KiwiRail

KiwiRail Holdings Limited

Type	State-Owned Enterprise
Industry	Rail transport
Predecessor(s)	Toll NZ
Founded	July 1, 2008 (2008-07-01)
Headquarters	Wellington, New Zealand
Area served	New Zealand
Key people	John Spencer (Chairman) Brian Corban (Deputy Chair), Jim Quinn (CEO)
Services	Rail freight Long-distance passenger rail Urban passenger rail Inter-island ferries
Revenue	$667,378 million (FY June 2011)
Operating income	$100,330 million (FY June 2011)
Profit	$34,118 million (FY June 2011)
Parent	New Zealand Railways Corporation
Divisions	KiwiRail Passenger Tranz Scenic Tranz Metro KiwiRail Freight Hillside Engineering Interislander
Subsidiaries	KiwiRail Finance Ltd KiwiRail Ltd
Website	www.kiwirail.co.nz

KiwiRail Holdings Limited is the rail operations subsidiary of the New Zealand Railways Corporation, which trades as KiwiRail. Headquartered in Wellington, New Zealand, KiwiRail is the largest rail transport operator in New Zealand. Since July 2010 John Spencer has been the Chairman. Tranz Scenic, Tranz Metro, Interisland Line and Hillside Engineering are all subsidiaries of KiwiRail.

History

KiwiRail was created from a number of entities that date back to the 19th century. Prior to KiwiRail, rail transport in New Zealand has been under both public and private ownership. Government operators included Ministry of Public Works (1873–1880), New Zealand Railways Department (1880–1982), and the New Zealand Railways Corporation (1982–1990). New Zealand Rail Limited was created in 1991, privatised in 1993 and then renamed in 1995 to Tranz Rail. In 2004 Tranz Rail was taken over by Toll Holdings and renamed Toll Rail, until the government re-nationalised the company in 2008.

KiwiRail's South Island operations were disrupted by the 2010 Canterbury earthquake, but KiwiRail also participated in disaster relief efforts. Their operations were once again disrupted by the large 2011 aftershock, resulting in the cancellation of the TranzAlpine and Coastal Pacific passenger trains until at least March 1.

Turn-around plan

A new DL class locomotive (9020), purchased as part of KiwiRail's turnaround plan.

In the 2010 Budget KiwiRail received a capital injection of $250 million, and a further $500 million in principle to make it sustainable within a decade. Prime Minister John Key and Minister of Transport Steven Joyce said the injection was part of a $4.6 billion turnaround plan for KiwiRail "designed to see the rail freight become sustainable within a decade by getting it to a point where its costs are funded solely from customer revenue." The $4.6 billion would come from business itself.

KiwiRail describes its turnaround plan as reflecting "the need to create a viable and efficient rail industry capable of meeting its share of freight traffic projected to grow by at least 75 percent by 2031."

The plan aims to increase rail traffic volumes and revenue, increase productivity, modernise assets and separate out the commercial elements of the business from the non-commercial.

The plan includes five major points:

• "Step change" on the Auckland - Wellington - Christchurch "main trunk" route:
  • reduce transit time and improve reliability along the route - easing curves, removing speed restrictions, greater renewals investment in bridges and sleepers and passing loops. Currently, an express freight train journey between Auckland and Wellington takes thirteen and a half hours - similar to transit times in the late 1970s. A truck on the same route takes nine hours. KiwiRail aims to reduce transit times to 11 hours.
  • Improve exit and entry from Auckland and Wellington - improvements at terminals and on main lines to reduce transit times and conflicts with commuter services
  • Increase ferry capacity for rail freight - extend the length of Aratere and make Kaitaki rail capable
• Improve reliability and capacity:
  • Increased renewals on "other key routes", investment in replacement of sleepers, strengthening of bridges, refurbishment of track formation.
• Enabling investment:
  • Improved IT systems and processes, equipment and facilities at terminals
  • Forty new locomotives (see DL class) and 3,000 new wagons.
  • Improved track infrastructure
• The minor lines:
  • KiwiRail will review business on North Auckland Line, Stratford - Okahukura Line, Napier - Gisborne Line and North Wairarapa line.
  • Consultation with communities, customers and staff
  • Close or mothball by 2012 if anchor customers do not emerge
• Auckland and Wellington metro services
  • Clarify and assign accountability for costs associated with operating metro networks (as a result the Tranz Metro assets were transferred to the Greater Wellington Regional Council).

Two of KiwiRail's major customers, Mainfreight and Fonterra, are investing heavily in rail-related infrastructure. Mainfreight has allocated $60 million for investment in new railhead depots, while Fonterra has invested $130 million in a new rail hub complex in Hamilton and another in Mosgiel.

Proposed split

In 2011, KiwiRail proposed splitting its land and rail corridor assets from its rail operation assets.

Operations

KiwiRail Network

KiwiRail train on route to Halcombe from Feilding.

ONTRACK (Now KiwiRail Network) replacing sleepers on the Main South Line at Blueskin Bay, Otago. Closest machine is a dynamic track stabilizer, followed by a Regulator, then a Continuous Action Tamper.

KiwiRail operates services on 3,898 kilometres (2,422 mi) of track, of which around 500 kilometres (310 mi) is electrified. KiwiRail Network, formerly the New Zealand Railways Corporation ONTRACK division, maintains and upgrades the network. The ONTRACK trading name was introduced in 2004 after the government repurchased all of New Zealand's rail infrastructure from Toll NZ. It does not operate revenue rolling stock. Rick van Barneveld, former head of Transit New Zealand is its General Manager.

KiwiRail Network has three main areas of operation:

• It is responsible for the maintenance and operation of all of New Zealand's main-line rail infrastructure (see List of New Zealand railway lines). Via its subsidiary ONTRACK Infrastructure Ltd it provides rail operators with access to the rail network in return for the payment of track access charges. It is also responsible for the maintenance and development of the network.
• It is the rail network controller, providing services such as train control and signalling.
• It administers a substantial portfolio of land on behalf of the Crown, and derives income from leasing land and buildings on a commercial basis.

The network consists of:

• Route length: 3,898 km
• Tunnels: 149
• Bridges: 1,700
• Electrification: 95 km at 1.5 kV DC (Wellington area), 411 km at 25 kV 50 Hz AC (NIMT central section)

Yards and facilities

Some of the more prominent rail facilities used by KiwiRail include:

• Westfield, Auckland
• Southdown, Auckland
• Te Rapa, Fonterra bulk store yard, Hamilton
• Wellington
• Picton, Marlborough
• Addington, Christchurch (wagon repair)
• Middleton, Christchurch
• Taieri, Fonterra bulk store facility, Mosgiel

Freight

KiwiRail hauls many different commodities, most notably coal and milk, as well as intermodal freight.

One of KiwiRail's major operations is on the Midland line, where unit trains of up to 30 wagons transport coal from the West Coast to Lyttelton.

Passenger

Main articles: Tranz Scenic and Tranz Metro

Tranz Metro is the Wellington suburban operation of KiwiRail. In 2011 the assets of Tranz Metro (totaling $107,541 million) were transferred from KiwiRail to Greater Wellington Regional Council subsidiary Greater Wellington Rail Limited.

Auckland suburban trains are operated by Veolia Transport, a separate company.

Tranz Scenic is the long-distance passenger transport subsidiary of KiwiRail, operating the Capital Connection, Overlander, TranzAlpine and Coastal Pacific.

Rolling stock

DXB5143, the first locomotive to be painted in the KiwiRail livery, stands at Wellington Railway Station Platform 9 on 1 July 2008.

Main article: Locomotives of New Zealand

KiwiRail operates a variety of different locomotives, including those for shunting and specific trains used for coal and other transport modes.

• DA: 1 stored
• DAR: 1 stored
• DBR: 8 (2 leased to Auckland Transport)
• DC: 70 (20 leased to Auckland Transport)
• DFT: 30 (4 leased to Auckland Transport)
• DH: 6 (heavy shunting/transfer)
• DL: 20 in service, 20 on order, 20 on option
• DQ: 4 (2 withdrawn stored for Tasrail)
• DSC: 70 (shunting)
• DSG: 24 (heavy shunting/transfer)
• DSJ: 5 (shunting)
• DX: 46 (classified DXB and DXC)
• DXR: 2
• EO: 5 stored
• EF: 19 (2 being returned to service)
• TR: 21 (light shunting, positioned in smaller yards and leased to industrial customers)

Engineering

KiwiRail operates two major engineering facilities:

• Hutt Workshops, Wellington.
• Hillside Engineering, Dunedin.

Corporate governance

Executive Board
John Spencer	Chairman
Paula Rebstock	Deputy Chair
Dr Kevin Thompson	Director
Robert Field	Director
Rebecca Thomas	Director
Mark Tume	Director
John Leuchars	Director
Executive Team
Jim Quinn	Chief Executive
Rick van Barneveld	GM, Infrastructure and Engineering
Thomas Davis	GM, Interislander
Iain Hill	GM, Freight
Dr Deborah Hume	GM, Passenger
	GM, Safety and People
David Walsh	GM, Corporate and Finance

See also

• Rail transport in New Zealand
• Tranz Scenic
• Tranz Metro

External links

KiwiRail

• KiwiRail
• KiwiRail Freight
• KiwiRail Netowkr (formerly ONTRACK, New Zealand Railways Corporation)

KiwiRail subsidiaries

• Tranz Scenic
• Tranz Metro
• Hillside Engineering

Articles about KiwiRail

• KiwiRail value halves, 'BusinessDay, 3 June 2009.
• KiwiRail under price pressure, 'BusinessDay, 17 April 2009.
• MP at a loss after KiwiRail rejects plea, 'The Marlborough Express, 16 April 2009.
• Trains now called KiwiRail, 'Dominion Post, 30 June 2008.