The Te Huia commuter train has posted its best monthly passenger number setting wheels in motion to firm-up how much it will cost to make the Hamilton to Auckland train permanent.
The service is now entering the final months of its trial period, which started in 2021.
Responding to the *Waikato Times,* a statement from Waikato Regional Council confirms the final end-of-trial report is expected in early 2027 and a business case is already being worked on.
“Earlier reports were prepared before the trial was extended and have been presented to council committees,’’ the council statement says.
“The future of Te Huia beyond the trial will be considered through Waikato Regional Council’s 2027-2037 Long Term Plan process.
“Future funding will also depend on decisions by NZ Transport Agency (NZTA), expected to be made in April 2027.
“There is currently no additional funding for improvements such as new stations or rolling stock.
“A single-stage business case is being developed to assess future service and infrastructure options, including their costs and benefits.’’
New Zealand Transport Agency Board documents show the extended trial has now cost $42.3m, with NZTA funding 60%.
An end-of-trial review report will be presented to the NZTA Board in April, 2027.
If Te Huia becomes a permanent service, it will need to replace the existing carriages, which are refurbished ex-British Rail and date from the 1970s and are due to be retired inside the next four years.
The Te Huia train has four carriages, with the set-up costs running around $68.7m.
The costs to replace eight carriages are expensive and in practical procurement terms, hard to impossible to find for such a relatively small order.
In 2025 the Government shelled-out $1.06 billion on 18 – five-car battery-electric trains but that price also included rail infrastructure upgrades across the Wairarapa and Palmerston North lines, and the construction of a dedicated Masterton maintenance hub.
Auckland Transport secured 23 new three-car electric multiple units (EMUs) in 2022 through a substantial $220 million purchase and maintenance package.
On the other hand, if the council can find former units to refurbish, it and potentially NZTA will face multi-million dollar set up costs and then face having to repeat the process at the end-life of the units.
Infrastructure Minister Chris Bishop told the *Waikato Times* it would be be premature to comment on the potential of funding a permanent service in advance of the results of the trial period, and publication of a new Government Policy Statement, both of which are expected in early 2027.
“Any decision about funding a permanent service would need to be underpinned by strong economic analysis, including value for money, and aligned with the Government Policy Statement on Land Transport.
“The Government’s focus needs to be on maintaining our current transport assets and infrastructure and improving key regional transport links where it makes sense to do so.’’
The trial service is gaining popularity with punters with the most recent monthly numbers recording 8843 passengers for July and 8227 passengers for August, well above the corresponding months in previous years.
In fact, the numbers for July, are the highest for any month across the whole trial period to-date.
The numbers for July 2025 are 4161, 8175 for August 2025, 8572 for July 2024 and 7867 for August 2024.
In May, Waikato regional councillors voted 12 to 2 to increase Te Huia fares by 25%, meaning an adult one-way fare from Frankton to the Strand would cost approximately $30 instead of $24.06 with a Bee Card.
The fare rise only came into operation on September 28, so it remains to be seen what impact that will have on passenger numbers.
Published in the [Waikato Times on 9 October 2026](https://www.waikatotimes.co.nz/nz-news/361095172/te-huia-popularity-rises-business-case-track-greens-ready-fund-permanent-route) \
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For further reading concerning the points raised in this article:
\- [Time for a national public transport network](https://www.publictransportforum.nz/articles/article/national-public-transport-network-07-06-2022) \
- [Future of passenger rail in New Zealand is regional rail](https://publictransportforum.nz/articles/article/the-future-of-passenger-rail-in-new-zealand-is-regional-rail-07-07-2025/) \
- [Golden Triangle Passenger Rail Initiative](https://www.publictransportforum.nz/articles/article/golden-triangle-passenger-rail-iniative-08-10-2026/)
