14/08/2026
Where is the missing South Island transport funding?
Today’s Government announcement of an election promise for a small amount of funding for a handful of South Island projects is missing major needed transport requirements, says South Island passenger rail advocacy group, Save Our Trains - Southern.
"Environment Canterbury Regional Council has calculated that there is a $1.8B shortfall in Government investment in South Island transport, half or less of the proportion of economic activity generated by the South Island.”
“We hoped today’s South Island election package announced by PM Chris Luxon would address that imbalance, but it barely scratches the surface.”
The South Island generates 22% of the nation’s GDP, 40% of tourist spending, and 27% of vehicle kilometres travelled - yet the NZ Land Transport Fund - the Government’s transport Investment arm, spent only 12% of its total over the last 3 years in the South Island.
"Recent major North Island expenditures on public passenger rail in the North island, such as the $3B on Auckland’s CRL, and the $1.1B on new lower North Island passenger trains and services are much-needed there, but where is the passenger rail initiatives in the South Island?”
"For just over $110m, only 6% of the missing shortfall, Governments of any colour could re-establish a twice-daily South Island passenger rail service, servicing a population of 750,000 along the east coast, from Christchurch to Dunedin to Invercargill.”
This was supported by a quickfire 13,000-signature petition a year ago by South Islanders, which has yet to be heard by Parliament.
As well as inter-regional passenger rail, Save Our Trains - Southern said the question of Christchurch area commuter rail has been strongly supported in Canterbury, and other issues like regularising the tourist train link between Picton and Christchurch, which is currently just an occasional, seasonal service, and getting Mosgiel-Dunedin commuter rail going have been regularly raised.
“All of these need to be part of a modern, future-proofed South Island public transport system - in what is now the fastest-growing part of the country.”
The group acknowledged that PM Luxon had announced small Government investments in the Rolleston Freight Hub, and a potential Queenstown Gondola service. “But together, these amount to no more than 4% of the missing South Island transport investment."
