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

 

Air NZ Wine Awards: Victory For Villa Maria As Pinot Noir Thrills

It was a night to remember as Villa Maria Estate picked up one of the highest accolades of the evening, the O-I New Zealand Reserve Wine of the Show Trophy, at the 28th Air New Zealand Wine Awards. The Villa Maria Single Vineyard Southern Clays Marlborough ... More>>

ALSO:

Future Brighter Money: RBNZ Releases New Bank Note Designs

New Zealand’s banknotes are getting brighter and better, with the Reserve Bank today unveiling more vibrant and secure banknote designs which will progressively enter circulation later next year. More>>

ALSO:

Commerce: Supermarket Inquiry Finds No Breaches By Countdown

The Commerce Commission inquiry into anti-competitive behaviour by Countdown supermarkets, alleged by former Labour Party MP Shane Jones, has found nothing to warrant prosecution, although it warns supermarkets to take care in the way they communicate... More>>

ALSO:

Crown Accounts: English Flags ‘Challenge’ To Budget Surplus

Finance Minister Bill English is warning next month’s half yearly fiscal and economic update from the Treasury may not forecast a budget surplus, saying that returning the government’s accounts to surplus in 2015 will be “a challenge”, given the decline in commodity prices and weak global inflation. More>>

ALSO:

March 2015: Netflix To Launch In Australia And New Zealand

World’s Leading Internet Television Network to Offer Original Series, Movies, Documentaries, Stand-Up Comedy Specials and TV Shows for Low Monthly Price More>>

ALSO:

Price Of Cheese (Is Up): Dairy Product Prices Fall To Five-Year Low

Dairy product prices fell in the latest GlobalDairyTrade auction to the lowest level in more than five years, led by declines in rennet casein and skim milk powder. More>>

ALSO:

Gordon Campbell: On The Australians Scoring Trade Points Against Us With The Chinese

It hasn’t been a great year for Trade Minister Tim Groser... To top it off, Australia has just signed a FTA with China that has far better provisions on dairy exports than what New Zealand currently enjoys in our own FTA with China. More>>

ALSO:

Iwi & Local Consultation: Oil And Gas Block Offer 2015 Begins

Energy and Resources Minister Simon Bridges today announced the start of the Block Offer 2015 process for awarding oil and gas exploration permits. More>>

Get More From Scoop

 
 
Standards New Zealand

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