Waikato Regional Council is raising bus and train fares to cover a larger share of public transport operating costs, which reached $51.1 million during the 25/26 financial year. The fare adjustments include a 25% hike on Te Huia train tickets beginning September 28, alongside increases to regional bus zone pricing.
Waikato Regional Council Explains Fare Increases and Ratepayer Impact
Operating the region’s public transport system cost $51.1 million in the 25/26 financial year, according to a report delivered to the public transport subcommittee. Bus operations accounted for $42m of that total, while rail services cost $8m. Total revenue reached $9.7m, comprising $7.1m in fares, $440k in third-party funding for concessions, and $1.4m in Crown funding for concessions. The regional council covers 49% of the remaining balance, with the other 51% funded by the NZ Transport Agency.
According to council chairperson Warren Maher, a fare increase was the only option that fit the bill to manage rising fuel costs while protecting ratepayers. “We don’t want to ask ratepayers to pay more, so increasing passenger revenue is our only real option,” Maher said. The current ratepayer subsidy per passenger stands at $34.92 for Te Huia, while subsidies across bus services land at approximately $3.62 per passenger, breaking down to about $3 for urban routes and $5 to $13 for rural routes, based on council reports.
Te Huia Train and Bus Fare Adjustments Taking Effect September 28
Passengers face price increases starting September 28, when a 25% hike takes effect across all Te Huia rail services. A return trip from Hamilton to the Strand train station in Auckland will cost Bee Card users $60 instead of $48.12, while cash payments for the same return trip will rise from $80 to $100.
Bus users will also pay more per zone travelled under the updated pricing structure. For Bee Card holders, a three-zone trip will increase from $5.35 to $5.90. The maximum nine-zone count will rise from $24.06 to $26.50. In addition to these changes, the council recently proposed removing free on-peak bus travel for SuperGold members, a move that drew criticism from Grey Power Hamilton.
Patronage Growth and Regional Transport Benefits
Despite the incoming cost increases, Waikato’s public transport network has experienced patronage growth over the past year. A council report records 4,183,094 trips taken on bus services across the financial year, marking a slight increase compared to the previous period. Quarterly figures showed a 26% increase in Te Huia rail usage compared to the same time last year, alongside a 14% rise in week-on-week bus use.
Regional transport connections director Phil King attributed the growth to the continuity of rail services and rising fuel prices, noting that the council successfully achieved the private revenue target set by NZTA for the 25/26 financial year. King defended public investment by pointing out that transport systems do not make a profit. “Like roads, parks, libraries and other public services, it is a community investment that generates wider economic, social and environmental benefits,” King said, adding that applying only a financial lens overlooks broader advantages like helping people access work and healthcare while reducing congestion.
What May Happen Next for Waikato Public Transport
As patronage has increased steadily from 2022/23, reports to the council indicate that without the introduction of new services or further service level improvements, network patronage is expected to stabilise at current levels. Commuters may adjust their travel habits following the September 28 fare implementation, while ongoing debates regarding SuperGold member concessions could continue as the council works to manage operational costs without increasing the burden on regional ratepayers.
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