Solid Energy barges into the future

By PAM GRAHAM

Solid Energy plans to run barge-like ships as a backup to the rundown South Island coal route.

Chief executive Don Elder said the state-owned coal company had a design ready to go and was looking for a builder and operator, although leasing was a possibility.

It would start with one so-called deck ship but a fleet of three was possible.

The ships - basically broad, flat, self-propelled barges, could go to Tauranga, Shakespeare Bay near Picton, Onehunga, Marsden Pt, South Australia or New South Wales.

The plan improves Solid Energy's negotiating position with Toll NZ on the future of the coal route from the West Coast of the South Island and Lyttelton.

Elder acknowledged that both he and the executives at Toll had reputations as tough negotiators.

He said talks in the past two weeks had been constructive but the ball was in Toll's court.

Solid Energy said it should not have to pay for $70 million of deferred maintenance on the route.

The trains were slowed by the condition of the track, which had been judged to be fit for the purpose for only the next two years.

In a list of suggestions the Government and Toll submitted to the new track-owning company, the route would receive $25 million to make up for past under-investment and an upgraded fan in the Otira tunnel.

Elder said that was not enough and Toll had to invest more in the track or give performance guarantees.

He has denied suggestions that Solid Energy rolled a weak rail operator in the past. He said the contract provided returns to the operator if it carried all that it promised to.

It has not done that in the recent past because of the speed restrictions and dispute provisions in the contract had been invoked regularly.

Solid Energy wanted to double the amount of coal being moved on the coal route but that could change if it opted for a bigger shipping fleet.

West Coast ports are essentially river mouths and seas can be difficult. Shipping options involving a long jetty have been explored before.

Meanwhile, the Rail Freight Action Group has praised the level of disclosure in documents released on the track buyback deal and future arrangements between track owner and operator were a good first step.

But the group was annoyed it did not get a member on the board of Track Co. Toll NZ does have a member.

The action group's Paul Harper said the detail of performance rules for the operator had yet to be worked out. Toll NZ could lose sole access to the line if freight volume fell below 70 per cent of present levels.

Given that current levels were lower than what they should be, Harper said, that was not much of a burden on the company.

The coal route

* 420km of the nation's total 4000km of track.

* 272 bridges.

* 26 tunnels.

* Coal carried last year: 2.1 million tonnes.

* Coal to be carried next year: 2.7 million tonnes.

* Route potential a year: 5.5 million tonnes.