KiwiRail DL Freight Train
Peter Reidy is the chief executive of KiwiRail, New Zealand’s state-owned enterprise responsible for rail operations and inter-island ferries.
OPINION
To wait at a level crossing with the lights flashing as a fully laden freight train rumbles through is to have a glimpse of the power and potential of
Rail has been doing New Zealand’s heavy lifting for more than 150 years but today it is under-utilised. KiwiRail wants to change that.
Currently, rail moves about 18 million tonnes of freight comprising around 18% of the nation’s imports and exports with rail having a 13% share of the freight market, measured by total tonnage multiplied by net kilometres travelled.
The national rail network is a valuable part of New Zealand’s integrated transport system. The rail network is owned, maintained, and operated by KiwiRail and comprises 3700km of track, 106 tunnels, and 1367 bridges — many of them more than 50 years old.
KiwiRail, like so many other companies and sectors, operates daily with the constraints of ageing infrastructure. A siloed approach to infrastructure delivery is also common, even though the greatest benefits for the country would be achieved by being joined up in network planning and delivery.
That would require a total network or system mindset and behaviour being brought to the task, managing the inevitable complexities of the many interfaces that exist in big projects, and understanding the trade-offs and risks.
New Zealand’s small economy and limited investment pool is trying to serve a population with high expectations in a country with difficult geology and topography.
There are challenges everywhere, which is why projects to rebuild or replace infrastructure — for example, a new bridge, a new roundabout, or the opening or closing of a branch line — need to be examined in terms of the impact on the total network and on end users.
New Zealand is best at this in a crisis. This was demonstrated after the 2016 Kaikōura earthquake when so many parties came together with the huge task of rebuilding State Highway 1, the South Island’s Christchurch to Picton line and associated services, in a remote location.
“Moving mountains to connect communities” was the mantra for all involved in the Kaikōura road/rail rebuild. It was a rapid deployment with clear political direction and joined-up design/delivery partners.
It was successful because the various leaders were well connected and able to unlock the talent in their respective teams. Everyone knew they were building a network to connect communities.
Decisions were assessed against the risks and trade-offs. For example, the rail line was accelerated and built in nine months, then used to bring in materials to support the rest of the road rebuild.
New Zealand’s challenge as a country is to retain the best of what can be done in a crisis, and make that business-as-usual delivery.
If each sector does only what is most important to itself, New Zealand risks failing to unlock the benefits and value that could be captured by taking a network ownership mindset.
In Auckland, the City Rail Link one client model is refreshing, and a good model for the future.
All parties in CRL have come to the table with the mindset of a system owner and operator — irrespective of the part they play.
Standing in each other’s shoes requires trade-offs and compromise but ultimately will deliver a better result — and do so more efficiently.
Over the last 10 years I have been at the delivery leadership and governance table of many large infrastructure projects, all complex in their own way with competing stakeholders and all nation-building or community-building investments.
The Pūhoi to Warkworth highway is another case in point. The delivery partners of Acciona/Fletcher worked with the private and public investors, including New Zealand Transport Agency Waka Kotahi, to invest in a better pavement solution for the highway.
It increased upfront capital cost but reduced maintenance cost for the future, and a better passenger ride experience.
We all had to take a connected network perspective, NZTA Waka Kotahi made some bold decisions based on relevant New Zealand highway insights and there was technical complexity with the ultimate solution, but look at the outcome. Today the highway is a catalyst for development and a vital part of the transport network.
KiwiRail understands the importance of a smooth interface between different modes of transport.
As owner and operator of Interislander, the company is moving rail freight and commercial vehicles every day across Cook Strait, connecting and re-connecting with the main trunk lines and state highways in the North and South islands for onward journeys. Our customers think in terms of the total trip. The providers of infrastructure need to plan for that, too.
After decades of under-funding which effectively put the rail network in a state of managed decline, 2019 saw the beginning of a turnaround.
Since then, successive governments have invested more than $9 billion in rail to allow KiwiRail to lift the standard of the network and improve its reliability for the passengers and freight customers who use it.
Right now, KiwiRail’s capital spending is among the highest in New Zealand as our projects are coming to fruition, especially in Auckland where preparation for the transformational City Rail Link is in full swing.
City Rail Link Ltd, KiwiRail and Auckland Transport are working together to deliver New Zealand’s largest transport infrastructure project. The ultimate test of infrastructure is whether it works well for the people who rely on it.
At KiwiRail that is front of mind every day as we seek to improve our reliability for passengers and for freight customers. We want to see more freight moved by rail and the ongoing improvements to the network are a big part of lifting reliability.
The better the condition of the track, the fewer temporary speed restrictions are required, the better it can run services and withstand big weather events and the fewer unexpected disruptions will occur.
Improving reliability for customers is not only about upgrading the network. Rail is an efficient way to lower international supply chain costs to ensure exporters are competitive in distant markets and to lower domestic supply chain costs for New Zealand consumers.
The value for customers and supply chains lies in different transport modes working together as seamlessly as possible. That needs to start with infrastructure being planned as an integrated system with clarity on trade-offs and risks.
With concerns about climate change only likely to increase in the years ahead, and more businesses and customers making conscious choices based on suppliers’ environmental credentials, environmental sustainability is another important factor in supply chains. Rail has a natural advantage for freight movers, commuters and tourists committed to reducing their carbon footprints.
One freight train can carry the same amount of freight as 40 trucks.
Not only is rail an efficient way to move large quantities of goods over long distances, at the same time it reduces congestion and wear and tear on roads.
Every tonne of freight carried by rail delivers a 70% emissions saving over road.
Improved technology in new locomotives will see improved environmental results as KiwiRail’s locomotive fleet is updated.
In the last financial year, KiwiRail delivered 3482 million net tonne km — equating to about one million truck trips avoided, with 85 million litres of fuel and 229,434 tonnes of CO2-e saved.
All these equations, considerations, benefits, costs, risks, and trade-offs are part of the complexity of the planning that is required for an integrated transport network that delivers for those who use it, and for all of New Zealand.
Act MP Simon Court is looking at how the PPP framework can be improved.