Rail Minister Winston Peters has used a speech to regional leaders in Whangārei to champion rail as the backbone of New Zealand’s freight network, arguing that major investments in infrastructure and a rail connection to Northland’s Northport are essential for future economic growth.
Speaking to the Upper North Island Strategic Alliance, Peters said New Zealand must focus on strengthening links between key freight hubs, including Northport, the Port of Tauranga, Lyttelton Port and Port Otago, which he described as critical gateways for international trade.
Peters said rail had undergone a significant turnaround after years of underinvestment, citing rising freight volumes, improved reliability and major government funding commitments. He highlighted more than $1 billion allocated in Budget 2026 for the national rail network, the introduction of thousands of new wagons, and plans to replace KiwiRail’s South Island locomotive fleet with new locomotives from Spain. Peters said rail was now outperforming road freight growth and helping reduce fuel consumption while easing pressure on highways.
A major focus of the speech was the proposed Marsden Point Rail Link, which would connect Northport to the national rail network. Peters argued it was “blindingly obvious” that Northport should have the same rail access as other major ports, but criticised the previous government for committing funding before detailed design work had been completed. He said the coalition government had adopted a new approach by opening the project to market competition, with construction firms invited to develop lower-cost alternatives before final funding decisions are made.
Peters said stronger freight connections between Northland, Auckland, Hamilton and Tauranga would require a combination of expanded port capacity, additional rail infrastructure and improved freight routes through the upper North Island. He described rail as the “ballast for growth”, saying an integrated transport system involving rail, roads and coastal shipping would be crucial to supporting exports and long-term economic development.
