More investment in rail ‘fantastic news’ for North
Northland Inc CEO Murray Reade welcomed the government’s decision to make further investment in the region’s rail infrastructure, describing it as “fantastic news”.
The new investment of $109.7 million, which followed last year’s $94.8 million outlay for much-needed work on the line between Swanson and Whanga¯rei, would enable hicube container freight to be transported by rail through Northland for the first time.
“Good infrastructure is essential for economic development, and this announcement will have a significant impact in helping to keep the region travelling forward. It is fantastic news, and further proof that this is our time in Tai Tokerau Northland,” Mr Reade said.
“The benefits will be positive and far-reaching. It is, of course, great news for employment prospects in the region, and great news for communities, local businesses and contractors, who have the opportunity to play a part in this pivotal project.”
Almost $70 million of the new investment would be spent on lowering tracks in the 13 tunnels between Swanson and Whanga¯rei, reopening the currently mothballed rail line between Kauri and Otiria, and building a container terminal at Otiria.
KiwiRail Group chief executive Greg Miller said that would open a whole new market to rail.
“The tunnel work will have a huge impact on how freight is moved in and out of Northland,” he said. “Currently 18 million tonnes of cargo is moved in and out of the region every year. Of that, around 30,000 containers leave Northland by road. Most aren’t able to fit through the tunnels, but this investment will change that.”
Reopening the line to Otiria and building the container terminal there would catalyse the growth of the agriculture, horticulture and dairy industries, and support forestry in the Far North.
“Rail access has the ability to transform Northland, as a critical infrastructure that will unlock value in the region,” he said.
Whanga¯rei firm United Civil Construction had been awarded a contract to replace two bridges on the line near Whanga¯ rei.
“It’s great to see this level of infrastructure spending in the North, and particularly pleasing to see local businesses get involved in this project, with spending going back into our communities,” managing director Andrew Campbell said.
Meanwhile $40 million will be used by KiwiRail to purchase land along the designated rail route between Oakleigh and Northport/Marsden Point.
Improvement of transport infrastructure and services was identified as a key priority in the Tai Tokerau Northland Economic Action Plan, which is being facilitated and supported by Northland Inc.