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NEW ZEALAND: A report has been published setting out recommendations to address the workforce challenges facing the rail sector.

The Building New Zealand Rail Skills for the Future report was prepared by PwC for the Australasian Railway Association and Hanga-Aro-Rau, the workforce development council for the manufacturing, engineering, rail and logistics sectors.

Findings include:

  • skills shortages and an ageing workforce: more than one in four people in the rail workforce is likely to retire within the next 10 years, creating an urgent need for succession planning and recruitment strategies. Specialist skills, including signalling engineering, overhead traction and digital rail systems, remain in high demand but are difficult to source locally’;
  • limited education and training pathways: New Zealand lacks dedicated polytechnic and university qualifications for rail engineering and operations. While vocational training exists, sector engagement with tertiary education providers remains inconsistent, limiting whole-of-workforce development opportunities;
  • barriers to talent attraction and retention: The sector struggles with low awareness among young professionals, outdated perceptions of rail careers and limited pathways for career progression. Flexible working arrangements and diversity initiatives are needed to improve workforce retention and inclusion;
  • technological and digital transformation: the move towards digital signalling, automation and predictive maintenance requires new skills in data analytics, cybersecurity and digital engineering. Without proactive training initiatives, the existing workforce may struggle to build the expertise needed for future rail operations;
  • fragmented investment and workforce planning: The cyclical and uncertain nature of infrastructure funding has led to workforce instability, with inconsistent demand for skills. A long-term, bipartisan rail investment strategy is essential to provide stability and support workforce planning.

The report makes a number of recomendations. Among them is the establishment of long-term foundations for workforce sustainability through infrastructure planning, procurement and regulatory reform; positioning rail as a modern, inclusive and attractive career sector through branding, visibility and better workforce insights; and building a future-ready rail workforce through planning, education partnerships, international collaboration and mobility pathways.