Funding options for KiwiRail are among Transport Minister Steven Joyce’s top four priorities for 2010. He says “the Crown’s going to have to put more money into it as a shareholder. At this point they would not be able to carry any more debt than they’re currently carrying.” Joyce is working with Finance Minister Bill English and State Owned Enterprises Minister Simon Power on the options, which will need to be concluded in time for this year’s budget. A key part of the process was completed last week, when KiwiRail submitted its blueprint for the future of rail to the Govt. This flags capex of $1.03bn for above and below rail infrastructure catch up and upgrades.

- - -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

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Joyce says he accepts rail “by its nature has branches that wax and wane.” He cites the Midland Line, once slated for closure and now the key coal route across the South Island. The Napier-to-Gisborne line is typically name-checked as at risk of being scrapped but it may scrape through if KiwiRail can show there’s decent-sized customers in the wings, most likely in forestry. The line through the North Wairarapa, though, has less chance of survival, as has the currently closed Stratford to Okahukura line.

Aside from KiwiRail, Joyce plans to order a stock-take of progress on the Roads of National Significance and all major projects at the end of the first quarter - another of his big four priorities. The third goal is to make inroads into productivity in transport, targeting costs and fees and “annoying rules” which cause problems for the transport industry. The fees review is wide-ranging, from driver’s licence costs to aviation, maritime and even cruise ship levies. The final key goal is the release of the Govt’s road safety strategy, slated for the next two months.

 Copyright © Media Information Ltd
NZ Transport Intelligence Briefing