Businesses and freight companies utilising rail transport have collectively saved nearly 230,000 tonnes of CO2 emissions in the last financial year, according to data released by KiwiRail.

In the financial year ending June 30, 2024, the use of rail for freight transport resulted in a reduction of 229,434 tonnes of CO2 emissions, compared to the emissions generated by transporting the same goods by truck. This shift to rail also resulted in an estimated avoidance of one million heavy truck trips, effectively easing road congestion, lowering road maintenance costs, and conserving 84.7 million litres of fuel.

Adele Wilson, Chief Customer and Growth Officer at KiwiRail, emphasised the significance of rail as an essential component of New Zealand's integrated freight transport system. “It’s not about rail versus road but rather the two modes working seamlessly together,” Wilson stated. “One freight train can transport the equivalent of 40 trucks, making it an efficient means of moving large volumes of goods over long distances. Road transport plays a critical role in connecting freight to and from rail heads.” 

Wilson highlighted that the substantial reductions in emissions indicate rail’s vital role in helping New Zealand meet its transport emission reduction targets. “The more we choose rail, the greater the environmental benefits,” she noted.

KiwiRail is currently investing in enhancing the national rail network and upgrading its ageing locomotives with new low-emission diesel engines. Wilson stated that these long-term network improvements will not only further decrease emissions but also enhance reliability, encouraging logistics companies and businesses to utilise rail more frequently.

Despite challenges posed by the general economic downturn, KiwiRail is actively seeking opportunities to expand rail volumes for the benefit of New Zealand. 

In the past year, KiwiRail has facilitated several key projects, including:

Transporting Beer for Mainfreight: Rail transport for Matakana’s Sawmill Brewery reduced emissions on the critical Auckland to Christchurch route by 60%.

Building a New Rail Siding for Coca-Cola Europacific Partners: A new siding at the Auckland factory will significantly boost rail capacity for shipments to Palmerston North.

Connecting Rail to Ruakura Inland Port: This initiative is enabling the movement of thousands of containers for Nexus Logistics on behalf of a major retailer.

Establishing the Fairfield Freight Hub: In collaboration with the Wareing Group and Ashburton District Council, this hub will enhance rail capacity from Ashburton to Lyttelton Port, increasing the annual container transport capacity from 6,000 to 20,000.

These efforts underscore KiwiRail’s commitment to a more sustainable freight transport solution and its critical role in reducing New Zealand’s transport emissions.