Heriot-Edievale.Com (Trading as Heriot-Edievale Limited)

Public Transport, Rail and Freight Advisory / Consultancy

The Transport / Rail Blog

Blog

Napier - Gisborne Line Is All But Officially Closed For Good (New Speak - "Mothballed")

Posted on October 1, 2012 at 8:32 PM
Napier - Gisborne Line Is All But Officially Closed For Good (New Speak - "Mothballed")
 
In a move that is not entirely surprising, but never the less dissapointing for the region, and symbolic of the nations lack of vision - The Napier - Gisborne line is all but officially permanently closed.
 
More comment to follow but the press releases from KiwiRail, NZ Government, the Green and Labour Parties are as below:
 
 
KiwiRail to mothball Napier-Gisborne line
 
2 October 2012

The Napier to Gisborne line is to be mothballed due to the prohibitive costs to both repair storm damage caused earlier this year and maintain the rail line over coming years.

KiwiRail chief executive Jim Quinn says KiwiRail staff had taken a long and hard look at future business prospects for the rail freight line and had determined it unlikely to generate sufficient revenue in the foreseeable future to cover costs.
 
Freight rail services to Gisborne have been suspended since March after serious storm damage caused several large washouts north of Wairoa.  Reinstatement of the line was expected to cost around $4 million and would take several months to complete.However ongoing costs to maintain the rail track and structures along it, such as bridges, were likely to rise from the current level of around $2 million a year, to $6 million a year to ensure the line could continue to support freight services.  For example several of the bridges along the route are nearing the end of their expected life and would need replacing.The $6 million would be a direct subsidy and using 2011/12 operations as a guide this would equate to a subsidy of $37,000 per trip.In determining its decision,
 
KiwiRail spent considerable time canvassing local business about current and future business opportunities and taken a 10 year future look at the line. Mr Quinn says the review indicated revenue on the line could grow from the current level of around $1 million to approximately $2.5 million per annum in future years.
 
“However, the costs of both running the trains and maintaining the infrastructure would mean an annual cash deficit of between $5 million and $8 million a year.
 
”For the 2012 financial year to March, the line carried 44,345 tonnes and generated revenue of $1.04 million.  However there was a cash deficit of $2.4 million after operating costs and annual line maintenance costs.
 
Mr Quinn acknowledged there had been an upturn in volumes carried on the line in the months prior to March, but it still fell well short of making the line financially sustainable.
 
“We acknowledge the support given by the local businesses and the wider community for retaining rail to the region.  However, we need to ensure we invest in areas of the network where we are able to grow business to a level it is commercially sustainable, and sometimes that means making hard decisions,” Mr Quinn says.
 
“Since 2010 the government has invested $750 million in the rail freight business as part of our strategy to get the business operating commercially and on a more sustainable financial footing.
 
”Mr Quinn says it is as yet unclear what impact the decision would have on staff numbers, although it was likely there would be a small number of job losses.“We will be working through that process with local staff and the union over the coming weeks,” Mr Quinn says.
 
Mr Quinn says KiwiRail recognised the strategic importance of maintaining the option to reinstate the line, should a major revenue generating opportunity present itself in the future.
 
“Mothballing the line, rather than closing it preserves that option,” he says. It allows us to look at opportunities as they evolve.
 
”KiwiRail and the Government would now work with the region to consider the strategic value the line has to the wider New Zealand economy, including alternative uses for the corridor and how best to realise that value for the good of the New Zealand economy.
 
KiwiRail also assessed the option of operating rail services between Wairoa and Napier, but this was also discounted as the majority of freight movements were to, or from, Gisborne.  The traffic expected from Wairoa was not enough on its own to sustain services, Mr Quinn says.
 
KiwiRail worked closely with NZTA to establish impacts on wider transport networks and their advice concludes that ceasing rail services would have a minimal impact on the overall level of service on the highway.
 
KiwiRail was also working with the Gisborne City Vintage Railway to explore possible options for continued heritage operations in the region.Additional information for media: The full report which formed the basis for the decision can be found here.
 
ENDS
 
SH2 upgrade between Napier and GisborneTuesday, 2 October 2012, 12:05 pm
Press Release: New Zealand Government
 
2 October 2012
SH2 upgrade between Napier and Gisborne
 
Transport Minister Gerry Brownlee has announced Cabinet approval for $4 million of funding for the design and construction of passing opportunities on State Highway 2 between Napier and Gisborne.
 
“I acknowledge concerns about getting freight in and out of the Gisborne region in the most cost effective way since the Napier to Gisborne rail line closed north of Wairoa in March following storm damage, and the subsequent decision by KiwiRail to mothball the line.
 
“That’s why the Government is investing up to $4 million on top of what’s already available through the National Land Transport Programme for the road,” Mr Brownlee says.
 
The NZ Transport Agency will complete the design of a series of passing opportunities in the next few months. The areas of State Highway 2 under consideration for passing opportunities are Kopua Hill and several locations between Lake Tutira and Te Ngaru. The total cost of the design and construction is estimated at between $3 and $4 million.
 
The National Land Transport Programme has also allocated $9 to $10 million over the next three years to improve the condition of the road and maintain State Highway 2 to modern highway standards. This investment will be targeted at the sections where most improvement is needed.
 
“I also recognise the added importance the State highway will now play as the key link between Napier and Gisborne and therefore priority must be given to ensuring the route continues to deliver the required support for current and future use,” Mr Brownlee says.
 
Additional road traffic generated by mothballing the rail line is not expected to have a significant impact on the State highway. It is estimated that the 50,000 tonnes of freight carried annually on the rail line before March has resulted in approximately five extra trucks using the road each day.
 
As well as the passing opportunities, the NZ Transport Agency will increase its monitoring of the impact of heavy traffic on the condition of the road.
 
For more information on the State Highway 2 upgrades visit www.nzta.govt.nz
 
Ends
 
Govt’s backwards transport policy behind rail line closure
 
Tuesday, 2 October 2012, 12:48 pm
Press Release: Green Party
 
2 October 2012
 
Govt’s backwards transport policy behind rail line closure
 
KiwiRail’s decision to close the Gisborne-Napier rail line is a huge disappointment for the Gisborne community and a result of the National Government’s wrong-headed transport policy, Green Party transport spokesperson Julie Anne Genter said today.
 
“While billions of taxpayer dollars are being poured into uneconomic motorway projects, energy-efficient rail is being strangled for want of a few million dollars,” said Ms Genter.
 
“Rail lines are expected to generate maximum profits, but the wider economic benefits they create are ignored. The opposite seems to be the case for the National Government’s uneconomic motorways.
 
“KiwiRail says that moving the Gisborne-Napier rail line takes 1,700 truck trips per year of the road. Yet the cost in road damage of moving that freight by trucks has not been factored into its decision to close the line. In fact, the National Government is now planning to spend $4 million to on the Gisborne-Napier highway, the same amount needed to repair the rail line.
 
"It's obvious that the Key Government wants to get KiwiRail into a position to privatise. Why else would they have such a narrow focus on profit margins?
 
"The National Government is wasting billions of dollars on a few big motorway projects that would never be able to pay their own way as standalone commercial projects. But it won't invest a few million dollars in getting our rail network back up to scratch and taking more trucks off the road.
 
“This is a huge blow to the Gisborne economy and to the local community, which has fought so hard to save its rail line. It is a disgrace that their pleas have been ignored for want of $4 million in repairs.
 
"New Zealand businesses benefit from rail. Exporters benefit from rail. Road users benefit from rail.
 
"The country could also be using the revitalisation of rail to create valuable green jobs.
 
"Most countries are now investing substantially in their rail networks because of the obvious economic benefits, especially as oil prices are expected to double in the next decade.
 
"Last year the Green Party prepared an alternative transport budget to the Government's, one that will save $3.5 billion overall but still include an additional $1 billion investment into KiwiRail.
 
"Not only can we afford to invest in rail, we can't afford not to.
 
"We need smart, green transport investment now so all New Zealanders can benefit from a resilient transport network in the future."
 
Ends
 
 
More government cash for roads as rail line scrappedTuesday, 2 October 2012, 2:04 pm
Press Release: New Zealand Labour Party
 
Phil TWYFORD
Transport Spokesperson

Moana MACKEY
List MP based in Gisborne
2 October 2012 MEDIA STATEMENT

More government cash for roads as rail line scrapped
 
The decision to close the Gisborne-Napier rail line is a direct result of the Government’s policy of pouring billions of dollars into motorways while setting KiwiRail up to fail, says Labour.
 
“The Government has got its transport priorities wrong. This is just the latest casualty” said Labour’s Transport spokesperson Phil Twyford.
 
“KiwiRail might be fronting the announcement but it is a political decision made at Cabinet level and has, without doubt been signed off by the Minister of Transport.
 
“It is the logical consequence of the unrealistic financial targets National has imposed on KiwiRail, expecting it to find $3.75 billion from its own balance sheet for capital expenditure.
 
“That policy has forced KiwiRail to sack 158 workers and defer network maintenance for three years, and now it has forced the closure of the Gisborne to Napier line.
 
“National’s obsession with motorways at the expense of other transport modes has left Gisborne stripped of an economic lifeline. It is ironic the Transport Minister has announced $4 million to be spent on the Gisborne-Napier highway, which is the same amount it would have cost the Government to repair the line after part of it was damaged by a slip.
 
“If Gerry Brownlee thinks he can sweeten the pill by spending $4 million on building a few passing lanes on a road, then he is clearly not in touch with local opinion,” Phil Twyford said.
 
Gisborne-based Labour List MP Moana Mackey described today’s announcement as a betrayal but said it was hardly surprising given the Government’s treatment of the thousands of people who had fought to save the line.
 
“Locals have pleaded to keep this section of line open. They have protested, they have petitioned the government. Yet each time they have been told there isn’t enough money in the coffers to fix it.
 
“No one should be fooled by KiwiRail talking about ‘mothballing’ the line. Any rail expert will tell you that once you mothball a line it is prohibitively expensive to open it down the track. Once it is closed, it is closed for good,” said Moana Mackey.
 
 
ENDS
 

Categories: None

Post a Comment

Oops!

Oops, you forgot something.

Oops!

The words you entered did not match the given text. Please try again.

246 Comments

Reply yeezy supply
3:42 PM on January 6, 2022 
I am also writing to let you know what a superb encounter our daughter undergone using the blog. She figured out several issues, which include what it is like to have an ideal coaching spirit to have other folks with no trouble thoroughly grasp several complex matters. You actually exceeded people's desires. I appreciate you for displaying these informative, trustworthy, explanatory and cool tips about this topic to Evelyn.
yeezy supply http://www.supplyyeezys.com
Reply nike lebron 16
3:43 PM on January 6, 2022 
I needed to put you the little bit of note to finally say thanks a lot over again for your marvelous advice you have discussed at this time. This is simply particularly open-handed of you to make extensively what exactly numerous people could have offered for sale for an ebook in order to make some profit for their own end, primarily given that you might have done it in the event you wanted. The principles in addition acted to provide a great way to comprehend other people online have similar eagerness just like mine to find out a great deal more with regards to this matter. Certainly there are some more enjoyable occasions up front for folks who start reading your site.
nike lebron 16 http://www.lebron16.us
Reply supreme clothing
3:45 PM on January 6, 2022 
I wish to show my thanks to the writer for bailing me out of such a situation. As a result of surfing around throughout the world-wide-web and finding suggestions which were not pleasant, I assumed my entire life was done. Existing devoid of the approaches to the issues you've solved by means of your good review is a critical case, and those which could have in a negative way affected my career if I had not discovered the website. Your good know-how and kindness in dealing with all the details was excellent. I am not sure what I would've done if I had not come across such a step like this. I am able to at this moment relish my future. Thank you so much for your expert and sensible help. I won't be reluctant to propose your web sites to anybody who will need guide about this matter.
supreme clothing http://www.supremeclothing.us.org
Reply off white
1:21 AM on January 9, 2022 
I want to show thanks to the writer just for rescuing me from this particular condition. As a result of surfing around throughout the online world and finding things which were not beneficial, I thought my life was done. Living without the presence of strategies to the issues you've solved all through this article is a critical case, and ones that might have in a wrong way damaged my entire career if I hadn't discovered the blog. Your actual ability and kindness in taking care of all the things was valuable. I'm not sure what I would've done if I hadn't come upon such a step like this. I am able to at this point relish my future. Thanks for your time so much for the expert and effective help. I won't think twice to recommend the blog to anybody who needs and wants assistance on this issue.
off white http://www.offwhites.us.com
Reply golden goose outlet
1:21 AM on January 9, 2022 
Thank you so much for providing individuals with an extraordinarily wonderful possiblity to read from this site. It's always very lovely and also jam-packed with a good time for me and my office colleagues to search the blog really thrice in one week to read through the latest stuff you have got. And indeed, I'm so usually astounded for the splendid tricks you give. Some 4 tips on this page are basically the finest we have ever had.
golden goose outlet http://www.goldengoosesonline.com
Reply giannis antetokounmpo shoes
1:23 AM on January 9, 2022 
I definitely wanted to type a brief word so as to thank you for some of the awesome recommendations you are giving at this site. My time consuming internet research has at the end of the day been paid with professional details to exchange with my guests. I 'd state that that most of us website visitors actually are very endowed to exist in a perfect community with so many marvellous individuals with very helpful opinions. I feel very blessed to have seen your entire site and look forward to really more awesome times reading here. Thank you once more for everything.
giannis antetokounmpo shoes http://www.giannisantetokounmposhoes.us
Reply jordan shoes
1:24 AM on January 9, 2022 
I want to show my love for your kindness in support of those people who really need help on this important question. Your real commitment to passing the solution across has been extremely invaluable and has encouraged associates like me to attain their pursuits. Your amazing useful tips and hints denotes so much to me and somewhat more to my fellow workers. Thanks a ton; from all of us.
jordan shoes http://www.michaeljordanshoes.us.com
Reply nike dunks
1:24 AM on January 9, 2022 
I would like to show thanks to you for rescuing me from such a difficulty. Just after surfing around through the the net and seeing proposals which were not powerful, I figured my entire life was done. Living devoid of the strategies to the problems you've sorted out by means of the short article is a critical case, as well as the ones that could have negatively affected my career if I hadn't noticed your web site. Your mastery and kindness in maneuvering the whole thing was very useful. I am not sure what I would have done if I hadn't come across such a solution like this. It's possible to at this time look forward to my future. Thank you very much for this high quality and effective guide. I will not hesitate to suggest your web blog to any individual who should have counselling about this subject.
nike dunks http://www.sbdunk.us
Reply yeezy boost 500
8:16 PM on January 9, 2022 
I actually wanted to write down a quick note in order to thank you for the magnificent pointers you are placing on this site. My particularly long internet research has finally been recognized with reliable points to exchange with my neighbours. I 'd claim that many of us website visitors actually are extremely blessed to be in a superb network with very many wonderful individuals with insightful suggestions. I feel truly privileged to have discovered your entire web page and look forward to so many more fabulous minutes reading here. Thanks again for everything.
yeezy boost 500 http://www.yeezy-500.us.com
Reply curry shoes
8:16 PM on January 9, 2022 
I wish to show thanks to this writer just for rescuing me from this type of circumstance. After searching through the the net and seeing concepts that were not beneficial, I figured my entire life was over. Living devoid of the approaches to the difficulties you've solved through your good blog post is a critical case, as well as the kind which could have badly damaged my entire career if I hadn't encountered your web site. Your good knowledge and kindness in dealing with every part was excellent. I'm not sure what I would have done if I had not come upon such a subject like this. I can also now look ahead to my future. Thanks for your time very much for this specialized and results-oriented guide. I won't be reluctant to endorse your site to any individual who wants and needs counselling on this subject.
curry shoes http://www.curry8.us
Reply supreme
8:17 PM on January 9, 2022 
I'm just writing to make you understand of the perfect discovery my girl undergone browsing yuor web blog. She figured out several pieces, which included how it is like to possess an ideal helping heart to let men and women with no trouble gain knowledge of specific hard to do matters. You truly did more than her desires. I appreciate you for providing such good, dependable, edifying and as well as easy thoughts on the topic to Sandra.
supreme http://www.supremeclothingsstore.com
Reply nike off white
8:18 PM on January 9, 2022 
I truly wanted to develop a simple remark in order to say thanks to you for these fantastic points you are placing at this site. My incredibly long internet search has at the end been rewarded with good information to exchange with my colleagues. I would say that most of us visitors actually are rather fortunate to live in a really good site with so many outstanding individuals with valuable ideas. I feel truly blessed to have encountered your entire weblog and look forward to some more thrilling moments reading here. Thanks a lot once more for a lot of things.
nike off white http://www.offwhiteshoes.us.com
Reply lebron james shoes
8:18 PM on January 9, 2022 
I truly wanted to develop a simple remark to thank you for all of the remarkable pointers you are placing on this website. My time intensive internet search has finally been rewarded with extremely good suggestions to go over with my contacts. I would assume that we website visitors actually are quite blessed to live in a wonderful network with many special people with beneficial methods. I feel rather blessed to have encountered the web site and look forward to some more fun minutes reading here. Thank you again for all the details.
lebron james shoes http://www.lebronjames.us.com
Reply alexander mcqueen shoes
8:20 PM on January 9, 2022 
I have to show thanks to the writer just for bailing me out of this particular dilemma. Because of searching through the the net and coming across advice that were not productive, I figured my life was gone. Existing devoid of the strategies to the issues you have fixed by means of your main article is a serious case, and the ones that would have in a wrong way damaged my entire career if I hadn't discovered your web blog. The ability and kindness in touching all areas was important. I'm not sure what I would have done if I had not come upon such a subject like this. It's possible to now relish my future. Thanks for your time so much for your professional and results-oriented help. I won't think twice to suggest your site to anyone who would need assistance about this subject.
alexander mcqueen shoes http://www.alexandermcqueenoutlet.us
Reply paul george shoes
8:17 AM on January 10, 2022 
I am glad for commenting to let you understand what a perfect encounter my wife's girl encountered checking your web site. She picked up so many details, most notably what it's like to have an excellent helping style to let other folks just grasp several grueling topics. You truly did more than people's expectations. Thank you for coming up with those beneficial, safe, edifying and as well as easy thoughts on this topic to Julie.
paul george shoes http://www.paulgeorgeshoes.us.com
Reply nike sb
8:18 AM on January 10, 2022 
Thanks for your entire effort on this website. My aunt take interest in working on investigations and it's simple to grasp why. My partner and i hear all of the compelling tactic you render invaluable things via your web blog and as well encourage contribution from website visitors on this idea so my princess is starting to learn a lot of things. Enjoy the remaining portion of the year. You are conducting a powerful job.
nike sb http://www.sbdunk.us
Reply golden goose sneakers
2:56 AM on January 11, 2022 
I wish to show some appreciation to the writer for rescuing me from such a dilemma. As a result of surfing through the world wide web and obtaining recommendations that were not pleasant, I figured my entire life was gone. Living without the strategies to the issues you've solved as a result of this short article is a serious case, as well as those that would have adversely affected my career if I hadn't encountered your web blog. Your personal training and kindness in taking care of all the pieces was invaluable. I am not sure what I would have done if I had not come across such a point like this. I can also at this time look forward to my future. Thanks for your time very much for your specialized and sensible guide. I will not hesitate to endorse your web sites to any person who needs to have guidelines on this situation.
golden goose sneakers http://www.goldengoosesneakers.us.com
Reply kyrie 5 shoes
2:57 AM on January 11, 2022 
I'm just commenting to let you be aware of what a fabulous discovery our girl gained visiting your site. She picked up a lot of issues, which include what it's like to have a great teaching heart to get others without hassle learn about various problematic topics. You truly surpassed my expected results. I appreciate you for rendering such insightful, trusted, informative as well as cool tips on this topic to Ethel.
kyrie 5 shoes http://www.kyrie5.org
Reply supreme hoodie
2:57 AM on January 11, 2022 
I wanted to make a simple word in order to say thanks to you for all the remarkable ideas you are giving out at this site. My incredibly long internet look up has finally been rewarded with really good know-how to exchange with my relatives. I 'd point out that most of us visitors actually are unequivocally lucky to exist in a fine network with so many marvellous people with very helpful basics. I feel extremely fortunate to have come across the website page and look forward to so many more excellent moments reading here. Thank you again for a lot of things.
supreme hoodie http://www.supremeshoodie.com
Reply kobe 9
2:59 AM on January 11, 2022 
Thank you for each of your effort on this web page. Debby loves carrying out internet research and it's really simple to grasp why. Most people know all regarding the dynamic way you offer advantageous guides through this website and encourage contribution from other ones on the idea plus our simple princess is undoubtedly studying a great deal. Enjoy the rest of the new year. You are doing a powerful job.
kobe 9 http://www.kobebasketballshoes.net