Making best use of railway land
The New Zealand Government extended KiwiRail’s railway land lease by 100 years to 2170, aiming to unlock commercial potential and generate revenue for taxpayers while maintaining Crown ownership.
The Government has extended KiwiRail’s lease of railway land by 100 years, extending the term from 2070 to 2170. Rail Minister Winston Peters stated the move aims to maximize the value of Crown-owned railway assets for taxpayers. The extension provides long-term certainty for developers, encouraging investment in underused or vacant railway land across New Zealand.
Mr Peters highlighted that short leases discourage investment by limiting recovery of capital and returns, while long leases attract funding and unlock commercial opportunities. The Government emphasized that railway land remains in Crown ownership through the New Zealand Railways Corporation, with no sale of assets occurring.
Officials and KiwiRail have engaged with iwi, whose existing rights of first refusal over railway land remain unchanged. Many iwi have expressed interest in joining investment ventures in railway assets as a result of this engagement, according to the Government’s statement.
The Government noted that revenue generated from railway property will support rail operations rather than relying on taxpayer funds. Mr Peters stated that these assets, previously underutilized, will now generate returns for New Zealanders.