Budget 2015: KiwiRail Should be Split Into Two

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Tracks to NZTA, KiwiRail a partial listed stand alone freight State Owned Enterprise

While I have been writing posts on rail and contemplating Budget 2015 in regards to transport (i.e not a lot apart from reaffirmation in accelerating the Southern Motorway upgrade (starts October)) I was pondering if there was a better way to handle KiwiRail.

KiwiRail is admittedly a money black hole thanks to neglect to our rail system by both sides since the late 80’s (made worse in 93). However, KiwiRail is not a lost cause as rail is the most efficient and economical form of moving people and freight over longer distances on land. But I wonder if improving our rail could be handled differently and give New Zealand better results.

What I am thinking is splitting KiwiRail into two:

  1. Tracks and associated infrastructure get flipped to NZTA who look after the State Highway network. This way a single agency is: planning, operation, maintaining and investing in both land transport modes under a single umbrella. It also means rail comes under the National Land Transport Fund envelope when it is listed alongside road projects. Given that the NLTF is meant to priorities the best valued investments at the top it would be most likely not uncommon for rail to take three of the top five NLTF spots.
  2. Freight operations including rolling stock and rolling stock maintenance facilities spun off into a stand alone State Owned Enterprise. While being an SOE though I would have 49% of it listed on the NZX to allow fresh capital and NZX oversight to this division.

With the freight side spun off though I would also allow others to run their own rolling stock (while paying access fees to NZTA) on the tracks if they are inclined to do so. Port of Tauranga might be such a contender with its growing Metro Port services. That said KiwiRail freight operations could also see another source of revenue by the private rail freight companies tendering their rolling stock maintenance to KiwiRail as well.

So what do you think? Something Bill English should actively investigate? Would it help our rail system as well as the Government books. Would it help our Economy most of all?

Let me know your thoughts in the comments below.

Thoughts on budget 2015

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“I don’t know what we’re supposed to call this mode of government,”

The term is Social Conservative which is where Labour and New Zealand First usually sit.

We had a Social Conservative Budget passed and one indeed the Greens should have claimed as a victory even if a minor one (on lifting core benefits and getting Government to just even talk poverty).

Labour had a shocker over the last 24 hours and only got their collective s$%& together a few hours ago by announcing the resumption of the Kickstart for KiwiSaver which National have dropped.

All in all with the Budget?
Yep an English Social Conservative Budget demonstrating the Social Conservative Faction well in control on contrast to the Collins/Slater/DPF faction.

English has always earned my admiration and respect whether I like his policies or not. Given that I have had a few cups of teas and the odd hot breakfast over time with English.

Maybe next year Bill we can get the Auckland Transit Link (CRL) going and split KiwiRail into two. The freight side handled by KR and the tracks passed over to NZTA.

Road Works in Wynyard Quarter to Cause Closures

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For your information

From Auckland Transport

Road closures – Wynyard Quarter   

Street and utility upgrades in Wynyard Quarter will require road closures on sections of Halsey and Gaunt Streets from late May 2015 to mid-2016, and Pakenham and Madden Streets from mid-2015 to mid-2017.

These major works are part of the transformation of Wynyard Quarter to create a vibrant and accessible waterfront, as well as to accommodate future growth in the area.

They are being undertaken by Auckland Transport, Auckland Council, Waterfront Auckland and Watercare and involve wastewater and stormwater upgrades and street refurbishments.

Due to the complexity and scale of the works road closures are necessary on Halsey and Gaunt Streets, and staged road closures on Pakenham and Madden Streets.

Motorists are advised to expect delays when travelling through and around Wynyard Quarter and to consider walking, cycling or public transport as an alternative.

For more information please go to https://at.govt.nz/projects-roadworks/wynyard-quarter/#works

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