The KiwiRail Board was yesterday advised by the Government that it has decided not to provide further funding for the Inter-Island Resilient Connection (iReX) project.
This has meant that the KiwiRail Board cannot proceed without further Government funding. KiwiRail Chair, David McLean said that the company is respectful of the fact that the Government has a role as shareholder and funder in making this decision.
The Board will now oversee the wind-down of the project and review its plans for the Cook Strait connection.
"The Board acknowledges the disappointment of our team and stakeholders involved in this project. We sought a strong outcome for New Zealand through this project for a more resilient State Highway 1 across Cook Strait for exporters, domestic freight forwarders, tourism and domestic commuters," KiwiRail said in a statement.
KiwiRail has committed to working with the Government, its customers, ports and other stakeholders on the way forward. An alternative suitable long-term solution could take several years to develop.
In the interim, KiwiRail will continue to invest in the safety and reliability of the existing Interislander fleet, through strong asset management practices.
