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

 

KiwiRail cans electric trains, goes with diesel

Wednesday 21 December 2016 11:49 AM

KiwiRail cans electric trains on partially electrified North Island trunkline, goes with diesel

By Rebecca Howard

Dec. 21 (BusinessDesk) – KiwiRail, the state-owned rail and freight operator, said a small fleet of electric trains on New Zealand’s North Island would be phased out over the next two years and replaced with diesel locomotives.

The North Island Main Trunk, or NIMT, runs from Auckland to Wellington but is only electrified between Hamilton and Palmerston North with a fleet of 16 almost 30-year old electric trains, Wellington-based KiwiRail said in a statement.

"KiwiRail is essentially running 'a railway within a railway' by having the electric section,” said KiwiRail chief executive Peter Reidy. The doubling up of service facilities, inventory, training and maintenance with two separate systems “adds to the inefficiencies and unreliability,” he said.

Several alternatives were studied over a two-year period, including upgrading the current electric fleet. However, the cost of a new or refurbished fleet couldn’t be justified, Reidy said.

According to KiwiRail, the cost of electrifying the whole NIMT was estimated at more than $1 billion and feeder lines would still require diesel trains.

Currently, only eight diesel trains need to be purchased as other diesel trains can be used more efficiency to cover the work of the electric trains, KiwiRail said.

It did not specify how much the purchase would cost, citing commercial sensitivity. However, the overall cost of the diesel option was estimated at 20 percent to 30 percent lower than the overall cost of the electric option over its operation life.

Reidy noted a small number of staff may be affected but staff and unions will be consulted well before the phase-in begins.

“Our preference is always to redeploy our people where possible and the project will take up to two years to implement,” he said.

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Budget: Irrigate (Good Times, Come On!)

Additional grant funding of $26.7 million over the next three years plus a capital boost of $63 million towards irrigation investments in Budget 2017 will deliver economic and environmental benefits through better use of water... More>>

ALSO:

Silver Fern Farms: Proposal To Close Fairton Sheepmeat Plant

Silver Fern Farms has advised its people of the proposal to permanently close the site, and has discussed potential transfer options to its other sites in the region as part of the consultation process...
More>>

ALSO:

MPI: Myrtle Rust Appears In Taranaki

The nursery in Waitara (just north of New Plymouth) reported suspected myrtle rust symptoms on young plants to the Ministry’s 0800 number yesterday (Tuesday). More>>

ALSO:

Aged Care Survey: Job Stresses Put Pressure On Workforce

Staff in the aged care sector are stressed, struggling with work hours and aren’t feeling financially rewarded for their efforts. More>>

ALSO:

De-Sanctioning: First Iran Meat Shipment Welcomed

Primary Industries Minister Nathan Guy has welcomed the first export shipment of meat to Iran, scheduled for processing and export later this month by Wellington company Taylor Preston. More>>

ALSO: