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Transport Minister Michael Wood is defending a cost blow-out for the construction for three train stations, which has ballooned to $495 million.
The minister was given a guided tour of the south Auckland sites on Monday to see first hand the work that was being done.
The Government is also investing a further $375m to electrify the rail system between Papakura and Pukekohe, $318m for work on a third main trunk line and $330m for the rail network rebuild.
It announced in 2020 it would provide funding for two new train stations between Papakura and Pukekohe as part of its New Zealand Upgrade Programme. They were originally expected to cost $247m.
But according to KiwiRail, which is leading the works, the cost of the stations at Drury West, Drury Central and Paerātā, which are expected to be completed in 2025, has now blown out to $495 million.
“We are facing challenging conditions for new construction projects and we are facing cost pressures at the moment,” Wood said.
“But I’m confident we can now deliver them as cost effectively as possible.”
According to Wood, the scope of the projects was expanded after they were first announced, to include a new station at Drury West and park and rides.
Wood said the end goal remained providing better public transport services for Aucklanders.
“It’s important to provide better services in these growth areas. Aucklanders want us to get on with the business of building a linked up [public transport] network and they want us to get on with it,” he said.
“Our Government inherited a rail network in a state of managed decline. We’ve now got the hard job of making sure we make the improvements and make up for decades of underinvestment.”
KiwiRail senior design manager John Fellows said the stations were vital to cope with the rapid growth of the city south of Papakura, which was expected to see its population grow by more than 100,000 people over the next 30 years.
He said the three new stations would make travelling by train more accessible and appealing to those living and working in the area and would include bus interchanges, park and ride facilities, as well as walking and cycle paths.
National Party transport spokesperson, Simeon Brown, said the stations would cost “a lot of money”.
“It’s important that there is investment in the rail network. But the Government needs to be upfront about what’s driving the costs, what changes it has made to the scope of the projects and how it will fund them.
“Construction costs are increasing, but when the Government takes a long time to make decisions and get things done there is always going to be a subsequent rise in costs.”
KiwiRail has been stuck in a legal battle with developer Charles Ma over the location of the third station at Drury West.
