Commuter services and Trans Scenic get Kiwirail boost

Improvements for Auckland and Wellington commuter train services, an overhaul of the Trans Scenic service and urgent repairs at the Wellington and Picton ferry terminals have been announced as part of the Government's initial investment in rail.

Finance Minister Michael Cullen said the initial $80.2 million over five years was the first step since the Government purchased the rail assets of Toll Holdings and launched KiwiRail.

Dr Cullen said in the next few weeks he would be taking a paper to Cabinet looking at expanding the role of rail in the economy and the investment necessary to do that.

The $80m allows the current programme of locomotive upgrades to continue as well as:

* Upgrades to the diesel electric DC class locomotives on the Auckland and Wellington passenger service and the re-commissioning of two more electric locomotives for freight service in the Wellington area;

* The replacement of the Tranz Scenic fleet with newly refurbished cars over five years;

* Urgent repairs and safety issues to be addressed at the Wellington and Picton Interislander ferry terminals; and

* Funding to evaluate whether locomotives could be assembled in the Hutt Valley and elsewhere.