Peter Reidy: Why KiwiRail is going all-diesel on the North Island Main Trunk line

Peter Reidy, Chief Executive of KiwiRail says the 30-year-old electric trains will be phased out over the next two years, and replaced with diesel locomotives. Photo / File

KiwiRail has made the decision to take ageing electric trains off part of its North Island network. Chief Executive Peter Reidy explains why.

KiwiRail's decision to go all-diesel on the North Island Main Trunk line was never going to be an easy one. It's certainly not a decision we took lightly, or quickly.

For the past 24 months all available options were carefully considered, consultations with the unions took place over many workshops and meetings, experts were consulted from both inside and outside the organisation.

But in the end, running the most reliable and efficient operation for our customers was the most important consideration, not only for KiwiRail but for New Zealand itself.

Because if our business isn't reliable, customers won't put their goods on trains. If they can't get their goods where they are needed, on time, every time, they simply won't use us. And for every tonne of freight KiwiRail carries, New Zealand enjoys 66% fewer emissions than it would if that tonne went by road. Even when those trains are diesel.

Doing nothing was never an option. The existing locomotives were simply not up to the job.

The electric trains we are using now are nearly 30 years old, and are becoming increasingly unreliable, despite our best efforts to maintain them. They break down, on average, once every 30,000 kilometres, which is well below our overall fleet target of 50,000 km.

The electric trains have held us back in our drive to offer an efficient and reliable service.

For the past few years, KiwiRail has been transforming itself into a commercial, customer-focused organisation. We've been investing in an integrated road, rail and ship approach to freight, partnering with other transport operators so that each element does what it is best at.
That has meant 1.1 million fewer truck trips on Kiwi roads, 76.7 million fewer litres of fuel used, and 208,613 fewer tonnes of greenhouse gas emitted during the last financial year.

Our strategy of Simplify, Standardise and Invest has been hindered by effectively operating a railway within a railway - diesel trains to Hamilton, then electric, then back to diesel again. Imagine having to change planes at Hamilton, and then again at Palmerston North, just to fly from Auckland to Wellington.

The complexity of the electric, diesel mix also meant having to employ drivers and mechanics with specific electric fleet knowledge or engineering skills. It meant more complicated train plans and load schedules.

Some will ask why KiwiRail couldn't just make the whole NIMT electric. That would cost $1 billion or more and would also require the networks feeding into the NIMT to be electrified as well, something estimated to cost $2.5million per kilometre of single track. One day that might make sense but there are challenges such as the Wellington area's electric network running on a different power system to Auckland's.

Importantly, this is not a forever decision. Even though diesel trains are the best option for KiwiRail right now, the electric infrastructure will continue to be maintained on the line, leaving that as an option should it be required in the future.

We understand that some people will be disappointed by this decision. Others - particularly New Zealand's importers, exporters, freight forwarders and their customers - will be pleased by the reliability and efficiency it will offer them. And that is why this decision is what is best for our customers, our company and our country.