An $800m upgrade for lower North Island commuter rail will see 15 minutes carved off the train trip between Wellington and Masterton.
The government said the current locomotive-hauled train fleet operating on the Wairarapa and Manawatu lines was nearing the end of its life and was in critical need of replacement.
The beleaguered Wairarapa rail line had been plagued with reduced train speed, bus replacements and problems causing carriages to vibrate.
Transport Minister Simeon Brown said new rolling stock would be purchased and existing infrastructure upgraded to improve rail services for passengers travelling around the lower North Island.
"Delivering commuters more efficient and reliable travel options will increase productivity, support economic growth, and enable Kiwis to get to where they want to go, quickly and safely."
The upgrade would increase speeds on the Wairarapa line from 90km/h to 110km/h, result in fewer temporary speed restrictions across the network, and provide more frequent services, he said.
Brown said the government would be looking for value for money "ensuring that the procurement of new trains takes a no-frills approach that delivers real benefits for commuters.
"We are continuing to review the Metropolitan Rail Operating Model (MROM) to allow us to develop a more sustainable funding model for metropolitan rail, including who pays for what, and ensure the services and infrastructure is more focused on delivering a reliable service for passengers."
Labour's transport spokesperson Tangi Utikere said the investment was announced a year ago under his party's government.
Hybrid trains
The funding will be used to buy a new fleet of of 18 four-car units.
Last year the then-Labour government announced it would buy tri-mode hybrid trains for the Wairarapa and Manawatū rail lines as part of the Lower North Island Rail Integrated Mobility (LNIRIM) project.
Brown said on Thursday all engine types would be considered during the procurement phase, which would begin on Monday.
"The regional council's preference is very clearly for hybrid trains, and that is not unexpected, and that is certainly part of the mix, but at the end of the day, value for money is critically important when it comes to every single dollar invested in transport infrastructure," he said.
The new trains are expected to be delivered by the end of 2028, with a higher frequency of services from 2029.
Greater Wellington Regional Council chair Daran Ponter said it would get them sooner if possible.
"The three companies that we have shortlisted for a closed tender process are all companies that currently provide the types of trains that we have in mind and they also provide other types of commuter rail, so they've got experience, they've got stuff on the shelf if you like," he said.
"We're not having to do the total design of new trains as we did when we bought these Matangi trains."
KiwiRail will be carrying out infrastructure works to support the operation of the new trains and increased services on the Wairarapa and Manawatū rail lines.
The infrastructure works include platform upgrades north of Waikanae and Upper Hutt and the construction of a second platform at Maymorn, three stabling facilities and track and signalling infrastructure on the Wairarapa and Manawatū rail lines.