Kiwirail to get “shipping industry’s first climate bond initiative certified financing”

The NZ government has declined KiwiRail’s request for further funding, so the project to build two new rail ferries will not proceed as planned, although there may be scope for less expensive new ferry designs

New Zealand rail operator KiwiRail recently restored a South Island section of its Main North Line that has been out of action since the Kaikoura earthquake in 2016. The first train carried freight for customers including Maersk from Picton to Christchurch.

New Zealand’s state-owned rail operator KiwiRail has entered the coastal shipping market with its new “NZ Connect coastal service”, developed with the support of Ports of Auckland, Lyttelton Port of Christchurch and ANL Shipping.

The New Zealand Government recently announced it will make NZ$190.2M (US$128.7M) available in the coming year for capital projects on the national freight rail network.

Wellington has embraced the popular strategy among New Zealand ports of extending the cargo-capturing hinterland, with the establishment of its own rail-serviced inland container terminal at Whanganui.

A New Zealand Treasury report on funding for its rail network has concluded that there is no effective way for the government to rationalise rail services for KiwiRail to achieve profitability.