Ageing trains put brake on KiwiRail result
State-owned KiwiRail has posted an operating surplus of $15 million after battling the challenges of earthquakes and ageing locomotives.
The half-year result to December reflected the effects of the closed Kaiko¯ ura rail line, damaged Wellington wharves, and old rolling stock.
Chairman Trevor Janes said the earthquakes and ‘‘a legacy of under-investment’’ meant ageing locomotives – up to 57 years old – required unexpected repairs to keep them running.
It had been a messy six months, particularly in the South Island, where weather disrupted the recovery, but they had still managed to reopen the earthquake-damaged Main North Line months ahead of schedule.
The board was working closely with the new Government on the urgent need for longer-term funding.
After a 2010 review, the Government pumped nearly $1 billion into KiwiRail, and last year the National-led Government announced another review.
Janes emphasised an ‘‘underlying operating surplus of $40m’’ – the amount KiwiRail would have posted without an estimated $25m revenue shortfall as a result of the earthquakes.
The operating surplus of $15m compared with $11m for the second half of 2016, and KiwiRail was on track to meet a full-year operating surplus of $30m to $50m.
Janes praised the efforts of KiwiRail’s employees, highlighting the improved punctuality of freight services and a 14 per cent reduction in injuries.
Interislander passenger revenue was also up 7 per cent.
‘‘The result also shows an 8 per cent increase in forestry revenue as New Zealand’s wall of wood comes on-stream. The bulk freight market is also showing positive signs,’’ Janes said.
KiwiRail estimated its services resulted in about 550,000 fewer heavy vehicle trips on roads, saving more than 32 million litres of fuel and almost 88,000 tonnes of CO2 emissions.