NZ Government Scraps Auckland Light Rail to Stem $14 Billion Cost Blowout

The Sydney light rail in Sydney, Australia, on May 19, 2020. Mark Kolbe/Getty Images

The National/NZ First/ACT coalition government has made good on its promise to halt work on plans to introduce light rail to Auckland.

The previous Labour government committed to building light rail, which was intended to link a light rail system between the city centre and Māngere and Auckland Airport, within four years of being elected in 2017.

After six years and over $228 million (US$142 million) spent on the project, not a single metre of track has been laid and projections are showing that the original budgeted cost of $15 billion could increase to $29.2 billion.

Initially proposed nearly a decade ago by Auckland Council, it was believed that work could start by 2016. But when it was elected in 2017, the Labour government took over the project.

The plan had the potential to take up to 14,500 cars off the road, but the price significantly increased to $14.6 billion when it was decided to tunnel the rail line in some sections.

Transport Minister Simeon Brown issued a statement on Sunday, officially cutting the plan. Work had already stopped on the project in November.

“Scrapping the expensive project is part of the coalition agreements and we have taken swift action. Auckland Light Rail Limited has been instructed to immediately cease work on the project, and to take the necessary steps to wind up the company,” Mr. Brown said.

Labour ‘Didn’t Move Fast Enough’: Commentator

A public transport commentator told Radio NZ that the former Labour government didn’t move fast enough to implement the project.

Greater Auckland Editor Matt Lowrie said the light rail should have been finished by now, but was poorly managed by the previous government.

“[It] had already been designed, it was ready to go, and when they took over the project, Labour got distracted by the idea of tunnels or big fancy metro-type projects and spent four or five years trying to investigate that, and ultimately they didn’t deliver anything”, he said.

An Auckland City Councillor who supported the concept, Christine Fletcher—a former Mayor of the City and National MP—agreed that cost blow-outs meant the light rail project needed to be terminated, but is keen to see the data collected used to reduce bus congestion.

“I think it’s absolutely critical we try and preserve as much of the data and quality information, because tens of millions of dollars have been spent on this, and that information is really valuable to Auckland Council.”

Focus Now on a Rapid Transport Network

Mr. Brown said the government’s focus was on “building a rapid transit network in Auckland, including completion of the City Rail Link, which was started by the last National Government, and starting work on a Northwest Rapid Transit corridor, alongside other projects to deliver reduced congestion for Aucklanders.”

“Work is underway on rewriting the government policy statement on land transport which will reflect these priorities,” he added.

“The government’s decision to scrap Auckland Light Rail means that we can stop work on a project which has not delivered and get on with delivering the critical transport infrastructure that Auckland needs.”