Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Hillside trumped in filling KiwiRail orders: Auditor-General

China Northern trumped Hillside in filling KiwiRail orders, Auditor-General says

Feb. 8 (BusinessDesk) – China Northern Locomotive and Rolling Stock Industry Corp easily outbid KiwiRail’s Hillside workshops in tenders to supply new rolling stock, the Auditor-General says in ruling out an investigation of the contracts.

The Auditor-General reviewed documents dating back to 2005 after Labour Party and Dunedin South MP Clare Curran last August asked the body to investigate four purchases of rolling stock from China Northern because of concerns about value for money and the impact on KiwiRail’s Hillside facility.

Dunedin-based Hillside has been split up after KiwiRail failed to find a buyer. The foundry operation is being sold to ASX-listed manufacturer Bradken for an undisclosed sum and other operations progressively closed with the loss of jobs.

In the tender for the June 2009 purchase of 20 DL locomotives Hillside’s bid ranked sixth and was deemed “uneconomic due to its longer delivery time and higher cost structure.” China Northern completed the order in June 2011.

In the December 2010 tender for 300 container flat top wagons, Hillside’s proposal was ranked third and documents noted that Hillside “could not meet the delivery schedule and would require KiwiRail to carry out all performance, warranty and cost risk itself.”

“We did not identify any material departure from good practice process or any unfairness in the way the Hillside tender was treated,” the Auditor-General said in a statement.

In early March 2011, KiwiRail varied the December 2010 contract to increase the order to 500 wagons and contracted to buy 20 more locomotives. While KiwiRail considered Hillside’s ability to supply the additional rolling stock, China Northern was “significantly faster and cheaper” and the Dunedin facility was already behind on a separate wagon order. Hillside hadn’t built locomotives “for some years.”

Defects found in rolling stock had been remedied at China Northern’s expense, it said.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

OceanaGold: Man Killed In Waihi Mine Accident

A 29-year-old man had died following a work place accident at OceanaGold mine, Waihi last night. The man was killed after the front end loader he was in rolled down a slope. The accident happened at approximately 6.30pm on Thursday night. More>>

ALSO:

Constructing Consent: Annual Housing Consents Highest In Over A Decade

More than 29,000 new homes gained building consent in the year to June 2016, up 16 percent from the previous June year, Statistics New Zealand said today. More>>

ALSO:

War Against Weevil For Future Peas: “No Peas, No Weevil” Ban Now In Place In Wairarapa

The Ministry for Primary Industries (MPI) has today placed a ban on growing peas within a specified area and placed controls on moving pea material (seed and untreated pea straw) within, in and out of this area for the next 2 years. More>>

ALSO:

Wood Producers: Crisis In New Zealand Log Supply

New Zealand wood processing leaders held a hui with senior government officials and political leaders in Whangarei yesterday to assess the acute log supply shortage to local mills in Northland. More>>

Consents And Taxes: Trustpower 'Very Disappointed' With Judgement

Trustpower is "very disappointed" with a Supreme Court ruling dismissing its bid to claim tax deductions on $17.7 million of project costs in a case closely watched by large-scale infrastructure developers. More>>

ALSO:

Fruitful Endeavours: Kiwifruit Exports Reach Record Levels

In June 2016, kiwifruit exports rose $105 million (47 percent) from June 2015 to reach $331 million, Statistics New Zealand said today. Overall, goods exports rose $109 million (2.6 percent) in June 2016 (to $4.3 billion). More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news