Govt Buys Trains Direct, Bypassing Councils
March 19th, 2009
The Govt will buy new electric commuter trains for Auckland and Wellington and have KiwiRail operate the trains rather than the respective regional councils. Transport Minister, Stephen Joyce, has written to to Auckland Regional Council chairman, Mike Lee, saying it “makes sense” for Govt-owned KiwiRail, rather than the regional councils, to buy and own all the more than 200 new commuter passenger trains planned for Auckland and Wellington.
KiwiRail takes care of tender process. The move will allow the ARC to ditch its controversial regional fuel tax without it having to increase rates to pay for projects such as electrification of Auckland’s suburban rail network. The ARC was relying on the tax to raise its $496m share of the $1bn project. The Auckland Regional Transport Authority, has sought expressions of interest in supplying and maintaining 140 new electric units. It is due to invite formal tenders from a shortlist of four companies in May. KiwiRail will take over the tender process.
Logical timing. Joyce says the Govt is committed to the project and this, combined with its ownership of KiwiRail, has prompted it to take over as owner. Joyce claims it will be more efficient and reduce overheads if one body owns all the trains and the tracks they operate on. The council-based funding plans made sense when private company Toll Holdings owned the national train service, but its return to public ownership has changed the situation. Joyce believes it is a logical time to make such a move as Auckland and Wellington regional councils are in the process of ordering new commuter train fleets.
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