NZ Transport Business: Infratil’s earnings hurt by recession, concessions
November 19th, 2009
Infratil is no closer to knowing if its successful roll-out of the Snapper card in the Wellington region can be replicated in Auckland. CEO Marko Bogoievski says the card unit “continues to be mired in the political process associated with the Auckland Transport Agency’s wish to use taxpayer and ratepayer funds to buy its own ticketing system, which it intends to impose on that region’s public transport operators.” While the NZ Transport Agency has subsequently leaned toward a national ticketing system, “uncertainty reigns in the interim.”
Meanwhile, Infratil’s NZ Bus unit has resumed normal operations in Auckland after a labour dispute with drivers and cleaners paralysed public transport in the city. Earnings at the bus company which provides commuter services in Auckland and Wellington dipped 13% to $15.5m in the six months ended Sept. 30, as the recession dented patronage and average fares in Auckland were eroded by the introduction of new concessions. In Wellington, NZ Bus has been the target of Green Party accusations it is trying to extend its monopoly on the region’s public transport operations by bidding for a pair of bus routes in the Hutt Valley. The Public Transport Management Act, introduced last year, allows councils to offer bundles of bus routes, a power only now being tested by transport companies. Bogoievski says “it is hoped this becomes a template for creating more incentives for operators to focus on growth” while transport authorities can “more clearly identify value for money” and the best avenues for investment.
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