Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

Further $198m for KiwiRail’s Turnaround Plan

Hon Gerry Brownlee
Minister of Transport


15 May 2014


Further $198m for KiwiRail’s Turnaround Plan

KiwiRail’s 10-year Turnaround Plan to make its freight business commercially viable continues, with $198 million being invested from the Future Investment Fund.

This brings total Crown capital investment in the Plan to $1.04 billion.

Transport Minister Gerry Brownlee says KiwiRail will use the new money to invest primarily in:
• Infrastructure renewals and upgrades.
• New wagons and refurbishment of existing wagons and locomotives.
• IT systems.
• Earthquake remediation projects and other safety works.

“KiwiRail has had a challenging few months, but looking more broadly at the rollout of its Turnaround Plan we can see fundamental improvements in the company’s operations,” Mr Brownlee says.

“KiwiRail is increasing revenues in its core operations and growing its share of the domestic freight market, and we expect that to continue. It was always clear that taking the business to financial self-sustainability was going to be a huge challenge.”

Today’s announcement comes on top of $844 million of capital investment appropriated over 2010/11 to 2013/14.

Since the company was bought by the previous government in 2008, Crown investment in KiwiRail now totals $2.4 billion – excluding investment in metropolitan rail projects. In addition, there have been writedowns totalling $9.8 billio

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Demonising Of Iran

Will New Zealand still be willing to pursue its recent trade overtures to Iran, now that US President Donald Trump has used his speech in Riyadh to single out Iran as the main source of terrorism and instability in the Middle East?

Trump did so only hours after a moderate was re-elected in a landslide in Iran’s elections, a victory that opened up a potential for dialogue that the US has chosen to spurn instead, utterly. More>>

 

Pre-Budget Offers: Green Party’s New Plan Puts Kiwi Families First

The Green Party has a plan to help all Kiwi kids have a great start to life, by giving parents more financial support and more flexibility at work. More>>

ALSO:

Gordon Campbell: On Bill English’s Bizarre New/Old Trade Deal

So, according to the Prime Minister, we all have an obligation to get in behind his zombie TPP deal, because of all the “jobs and income” it will bring in its wake… More>>

ALSO:

Gordon Campbell: On Housing, Exploding Lap-Tops And Jon Taplin

Evidently, only 13,500 of this new build will be state houses/social housing and much of that will be catch-up, since the government will reportedly be demolishing 8,300 state homes over the same period. The other 20,600? About 80% will be sold privately, at the going market rate. More>>

Peter Dunne: Where To Now For Drug Policy?

Recently, the Police, with significant sponsorship from the Ministry of Health, hosted a major Australasian conference on alcohol and drug policy... In my own remarks to the conference I spoke about New Zealand’s National Drug Policy, and where it might head in the future. More>>

ALSO:

Tobacco Sticks: Charges Laid Against Philip Morris

The Ministry of Health has laid charges against tobacco company Philip Morris (New Zealand) Limited relating to the importation and selling of its tobacco sticks known as HEETS. More>>

ALSO:

 
 
 
 

Opening The Election Supporters

 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election