On Track for the Future: KiwiRail’s Performance Lift Signals a New Era for New Zealand Tourism and Travel

Northern Explorer

New Zealand’s rail network is more than freight and figures. It is the backbone of regional connectivity, the gateway to scenic journeys, and a vital link between cities, ports and communities. The latest half-year results from KiwiRail reveal a strong financial and operational performance that is set to benefit tourism, business travel and domestic mobility across the country.

For travellers exploring Aotearoa, this renewed strength in rail means greater reliability, modern infrastructure and improved connections between some of New Zealand’s most iconic destinations.

A Strong First Half for FY26

KiwiRail delivered a H1 FY26 operating surplus of $73.4 million, up $47.6 million on the same period last year. The company remains on track to meet its full-year operating surplus target of $160 million.

Freight volumes increased 7 per cent to 1.8 billion net tonne kilometres, reflecting steady domestic demand and the normalisation of bulk volumes. While freight may seem separate from tourism, strong commercial rail operations underpin the wider network, supporting the sustainability and reliability that travellers depend on.

Despite a highly competitive freight market expected in the second half, the company’s disciplined execution and productivity improvements are strengthening its long-term resilience.

$601 Million Invested to Modernise the Network

Coastal Pacific

In the first half of FY26 alone, $601 million was invested across the network and in key capital projects. This forms part of a multi-year rail transformation programme that has seen more than $9 billion invested in track upgrades, signalling, infrastructure and modern rolling stock.

A major focus has been preparing Auckland’s metro network for the opening of the City Rail Link. The extensive Rail Network Rebuild programme has delivered the equivalent of more than 15 years of work in just four years.

For visitors to Auckland, this means more frequent services, shorter journey times and fewer delays once the new system is fully operational. Improved resilience will enhance both commuter and visitor experiences, particularly for those connecting between airport, city and cruise terminals.

Strengthening Connections Across Cook Strait

Rail connectivity between the North and South Islands remains essential for both tourism and freight. KiwiRail’s Interislander service has adapted to operating a two-ship fleet following the retirement of Aratere to support the Government’s Ferry Replacement Project.

Operating across the Cook Strait, Interislander ferries are a vital component of many New Zealand itineraries. While passenger numbers adjusted to the new fleet configuration, commercial freight volumes remained steady due to improved capacity utilisation and strengthened road bridging capability.

For travellers planning a North–South Island adventure, maintaining reliable crossings ensures that rail-and-ferry journeys remain a seamless part of the New Zealand travel experience.

MetroPort and Smarter Supply Chains

TranzAlpine

KiwiRail’s MetroPort product on the Auckland–Tauranga corridor has been successfully reset in partnership with Port of Tauranga. This enhanced corridor improves supply chain efficiency and strengthens the country’s logistics backbone.

For tourism, efficient freight movement means better stocked regional towns, stronger cruise operations and improved support for hospitality providers. It is an often unseen but crucial part of delivering world-class visitor experiences.

Safety and Sustainability at the Core

Safety remains KiwiRail’s top priority, with sustained improvements in key safety indicators and a stabilised Total Recordable Injury Frequency Rate of 22.54. Ongoing leadership, coaching and risk management programmes aim to ensure every employee returns home safely each day.

Sustainable rail transport also plays a significant role in New Zealand’s climate goals. Modern locomotives, upgraded infrastructure and improved asset utilisation reduce emissions and support greener travel choices for both domestic and international visitors.

What This Means for Tourism in New Zealand

A financially stronger and operationally modernised rail network supports:

• More reliable regional and urban connections
• Enhanced visitor mobility in major cities
• Greater resilience against weather disruptions
• Stronger inter-island connectivity
• Future capacity to handle growing tourism demand

Te Huia travels between Hamilton and Auckland

As global travellers increasingly seek sustainable and seamless transport options, rail will play a central role in shaping New Zealand’s tourism future.

KiwiRail’s momentum in FY26 demonstrates a transport network not only recovering, but actively evolving. For the tourism industry, this signals confidence, stability and the infrastructure needed to welcome visitors well into the future.

For more information visit: https://www.kiwirail.co.nz/

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