New initiatives at KiwiRail’s Southdown container transfer site

The following announcement from KiwiRail concerns changes at Southdown.

We’re proud that our Southdown Container Transfer site is the third largest container handling facility in New Zealand and a critical part of many of our customers’ supply chains. Each year we handle around 450,000 TEU through this site.

Over the past five years we’ve invested over $30 million at Southdown to improve service, resilience and support growth:

• Truck entry laneways have been streamlined for KiwiRail, MetroPort and MetroBox container flows
• New top lifters to meet the growing freight volumes
• New reefer towers to handle increasing demand for temperature controlled cargo
• Upgraded rail grids for MetroPort
• Improved site traffic management systems

We’re now about to introduce two new initiatives to further improve the speed and flow of containers through Southdown for our road transport partners.

Vehicle Booking System to speed-up container throughput

With up to 1,200 trucks visiting our Southdown site each day to either deliver and/or uplift containers, and with only the Port of Tauranga’s Metroport part of the site currently operating a Vehicle Booking System (VBS) we are aware that congestion can become a real issue at certain times, as a result of trucking operators having to queue up to enter the site.

To ensure that the whole site is able to run more smoothly and to provide a more streamlined and faster process for all of our customers, KiwiRail is going to introduce a VBS which will apply to all non-Metroport volumes later this year. This will result in a reduction in average truck queueing times across the whole site.

The VBS will be an online tool, using the same product as that used by the Port of Tauranga’s Metroport operation at Southdown.

This will mean that not only will the whole site now use a VBS, but by having the same system as that already in place with Metroport, it should significantly improve the experience for many operators.

By being able to book specific container delivery or uplift timeslots, it will enable truck arrivals at the site to be more evenly spread across each day.

This will result in faster truck turn times due to reduced queuing times, thereby increasing truck productivity and efficiency and provide a general improvement in on-site safety through a reduction in overall site congestion.

Having the same VBS will also help minimise any training requirements, as trucking companies currently servicing Metroport will already be very familiar with using it and for any new users, we will be arranging all necessary training for your staff at no cost to you.

While there will be a cost for the use of the VBS, just as with all other such systems, we are firmly of the view that the improvements this will provide transport operators through increases in fleet productivity, will provide much greater value than the system’s cost to use.

Please note that we are not currently intending to introduce a VBS at any other of our container transfer sites at this time.

We will provide further updates on this initiative once we have a confirmed start date for the system, including how we plan to roll out the required training we will be providing to all new users.

Certified Weighbridge

We are also going to be installing a brand new, fully certified weighbridge at our Southdown site which will be available for use by both customers and the general public.

It will be positioned near the entrance of the site, so it is easily accessible not just for truck operators wishing to enter the site, but also for those who simply want to have their trucks check-weighed.

At this stage we expect the weighbridge to be commissioned and available for use before the end of the year and we will provide you with more information about processes and proposed charges for using it, prior to it becoming operational.

We trust you will find these as positive enhancements to our services and we look forward to being able to commission both in the near future.

Transport lobby opposes port move north

Northport should stick to what it's already doing according to the trucking industry. Photo / Tania Whyte
Northport should stick to what it’s already doing according to the trucking industry. Photo / Tania Whyte

NZ Insights By: Imran Ali

The National Road Carriers’ Association has released a report it commissioned from TG Enterprises, which opposes shifting Ports of Auckland to Whangārei, saying it would be logistically impractical and cost-prohibitive to do so, while increasing greenhouse gas emissions.

The report, based on interviews with trucking companies and stakeholders, concluded that Auckland’s port provided the best value for money and should continue in its current location until it could not cope with future growth, which it expected would be at least 30 years away.

But those lobbying for the move to Northport, including former Far North mayor Wayne Brown and Northland Mayoral Forum chairman Jason Smith, say the argument for the status quo lacks logic.

With a focus on road freight, the report said the issue was not port location but the efficiency and safety of road (and rail) access to the upper North Island ports of Northport, Auckland and Tauranga. It said servicing customers by road freight from Northport would be nearly eight times more expensive, or more than $1 billion annually, than from Ports of Auckland.

An analysis of road freight cost showed a container truck that made five trips a day between Ports of Auckland and South Auckland for $50 would be only able to achieve one from Northport, at an estimated cost of $230.

“With Auckland’s business growth moving south, and Auckland, Waikato and Bay of Plenty dominating the upper North Island’s economic growth, Northport is too far away,” the report said, while moving to Whangārei would add more than 125,000 tonnes of carbon dioxide per year for container road freight, compared with about 27,000 tonnes from Ports of Auckland to South Auckland.

That would seriously undermine New Zealand’s efforts to reduce greenhouse gases, it said.

“The decision to move the port from Auckland to Northport is being rushed. We need to stop. Take stock. Reassess,” the report added.

But Brown said the association had a vested interest ensuring that the port didn’t move north.

He described claims about greenhouse gas emissions, as “total and absolute crap,” saying goods transported to and from Northport by rail freight would mean less pollution and traffic congestion.

“At the moment, more stuff goes to Auckland from Tauranga, which is further away from Northport. Milk from Northland goes to Tauranga for export,” he said.

“Auckland is planning 50,000 houses in the south and 86,000 houses north of (the city). Where are the biggest new commercial businesses like IKEA and Costco going? To West Auckland, not south,” Brown said.

He led the Upper North Island Supply Chain (Unisc) working group, whose report promised an economic boom for Northland if the $10 billion port move happened.

“There’s nothing that will make Northland do better than shifting the port from Auckland,” he said.

Smith said the days of Ports of Auckland were numbered, whereas Northport offered the best deepwater port in the upper North Island.

“Everyone is aware of the growth in Waikato and further south, but the next era of growth in New Zealand will, in my view, be on the north side of Auckland,” he said.

“Ships will be getting bigger in future, and the risk for New Zealand is they won’t be able to come here. That’s where the deepwater port at Northport has an advantage.”

Regional Economic Development Minister Shane Jones said the report was built around fear and apprehension, citing points of weakness in the state of the trucking industry.

“We’ll see more electric trucks in future, but for now we see a significant role for rail, and I think the trucking industry is churlish in not acknowledging the $700 million put aside for a four-lane highway out of Whangārei heading south,” Jones said.

Through its Provincial Growth Fund, the Government has provided $300 million for work on the existing rail line between Auckland and Whangārei.

Residents feel railroaded by KiwiRail freight centre plans

KiwiRail’s road and rail freight centre is planned for Railway Rd, just beyond Palmerston North Airport.
SUPPLIEDKiwiRail’s road and rail freight centre is planned for Railway Rd, just beyond Palmerston North Airport.

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Residents living in the path of KiwiRail’s planned freight centre near Palmerston North are reeling as they realise the effect it will have on their properties and lives.

“Our lifestyles haven’t just been thrown under a bus, they have been thrown under a 1.5-kilometre-long fully laden freight train,” said Parrs Rd resident Maree Woods.

She said people in the area between the airport and Bunnythorpe were used to trains going past, but not to shunting yards operating around the clock.

Woods was also worried about traffic patterns once Railway Rd, a busy route from the city to Bunnythorpe and Feilding, was absorbed into the railway yards.

The site for the 2.5km-long KiwiRail centre was announced by Regional Economic Development Minister Shane Jones in Palmerston North on Thursday.

The planning and land acquisition needed for the development were being paid for from a $40m Provincial Growth Fund grant.

KiwiRail held information sessions about its plans before the Covid-19 lockdown, but delayed the announcement of the site until last week.

A ground-level view of the proposed KiwiRail road and rail freight centre.
SUPPLIEDA ground-level view of the proposed KiwiRail road and rail freight centre.

Roberts Line resident Dee Wallace was one of about 70 people who received letters on Wednesday telling them their properties would be affected.

She had to wait until the formal announcement to find out what the effects would be.

“We are going to be looking straight at it from across the road.”

Her family had for 13 years lived in a 1903 villa that was the original farmhouse in the area.

They had spent a lot of time and money restoring it to its original character.

“It is our forever home.”

Her children, and children she looked after under home-care arrangements, had grown up enjoying the rural lifestyle, being able to feed a calf and pat the sheep.

“It’s actually very peaceful.”

As well as the freight centre itself, it was likely a new access road for trucks would join Roberts Line just outside their gate.

Wallace said she understood the development would create jobs, eventually, “but at what expense?”

KiwiRail’s road and rail centre will transform a semi-rural area into a huge industrial park.
WARWICK SMITH/STUFFKiwiRail’s road and rail centre will transform a semi-rural area into a huge industrial park.

Clevely Line resident Tarsha Isles said she believed the KiwiRail development would be a great thing for Palmerston North, but the implications for her family were devastating.

They would lose their home of seven years.

Isles Construction, in which she is a director, had only recently moved a new home into the area.

Her parents Desma and Bob Isles moved into their house just before Christmas and still kept a watchful eye on the family home they built 33 years ago.

“So we are actually losing three houses.

“It’s still very fresh.

“I’m shocked and devastated, but I understand this is a really important thing that needs to happen.”

Kairanga-Bunnythorpe Rd resident Aaron Fox will be living about 500 metres away from the centre, which would transform a semi-rural lifestyle area into “a huge operation on the doorstep”.

He said he did not oppose progress, but was shocked by the lack of consultation.

Fox said city mayor Grant Smith and city councillors should be standing up for locals, to make sure their interests were protected.

“Let’s make sure it works for everybody.”

Regional Economic Development Minister Shane Jones was in Manawatū on Thursday to announce initial funding for the rail yards.
WARWICK SMITH/STUFFRegional Economic Development Minister Shane Jones was in Manawatū on Thursday to announce initial funding for the rail yards.

Fox said promises the development would create hundreds of jobs and attract billions of dollars of investment should be questioned.

“At the moment people are talking about a lot of zeroes. I wonder what story book they are reading.”

KiwiRail’s investment and capital transactions general manager Olivia Poulsen said visits had started with the owners of the 70-odd properties that would be affected.

About 40 properties were likely to be bought. The other 30 would be neighbours and some of their land might be needed to create buffer zones to manage the effects of the centre beyond the boundaries.

“Our intention is to minimise land acquisition as much as possible.”

Public consultation would influence the final design.

KiwiRail expected to lodge an application to designate the land by the end of September.

NZ firms Fletchers and Downer ‘fuming’ as $371m Govt KiwiRail contract goes overseas

Construction companies Fletcher and Downer are reportedly “fuming” after a $371 million Government rail contract has been awarded to overseas companies – costing the Kiwi firms hundreds of local jobs.

Greg Miller, chief executive of KiwiRail at the Otahuhu Auckland depot amongst the trains and shipping containers. NZ Herald Photo by Alex Burton 30 August 2019
Greg Miller, chief executive of KiwiRail at the Otahuhu Auckland depot amongst the trains and shipping containers. NZ Herald Photo by Alex Burton 30 August 2019

One source within Fletchers said the team that worked on the tender is “fuming” that overseas firms have been awarded the Government contract.

The source said the contract would have saved many of the 1000 local jobs slashed late last month in response to Covid-19 economic losses.

John Holland reportedly has only around 10 New Zealand-based staff. Neither John Holland nor McConnell Dowell responded to the Herald on Sunday’s requests for comment.

The contract was one of three projects under KiwiRail’s $1 billion Auckland Metro Rail Programme, which also includes the $315m third main line out of Auckland between Wiri and Quay Park, and further support for the $4.4b City Rail Link.

Fletcher Building chief executive Ross Taylor. Photo/Greg Bowker.
Fletcher Building chief executive Ross Taylor. Photo/Greg Bowker.

KiwiRail chief operating officer of capital projects David Gordon would not confirm the contract was already decided.

“We have not concluded negotiations with any party for this contract, but can confirm we are in discussions with a preferred supplier,” Gordon said.

“We cannot confirm who that preferred supplier is at this time, nor can we disclose information on the individual tenders.”

The KiwiRail Papakura to Pukekohe project - expected to begin at the end of 2020 - includes electrification of 19km of track currently only available to diesel trains in South Auckland. Photo / File
The KiwiRail Papakura to Pukekohe project – expected to begin at the end of 2020 – includes electrification of 19km of track currently only available to diesel trains in South Auckland. Photo / File

The Herald on Sunday was told awarding the contract to John Holland and McConnell Dowell came down to a cheaper tender.

Gordon admitted price estimates were a factor in judging the applications.

“We can confirm that the weighting applied for the contract, and disclosed to bidders at the outset of the process, was 70 per cent for non-price attributes and 30 per cent for price,” Gordon said.

“All bidders were required to demonstrate how they will support New Zealand manufacturing and industry for the materials supplied.”

Steve Killeen is chief executive of Downer New Zealand. Photo supplied to the New Zealand Herald
Steve Killeen is chief executive of Downer New Zealand. Photo supplied to the New Zealand Herald

Minister for State Owned Enterprises, Winston Peters, would not be drawn on the wisdom of the KiwiRail electrification contract going overseas, but pointed out the unsuccessful firms could still win another $315m Auckland rail project soon.

“KiwiRail cannot be influenced by ministers in their tender process, and must follow government procurement rules, which at this time do not allow them to discriminate against foreign-owned companies,” Peters said.

“However, companies that work on infrastructure projects, whether foreign-owned or locally owned, are encouraged to use New Zealand sub-contractors and workers wherever possible.”

He said Fletchers could still apply for the major Wiri to Quay Park project.

“If Fletchers claim that they are laying off 1000 staff due to missing this tender then such an excusatory claim won’t meet close scrutiny – because it is simply not true.”

The $371m project to electrify 19km of track is expected to begin at the end of the year and includes two more platforms at Pukekohe station and future proofing for extra lines.

Only diesel trains can operate between Papakura and Pukekohe, so passengers from south of Papakura must switch trains to get to and from the city.

Electrification will improve commuter capacity.

KiwiRail chairman Greg Miller (left), acting chief executive Todd Moyle, Deputy PM Winston Peters and Regional Development Minister Shane Jones. 31 January 2018 Northern Advocate Photo by Tania Whyte
KiwiRail chairman Greg Miller (left), acting chief executive Todd Moyle, Deputy PM Winston Peters and Regional Development Minister Shane Jones. 31 January 2018 Northern Advocate Photo by Tania Whyte

Trains stop running signalling start of rail project for Northland

Trains have stopped running between Auckland and Whangārei to allow for preparatory work on a project to revitalise Northland rail. Photo / Supplied
Trains have stopped running between Auckland and Whangārei to allow for preparatory work on a project to revitalise Northland rail. Photo / Supplied

Northern Advocate


Trains on the line from Auckland to Whangārei have stopped, signalling the start of work on the $204.5 million Provincial Growth Fund project to revitalise Northland rail.

The start of major work replacing bridges, improving tunnels and upgrading the rail line to Whangārei will result in more reliable train services and enable more freight to be carried by rail, KiwiRail group chief executive Greg Miller said.

KiwiRail is upgrading the Northland Line to improve journey times, resilience and reliability and, from last Sunday, no more train services will run between Swanson and Whangarei to allow substantial upgrade work to begin.

The work includes replacing five aging bridges and lowering tracks in the 13 tunnels, so when completed, trains will be able to pull hi-cube containers on the Northland Line.

“While our teams were able to continue design and planning work during the lockdown, Covid-19 halted most work on the ground. We’ve also been waiting on the arrival of specialist track-laying equipment which has been held up by pandemic disruptions,” Miller said.

“The work will be completed in stages, with the first objective being able to carry hi-cube containers through the tunnels between Whangarei and Auckland by Christmas.”

Being able to carry hi-cube containers would also allow freight that can currently only come in and out of Northland by road to instead go by rail. That additional transport option could help cut transport emissions and reduce the number of trucks on the roads.

Miller said KiwiRail was committed to ensuring Northland benefited from the upgrade project, with a focus on using local contractors and suppliers where possible.

Local firm United Civil Construction has the contract to replace two of the bridges, all the ballast materials for the track upgrades are being supplied by Clements in Whangarei, and Busck, also in Whangarei, is supplying thousands of concrete sleepers.

Next year KiwiRail will continue to make improvements to the Northland Line, including reopening the mothballed section of line between Kauri and Otiria and building a container exchange at Otiria.

State-Owned Enterprises Minister Winston Peters said at least 200 contractors and staff would be needed to undertake the upgrade work and KiwiRail would be using Northland people and businesses wherever possible.

“That will see tens of millions of dollars going into the regional economy, creating jobs and spending that will help Northland recover from the lockdown and impacts of Covid-19,” Peters said.

“We’re making sure that Northland has access to the same rail services that other export regions have had for decades but this substantial government investment will also help boost Northland’s economy right now.”

New Interislander ferry designs unveiled

KiwiRail has unveiled concept designs for a pair of greener, technologically-advanced ferries it plans to roll out within the next five years.

On Wednesday, KiwiRail said the ferries – which would operate as Interislander services on the Cook Strait between Wellington and Picton – would increase capacity for the “vital” transport link.

A request for a proposal to find a preferred shipyard to build the ships was issued on Wednesday.

“The new ships will strengthen and enhance the vital transport link between the North and South Islands and represent a once-in-a-generation opportunity to transform the Cook Strait crossing,” KiwiRail group chief executive Greg Miller said.

The concept design for the new Interislander ferry in Wellington Harbour.
OSK-SHIPTECH A/SThe concept design for the new Interislander ferry in Wellington Harbour.

Interislander operates three ferries at the moment, moving about 800,000 people and up to $14 billion worth of road and rail freight between the North and South Islands per year.

A $400m contribution from the Government’s Budget this year had enabled KiwiRail to go out to international tender to build the new ships, it said, which were intended to arrive for service in 2024 and 2025.

The funds would also go towards KiwiRail’s infrastructure at ports in Wellington and Picton.

When the new ships arrive, it will have been more than 25 years since New Zealand last introduced a purpose-built ferry to its fleet.

The concept design of the new ferry in the Marlborough Sounds.
OSK-SHIPTECH A/SThe concept design of the new ferry in the Marlborough Sounds.

Miller said the new ships would be technologically-advanced, produce significantly less carbon emissions, have greater carrying capacity, and provide an enhanced visitor experience.

“Only overseas shipyards have the ability to build ferries of the size and standard needed for the Cook Strait. However, the project also involves new infrastructure including terminals, linkspans, and marshalling yards which will create numerous Kiwi jobs in Picton and Wellington.”

KiwiRail has engaged with a leading ships’ architect to design the ferries. They would be nearly 40 metres longer and at least five metres wider than the current ships.

They would also be able to carry twice as many passengers, 300 per cent more rail wagons and nearly double the amount of trucks and other vehicles.

The Interislander Kaitaki, one of the current fleet, can carry 1350 passengers. New ships would be able to carry twice as many people.
STUFFThe Interislander Kaitaki, one of the current fleet, can carry 1350 passengers. New ships would be able to carry twice as many people.

They would also be more fuel efficient. At times the ships would be able to run on battery power, and the design would be future-proofed so new fuel sources could be adopted as they became available, KiwiRail said.

State-Owned Enterprises Minister Winston Peters said of the current ships, only the Aratere was rail-enabled.

“This Government is committed to restoring rail to its rightful place in New Zealand. Bigger, better ships, with new technology are yet another step on that journey,” Peters said.

The ships would be a “huge boost” to New Zealand’s civil engineering and construction sectors, with hundreds of contractors and material suppliers needed for track renewal and facility upgrades.

That construction work was expected to begin in 2021.

Busy work programme begins for Auckland rail – KiwiRail

Friday, 22 May, 2020

KiwiRail teams will be working hard over nights and at weekends throughout winter to build a better rail network for Auckland.

Work will begin this weekend to replace almost 12 kilometres of old rail and more than 2500 sleepers on the busy Eastern Line between Britomart and Otahuhu, says KiwiRail Chief Operating Officer Todd Moyle.

“Aucklanders are using the rail network more and more, with 3,500 commuter services and 246 freight trains in a typical week.

“That amount of rail traffic causes wear and tear on the rails over time, just as heavy traffic does to road surfaces, and in some cases we have to put speed restrictions in place. It is critical that we replace the rails so we can keep trains running efficiently and safely on the network for the thousands of rail commuters.

“Getting this work done will enable us to remove speed restrictions on the line and when finished, commuters will enjoy a quicker, smoother and quieter journey.

“Replacing the rail and sleepers can only be done when no trains are running. We have worked closely with Auckland Transport to settle on a work programme that allows us to minimise disruption for commuters while enabling us to get the work done efficiently and safely.

“Around 200 people will be working on the project, including 85 from outside Auckland who are being brought in to ensure the work is done as quickly as possible.

“Trains will be replaced by buses during evenings and at weekends when there are fewer commuters using the services, so our teams can get out to do the work. We understand this may be disruptive for those who use the trains at these times, however these closures mean we can get the work done much more quickly, so there is less overall disruption.

“We are conscious that this work may also cause some disturbance to our corridor neighbours. Our teams are focused on getting the work done as quickly and quietly as possible.

“We are working progressively across the entire network to replace the oldest and most worn sections of track, with 23km of new rail already in place across the network since March 2019. This period of work on the Eastern Line will take about eight weeks, with more work planned for late September.

“The work forms part of an ongoing project to improve the Auckland network, lay a foundation for predicted growth in passenger and freight volumes, and ensure the benefits of the City Rail Link can be delivered.”

Milburn ‘Inland port’ gets backing

A southern MP says a recent $1.2 billion cash boost for KiwiRail could be a “game-changer” for the Clutha economy.

Lawrence-based NZ First list MP Mark Patterson said yesterday he supported the establishment of an “inland port” at Milburn, in South Otago.

An inland port provides a remote storage hub for export goods such as logs and frozen produce, linking a region’s production zones and sea port.

Mr Patterson said the $1.2 billion funding for KiwiRail announced in the recent Budget could help provide the upgraded rail network essential for such a facility.

The Government’s draft New Zealand Rail Plan, published in December last year and expected to be finalised shortly, has identified Milburn as a preferred site, servicing Port Otago.

Mr Patterson said the area was a natural crossroads between Central Otago, Southland and Dunedin, and had a “compelling case” for selection.

“The studies have shown we need to move additional freight on to rail, and this idea has the support of both Dunedin and Clutha [councils].

“Experience elsewhere shows that where you have an inland port, major industry follows, so this could be a game-changer for Clutha.”

On June 11, Clutha District Council is expected to finalise the rezoning of more than 330ha of land between Milton and Milburn to industrial.

Businesses including Calder Stewart and Pan Pac Forest Products already adjoin the land.

Clutha Mayor Bryan Cadogan said the rezoning would allow Milton and surrounds to “fully realise their potential”.

“The zonal changes and financial investment we’re now making in Milton are building blocks we’re laying for a more vibrant future for the district.

“We’ve maintained for a long time Milton has Clutha’s greatest potential for growth. If ever we needed that potential realised, it’s now.”

$400m to be spent on bigger, faster Interislander ferries

The Interislander ferry service expects to increase passenger numbers when it trades in its three existing ships for two bigger new ones by 2025.

Approaching Picton The Interislander Ferry Aratere in Queen Charlotte Sound

The Aratere in Queen Charlotte Sound.

KiwiRail was allocated $400 million in the Budget for the project.

The total cost is forecast to be more than $1 billion but it will include reconfigurations of the terminals in Wellington and Picton.

KiwiRail chief executive Greg Miller told Morning Report a lot of the money will be used on resizing the ferry terminals to accommodate the bigger vessels.

“The new ferries are over 200 metres long and over 30 metres wide so they’re quite a bit bigger than the current ships…

“They’ll be 30-year assets so we’ve got to do a very thorough job with respect to the design and the mode of power and all the things that come with them.

“Landside at the port of Wellington and in Picton there will be new ferry terminals established that will also be long-run assets as part of that capital plan.”

An artist's interpretation of what Picton's proposed new Interislander ferry terminal will look like.

An artist’s impression of the new Picton ferry terminal. Photo: Supplied / KiwiRail

The new ferries will provide twice the current capacity and will help KiwiRail meet growing demand. At present it moves 800,000 passengers a year and will be able to add at least 50 percent capacity.

The new ferries will also be environmentally superior to the current vessels and will cut the water better.

“The things we have learned in the world of ship-building have shown us is that the hull design ergonomically is a big part of the overall plan.”

He said the ferries would bring a different style of Cook Strait travel that would help set KiwiRail up for the future.

The Rail and Maritime Transport Union said the spending injection to replace old ferries and trains is “significant”.

General secretary Wayne Butson said the money starts to make up for almost a decade of under-investment under the previous National-led government.

He said the new money is needed to keep the rail system running.

Gisborne Train Link Not Justified: KiwiRail

Article: Aaron van Delden – Local Democracy Reporter

The figures don’t stack up for reinstating the train line between Gisborne and Wairoa, KiwiRail boss Greg Miller says.


Gisborne District Council has identified the line’s refurbishment as a shovel-ready project that, with Crown funding, could bolster the economy in the wake of Covid-19.


The council’s application to the Government’s Infrastructure Industry Reference Group says up to $23.3 million is needed for the project.


But KiwiRail, which would be responsible for the work, believes it could cost up to five times as much as that to reinstate the mothballed track.


It also says there is no guarantee of sufficient southbound freight to justify the proposed multimillion-dollar investment.


“Our view is it’s actually quite high risk to put this capital in there when there’s no certainty on revenue,” Mr Miller said.


He had provided that appraisal to the Government, which he said had been “proactively” seeking feedback from stakeholders in the line’s restoration.


Mr Miller said KiwiRail was feeling the pinch of reduced train services due to Covid-19 and would be focused on building freight volumes on existing lines.


“As a state-owned enterprise, we’ve got to run a commercial business, and there are no subsidies for the freight network.”


A feasibility study, led by Berl economists and released late last year, found there was enough freight out of Gisborne to justify running a 24-wagon train on the line to Napier each weekday, as well as a daily 24-wagon log service, with each wagon carrying the load of one truck.


Mr Miller said KiwiRail had done its own research into potential freight volumes for the line.


He was yet to be convinced there was enough freight to justify the cost of restoring the line “at this point”.


KiwiRail’s research would not be published because there was a great deal of variability in freight volumes from day to day, Mr Miller said.


Storm damage led to the closure of the railway between Gisborne and Napier in 2012, but the Wairoa-Napier section of the track reopened last June, thanks to $6.2m from the Provincial Growth Fund.


Mr Miller said the coastal train line between Gisborne and Wairoa presented more maintenance challenges than the track between Wairoa and Napier, and climate change was likely to exacerbate those issues.