KiwiRail Launched, More Investment Likely
July 2nd, 2008
The Govt has formally renationalised the nation’s rail network under the KiwiRail brand and is signalling more capital investment is likely over coming years on top of the announced spending. Speaking at the official launch of the new entity at Wellington Railway Station, Michael Cullen says the aim of the buy back is to help create an integrated, sustainable transport system. He also indicates Cabinet will soon be faced with a call for $80m for KiwiRail’s short-term funding needs, and a much larger programme subsequently to modernise the system and the track. The total cost could be around $1.5bn.
As has been widely tipped, former National Prime Minister, Jim Bolger, has been appointed Chairman of the establishment board. Other members of the KiwiRail board are Brian Corban, (chairman of Genesis and Radio NZ), Ross Wilson, (chairman of ACC), Mark Franklin (former CEO of Vector), Linda Constable (an OnTrack board member), and Ross Martin (former CEO of Stagecoach).
Freight Task Priority. With freight transport movements expected to more than double by 2040, Cullen says rail will play a major part in helping cope with the extra freight task. “We are looking to rail, and to coastal shipping, to carry a lot of that extra load.” The acquisition will also help cut emissions and boost fuel efficiency in the sector. He says fuel efficiency for diesel-powered trains is four times better than using the road to carry the same load, and electric trains are 10 times more fuel efficient. The Govt has yet to decide whether KiwiRail will be run as an SOE, though Ministers are likely to favour a single SOE structure with OnTrack and KiwiRail as separate divisions.
Copyright © Media Information Ltd
NZ Transport Intelligence Briefing
Amalgamated Dairies
Strait Shipping