The Government has extended KiwiRail’s lease of railway land by 100 years, unlocking the commercial potential of billions of dollars in Crown property, Rail Minister Winston Peters says.
“New Zealanders have invested in their railway estate for generations, and we must make those assets work harder for taxpayers,” Mr Peters says.
“Across the country, valuable railway land sits vacant or underused. We want to turn that wasted potential into productive investment, jobs, and revenue.
“Any smart businessperson knows that the value of land depends on what you can do with it, and how long you have to do it. No developer will invest millions in buildings and infrastructure without certainty they can recover their investment and make a return.
“A short lease limits investment and depresses value. A long lease provides certainty, attracts capital, and unlocks commercial opportunities. That is why we are extending KiwiRail’s lease from 2070 to 2170, putting its landholdings on a near-freehold commercial footing.
“Railway land remains in Crown ownership through the New Zealand Railways Corporation. We are not selling the family silver. We are making it earn its keep.
“We initiated this work in 2018 and were surprised to discover, on returning to the railways portfolio, that it had been left idling by people with no commercial experience.
“Since then officials and KiwiRail have engaged with iwi, whose existing rights of first refusal over railway land remains unchanged, and many have expressed interest in joining investment ventures in railway assets as a result of that engagement.
“Every dollar earned from railway property is a dollar that can be put to work supporting rail rather than coming from taxpayers’ pockets.
“New Zealanders own these valuable assets which were left to rot on the roadside for too long, but with our efforts they will garner a return on them,” Mr Peters says.