Plans to widen the rail tunnels north of Wellington, New Zealand, could be accelerated as part of an economic stimulus package if the ruling Labour Party is returned to office in the General Election this month.

Works estimated to cost NZ$150M (US$89M) are required to widen the rail tunnels that are too narrow to take new container sizes, which results in longer transport and more road journeys. Prime Minister Helen Clark said the tunnel widening works could begin next year and would have a construction period of two and a half years.

The tunnels are between Paekakariki and Pukerua Bay to the north of Wellington. The works would be part of the stimulus package to be unveiled in December. The Prime Minister said that the rail bottleneck ‘has to be fixed’, and added that it would have immediate benefits to journey times, reliability and freight capacity on the North Island Main Trunk Line.

A briefing on the proposed widening project was given to the Prime Minister last month by the local authority, Greater Wellington regional Council, and the state rail infrastructure company, OnTrack. Last year the Government committed NZ$500M (US$296M) to improve the rail infrastructure in the Wellington region.

With a focus on developing the stimulus package for the country, the Prime Minister added that capital works were important and can be a boost to economic activity in the wake of the international financial crisis.