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NZ Trucking : July 2017
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WWW.GOCLEAR.CO.NZ WWW.GOCLEAR.CO.NZ Runaway train Inarecentpressrelease,MinisterofTransportSimon Bridges pointed out that a total of almost $1b dollars has been allocated to rail in this year’s budget. He added that the Government has invested more than $4.2 billion in rail since taking office in 2008 (not including the budget allocation). But the most significant message in the release was the minister’s statement: “The Government wants to put the rail network on a longer-term sustainable footing. In the year ahead we will be conducting a wider review of KiwiRail’s operating structure and longer-term capital requirements.” What’s prompted this review? My guess is it’s at least partially a result of KiwiRail’s decision to dump electric locomotives and replace them with diesel. In a document from December last year titled ‘Better Business Case – NIMT [North Island Main Trunk] Performance Improvement’, they say, “Whilst a shift to diesel would result in an estimated 10% increase in KiwiRail’s emission factor, the net effect on New Zealand’s overall emission rates would not be material.” When businesses are searching for ways to improve the environment and achieve greater sustainability, the document uses a controversial excuse to justify a move to diesel. I have many more concerns with the document, although the publicly released copy I have has many sections blanked out, including the names of the writers and financial details, making it impossible to get the full picture. A point that surprised me is that they say rail is in direct competition with road transport and coastal shipping to capture the predicted growth in freight volumes over the next 20 years. Don’t the writers understand that the three modes have very different strong points and are already working together reasonably well to effectively improve New Zealand’s freight task? Road transport businesses such as Hall’s, Mainfreight and Toll are probably amongst KiwiRail’s largest customers. Last year New Zealand Trucking reported on the joint venture between KiwiRail and Lincoln Logistics to bring a rail siding into Tokoroa. Are the writers suggesting KiwiRail is making a mistake working with the road transport industry and are ‘sleeping with the enemy’, or are they simply unaware adapted masthead.indd 1 8/02/2012 11:02:47 a.m. John Murphy Field editor of the synergies and relationships that already exist and can be expanded and enhanced? While the biggest factors in the decision to use diesel appear to be capital outlay and the faster return on investment diesel achieves, the document only looks at three sources of funding: existing capital, capital in future budgets, and shareholder funding. What about joint ventures, especially with overseas partners? What about public private partnerships (PPP) that are an increasingly popular way of funding big infrastructure projects? What about the aforementioned road transport businesses, perhaps they would be interested in supplying locomotives and rolling stock and paying to use the network? Toll owned and ran rail very successfully in the mid-2000s; they probably understand the opportunities available. What about striking a long-term deal with an electricity supplier? The locomotives have an amortisation period of about 30 years; if an electricity supplier was signed up for the life of the locos, it’s likely they would provide upfront assistance, allowing electric trains to continue to be used and perhaps extending the network. New Zealand freight needs a strong and progressive rail mode that is prepared to work intermodally. I’m not convinced KiwiRail’s current management understand their position within the greater freight industry adequately, and perhaps Simon Bridges has came to the same conclusion. 8 New Zealand Trucking July 2017 EDITORIAL CELEBRATING 75 YEARS OF INNOVATION *The extended warranty offer is available from participating Freightliner Truck dealerships. Extended Warranty runs until the earlier of 4 years or 800,000km from purchase. Extended Warranty is subject to standard terms, conditions and exclusions; and does not extend to the Engine. A separate Engine Warranty is provided by the Engine Manufacturer. ^ Offer available for vehicle ordered from 2 March and delivered before 31 December 2017. Built tough with years of heritage and innovation, Freightliner Trucks continue to be the trusted choice for truck drivers. Offering a range of Service Plans, low total cost of ownership, low fuel consumption, and a 4-year/800,000km extended warranty, our best ever, across the Argosy and Coronado 114 models*, you can rest assured you’re making the right decision. Plus, for a limited time^ all models are equipped with the 75th anniversary badge and interior upgrades. There’s never been a better time to own a Freightliner. Please visit freightliner.co.nz or contact your nearest authorised dealership today for more details^ . Trucks and Trailers Ltd: Auckland | Palmerston North | Wellington 0800 327 777 Prestige Commercial Vehicles: Christchurch 0800 37 98 99 FNZ16419_FL_NZ_75thAnniv_FP_Ad_HR.indd 1 7/02/2017 6:01 PM
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