The first bus operation by NZR began on 1 October 1907, between
Culverden on the
Waiau Branch and
Waiau Ferry in
Canterbury. By the 1920s NZR was noticing a considerable downturn in rail passenger traffic on many lines due to increasing ownership of private cars, and from 1923 it began to coordinate rail passenger services with private bus services. In November 1926, NZR purchased a private bus firm operating between
Hastings and
Napier in the
Hawke's Bay region. NZR then acquired various other bus services in
Dunedin and the
Hutt Valley, and by 1928 was operating 56 buses. In 1931 Parliament passed the
Transport Licensing Act, which regulated local bus services to ensure that services would not compete with NZR. This further increased acquisitions by NZR of small bus companies. By 1954 the bus routes covered , but generally at higher fares than the railways. For example, the Christchurch-Dunedin return journey cost £2 13s 6d by rail, but £3 10s by bus and took 7hr 10min on the fastest train, but 9hr by bus. By the 1970s, NZRRS offered a nationwide service. Some routes were direct train replacements, but others extended the reach of the railways to other towns and destinations, including: • Auckland - Bay of Islands - Kaitaia • Auckland - Paeora - Tauranga • Auckland - Rotorua - Whakatane - Gisborne • Auckland - Wairakei - Wellington • Rotorua - Taihape - Wellington • Wellington - Wanganui - New Plymouth • Wellington - Masterton • Christchurch - Hokitika - Wanaka - Queenstown • Christchurch - Timaru - Dunedin - Invercargill • Dunedin - Milford - Te Anau • Dunedin - Alexandra - Queenstown In addition, there were many other local and urban services across the country. There was a certain amount of rivalry within NZR between NZRRS and the rail Traffic Branch and in many ways they
competed with rather than complement each other. For example, many cities had
bus terminals some distance from
railway stations and many NZRRS routes ran parallel to and at similar times to trains. This animosity lasted almost to the end, with complaints as late as 1984 that buses should not be competing with trains. ==Fleet==