KiwiRail: What The Plan Means

 

KiwiRail CEO Jim Quinn has hinted at what today’s Government turnaround scheme for KiwiRail means for regional train lines – and Auckland and Wellington Metro lines, which transport minister Steven Joyce has said need to pay their way more.

Mr Quinn says one of the central elements of the plan is the need to maintain a connected network rather than reverting to a series of ‘short lines’.

However, that doesn’t necessarily mean that the network we operate at the moment will remain the same.

“We will review the minor lines and ultimately, unless they have an anchor customer or there is a compelling public good reason for them to stay open, they will be closed or moth-balled.

Referring to commuter rail, he sas that while the emphasis is on freight growth, “we will also be looking to grow our long-distance passenger business and to partner with regional councils in Auckland and Wellington to provide integrated public transport systems that meet urban passenger needs while ensuring transparency of costs.”

He said the investment signals a long-term commitment to creating a business capable of standing on its own feet financially.

“Today’s announcement enables us to invest in our business in a way that our predecessors haven’t been able to in a long time,” he said.

“It will allow us to demonstrate to our customers that we have been listening to them and we understand what they need from us.

“Our customers have been telling us they would consign more goods to rail if transit times were more relevant and the network more reliable. We know too that rail will have an important part to play in moving the growing volumes of freight traffic over the next 25 to 30 years.

“The key to achieving the goals set out in the ‘turn-around plan’ we provided to Government before Christmas is growing traffic volumes and revenue. Rail already carries a third of all export goods and excels in moving heavy traffic.

“We are confident that with improved infrastructure and rolling stock we can also carry more of the domestic goods that largely travel from Auckland, down the North Island to Christchurch and destinations in between.”

KIWIRAIL PLAN COVERAGE

Government says investment in rail will help when oil prices go up

Union says rail privatisation has been discounted

Governments $4.6b KiwiRail turnaround plan
Labour calls plan miserly
Mike Lee calls for more rail investment
Government confirms MetroRail fare increase

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2 Comments

 
  1. Jeremy Harris says:

    It basically seems like they want to upgrade the existing network… If it involves more passing loops and track easements I think that would be good, the heat on Kiwirail should be good for them chasing customers…

  2. ingolfson says:

    I think the most important result is: No sell-off in the coming years, some improvements. And in a few years, we see if National has seen (some of) the light - or there might be a new government. Heck, if I talk any longer, I could even convince myself that this plan means they are slowly coming around ;-)

 

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