The cancellation of the KiwiRail rail ferries will have serious consequences and the Government have been fool hardy and reckless in their haste to cancel the current order.

“The decision to cancel the new rail ferries is a decision to cancel having a railway”. Richard Prebble (Op-Ed NZ Herald 12.24)

“Given that’s now only a year away, it’s hard to see how we’ll secure at least one new vessel without renegotiating the current deal we have with Hyundai. How would we get another so quickly, and for a 2021 price?…and what figure can you really put on future proofing and safeguarding one of our most important trade and travel routes?” (NZ Herald Editorial 13th February 2024)

Prebble and the NZ Herald are right. The current single rail ferry will not last long enough now for any rail capable replacement, and is currently insufficient on its own to provide all the potential rail freight on the Picton to Christchurch line. The government’s intention to do away with rail capability across the Cook Strait will lead to double handling of rail freight and the eventual loss of freight share leading to the lack of viability of rail between Hamilton and Christchurch.

Niall Robertson the national coordinator of TRAC says that would lead to the closing of the North Island Main Trunk line, the Picton to Christchurch line as well as lines to Napier and New Plymouth. He adds that this will be a serious blow to all of the businesses and communities that will be affected by this poorly thought out and very rushed decision.

TRAC chair Guy Wellwood says, “…this is nonsense! New Zealand should be reopening all of the mothballed lines and getting as much freight as possible off roads and onto rail, especially when New Zealand is struggling to meet its Paris Accord emissions commitments”.

Robertson says that pushing more and more freight onto our overburdened road system will cost the tax payer billions. Robertson adds that currently motorists are paying three times more than the road transport industry only to have to put up with more and more trucks, which are dangerous, damaging to roads, polluting and cause congestion.

The whole transport industry needs rethinking and TRAC is calling for a pause on such hasty decisions before the freight haulage in New Zealand collapses under the weight of too many road vehicles, congestion, pollution and fewer choices for industry in the way they can reduce their carbon footprint and move their freight more cheaply

New Zealand’s rail system is a great asset and we need to not only keep what we have, but to expand it back to what we had.

However, Robertson warns that the current structure of transport needs to change radically.

Robertson says, “The first thing that needs to happen is that the road transport industry needs to pay road user charges that reflect the impact that heavy vehicles have on roads. Currently motorists are paying three times the amount of heavy vehicles, which amounts to a subsidy”.

TRAC also believes that the rail system needs to have the below wheel infrastructure separated from the above rail business. Rail access then needs to be opened up to allow other railway companies to do work that KiwiRail lacks the resources to do. Robertson says that KiwiRail has limited resources and capital and is always hamstrung by political interference and the treasury limiting funds and having too much say on how the rail is run. Robertson believes that if it is good enough for the goose then it is good enough for the gander regarding transport funding. He says, “…the road transport industry doesn't pay that much for the below wheel infrastructure, so neither should rail! Surely motorists would get more for their money if their taxes went to rail as well, which would reduce congestion, pollution and damage to roads and increase road safety”.

Robertson also suggests that the government does not need to fund every aspect of rail operations and that private New Zealand companies could be used to maintain wagons, and also to build and /or import wagons for long term lease arrangements with the railway operating companies, especially KiwiRail. In short, we need to get the government out of rail so that they can concentrate on the below wheel infrastructure of all modes which is their responsibility. Robertson says, “Governments should never be picking winners. It’s their responsibility to support all participants, and the current rail ferry decision will favour road transport and potentially destroy rail. That is not their role!”

TRAC also believes that KiwiRail needs to re-hire all of the railway professionals that they have purged from the company over the years, favouring cheaper generically trained staff. Rail needs people with skin in the game and there are plenty out there!

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