$70m bill to avert rail 'disaster'

By PAM GRAHAM

The railway track carrying coal from the West Coast to Lyttelton will be closed within two years unless someone coughs up $70 million to fix it, says miner Solid Energy.

The claim came yesterday after the release of a safety audit commissioned by the Land Transport Safety Authority (LTSA), which found the Midland Line was safe now, but unlikely to remain so beyond two years.

"This [closure] would be a disaster for Solid Energy, the West Coast and the Port of Lyttelton," said Solid Energy chief executive Don Elder.

"It would decimate one of New Zealand's largest export industries, currently worth over $200 million a year in export earnings."

Toll NZ, the line's owner and operator, said some work had already been done since the review.

Consultant Kellogg Brown & Root (KBR) looked at the line between September and December last year, after concerns about the safety of bridges.

Solid Energy separately commissioned KBR to estimate the cost of bringing the line up to scratch, and it came up with the $70 million figure.

That would eat a big hole in the $200 million the Government plans to invest in rail tracks nationwide after it buys them back from Toll.

Chris Mackenzie, an adviser to Finance Minister Michael Cullen, said the new board of Track Co, the state entity that will run the track, would decide where to spend the Government funding.

Some money would be allocated to bring the Midland Line up to standard.

Toll NZ chief executive David Jackson said: "The Midland Line is an important part of our business.

"Track Co will, in future, manage the maintenance but we will be working closely with the new Crown entity once it is up and running regarding any future major investments in this area."

The KBR report for the LTSA says that, even at present freight levels, significant expenditure is required in the short to medium term to keep the line operating safely.

More would be needed if the amount of coal carried on the line doubled, as has been proposed.

The report takes issue with a maintenance philosophy of replacing items at the end of their life, saying it puts pressure on inspectors identifying when those parts' time is up.

"Failure to replace a component can lead to a hazardous situation."