The Government says it will allocate more than $800 million to upgrades on the Wairarapa and Manawatū rail lines.
The upgrades would include doubling peak services on both lines and additional off-peak services, shortening travel times through increased speeds and purchasing 18 four-car trains, totalling 72 cars.
Transport Minister Simeon Brown said it's part of an agreement with the NZ Transport Agency (NZTA), KiwiRail, and the Greater Wellington and Horizons Regional Councils to deliver more reliable services for commuters in the lower North Island.
"The current aged locomotive-hauled train fleet operating on the Wairarapa and Manawatū lines is reaching the end of its service life and is in critical need of replacement after years of under-investment and frustrating delays for commuters," said Brown.
GWRC and Horizons would contribute $71 million to the project.
Earlier this year the Government announced it would invest hundreds of millions to help fix "disturbing" reliability problems with metro train services in Auckland and Wellington as part of Budget 2024.

Brown said the Government campaigned on delivering the Lower North Island Rail Integrated Mobility Programme (LNIRIM) to improve service reliability, provide more travel choices for commuters, and reduce congestion on roads.
"Our Government's investment in LNIRIM comes with a strong focus on achieving value for money, ensuring that the procurement of new trains takes a no-frills approach that delivers real benefits for commuters."
He said the investment would enable new rolling stock and upgrades to existing infrastructure to improve rail services for those travelling around the lower North Island.
"We are continuing to review the Metropolitan Rail Operating Model (MROM) to allow us to develop a more sustainable funding model for metropolitan rail."
'Labour's rail announcement from a year ago' - Utikere
Shortly after National's announcement, Labour pointed to its Budget 2023 announcement of rail funding for the area's network
Transport spokesperson Tangi Utikere said National was so short on ideas it was announcing previously revealed Labour plans.
"Investing in the lower North Island's passenger rail system is a critical service, that's why in Budget 2023 Labour committed to investing in 18 new trains for the Wairarapa and Capital Connection rail services," Utikere said.
"Simeon Brown and Nicola Willis clearly have run out of ways to distract people from the fact they are yet to come up with a solution to replace the Interislander ferries – so are reheating other announcements of projects already underway and already budgeted for by Labour," he continued.
"My door is always open if they want to talk about other Labour transport initiatives like reinstating free and half-price public transport or the clean car discount."
Regional councils welcome investment
Greater Wellington regional council chairman Daran Ponter and Horizons regional council chairwoman Rachel Keedwell said the new trains would enhance regional development.
"We appreciate the confidence the Government has placed in our councils to increase the frequency of rail services in the lower North Island. This is what Regional Deals could look like," Ponter said.
"By improving commuter connections to Wellington, Palmerston North and Masterton, the new trains will support and sustain growth in the Wairarapa, Kāpiti, Horowhenua and Manawatū."
Keedwell said the investment would also reduce road congestion.

"The trains will assist more people to live in our regions by making it easier to access work, education and recreation in urban centres," she said.
Ponter said the council's preference was to acquire hybrid electric trains, but it would "consider other propulsion methods like diesel during the procurement process".
KiwiRail chief planning and asset development officer David Gordon said the agreement allocates funding for KiwiRail to deliver track infrastructure, stabling and platform upgrades.
"This will be a big step forward for public transport in the lower North Island. It's an exciting investment that will help bring regions closer together and offer people more transport choices."
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