New Zealand is to get its first new rail locomotives in 20 years. But they will be bought from China, not built in local railway workshops, which would have created jobs.
Infrastructure Minister Bill English said the Government had approved $115 million for new carriages and locomotives for KiwiRail and the establishment of a small unit within Treasury to manage the next stages of its infrastructure programme.
He said $75 million would buy 20 new locomotives from China.
The first 10 are expected to arrive in April next year and the other 10 four months later.
They will boost productivity on key freight routes and allow KiwiRail to free up locomotives for Auckland metro passenger routes.
Another $39.9 million will be spent building new carriages for the TranzScenic passenger routes to improve their profitability.
The work will be completed by KiwiRail's Hillside Engineering workshop in Dunedin and will begin in January next year, maintaining workshop jobs and providing work for hundreds of other suppliers.
The new carriages are being paid for out of an existing appropriation.
KiwiRail will borrow the $75 million for the new locomotives.
The Rail and Maritime Transport Union had members on a team that visited China looking at locomotives and was keen on the option of building them locally from imported parts.
Mr English said the Government "was elected with a mandate to fix the infrastructure problems holding New Zealand back and to target projects that will help us build a higher performing economy".
KiwiRail has 149 locomotives, the youngest 20 years old.
It said $14 billion had been spent on state highways since rail was privatised in 1993.
ROLLING STOCK
* 149 locomotives, the youngest of which is 20 years old.
ON ORDER
* $75m for 20 new locomotives from China.
* $39.9m for new carriages from KiwiRail's Hillside Engineering workshop in Dunedin.
- NZPA
KiwiRail to spend $75m on new locomotives from China
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