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The KiwiRail Board has been advised by the Government that it has decided not to provide further funding for the Inter-Island Resilient Connection (iReX) project.
KiwiRail had been seeking an extra $1.47 billion as part of a general agreement under the last government, Labour. This additional funding was to be used to address harbourside infrastructure in Wellington and Picton, including the ability to accommodate new and larger ferries that had been announced in the coming years.
To date, KiwiRail had $435.1 million from the government for their iReX project, with $63 million still in the budget to use.
David McLean, KiwiRail chair says “Unfortunately, we cannot proceed without further Government funding. We respect the Government’s role as shareholder and funder to make this decision. The Board will now oversee the wind down of the project and review our plans for the Cook Strait connection.”
“The Board acknowledges the disappointment of our team and stakeholders involved in this project. We sought a strong outcome for New Zealand through this project for a more resilient State Highway 1 across Cook Strait for exporters, domestic freight forwarders, tourism and domestic commuters.”
We will work with the Government, our customers, ports and other stakeholders on the way forward. An alternative suitable long-term solution could take years to develop.”
In the interim, KiwiRail will continue to invest in the safety and reliability of the existing Interislander fleet, through strong asset management practices.
