New Zealand freight Network possbly to close

[WatcherZero]

http://www.globalrailnews.com/2015/07/13/new-zealands-railway-to-close/

New Zealand’s Treasury has published a report which floats the possibility of closing all but one section of the country’s rail freight network.

KiwiRail undertook a nine-month review of its business to try and identify opportunities to reduce costs associated with the operation of its freight network.

The subsequent report suggested that “as a result of the high fixed costs and interdependence of revenue between the different network segments, it is challenging to reduce costs as fast or to the same extent as a reduction in revenue.”

This gave KiwiRail two options:

• to retain most of the freight network and rationalise unprofitable services and some lines on the fringes of the network, or

• to close most or all of the freight network, with the option of retaining the upper north island section only (Auckland to Hamilton to Tauranga) as this part of the network carries the most freight volumes and covers most of its costs.

While KiwiRail naturally wants funding to continue, the Treasury believes there is a net economic cost of continuing to fund rail at the levels required. It is therefore requesting a more comprehensive study be undertaken so the implications of closure can be better understood and to enable the Government to make the most informed choice possible.

The comprehensive study should be public, and at arms’ length from the Government. The Treasury has therefore recommended a one-year funding

commitment for KiwiRail whilst this process is undertaken.

However, the Treasury continued that, in the event that closure or partial closure is not pursued, Treasury supports a three year funding commitment for KiwiRail on the basis that it needs certainty to manage its business.

So it sounds as though a decision has been delayed, but things don’t look rosy for a large part of New Zealand’s railway network.

Closing all but one section being the likely preferred option.

 

[LNW-GW Joint]

http://www.globalrailnews.com/2015/07/13/new-zealands-railway-to-close/
Closing all but one section being the likely preferred option.

That would spell the end of the trunk lines, outside the Auckland, Wellington and Christchurch local networks.
They can't survive on 1-2 passenger trains a day.

 

[subria]

The NZ government has actually set aside additional funding for a 2 year period, but notes it is not sustainable to do continue to do so. For the time being, the network will be maintained as it is. Commuter rail networks in Auckland and Wellington would remain.

http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=11478345

Do note however, that several lines have already been closed in recent years due to low traffic volumes and/or expensive maintenance was required and could not be funded

 

[TheEdge]

I camped next to the Greymouth-Christchurch line at Arthurs Pass a few years ago and it wasn't quiet that night.

Surely as suggested this will sign the end of the scenic routes on the South Island. Would this move make New Zealand one of the first (the first?) country to deliberately close its rail network?

 

[Greenback]

I feel that this has been on the cards for years. The demographics of New Zealand mean that rail has struggled there for quite a while and I can't see that changing any time soon.

As always, it's all about money. The commuter lines do deliver a benefit, then long distance routes don't. Like Ireland, coaches are more suited for long distance travel due to the distances and population of the areas traversed.

It's a real shame, but there we are. The realities of the world can't be ignored. Maybe one or two stretches will be preserved.

 

[WatcherZero]

I camped next to the Greymouth-Christchurch line at Arthurs Pass a few years ago and it wasn't quiet that night.

Surely as suggested this will sign the end of the scenic routes on the South Island. Would this move make New Zealand one of the first (the first?) country to deliberately close its rail network?

Couple of countries in central Africa have had 100% closures.

 

[najaB]

Would this move make New Zealand one of the first (the first?) country to deliberately close its rail network?

Not the first by any stretch, many small systems have been closed. For example small networks existed on several Caribbean islands within living memory (Barbados, Jamaica, Trinidad that I know of), they're all closed or abandoned now.

 

[RT4038]

Not the first by any stretch, many small systems have been closed. For example small networks existed on several Caribbean islands within living memory (Barbados, Jamaica, Trinidad that I know of), they're all closed or abandoned now.

Mauritius had a quite extensive system, all closed now.

 

[Jonny]

The only other option to keeping Kiwirail open as is, is a massive road improvement programme for the additional traffic. Somehow I reckon NZ$ 200 million (about GBP 100 million) is a good deal, at least in the short-medium term. When I was in NZ, I was suprised at the lack of passenger services; I would have thought that Auckland to Hamilton might have been a go-er for those who want to avoid the roads, but only one train per two days (!!!) in each direction.

 

[Greenback]

The only other option to keeping Kiwirail open as is, is a massive road improvement programme for the additional traffic. Somehow I reckon NZ$ 200 million (about GBP 100 million) is a good deal, at least in the short-medium term. When I was in NZ, I was suprised at the lack of passenger services; I would have thought that Auckland to Hamilton might have been a go-er for those who want to avoid the roads, but only one train per two days (!!!) in each direction.

That's a lot less than it was when I was down there! I do recall that the roads between Auckland and Hamilton were pretty good, and relatively quiet by UK standards.

 

[ian959]

Plus the road from Auckland to Hamilton is getting better with more of the Waikato Expressway being completed. Add to that lots of coaches at NZD20 plus a booking fee and it is no wonder that the railways cannot possibly compete. Like many other things, the NZ government is taking a pragmatic view and it does not make sense to keep on paying huge amounts to keep the current freight network, when road transport will do the job for you at no cost (assuming some recoupment of road maintenance costs via HGV licences). There are better things to spend the money on.

 

[subria]

Plus the road from Auckland to Hamilton is getting better with more of the Waikato Expressway being completed. Add to that lots of coaches at NZD20 plus a booking fee and it is no wonder that the railways cannot possibly compete. Like many other things, the NZ government is taking a pragmatic view and it does not make sense to keep on paying huge amounts to keep the current freight network, when road transport will do the job for you at no cost (assuming some recoupment of road maintenance costs via HGV licences). There are better things to spend the money on.

Road User Charges do not cover the cost of the road maintenance, this is still paid for by NZTA, which do not fund rail. That cost comes direct from Kiwirail's budget (essentially the state owned rail operator runs both the infrastructure and rolling stock).

They have tried a Auckland Hamilton commuter train in the past - and the numbers were not good enough. That said the service frequency was poor too. There's renewed calls for another attempt at the service, but this time terminating at the start of the Auckland suburban service at Papakura (the current southernmost limit of suburban electrification), where a transfer would be required onto another service into Auckland. It will require a subsidy to start, and no one is currently willing to pay for the subsidy.

Do keep in mind population wise, New Zealand is roughly 4.5 million people (with 1.5 million living in Auckland), with a total land area slightly larger than the UK, spread over two main islands.

 

[Clip]

Will be a shame if they do as that will mean a lot of the rail tours will have nowhere to go!

A good comment also in the herald on the subject

http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=11480088

 

[yorksrob]

A very sad situation - and the newspaper article makes interesting reading.

Is there nothing that could be done to increase passenger usage of these routes ? It strikes me that rail cannot live by freight alone.

 

[Greenback]

Road User Charges do not cover the cost of the road maintenance, this is still paid for by NZTA, which do not fund rail. That cost comes direct from Kiwirail's budget (essentially the state owned rail operator runs both the infrastructure and rolling stock).

At the moment the state is paying for both road and rail. I can see the argument for taking rail out of the equation, it would be impossible to do away with roads.

Do keep in mind population wise, New Zealand is roughly 4.5 million people (with 1.5 million living in Auckland), with a total land area slightly larger than the UK, spread over two main islands.

Population density is much lower than in the UK and Europe. That's why I compared the passenger flows are more suited to coach travel, outside the main conurbations at least, as it is with Ireland, which has a pretty low population density outside of Dublin. At least by European standards.

It's a sad thing to say, especially for a rail enthusiast, but the future of the network isn't looking too good at all.

 

[subria]

At the moment the state is paying for both road and rail. I can see the argument for taking rail out of the equation, it would be impossible to do away with roads.

Population density is much lower than in the UK and Europe. That's why I compared the passenger flows are more suited to coach travel, outside the main conurbations at least, as it is with Ireland, which has a pretty low population density outside of Dublin. At least by European standards.

It's a sad thing to say, especially for a rail enthusiast, but the future of the network isn't looking too good at all.

It doesn't help that the network itself is inefficient, and infrastructure constrained. It's a narrow gauge network (with tight curves and gradients), so rolling stock has to be custom ordered (the loading gauge is similar to UK), so stock can not be bought off the shelf.

In the North Island, the central section is electrified at 25kV 50 hz, but there are gaps between Hamilton and Auckland. Auckland has just been electrified at 25kV but I understand at different hz. Wellington's suburban network is at 1,500 DC, and stops before the start of 25kV in Palmerston North. In practice, they have found it's more efficient to haul using diesel from one end to the other, and not swap locomotives at Palmerston North and Hamilton. Thus the Brush built electric locomotives have not really seen the heavy use envisaged for them since they were acquired nearly 30 years ago. These are also out of gauge for the main line to Wellington, so for heavy maintenance they need to be diesel hauled down a secondary line to the main rail workshops in the Hutt Valley near Wellington.

You can drive Auckland to Wellington in roughly 8 hours, a coach will be about 9 hours. The equivalent train journey (the most recent revision removed half the station stops) will do it in 11. And of course, you can fly in 45 mins.

The government has recently bought 48 new diesel locomotives from China over the last 5 years, however these have been based in the North Island and there were rumours recently about removing the wires from Palmerston North and Hamilton. Older stock (refurbished in the 90s/early 2000s but dating back to the 70s) have been moved south.

 

[Jonny]

Plus, apart from on the Auckland/Hamilton corridor, the roads are almost all single carriageway and so where would the freight go without messing everything else up?

That is what the NZ government is going to have to deal with. Even building more passing lanes on the major state highways is going to be expensive.

 

[STEVIEBOY1]

It would be a shame if New Zealand did close the remainder of their passenger rail services and the freight services too. It's a pity they have stopped in the West Indies and Indian Ocean islands as mentioned above.

I did travel by rail in New Zealand on the "Southerner" a few years ago before it ceased running, it was diesel hauled with just two carriages then and not really that full. It went from Christ Church to Invergargill, via Dunedin which was my destination. (I did the Taieri Gorge railway from there.) I also have traveled on the Tranz Alpine which was about 8 or 10 carriages and very busy. These were all very scenic, there was also a route commentary given by the train crew on ALL of these trains which was interesting.

I don't know how busy or not the other two main line services are?, the one that goes from Christchurch to Picton and the connecting ferry to the North Island and the other in the North, the main line from Wellington to Auckland, I think there is or was, a day time and a sleeper train on that route. I think there is a reasonable suburban rail service around the Wellington area, not sure about around Auckland though. There used to be passenger services going North from Auckland, I have seen the tracks, there was also a service to Rotorua which included food in the ticket price.

As mentioned above, it's all very well moving the goods traffic to the roads, but only if the roads can accommodate the extra traffic, also it would be better for the environment to get traffic off the roads and onto the railway network. New Zealand are very positive infact toward "Green" issues.

Time will tell no doubt.

 

[DasLunatic]

Would this move make New Zealand one of the first (the first?) country to deliberately close its rail network?

No - that would be Jamaica, in the '90s I think.

 

[SpacePhoenix]

How many artics would be equal to one typical loaded freight train in New Zealand?

 

[LNW-GW Joint]

I also see the Interislander train ferry (Arahura) is being withdrawn this month.
It's been in service for 30 years between Wellington and Picton and was an integral part of the NZ railway operation.
It is being replaced by Stena Alegra ("Kaiarahi"), a newer ship which has had multiple owners (including a spell on Dover-Boulogne).
I don't know if it has/will have train ferry (ie rail wagon) capability.
https://en.wikipedia.org/wiki/DEV_Arahura

 

[subria]

It would be a shame if New Zealand did close the remainder of their passenger rail services and the freight services too. It's a pity they have stopped in the West Indies and Indian Ocean islands as mentioned above.

I did travel by rail in New Zealand on the "Southerner" a few years ago before it ceased running, it was diesel hauled with just two carriages then and not really that full. It went from Christ Church to Invergargill, via Dunedin which was my destination. (I did the Taieri Gorge railway from there.) I also have traveled on the Tranz Alpine which was about 8 or 10 carriages and very busy. These were all very scenic, there was also a route commentary given by the train crew on ALL of these trains which was interesting.

I don't know how busy or not the other two main line services are?, the one that goes from Christchurch to Picton and the connecting ferry to the North Island and the other in the North, the main line from Wellington to Auckland, I think there is or was, a day time and a sleeper train on that route. I think there is a reasonable suburban rail service around the Wellington area, not sure about around Auckland though. There used to be passenger services going North from Auckland, I have seen the tracks, there was also a service to Rotorua which included food in the ticket price.

As mentioned above, it's all very well moving the goods traffic to the roads, but only if the roads can accommodate the extra traffic, also it would be better for the environment to get traffic off the roads and onto the railway network. New Zealand are very positive infact toward "Green" issues.

Time will tell no doubt.

The Tranz Alpine continues to do well, but demand slumped after the earthquake in Christchurch and some of the new carriages built for it and the Coastal Pacific were sent north for the Northern Explorer. The Tranz Alpine runs on the midland line, which was an important route for coal movement, but again demand for this went down after a mine accident in Greymouth.

There is only a daily Auckland-Wellington (both directions) service now, the overnight service has ceased, and even the current Northern Explorer will only run 3-4 days of the week over the winter period, and more often during the summer. Demand is reasonable for the service frequency - but all long distance passenger trains are run primarily as tourism services as most New Zealanders will fly or drive themselves.

The Rotorua service is also gone, but the remainder of the route is an important freight route, there is a large port at Tauranga, and the branches service the forestry industry.

The route north of Auckland are restricted to freight. Auckland's suburban rail patronage is on the up after many years of decline, thanks to more trains, electrification and new routes being opened. The Auckland council is pushing for a tunnelled rail link underneath the Auckland CBD with 2 new stations to improve the service frequency and turn the current Auckland terminus station, Britomart, into a through station. Limited construction has begin, but is supposed to start properly in 2020.

LNW-GW Joint - no rail capability on the replacement ferry. There was a small public outcry about the retirement of the Arahura, which was considered to be more reliable than than the much newer Aratere, which is also rail capable. The Aratere has suffered an ongoing series of mishaps since entering service 15 years, the most recent of which was breaking a propeller shaft in 2013.

 

[Jonny]

In the North Island, the central section is electrified at 25kV 50 hz, but there are gaps between Hamilton and Auckland. Auckland has just been electrified at 25kV but I understand at different hz. Wellington's suburban network is at 1,500 DC, and stops before the start of 25kV in Palmerston North. In practice, they have found it's more efficient to haul using diesel from one end to the other, and not swap locomotives at Palmerston North and Hamilton. Thus the Brush built electric locomotives have not really seen the heavy use envisaged for them since they were acquired nearly 30 years ago. These are also out of gauge for the main line to Wellington, so for heavy maintenance they need to be diesel hauled down a secondary line to the main rail workshops in the Hutt Valley near Wellington.

Well, I'm not 100% sure, but since the NZ mains is 50 Hz, presumably the grid will also be at this frequency and it would follow that the Auckland OLE would be as well. The problem is the gap between Auckland and the main electric trunk.

 

[Groningen]

In a dutch railmagazine "Rail Magazine" there are 8 pages dedicated to New Zealand. And that is only part 1.

http://www.railmagazine.nl/default.aspx

 

[subria]

Well, I'm not 100% sure, but since the NZ mains is 50 Hz, presumably the grid will also be at this frequency and it would follow that the Auckland OLE would be as well. The problem is the gap between Auckland and the main electric trunk.

Thinking about you're right, it actually might have to with the amperage on the central section instead - the current locomotives cannot currently work on the Auckland sections. You could run the new Auckland EMUs on the central section though.

For those that are interested, Brush used the basic design of these locomotives for the Channel tunnel Shuttle locomotives - both triple Bo designs. Given their age, they are due for major overhaul, which theoretically could also include an upgrade to work on the Auckland network. However, they could go the other way and simply purchase more diesel locomotives. There were some reports floating about with the cost of electrifying the gap set at $NZD 800-900 million. Given the NZD has recently dropped in value against the US dollar (from 88c to 65c), this will mean the cost of imported diesel will be going up as well, so this could also sway the longterm thinking on the overhauls.

 

[Ianigsy]

The Tranz Alpine continues to do well, but demand slumped after the earthquake in Christchurch and some of the new carriages built for it and the Coastal Pacific were sent north for the Northern Explorer. The Tranz Alpine runs on the midland line, which was an important route for coal movement, but again demand for this went down after a mine accident in Greymouth..

Sad to hear- I did the Tranz Alpine in 2004 at a time when the Greymouth route was very much in use for coal trains (at the time New Zealand was actually advertising in the Yorkshire Post for experienced coal miners as they were only just starting to use their coal reserves systematically). A pleasant journey, particularly when you have a Speights or two from the bar and then spend half an hour in the open-sided observation carriage!

 

[najaB]

No - that would be Jamaica, in the '90s I think.

The Barbados railway shut in the late 1930's and the Trinidad one in the 60's.