ON TRACK: Ian Hill, general manager for freight, said KiwiRail wants to keep the Northland rail network alive.PHOTO/RON BURGIN
The Auckland-to-Northland rail link is only one freight train away from breaking even.
While it doesn't sound much, one more freight train amounts to double what is currently moving along the tracks.
However, KiwiRail intends asking the Government to postpone its decision on mothballing the uneconomic line. The company's general manager of freight Ian Hill said that decision should be delayed by six months. That would give KiwiRail time to drum up more immediate business and plan long-term growth, Mr Hill told a packed "Save Our Rail" meeting in Whangarei on Tuesday night.
"At present the Northland link is close to breaking even, and it's looking pretty positive up here. Our intention is to keep the line open, and to go as far as we can," Mr Hill said. "As for Marsden Point [rail link], if the business case stacks up we're interested."
The Government needed to commit about $200million to the existing network's upgrade; the line currently costs $9million to run. A Marsden Point extension would cost another $280million.
Mr Hill said it was his role to make the country's rail links commercially viable. KiwRail's sales teams were ramping up efforts to find new markets and increase rail freighting between Auckland and Northland, he said.
However, he spoke of the need for an integrated approach from industry, local government and other interested parties to secure the Northland network.
He hinted that a Marsden Point rail link would be more compelling if the Northland Port Corporation increased its cargo handling potential so it could operate as a bulk container port.
Northland Regional Council infrastructure manager Vaughan Cooper, representing Northland Regional Land Transport Committee's working party on rail, said KiwiRail's "Turnaround" plan was designed to improve commercial viability for the Government's rail enterprise. The "port debate" was a separate topic, Mr Cooper said.
"Northland Regional Council's belief is that you can't expect Government handouts, or from KiwiRail. We need to look for other partners and we need to lead, champion and progress the matter."
He said economics, business potential, public safety and regional development all needed to be considered in the equation.
Business consultant Teresa Moore summarised the business case she compiled for Save Our Rail Northland. Ms Moore said Whangarei had the potential to have a busy, efficient port serviced by a rail link.
The Northland Regional Council already owned the land for a Marsden Point rail link and the port was surrounded by twice the available land for industrial growth than Tauranga's port, she said. Developing that potential would be a win-win situation for the region's people as well as KiwiRail and other servicers.
Speakers, including Labour list MP Kelvin Davis, questioned Government plans to spend $1.7billion on a Puhoi-to-Wellsford motorway when spending a fraction of that on rail would relieve the pressure trucks put on State Highway One and improve road safety.
A $200million upgrade on the existing network would include repairing tracks currently in bad condition, buying new "low rider" wagons or enlarging tunnels for high cube containers and locomotives.
Earlier this year nearly 13,000 people signed a "Save Our Rail" petition organised by Whangarei woman Vivienne Shepherd. Ms Shepherd organised Tuesday's "very constructive" meeting.