The Regional Infrastructure Fund will invest $3.4 million to support Mainland Rail in returning passenger rail services to Christchurch and establishing the Christchurch-Dunedin-Invercargill Mainlander as a regular service.

Rail Minister Winston Peters and Regional Development Minister Shane Jones made the announcement on November 1. Mainland Rail, which owns rail carriages, intends to run a 12-month trial to test Canterbury's appetite for rail as a public transport service, and run more frequent trains between Christchurch, Dunedin and Invercargill.

The commuter trial would operate morning and evening services on the main lines from Rangiora in the north and Rolleston in the south into central Christchurch, starting in mid-2027. The Rolleston trip is expected to take less than 20 minutes by rail instead of 50 minutes by road.

"New Zealand's railways began in Christchurch in 1863, and it is time we put them back to use again for passenger rail, not just freight and tourism," Peters says.

"New Zealanders are sick of transport proposals costing hundreds of millions or billions when pragmatic solutions such as using what we already have are staring us in the face, as is the case in Christchurch and its rail system," Peters says.

"The fares will be announced closer to the start date, but we are talking about a public transport trial and would expect affordable fares similar to those paid by rail commuters in Wellington and Auckland.

"There's a saying, 'it works in practice but will it work in theory,' and here is an opportunity for Cantabrians to prove their support for rail as public transport in practice.

"The service proceeding is subject to the local councils confirming their combined half of costs, and letters of support from the Mayors of Christchurch, Selwyn and Waimakariri, and we look forward to engaging further with Environment Canterbury," Peters says.

The same $3.4 million Regional Infrastructure Fund loan will also support Mainland Rail to shift its Mainlander train from monthly excursions to a regular timetable. That service would run between Christchurch, Ashburton, Timaru, Oamaru, Dunedin, Gore and Invercargill.

"The South Island's rail corridors are regional infrastructure assets, and this funding is about putting them back to work for communities, tourism and local economies," Jones says.

"This is the type of commonsense investment people want to see – using what we already have, reinstating what we once had, and giving people choices in their lives once again.

"The economic development benefits are obvious: railing people into Canterbury, Otago and Southland towns to spend in the local economies, strengthening tourism in the South Island, creating employment, and putting assets New Zealanders already own to better use for the benefit of our economy," Jones says.

Mainland Rail will now begin planning with councils, the rail regulator and KiwiRail. Start dates will be announced by Mainland Rail closer to the time.

"We look forward to the restored Mataura Railway Station reopening in late 2027 thanks to our commitment to fund its restoration in 2025, and we are confident the Mainlander will return to Mataura then too," Peters says.

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