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

 

Prefu Roundup: Forecasts Revised, Surplus Intact

The National government heads into the election with its Budget surplus target broadly intact, delivering a set of economic and fiscal forecasts marginally revised from May to reflect weaker commodity prices and a lower tax take. More>>

ALSO:

Convention Centre: Major New SkyCity Hotel And Laneway For Auckland

Today SKYCITY Entertainment Group Limited revealed plans to build a new hotel and pedestrian laneway of bars, restaurants and boutique shopping on land it owns in the Nelson and Hobson Streets block, expanding the SKYCITY Entertainment Precinct. More>>

ALSO:

Igniting The Spark: Bringing The Digital Enabler To Life

Changing a name is, relatively speaking, the easy part of a re-invention. Changing a culture, getting all the ducks in a row, turning yourself inside-out to become customer-inspired is a much bigger challenge. More>>

ALSO:

Ebola And NZ: Targeted Screening At Airport But Risk Low

The risk of any cases of Ebola in New Zealand remains very low, but health and border authorities are well prepared... anyone arriving in New Zealand who in the last three weeks has visited countries affected will be screened for symptoms of the disease. More>>

ALSO:

Scoop Business: Brewer Seeking Crowd-Funding Cancels Shareholders’ Dividends

Shareholders in Renaissance Brewing company, the first business to seek equity through crowd-funding in New Zealand, have cancelled their claim on $147,000 of accumulated earnings “to make Renaissance a more attractive investment opportunity.” More>>

ALSO:

It's Spark Now:
Why Telecom Wanted To Change

New Zealand led the world when Chorus demerged from Telecom. It gave us a telecommunications industry structure where the network is completely separated from the products and services it delivers. The changes brought about a new market dynamic and it dramatically changed Telecom’s role. More>>

ALSO:

Glass Half Empty: Dairy Prices Fall To Lowest Since 2012

Dairy product prices slumped to the lowest level since October 2012 in the latest GlobalDairyTrade auction, paced by whole milk powder and cheddar. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news