KiwiRail Asset Stripping To Prevent Rail Development

KiwiRail are currently embarking on a programme to disconnect rail from sidings and yards throughout the country, and then sell off the land.

Niall Robertson, national coordinator of TRAC, says, “This is classic asset stripping and is probably following a directive from the government, or made necessary in the minds of KiwiRail executives due to pending reductions in rail funding”. Robertson adds, “This is like a retreating force in wartime blowing up roads and bridges so no one else can use them, and is really little more than vandalism”.

TRAC has been made aware that KiwiRail are selling the Te Kuiti rail yard to the local council who may on-sell it to whoever. Robertson says, “During the years of private ownership, this yard was moving thousands of tonnes of lime, and currently could be moving significant amounts of local logs to port as well”. He adds, “This yard also has a turntable so that heritage and tourist trains can make Te Kuiti a destination, but this is now at risk!”

In Wellsford, before the North Auckland Line closed down for a rebuild, significant log tonnages were lifted, but KiwiRail is intending to disconnect this yard too. TRAC chair, Guy Wellwood says, “This appears to be a part of the government’s anti-rail, pro-road transport plan and fits with their position statement to reduce rail funding by 94% and to scrap the idea of rail enabled Cook Strait ferries. The government is fixated with road transport and blind to the advantages of a multi-modal transport system, where the advantages of rail transport are obvious!” Wellwood adds, “...but this is also an attack on the regions that the government does not favour, as votes are now mostly urban”

Robertson says, “I get tired of saying this repeatedly, and key people ignoring it. Rail reduces emissions, reduces particulate pollution, reduces road maintenance costs, reduces congestion and above all reduces the tragic road fatality and injury toll!”

Like the gentailers who are to make money and not necessarily provide cheap, clean energy, KiwiRail has been ordered to make money and not haul more freight. Wellwood says, “This is nuts!”

Robertson urges the government to open up the railway system to private investment allowing other operators to do the kind of work that KiwiRail doesn’t have the resources for. Robertson says, “These operators could supplement what KiwiRail does, serve regions and add value to the rail system to get more value from it. TRAC has been in talks with rail operators in New Zealand and Australia that would be interested in setting up such services, but are wary of transport politics in New Zealand which are ‘too interventionist’.

TRAC says that it is time for government of New Zealand to grow the rail system, invite private money into operating efficient above rail services, supplementing KiwiRail for the benefit of the New Zealand economy, with all of the other advantages listed above, but with the government still responsible for the below wheel infrastructure as it is for roads.

Robertson adds that trucks that do 93% of the damage to roads (Waka Kotahi) but pay just 14% of the total costs of building and maintaining roads, while rail pays 28%. Robertson argues that as rail is the friend of motorists as it reduces congestion and improves road safety, it should also get some top up from the NZ land transport fund, as Robertson says, “The wider economic, social and environmental features are always benefits from rail but costs from heavy road transport, and these costs and benefits are in the billions.”

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