TRAC has become aware that KiwiRail doubled the charge for hauling logs on the Napier to Wairoa line which effectively killed the operation and caused the cessation of rail traffic on that line.

The Rail Advocacy Collective’s (TRAC) national coordinator, Niall Robertson says, “This is a scandal and an insult to the people of this region and the rail customers that were keen to use rail”. Robertson adds that the rail rebuild was paid for through the Provincial Growth Fund which was put in place to aid the provinces to grow their economies. Isn’t this what this government wants? Robertson says, “After that investment, why did KiwiRail sabotage the entire project and waste all of that money and work?” TRAC also questions whether KiwiRail did this on their own? Robertson asks, “Did they decide on their own, or were they told to do this by the government or treasury?” TRAC believes that these questions need answering and that the government should commission an external inquiry regarding this.

TRAC chair, Guy Wellwood says, “One of the really bad outcomes of this situation is that the Hawkes Bay Regional Council based their strategic transport plan on the basis that rail could not compete with road transport, which is patently false!” This has had the effect that rail is not worthwhile to the north of Napier among potential businesses as well as the council!

Robertson says that it is time that KiwiRail was relieved of the below wheel infrastructure and that the rail system was opened up to other operators who have an interest in serving the regions. Robertson says, “Wairoa and Gisborne had, and still have a perfectly good rail option to serve their region which could double its productivity over the next 8-10years with a decent transport system including rail. Rail as an option is needed to serve the producers and businesses in the area, but successive governments have neglected and vandalised this region’s transport infrastructure, seemingly as there are not too many votes here!”

Robertson adds that it is time that the government took full responsibility for infrastructure throughout the country and followed an ethos of maintaining valuable infrastructure rather than neglecting it based on cost rather than value considerations, or worse, based on the votes at stake. Robertson says, “Despite what KiwiRail says, this line could be running again to Wairoa for $60m and a further $100m would get the line to Gisborne (according to current engineer reports) and this compares favourably with $425m for a 4km road deviation with a bridge at Waikare on the adjacent SH2”. Robertson adds, “KiwiRail have said it would cost $400m-$600m to rebuild to Gisborne, but they gold plate everything, and now that we in TRAC cannot trust too much of what KiwiRail says, one has to be suspicious that this price is designed to discourage further spending on the line, which is such a disservice to the region!”

TRAC needs to know why this area is getting kicked in the guts and who is doing the kicking. TRAC feels this region needs a break, some respect from the government and some transparency around the neglect that this region has suffered.

Robertson says road transport only pays 14% of road maintenance and building needs yet does 93% of the road damage, and asks, “Why does rail have to charge a premium in this area when road transport does not?” Robertson adds, “A recent study has shown that the road transport lobby have used similar tactics when lobbying the government as the tobacco and alcohol lobby and this seems to be working for them”. The University of Otago study’s Lead author, Dr Alice Miller stated that "Policymakers need to carefully consider the vested interests of the different stakeholders they interact with, and more questions need to be asked about who is really in control of our Transport policy decisions". Robertson adds, “Land transport funding is lop sided in favour of the road transport lobby, because the road transport industry gets assistance from the road user charges (RUC) from lighter vehicles while rail gets nothing. Wellwood says, “This doesn’t make sense as rail helps motorists by removing trucks, thus improving road safety, reducing road congestion, lowering road maintenance costs as well as reducing greenhouse gases and exhaust and tyre dust pollution”. Robertson says that in fairness light vehicle RUC’s should be shared with rail to even the playing field of below wheel funding.

TRAC says that at the moment KiwiRail is neglecting the regions, has a business formula that ignores many potential customers, has a flawed below wheel funding system. Meanwhile the government’s intentions regarding transport tend to overly favour road transport options at the expense of rail and are not transparent regarding their reasons for favouring road transport, especially when New Zealand should be doing all that it can to reduce traffic, greenhouse gasses and pollution.

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