The three-year plan for New Zealand's rail network creates certainty and jobs and marks the start of a new era for KiwiRail, the company's group chief executive Greg Miller said.
"This has major benefits for KiwiRail, will create and sustain jobs, and will help ensure New Zealand's exports and domestic freight get where they need to go," Miller said.
"It covers the important work of replacing ageing bridges, worn-out tracks and the civil works necessary to ensure that our national rail network is up to standard so that the thousands of train services we run are reliable.
"With 70 per cent fewer emissions than road transport, getting more freight onto rail offers a real opportunity to reduce New Zealand's transport emissions.
"But we're only going to see that mode-shift if we have a resilient and reliable network. This first RNIP is about getting the basics right, which will allow us to really grow rail."
Miller said funding for three years of work creates the certainty KiwiRail and its customers need to make effective business decisions.
"That's essential for any infrastructure business and it means we can confidently take on the staff we need, knowing there is a pipeline of work ahead of us. KiwiRail is among New Zealand's largest infrastructure construction companies, with about 1200 track staff already, working 24/7 across the country.
"We need to increase our staff by 15 per cent to carry out this work, with a commitment taking on more trainees. In addition, this investment will support numerous civil contractors and material supply businesses."
He said the three-year plan also allowed KiwiRail to buy materials in bulk, saving costs.
"It gives our customers clarity on where network investment will be happening and when, so they can make their own investment decisions. With this plan we are able to assure them that the rail component of their supply chain can be relied upon."
The plan details the work KiwiRail will do between mid-2021 and 2024, funded through the National Land Transport Fund and has to be approved by the Minister of Transport.
About $3.5m will be spent maintaining the Capital Connection service, and another $15m on upgrading other trains.
Refurbished carriages will be useduntil the Great Wellington Regional Council can buy new trains, which will come into service in around five years subject to funding.
KiwiRail is also working with agencies on a regional rail strategy and the future investment programme.
Its work programme will be extensive and around the country as very little has been invested in rail over the decades.
In the Manawatu-Whanganui region work could include replacing bridge 114 (on the main line northeast of Marton), upgrading level crossings at Clevely Line, Bunnythorpe and Reserve Rd, Longburn around Palmerston North), re-sleepering 36km of track, re-railing 17 km of track, work to improve formation and drainage, slope stability protection, and river protection as well as replacing signals at Tokomaru, Shannon, Ōhau and Manakau.
For the Wellington region work includes: replacing bridges 30A and 30B north of Waikanae, 24km of re-railing, 22km of re-sleepering, civil works to improve formation and drainage.
More network improvements to allow more commuter services could include extending electrification north of Waikanae to Levin and beyond, and putting together a business case and design to replace the signalling system and expand commuter growth.
Significant upgrades for the Wellington network and Wairarapa Line are already under way, funded through Waka Kotahi Transitional Rail and NZUP.
