Winston Peters has long committed to Northland's rail, including at this public meeting in 2019, now saying he hopes private companies can deliver the Marsden Point Rail Link cheaper than KiwiRail. Photo / NZME
Winston Peters has long committed to Northland's rail, including at this public meeting in 2019, now saying he hopes private companies can deliver the Marsden Point Rail Link cheaper than KiwiRail. Photo / NZME
Northland’s Marsden Point Rail Link could be the country’s first to be built with a public-private partnership, with companies showing keen interest in the project.
The rail link is a 19km spur from the main North Auckland Line in Oakleigh to Northport - one of the few ports in thecountry without rail connection.
The Government has funded design and land acquisition for the project, but is yet to sign off on its construction after a detailed business case was submitted by KiwiRail in July.
The estimated cost is confidential but an initial estimate of $1 billion was listed in KiwiRail’s fast-track consent application.
It is expected to take four summer earthwork seasons to build, meaning it will take at least four years.
Rail Minister Winston Peters announced in August detailed rail link designs would be shared with potential investors and builders, so the best approach for the project could be decided.
This included asking parties if they were interested in “design, construction, operation, funding, and/or ownership” of the rail link, according to the Government Electronic Tenders Service overview.
There was strong interest, with more than 70 organisations requesting access to the information, said Bobby Fischer, KiwiRail programme director - Marsden Point procurement.
The request for information closed late October and KiwiRail is now developing the next stage, likely to include a request for parties to submit their own proposals to deliver the rail link, she said.
When asked how private ownership of the rail line could work, Fischer said that would be up to the Government and interested parties, but said no operational lines in the country are privately owned.
Northport has been taking containers since 2020 but they must be trucked off the port.
“For national consistency, safety, resilience and reliability outcomes, all operational rail lines in New Zealand are owned by KiwiRail,” she said.
Peters said going out to the market would stress-test KiwiRail’s design, and proposals would either justify KiwiRail’s costs or deliver a lower-cost solution.
He admitted it would be ideal if better value could be delivered for the taxpayer and the economy, saying he was looking forward to the process continuing.
Peters also stressed the importance of the link and his commitment to it.
“The Marsden Point Rail Link is a major economic opportunity for New Zealand, as it is a Coalition Agreement matter for this Government to progress.”
The rail link is expected to help the Northland economy grow by between $283 million and $650 million a year by 2100, according to KiwiRail’s fast-track consent application.
Fast-track consent to alter designation
Trains produce 70% fewer emissions than trucks per tonne of freight carried, making it an environmentally sound project. Photo / NZME
KiwiRail has held a designation for the Marsden Point Rail Link’s construction, operation and maintenance since 2012, which effectively secures the land use in the Whangārei District Plan.
However, detailed design has identified areas where land is required outside the designation, requiring more consents, which KiwiRail applied for under fast-track legislation late last year.
As well as benefiting both the regional economy and New Zealand’s economy overall, the rail link will also reduce emissions, with rail producing 70% fewer emissions than trucks per tonne of freight carried.
Could rail be an alternative to $18b road?
With the potential $1b cost of the rail link comparing favourably to the $15.3b to $18.3b cost of the Northland Expressway between Whangārei and Auckland’s Te Hana, some residents have questioned why rail is not more of a priority.
Transport Minister Chris Bishop said both road and rail connections to the north are important, with investment to improve the rail line in recent years, enabling it to take larger and heavier loads.
But Bishop said the Government will not mandate companies in Northland to use rail for freight and not the road, despite the cost difference.
“Commercial decisions around modes are for operators,” he said.
Fischer said any passenger train services would have to be progressed by councils and NZ Transport Agency Waka Kotahi in the Northland Regional Land Transport Plan.
Engineering assessments of the existing rail line would also need to be done if passenger services were to be considered, she said.
With the Hamilton to Auckland Te Huia service costing $92 million to build and run for five years, cost could be a barrier.
However, the same market engagement was not done for this less-complex project which KiwiRail can carry out, Fischer said.
Denise Piper is a news reporter for the Northern Advocate, focusing on health and business. She has more than 20 years in journalism and is passionate about covering stories that make a difference.
