KiwiRail to fund additional ferries works in Picton

KiwiRail will allocate up to $37.5 million for upgrades to the Picton rail yard and the installation of auto-mooring technology at the new wharf, as announced by Rail Minister Winston Peters. The funding comes from KiwiRail’s own resources rather than the government’s $1.7 billion New Ferries project budget, ensuring no additional taxpayer cost. Peters emphasized that the investment aligns with the government’s commitment to disciplined project scope while leveraging commercial opportunities for KiwiRail.

The upgrades include improving the connection for wagon stabling yards into the wharf linkspan, adjusting rail lines for added length, and extending the southern backshunt under the Dublin Street overbridge. Auto-mooring units, originally planned for Wellington, will now be deployed in Picton to enhance operational efficiency. Peters stated that these works will not delay the New Ferries project, which remains on track for completion by July 2026.

The decision follows a government directive in July 2026 allowing KiwiRail and ports to use their own funds for commercial assets, provided they do not disrupt project timelines. Peters highlighted that KiwiRail’s proposal demonstrated clear commercial benefits, including simplified rail yard operations and faster, safer, and more fuel-efficient ship berthing. The government retains ultimate authority over any scope changes to ensure disciplined project management.

The investment reflects KiwiRail’s confidence as the long-term operator of the Interislander, following its selection in the New Ferries project. By funding these upgrades independently, KiwiRail aims to improve operational efficiency and capacity at Picton, supporting the growing demand for rail and ferry services. The government’s $1.7 billion allocation remains unchanged, with no additional financial burden on taxpayers.