Council CEO: Mothball Northland Rail Line

in Featured General Top Debate Trains by AKT — April 24, 2011 at 11:54 am | 12 comments

The CEO of the Whangarei District Council is to propose the mothballing of the Northland Rail Line.
He will argue that only the construction of a Marsden Pt rail link would drive the retention of rail in Northland and no-one including KiwiRail and the Government is putting up their hand to pay for it.

CEO Mark Simpson will make the proposal at the Council’s meeting on Wednesday.

He says: “Given the realities of the national economy and the heavy investment in rebuilding Christchurch post-earthquake, Northland is not going to attract central government investment in both rail and road transport.”
Mr Simpson says Northland local bodies are united in the stance that shortening road travel times between Northland and Auckland is their leading concern for the economic and other benefits of the region and support the Government’s Puhoi to Wellsford roading proposal.
“Rail supports some 20 jobs in Northland, not all of which would be lost by mothballing, as the line would still need to be maintained during its period of inactivity,” Mr Simpson said.
“The cessation of rail operations would mean an average extra 30 heavy vehicle movements per day on SH1 through Whangarei, which is not significant. There would be an average extra 23 heavy vehicle movements per day on Portland Road, which currently averages a minimum 260 daily heavy vehicle movements in the carting of logs, woodchip, limestone, cement and coal.”

Mothballing not closing line
His resolution for the Council will be that should the decision be made to cease rail services in Northland, the Council supports a mothballing period for the Northland line “to give breathing space for the potential emergence of economic factors which may determine the future viability of the line, and while issues such as port rationalisation. ”
He argues that port rationalisation remains the most likely driver of construction of a Marsden Pt rail link, and only a Marsden Pt rail link would drive the retention of rail in Northland.
Such a link would cost $120 million. But the problem is: who will pay? Mr Simpson says that KiwiRail’s position is that it would welcome the link, but it will not be the funder. Current central government transport policies rule it out as funder, also.
Currently some 1.36 million tonnes of logs make up Northport’s total cargo volume of 2 million tonnes. It has been estimated up to 25 percent of logs, or 340,000 tonnes, would be carried by rail if a link existed.
He said that other general cargo including woodchip, cement, gypsum and coal, could be carried internally by rail – but this cargo travels either to or from nearby Portland, a distance of less than 20km, over which rail is not economical.The potential 340,000 tonnes of logs would not show an adequate return on the necessary $120 million investment. Based on the NRC report’s figures, income from logs would be around $6.8 million, with up to
$5 million of this taken for maintenance not currently funded by Northland operations.

“Hard” to justify cost of Marsden link
“Only significantly increased volumes of cargo across the wharves will justify the building of the Marsden Pt rail link, and the only predictable source of this would be the diversion of cargo currently landed at Auckland. Without Auckland cargo, Northport will remain a relatively low value predominantly forestry port. This introduces the need for the rationalisation of the three upper-North Island ports.
“At present, the three ports are driven by regional interests as a result of local government ownership. Tauranga and Auckland, especially, have competed with each other to the enormous benefit of the shipping companies. Many millions of dollars have been invested in the doubling up of infrastructure.
“In the national interest, the three Regions need to drive a rationalisation of activities at the three ports, leaving, say, Tauranga to maximise returns on its proven efficiency as a container port, with Auckland downsizing to be a container port serving mainly the Auckland market. Northport acknowledges an exercise would need to be done, but potentially Marsden Pt and Auckland could act as feeder container ports, utilising coastal shipping to the Tauranga hub. Marsden Pt is unlikely to ever handle significant container traffic. ”
He says that Marsden Pt could receive the 300,000 tonnes of gypsum currently landed at Auckland from South Australia, and also the 110,000 cars landed at Auckland. There is sufficient land in port corporation ownership to cater for the landing of vehicles.

Auckland a key

He said that Auckland would be left with its container traffic on smaller ships and with its tourism shipping – economically important, as each of the current 62 calls a year by cruise ships is worth $1 million in direct economic benefit. Auckland can accommodate ship draughts of 12.5m. The largest cruise ships have draughts of 9.3m, Queen Mary 2’s is 10.1m, and the Sun Class ships using Auckland have draughts of 8.1m.

“Auckland may not have to dredge under rationalisation, a huge saving to the ratepayers of Auckland and of benefit to the environment. The people of Auckland will eventually push for their waterfront back as part of the lifestyle of city living beside the sea. This sort of thing is happening around the world. The development of the waterfront will also support Auckland’s aim to be a truly international city and a destination in its own right.

The downside of port operations such as noise, traffic and other issues would be shifted elsewhere.

 

“Only port rationalisation will see regional and national resources most economically invested in our ports, but given the ownership mix of the three ports – one wholly local government-owned, the other two listed companies – this will take high-level political debate to achieve.”

Puhoi roading link the priority
The CEO says the council and Northland’s other three local bodies should, through the Northland Mayoral Forum, maintain the stance that shortening road travel times between Northland and Auckland is our leading concern for the economic and other benefits which accrue from it, not the least of which are encouraging industrial investment in the region and improving Northlanders’ access to health treatments only available in Auckland.
“Support for road versus rail should not be construed, however, as Northland local government dismissing rail as having any role in the region’s future transport systems. While rail’s prospects are not rosy in the short-term, the Northland Mayoral Forum should engage with
Auckland and Bay of Plenty Councils to discuss port rationalisation. Rationalisation could mean Auckland unlocking the economic potential of its waterfront, and Northland gaining a more profitable port and justification for maintaining rail services in the medium to long term, for
the benefit of the country and the ratepayers of the upper North Island.
“With rail in Northland presently not viable and its needed investment ruled out, WDC and the other Northland local bodies should support the line’s mothballing, as opposed to closure, while decisions are made surrounding port rationalisation and to allow time for the other potential factors mentioned above to emerge,” he says.

A report to the council from the Council’s Growth & Infrastructure Manager, Vaughan Cooper, continues the support for the Puhoi highway.
“The project has been termed the Holiday Highway by those who do not support it but it has a very clear economic development focus from the Government’s point of view - the project is about economic development and growth between Auckland and Northland (particularly Whangarei/Marsden Point).
“Whilst the construction is focused on construction of a new route from Puhoi (the northern end of the tunnels) to north of Wellsford, the project includes a strategic assessment of the entire route north and consideration of key areas such as Te-Hana and the Brynderwyns.”

Wednesday’s meeting will also consider tourism for the Northland region and be given this projection of traffic flows this year from Auckland to Northland.

The tourism report says this shows that the overall volume of all traffic and passenger movements declines the further north of Auckland you go. One variation comes at Wellsford where traffic from the main alternative route to and from Auckland (State Highway 16) feeds in to State Highway 1, but the overall pattern is one of decline in number. However, the pattern is different for overseas travellers.
Further to the North, the proportion of overseas traffic and passengers increases. Around 20% of those going north from Whangarei comprise overseas travellers. The volume of overseas travellers declines only around 4 percent between the Waipu - Whangarei and Whangarei – Kawakawa road
sections, while the corresponding volume of domestic visitors declines by almost 30%.

Tags: freight KiwiRail Northland Whangarei district council