment in KiwiRail, or a direction to the rail operator to borrow the money while the government provided subsidies until patronage lifted.

“Public private partnerships are one way to provide value for money for taxpayers by reducing the upfront cost to the public purse,” he said in a statement. We need to make sure the project “goes ahead in a way that both meets the needs of Aucklanders and ensures the most efficient use of government funds.”

He reiterated the government’s commitment to electrified rail in March when the Cabinet decided to scrap plans for an Auckland regional fuel levy to fund the project.

At the same time, he said KiwiRail should own the state-funded rail stock in Auckland and Wellington.

The rail network is currently being double-tracked, which will let more trains operate on the city’s rail lines, and Joyce said that he didn’t want the ministry’s investigation to delay its electrification.

Businesswire.co.nz

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