NZ Rail Strategy: Crunch Time Looms For KiwiRail Ahead Of Budget
March 31st, 2010
KiwiRail gets a pass mark for its 10-year plan, now in the hands of Govt and officials. Transport Minister Steven Joyce says it is “an honest effort” though it is too early to say to what extent the Govt will support it. Joyce made clear the future of rail doesn’t just reside in the Beehive. “This is a big turnaround effort. We need everyone to hold hands over a long period of time to get it done.” The Govt’s biggest issue is the extent of its appetite to stump up more capital to nourish the neglected railway.
But going forward, change will also require commitment from unions, staff, management, Metro rail, and regional councils. The idea of mothballing under-used lines has gained some ground. For a start, it would allow KiwiRail to keep the Stratford to Okahukura line, which was damaged by a derailing, on ice rather than fork over the estimated $15m to repair the line. The North Wairarapa and Gisborne to Napier lines are the other hot contenders to be “kept available” for new business opportunities while taken out of active service.
- – -NOT A SUBSCRIBER? – - – - – - – - – - – - – - – - – - – - – - – - – - –
NEW ZEALAND TRANSPORT INTELLIGENCE BRIEFING
NZ’s freight, transport, distribution and infrastructure news authority. Takes a critical look at understanding and analysing policy and initiatives from Govt and industry. Covers road transport, shipping, rail, air, ports, fuel taxes, supply chain sustainability, security, dangerous goods transportation and warehousing This analysis of news and trends is vital information for all those involved in the import and export sectors. Published every Thursday 46 issues per year.
To subscribe – http://www.nztransport-logistics.co.nz/hone/special-introductory-offer
- – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – -
Ironically for a Govt which ended up the unhappy owner of the rail company, KiwiRail is one part of Budget 2010 which requires fresh funding if it is to move to a commercial basis which doesn’t require the current $90m annual subsidy. An early clue to the changes is Joyce’s comments KiwRail’s board will be “refreshed.”
Copyright © Media Information Ltd
NZ Transport Intelligence Briefing
Amalgamated Dairies
Strait Shipping