Waikato District Council has warned Te Huia passenger train services could be discontinued if New Zealand Transport Agency Waka Kotahi (NZTA) decides to stop funding them.
Te Huia is funded by passenger fares, taxes and rates. Of the public funding, 75.5 per cent comes from NZTA. Waikato Regional Council contributes 21.2 per cent and Waikato District Council puts in 3.3 per cent.
The news comes after Waikato Regional Council’s two-year review of Te Huia claimed the service was “on track”, with customer satisfaction at 98 per cent for 2023 and an average of about 298 passengers on each weekday in 2024.
But the review also acknowledged 315 individual records of Te Huia train delays last year.
NZTA national manager of multi-modal integration Deborah Hume said the agency’s board would consider the Te Huia Interim Performance Assessment at its meeting on May 16.
“It will then advise the Waikato Regional Council of its decision, and an announcement will be made in due course,” Hume told the Waikato Herald.
“We cannot comment on the specific options being considered by the NZTA board.”
The original business case for Te Huia in 2018 included targets for passenger numbers. The targets were updated in January 2022.
“These revised targets were more challenging than the original business case and, as such, were acknowledged to contain an element of stretch, which may be challenging to achieve,” an NZTA spokesperson said.
Waikato District Mayor Jacqui Church said the Te Huia service played a vital role in improving transport infrastructure and connectivity within the Waikato region.
“As at December 2023, Te Huia had achieved or was close to achieving all of its set targets for this stage of the trial. It was also on track to meet all identified targets and benefits within the full five-year trial period, so pulling funding at this point in the trial would be hugely disappointing,” Church said.
“Patronage has continued to increase in 2024, particularly with the introduction of four new services in February. Commuters now have two additional return services on Thursdays and Fridays and two more on Saturdays.”
Church said there had been “a significant level of ratepayer investment” into Te Huia.
“It’s crucial we continue to support current and future users to benefit from this service, but that will require an ongoing partnership approach,” she said.
“Our council urges NZTA Waka Kotahi to continue funding the service for the remainder of the trial period and to recognise its importance in enhancing transport infrastructure and connectivity within the region.”
According to Church, an independent review of the service was also under way, focusing on fare structures, operating costs and strategies to increase patronage.
This review, scheduled for completion by the end of June 2024, aimed to inform future decisions regarding service enhancements.
“Our priority is to ensure the needs of existing commuters are met and their investment in the service is protected.”
But the Waikato Chamber of Commerce chief executive Don Good disagrees with the council’s review.
In a chamber newsletter released in response to the council’s review, Good said the chamber was convinced the service was not being used by its target market: commuters heading to Auckland for work.
“Speed restrictions and lengthy delays indicate Te Huia is not reliable, and poor patronage indicates it is simply a white elephant.”
According to Good, the service “was never going to be viable financially”.
The Waikato Chamber of Commerce has a poll about the Te Huia service on its LinkedIn page.
Maryana Garcia is a Hamilton-based multimedia reporter covering breaking news in Waikato. She previously wrote for the Rotorua Daily Post and Bay of Plenty Times.