NZ Transport Intelligence Briefing

For Immediate Release:

OECD calls for privatisation of KiwiRail, ports

Leading transport and infrastructure authority, New Zealand
Transport Intelligence Briefing reports NZ's ports and shipping
sector along with KiwiRail the OECD has highlighted as two areas
of the country's transport sector in dire need of an overhaul.

The economic think tank says New Zealand's ports' efficiency
levels are lagging. It blames public ownership for many of the
problems, claiming local authority ownership is more likely to
lead to muddled objectives and conflicting priorities with
political objectives often taking precedent over maximising
returns of assets. To overcome this problem, it calls for
privatisation of port assets to impose market discipline.

It also sees as "critical" the modernisation and streamlining
of cargo documentation in New Zealand. It says the amount of red
tape incurred in moving good across wharves needs to be cut back
suggesting documentation could be halved reducing customs
clearance times and container turnaround times. It cites Denmark,
France and Finland as examples of countries where on-line cargo
manifests are used.

The previous Labour led Govt's decision to buy back the rail
operations from Toll Holdings also gets a roasting with the OECD
claiming it will not make a profit "in the foreseeable future."
with taxpayers now facing large bills to upgrade the country's
rail network and operations as a result. It suggests KiwiRail
should be privatised.

NZ Transport Intelligence Briefing spoke with Transport Minister
Steven Joyce who agrees with the OECD's assessment of
KiwiRail's prospects but says the Govt is determined to ensure
the rail operation can pay its way. Joyce is adamant "Freight
rail will be expected to make a return and passenger
subsidies will have to come into line with those given to other
commuter services such as bus lines."

ENDS

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