Establish a national public transport agency for fair funding and better nationwide planning

Proposed Levin train and bus transport hub

One country. One regional public transport network. One payment system.

Introduction

The Ministry of Cities, Environment, Regions and Transport stated aim is to help Aotearoa New Zealand make better long-term decisions about the places people live, move, build, grow and protect.

It is hoped that MRCET will support better integrated solutions for housing, transport, and environmental challenges in New Zealand, ensuring that decisions are well connected and focused on long-term public value.

These are goals The Future is Rail supports.

The Future is Rail a national, volunteer run, passenger rail advocacy group working to improve and expand sustainable inter-regional rail across Aotearoa.

Using a bottom up, community led approach to passenger rail, we developed our 2026 plan for reviving regional rail. In it we discuss the barriers to reviving passenger rail in Aotearoa New Zealand and our solutions for overcoming these barriers. This is set against wider drivers that support the necessity to revive regional passenger rail including a need to quickly and significantly reduce transport emissions, a need to reduce our dependency on imported energy through electrification of transport, the growth of population centres along already existing rail lines, an aging population especially in rural areas, challenges of maintaining regional air services and the known benefits of transit-oriented developments. Our research on countries such Finland show running a successful long distance passenger network requires a wide scope, including urban design.

Source: MCERT website

Executive Summary

Public transport in Aotearoa New Zealand stands at a critical junction. Decades of fragmented governance, car-centric urban planning, and a national policy bias toward state highways and aviation infrastructure have left vulnerable regional communities increasingly isolated.

Regional airline ticket prices are out of reach for many. For older residents and individuals with disabilities, self-drive by private car may not be an option.

While local bus networks serve major urban centres, long-distance travel between towns and regions lacks cohesive governance, unified payment platforms, frequency and reliable funding.

The Future is Rail’s Reviving Passenger Rail in New Zealand: A Quick Start Guide puts forward seven ‘quick wins’ which would help transform the sector. In number two place is:

‘Establish a national public transport agency for fair funding and better nationwide planning.’

Here we explain why current governance structures prevent cross-regional travel, how a central authority can overcome these barriers, and how better integration of existing and new rail and bus assets will deliver an affordable, low-carbon transport network for all New Zealanders.

The Problem: Fragmented Governance & Under-Resourced Councils

• Jurisdictional Silos: Simple cross-boundary projects require convoluted multi-agency coordination. Replacing the Capital Connection fleet required negotiations between two regional councils (GWRC and Horizons) and KiwiRail, as well as with government funding agencies. Station infrastructure along the same line spans multiple owners with varying funding constraints (e.g., Paraparaumu Hub, in contrast to rundown stations in Otaki and Levin, which is also unfortunately located at the wrong end of town). Proposals to re-organise local authorities, including regional councils, could potentially assist planning, or make it more complicated.

• Inter-Regional Paralysis: Services crossing multiple council boundaries, such as Te Huia, struggle for stable operational co-funding, with Auckland Council despite making up 20% of passengers on the service, and enjoying congestion relief from the operation of the train, refusing to help support the service.

• Lack of Capability: Regional and local councils lack the expertise and resources to navigate the Treasury’s Better Business Cases (BBC) framework. KiwiRail currently takes a passive role regarding regional passenger rail planning, leaving valuable initiatives stalled.

• Case Study Failure: The 2020 North Island Regional Passenger (NIRP) initiative brought together 20 North Island councils along the length of the Main Trunk, with the ambition to enable greater connectivity. Despite consensus from all the councils, the initiative stalled without central agency funding for an Indicative Business Case.

The 20 councils located along the length of the North Island Main Trunk formed a popular consensus of support for passenger rail.

The Solution: A Dedicated National Public Transport Agency

While NZ Transport Agency Waka Kotahi allocates some public transport funding, its primary mandate is constructing and maintaining state highways. Highway projects absorb significant transport capital, frequently crowding out critical public transport investments in cities. Inter-regional public transportation is effectively relegated to the lowest priority for prospective funding.

New Zealand requires a dedicated National Public Transport Agency—potentially established within a consolidated Ministry of Cities, Environment, Regions and Transport (MCERT).

Core Functions of the Proposed Agency

1. Co-Funding Business Cases: Provide the technical capability and central funding needed to lead inter-regional public transport projects through the Treasury's business case pipeline alongside local council partners.

2. Network Oversight: Coordinate funding, schedules and service standards between passenger rail and private inter-city coach providers (such as InterCity), ensuring rural regional buses connect smoothly into main rail lines, similar to the concept outlined in The Future is Rail Mini Switzerland Model. As a case study, this blog described a journey between Tokoroa and Auckland, as it currently is, and how it could be improved. Provision of co-ordinated and consistent bus stops and railway stations, that are appropriately located to best serve local communities.

3. Independent Assessment: Work alongside Te Waihanga, the New Zealand Infrastructure Commission to ensure all major transport investments undergo objective scrutiny. It is unacceptable that major roading projects fall outside this scrutiny. The overall goal should be to design and fund a transport system to create mobility options for the greatest number of people, at the least cost and in a way that quickly and significantly reduces emissions. This was recommended in The Future is Rail submission on the draft Te Waihanga Infrastructure Plan.

Strategic Priorities: Maximising Existing Assets First

According to research presented by Te Waihanga, the New Zealand Infrastructure Commission to Business Canterbury , New Zealand needs $20 billion to $25 billion annually just to maintain and replace existing infrastructure. Addressing historical maintenance backlogs, highlighted in this webinar and report, requires prioritising asset management over build-only strategies, as noted in ‘build or maintain’ research, published by Te Waihanga, the New Zealand Infrastructure Commission.

In a capital-constrained environment, the new national public transport agency's initial priority must be optimising existing assets—improving service frequency and connection logic for current trains and buses.

• Nationwide: Coordinate enhanced road coach services with greater frequencies, and serving more destinations, particularly to and from regions such as Taranaki, Tairāwhiti Gisborne, Hawkes Bay, Buller and Southland that traditionally had far greater service levels than they now have.

• Lower North Island: Coordinate mid-day bus feeds (Taranaki, Whanganui, Fielding, Hawke's Bay) into Palmerston North to link with the Capital Connection and incoming Tūhono fleet.

• Upper North Island: Feeder bus routes connecting communities (Tauranga, Tokoroa, Matamata, Te Awamutu, Cambridge) into Te Huia at Hamilton, paired with city-shaping transit-oriented development that could transform Hamilton’s economic, social, and physical landscape, enabling sustainable long-term growth, and vibrant communities.

• Fare Subsidies: Address cost-of-living pressures and difficult economic conditions through funding support for reduced fares (similar to Australia's subsidised Overland service), to fill existing long-distance tourist trains, such as KiwiRail’s Auckland to Wellington ‘Northern Explorer’ during the winter months, when there are very few international tourists using this service.

• South Island Growth: Provide selective operational grants to support regional rail tourism and “events rail” initiatives, such as to and from Te Kaha One New Zealand Stadium in Christchurch (Dunedin Railways, Pounamu Tourism, Mainland Rail).

What "Great" Looks Like: Victoria's V/Line Model

To understand how an integrated regional transport system operates, New Zealand can look to Victoria, Australia, and its statutory regional transport authority, V/Line.

Under the V/Line model:

• Unified Network: Regional passenger trains link regional centres directly to Melbourne.

• Accessible Network: All stations and trains feature wheelchair access, and other features to support an inclusive, accessible journey for regional communities.

• Integrated Road Coaches: Where rail lines end, 23 contracted private bus companies operate scheduled road coaches under the V/Line brand. Many of the road coaches feature on-board wheelchair access hoists, as well as on-board toilets.

• Single Ticketing: Passengers use V/Line Integrated Ticketing to book their entire multi-modal journey on a single ticket, supported by the unified V/Line Network Maps. Timetables are systematically matched so connecting coaches arrive with sufficient transfer time for passengers joining trunk train services.

Conclusion

Establishing a dedicated National Public Transport Agency provides Aotearoa New Zealand with a clear path out of transport fragmentation. By taking responsibility for cross-boundary route planning, co-funding Treasury business cases, and integrating bus and rail connections under a unified booking system, central government can build an accessible, low-emission public transport network using infrastructure that is already built.

The Future Is Rail.

organiser@thefutureisrail.org

022 154 9119