Benefit of Rail
Rail is critical for the economy, boosting productivity and providing additional value to New Zealand.
Benefits delivered to all New Zealanders through social, environmental and economic values have been quantified in The Benefit of Rail to New Zealand report, released by the Australasian Railway Association in August 2024. This report expands the previous value of rail studies to include growth domestic product (GDP) output impacts if rail did not exist.
Benefits worth $3.3 billion
The total value of rail in New Zealand is estimated to be $3.3 billion each year, from:
- reduced congestion by taking cars and trucks off our roads
- reduced greenhouse gas emissions and air pollution
- improved road safety, including fewer injuries and fatalities
- lower road maintenance costs for tax and rate payers
- fuel savings
- contributes $1.0 billion to GDP
These benefits are only set to grow as KiwiRail delivers investment into the rail network with $9 billion of government funding and attracts greater passenger and freight volumes.
Please note: the figures in this graphic and the graphic below are mid points in a range and have been rounded.
A huge contribution
This conservative value measures what the economic impact would be on the roading network and New Zealand more broadly if rail disappeared tomorrow. The savings far exceed what the Government puts into rail each year.
Rail makes a huge contribution to New Zealand. Pre-Covid more than 35 million passenger journeys were taken on rail each year and 25 percent of our export goods travel by rail.
Rail is also an inherently environmentally friendly mode of transport, with 70 percent fewer carbon emissions than heavy road freight.
Imagine the impact on the number of cars and trucks on the road, and our environment if the rail network did not exist.
Downloads
ARA Benefit of Rail to New Zealand 2024
EY's The Value of Rail in New Zealand 2021
