New Hillside Workshops Officially Opened

KiwiRail’s revitalised Hillside Workshops are providing the modern facilities that will help KiwiRail deliver safe and reliable freight services to its customers, KiwiRail Chief Executive Peter Reidy says.

The Dunedin workshops were officially opened today by Rail Minister Winston Peters and Regional Development Minister Shane Jones.

Mr Reidy says the workshops, which were first built in the 1870’s, have a long history in South Dunedin.

“Most locals have a family member or know someone who worked here and our current staff are part of a long and proud tradition.

“With significant Government investment, an aging 19th Century rail plant has been transformed into a modern 21st Century one, which is allowing us to better deliver for our freight customers and grow rail in the South Island and the rest of New Zealand.

“Not only is the new Hillside providing a modern environment for our mechanical teams, wagon assembly has created jobs, introduced new skills and is providing a wider experience base for our apprentices.

“More than 400 new rail wagons have been assembled at Hillside so far. These are being deployed into service around the country and are enhancing our efficiency and reliability for customers.

“Our Dunedin track teams are also based at Hillside for the first time, helping to grow the culture of the place. With those teams now moved in, there are around 100 people working at the site.”

Hillside is KiwiRail’s main heavy maintenance facility for the South Island. The rebuild includes:

• a multi-purpose 5,500 square metre workshop with 21 workstations, so that numerous locomotives and wagons and other rail vehicles can be worked on simultaneously
• workshop cranes and jacks able to lift 120 tonnes and a traverser, which allows locomotives and wagons to move in and out of the workshop, capable of carrying 130 tonnes
• one of the original buildings from the 1870’s has been saved, earthquake-strengthened and is being used for parts storage
• an improved rail yard layout and use of fully electric shunt engines to move rolling stock around the site, as part of KiwiRail’s net carbon-zero by 2050 strategy.
• facilities for KiwiRail’s Dunedin track teams and a new office space shared by mechanical and infrastructure teams.

The rebuild of Hillside was funded with almost $20 million from the Government’s Provincial Growth Fund in 2019, $85 million from Budget 2021 to upgrade the facilities and fund wagon assembly, and $23 million from a wider Government investment in replacing KiwiRail’s aging locomotives and wagons.

Wagon assembly began in March 2024 and up to 1,500 wagons will be assembled at Hillside. At the end of April 2025, 401 wagons had been assembled.

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