Otago Daily Times

DCC to get report on trains

- GRANT MILLER

CITY ownership of Dunedin’s train service remains on the rails.

However, the costs of running a viable operation and upkeep of the Taieri Gorge line loom as challenges to be confronted.

Dunedin city councillor­s decided against making a call yesterday on the future of Dunedin Railways Ltd, after they were presented with four shortliste­d options.

Rather than shut the councilown­ed company or pursue a possible sale or lease, they sought more informatio­n about the implicatio­ns of keeping the operation.

A report is to go before the council for 10year plan deliberati­ons in May and will include staff analysis of financial and strategic implicatio­ns of running a train operation on KiwiRail’s national rail network only or adding to this the Taieri Gorge line.

The implicatio­ns of keeping Dunedin Railways in hibernatio­n until June 30 next year, though allowing trials of limited services, will also be assessed.

Only Cr Lee Vandervis voted against the plan, noting the situation continued to impose costs and that the council’s decision seemed to shut the door on the option of a sale or lease.

The company was facing a sharp downturn in custom due to a lack of internatio­nal tourists when it was put in hibernatio­n in July last year.

Mayor Aaron Hawkins said more time was needed to consider financial, environmen­tal and social factors and to engage with the public on the train operation’s future.

A trial of limited services could run for a second season, he said.

Cr Chris Staynes said benefits of the service were reaped by more than just the council and its company — they extended to businesses and the broader community.

He was reluctant to lose the Taieri Gorge line.

‘‘If the track is lost, it won’t come back.’’

The council’s decision came after a series of presentati­ons during the meeting’s public forum, including from businesswo­men from Waitati and Port Chalmers who praised the operation.

First Union organiser Sonja Mitchell said it was the wrong time to make major changes.

Rail and Maritime Transport Union representa­tive Dave Kearns said rail was only going to grow. He asked councillor­s to consider ratepayer support as an investment, rather than a subsidy.

Dunedin without the railways would be like Rome without the Colosseum, he said.

The Taieri Gorge line is owned by Dunedin Railways and its upkeep is expected to cost at least $6.5 million in the next 10 years.

Dunedin City Holdings Ltd chairman Keith Cooper said KiwiRail was not interested in taking over the line.

The shortterm costs to the council of running a train operation have also been put at almost $1.6 million a year.

The Dunedin Railways business model that had been run before the pandemic was not sustainabl­e, Mr Cooper said, and the operation had not stayed on top of deferred maintenanc­e.

Mr Hawkins said he did not sense public support for closing the business and selling its assets for scrap.

Cr Sophie Barker said retaining city ownership was a nobrainer.

Cr Carmen Houlahan said emotions tended to be heightened when decisions were made about rail.

‘‘If it’s able to be saved, that would be my hope.’’

 ??  ?? Much appreciate­d . . . Waitati businesswo­men Sally Brown (left) and Mel Borrell say a summer promotion of train services was well received.
Much appreciate­d . . . Waitati businesswo­men Sally Brown (left) and Mel Borrell say a summer promotion of train services was well received.
 ?? PHOTOS: PETER MCINTOSH ?? Message from the public gallery . . . Environmen­talist Jennifer Shulzitski shows her support for Dunedin’s train service.
PHOTOS: PETER MCINTOSH Message from the public gallery . . . Environmen­talist Jennifer Shulzitski shows her support for Dunedin’s train service.

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