New Zealand to Fund KiwiRail’s NZ$4.6bn Turnaround Plan

19 May 2010 (Last Updated May 19th, 2010 18:30)

The New Zealand Government will provide NZ$750m to back KiwiRail's ten-year NZ$4.6bn turnaround plan. The government said it aims to turn KiwiRail into a self-sustaining freight-based business, according to nzherald.co.nz. Under to the plan, NZ$3.85bn will be provided by Kiw

The New Zealand Government will provide NZ$750m to back KiwiRail's ten-year NZ$4.6bn turnaround plan.

The government said it aims to turn KiwiRail into a self-sustaining freight-based business, according to nzherald.co.nz.

Under to the plan, NZ$3.85bn will be provided by KiwiRail's own profit.

The government said there is a budgetary allocation of NZ$250m for the project and another NZ$500m will be given over the next three years, depending on KiwiRail meeting performance measures.

The initial focus will be on improving the Auckland to Wellington main trunk railway, which will reduce the freight time from 13.5 hours to 11 hours, attracting more freight customers.