The primary focus of the investment package will be on cutting transit
times on the key Auckland - Wellington - Christchurch freight corridor
where KiwiRail's market share has slumped to less than 20% from more
than 60% in the mid 1990s.

In a bid to reverse the decline, major
investment will be ploughed into the North Island Main Trunk Line. This
will include realignment of sharp curves, elimination of temporary
speed restrictions, acceleration of sleeper renewals and extension of
passing loops. This is expected to cut the transit time on the Auckland
- Wellington section of the route from 13.5 hours to 11 hours.

Complementing
these improvements will be an increase in the railfreight capacity of
the Cook Strait ferries by extending the length of the road-rail
Aratere ferry and adapting the car and truck-only Kaitaki to carry
wagons.

Other major investment will be channelled into enhancing IT
processes and systems and further new freight wagons and locomotives.
A
number of little-used regional lines could be closed from 2012 under
the plan if no new freight customers are found. These are Auckland
-Northland, Stratford - Okahukura; Masterton - Woodville, and Napier to
Gisborne.
 
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