The Government of New Zealand and Auckland City Council have signed agreements to establish a new company known as City Rail Link Limited, which will assume responsibility for the delivery of Auckland's City Rail Link.

The agreement was signed by New Zealand Finance Minister Steven Joyce, Transport Minister Simon Bridges and Mayor of Auckland Phil Goff.

Joyce said: “City Rail Link Limited (CRLL) is a new company owned jointly by central and local Government, with the sole and express responsibility of successfully delivering the game-changing City Rail Link (CRL) project.

“This is a complex and critical piece of infrastructure that will unlock major development opportunities across central Auckland.

“It is crucial we have a single joint entity running the project solely focussed on delivering a high-quality result for the city, while effectively managing the investment of both the Crown and Auckland Council.”

"CRL is Auckland’s top new transport priority; it will double the capacity of the whole existing rail network and provide significant travel time savings for commuters."

Bridges noted that Auckland’s population is estimated to grow by more than 700,000 people over the next 30 years, and as such the CRL is expected to play a pivotal role in the city’s transport infrastructure.

Bridges said: “CRL is Auckland’s top new transport priority; it will double the capacity of the whole existing rail network and provide significant travel time savings for commuters.”

CRL will be one of the largest transport projects in New Zealand, featuring a 3.4km double-track underground rail line that will connect Britomart station in downtown Auckland through the CBD.

It will also be connected with the existing western line at Mt Eden station.

The rail tunnel's construction will provide employment for up to 1,600 people, with nearly 600 people working during peak construction periods, reported stuff.co.nz.