The government is chanting “Growth, Growth, Growth”, but they have few great suggestions to achieve this banking on more overseas investors, looking at selling off assets and reducing corporate tax for which there is little evidence that it improves levels of investment.

What better way to improve growth than investing in transport infrastructure, but not just the tired old Roads of Nation Significance (RoNS) with benefit cost ratios of 20c, but valuable rail builds with BCR’s of between $1.54c and $2.87c. For that range a line could be built from Levin to Greatford near Marton for $950m for 85kms, bridges over the Manawatu and Rangitikei Rivers and three crossing loops. This compares with the Otaki to North of Levin (OTNL) expressway extension for $1.5b for 24km and a BCR of about 21c.

Let’s also look at rebuilding the line to Gisborne for a bit over $100m to tap into tonnage from that area that is forecast to double in the next ten years and could potentially be carrying 320,000tonnes per year now with a line just to Wairoa with a later extension to Nuhaka. From here containers from Gisborne and logs from further north could be transhipped to rail. KiwiRail have posted the cost to fix the line at $400m-$600m from Napier to Gisborne, but this involves large upgrades of new heavy rail and sleepers, replaced bridges and large earthworks, but this is not required and services could be operated by a private short line operator using older and lighter rolling stock using much of the existing infrastructure and tackling the challenges incrementally. This would save millions in road wear and tear on the adjacent SH2 as well as reducing congestion and bringing a higher degree of safety to that route.

Large quantities of freight from Taupo and Rotorua is best suited to be hauled by rail. This consists of log, timber products, dairy containers and a variety of other container traffic. This line could be built over relatively easy country for which both routes have been surveyed and a lot of earthworks were completed south of Rotorua from 1928 -29 when the depression caused the project to cease. The line from Paengaroa would need to go via Paradise Duck Valley to the Red Stag timber mill where a rail yard could be built to serve Rotorua. En route to Taupo a siding would be required to service the Reporoa dairy factory and a large area would be required above the Taupo township for a loading yard for logs and general freight, including possible freight transhipped from the Hawkes Bay.

Reopen the Stratford to Ohakura line which is the link from the Taranaki to the North Island Main Trunk Railway would enable Fonterra to reduce 320km of travel for two trains they send north and would open up Port Taranaki as a viable and cheaper port option for export logs from the King Country.

Niall Robertson, the National coordinator of TRAC says, ‘All of these projects could produce significant growth for these areas and the government could encourage good prices for building this infrastructure by offering tax breaks to the construction companies building and rebuilding these assets”. However, Robertson adds that there needs to be a better way of funding rail as KiwiRail charged over the odds to retrieve rebuilding costs for the Napier to Wairoa section when it was reopened. In the meantime SH2 was still being highly subsidised by the Southern Motorway out of Auckland and the trucking companies received a whopping 86% subsidy from motorists, taxpayers and ratepayers as they all do across the country.

Guy Wellwood, chair of TRAC, says, “The road transport industry has all of its costs evened out across the country with road vehicles paying the same across the motu. Why should rail then have to charge a premium for a particular area? That doesn’t make sense and isn’t fair”.

Robertson says, “The government will need to sort its transport funding if it is to attract the much needed private operators to run the Napier to Gisborne section”. TRAC accepts that this is not part of KiwiRail’s mode of operation. Robertson adds, ”It becomes a drain on KiwiRail’s limited resources as they want to put those into the profitable areas, but with a different company, the goal is to make this part and this part only work”.

Wellwood suggests that the government, “... is a little blinkered with the need to invest in the populated areas in the top half of the North Island where the votes are, but they need to remember that the export dollars are earned in the regions and you can’t just destroy assets like the Napier – Gisborne line and think that you are accomplishing something. That is no more than neglect!” Wellwood adds, “This particular project fits with the need for growth, regional development and would be popular with the local body governments, the potential rail customers and other recipients such as the Port of Napier”.

Robertson says, “One potential customer told me that all industries like and need transport choices wherever that is possible” Robertson added, “This area has a difficult road only operating and an unused but very valuable adjacent railway”.

TRAC challenges the government to look at these potential projects, but would direct them first to the Hawkes Bay for the incremental rebuild of this line to Gisborne starting with Wairoa and encouraging private investment in rolling stock to run the services, but below wheel funding must be competitive with charges to road transport operators. Robertson says “Road and rail need to compete with fairness when it comes to infrastructure funding, and rail has always been disadvantaged! Open access to rail infrastructure is one way to even the playing field”

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