New Zealand faces growing geopolitical and environmental risks, including threats to global oil supply and increasingly severe weather driven by climate change. Yet our transport system remains heavily exposed and underprepared.

For decades, investment has been dominated by road-building, leaving the country overly reliant on road transport for both freight and passenger movement. This lack of balance is not just inefficient—it is strategically risky.

The continued focus on large-scale motorway projects, including the Roads of National Significance (RoNS), has diverted funding from more productive and resilient transport options. The scale of this imbalance is clear. Current projects include approximately $2 billion for a 20km motorway from Warkworth to Te Hana, and around $4 billion for the 5.5km East–West Link in Auckland—equating to roughly $745 million per kilometre.

TRAINZ argues that comparable investment in rail would deliver significantly greater national benefit.

TRAINZ national coordinator Niall Robertson points to a proposed deviation of the North Island Main Trunk between Marton and Levin, across flat terrain, at an estimated cost of $1 billion. “This would make rail competitive with road freight between Auckland and Wellington,” he says. “It would also improve connections to the South Island and lift productivity for regions such as Taranaki and Whanganui.”

Robertson also highlights the strategic value of developing a new inter-island ferry terminal at Clifford Bay, estimated at $950 million. This would shorten Cook Strait crossing times, enable an additional daily sailing, and improve freight efficiency nationwide.

“These are nation-building projects,” Robertson says. “They would do far more for productivity than a road tunnel to Wellington Airport.”

TRAINZ is also concerned about decisions that are actively undermining rail efficiency. The closure of the Stratford–Okahukura Line has forced freight from Taranaki—equivalent to two full trains per day—to travel an additional 230km via Palmerston North to reach the Port of Tauranga. At the same time, logs from the central North Island are being transported by road rather than rail to Port Taranaki, a specialist export hub.

“Rail has been overlooked for decades as a strategic asset,” Robertson says. “It remains the most efficient way to move large volumes of freight, yet critical parts of the network are being neglected or underutilised.”

Future freight demand will only intensify these pressures. The Gisborne region is expected to exceed earlier projections by 100%, while key parts of the network—such as the North Auckland Line—are already constrained by urban bottlenecks. Long-discussed projects, including the Avondale–Southdown link and improved connections to Taupo and Rotorua, remain unbuilt.

TRAINZ believes New Zealand must act urgently to build a more resilient and lower-emissions transport system. International markets are increasingly demanding low-carbon supply chains, and New Zealand must be able to demonstrate that its exports are transported efficiently and sustainably.

This includes greater investment in rail electrification and the development of domestic low-emissions fuels such as biofuels and reducing reliance on volatile global energy markets.

New Zealand cannot afford to continue with a transport strategy that is narrowly focused, carbon-intensive, and vulnerable to external shocks. A balanced, rail-enabled network is essential for both future resilience, productivity, and environmental responsibility.

Robertson adds, “We can't afford not to do this!”

© Scoop Media