The Kākā by Bernard Hickey
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Dawn Chorus for Monday, January 15
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Dawn Chorus for Monday, January 15

New Govt cancels Auckland 'Light' Rail project, as expected; Faafoi jumps from Cabinet to head Insurance Council inside 18 months; Oil prices and & container rates jump as Middle East conflicts widen
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Sydney’s light rail in action. The cancellation of Auckland’s version is a good thing, albeit for the wrong reasons. Photo: Lynn Grieveson / The Kākā

TL;DR: The new National-ACT-NZ First Government yesterday announced the cancellation of the Auckland ‘Light’ Rail project that would have dug railway tunnels costing billions over decades between the CBD and Mangere Airport.

As promised before the election and in the coalition’s 100-day plan, Transport Minister Simeon Brown cancelled the project that officials estimated would have cost between $15 billion to $29.2 billion. He said the Government would instead focus on completing the City Rail Link and starting a Northwest ‘Rapid Transit’ corridor.

In my view, the cancellation is a good thing, albeit for the wrong reasons. The tunneled rail line was forecast to mean Auckland’s commuters would produce 400,000 tonnes more carbon than doing nothing by 2031 and 300,000 more tonnes than a faster and cheaper over-ground light rail option. We need to shift a lot more people out of petrol and diesel vehicles and onto footpaths, bikes and buses in a lot shorter time. Simply repurposing road lanes to cycle and bus lanes would be the faster and more carbon-reducing option.

Elsewhere in the news in Aotearoa-NZ’s political economy this morning:

  • Former Commerce Minister Kris Faafoi has been appointed CEO of the insurance council less than 18 months after he was in Cabinet, highlighting again the lack of lobbying regulation and/or a policy limiting ‘revolving door’ hires in Aotearoa-New Zealand.

  • Oil prices surged and container rates are rising on fears conflicts in the Middle East will widen further after US and UK jets attacked Houthi targets in Yemen, potentially further disrupting key shipping lanes through the Red Sea and Persian Gulf. The new National-ACT-NZ First Government said it supported the air strikes.

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Auckland ‘light’ rail tunnels finally get the chop

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The Kākā by Bernard Hickey
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The latest daily snapshot of the news, detail, insight and analysis on geo-politics, the global economy, business, markets and the local political economy for citizens and decision-makers of Aotearoa-NZ.