"We undertook a detailed business case to determine if it was better to refurbish the Ganz Mavag trains, or buy new.
"This process determined the economic benefits for buying more Matangi trains to be considerably superior, which is why we have a full fleet of Matangi trains and retired the Ganz Mavag fleet."
The remaining carriages have been stripped by local company Macaulay Metals. The bogies and motors and other recoverable scrap will be separated from the units but the car body itself contains asbestos within the anti-drum coating inside the walls of the train.
"The cost of removing the anti-drumming coatings to salvage the scrap is too expensive," Gabara said.
"Asbestos is contained in the anti-drum coating and will remain undisturbed during the dismantling and transport to the Southern Land Fill."
The carriages will then be crushed and buried.
"Burying the carriages is the least expensive and safest way to dispose of the carriages because of the asbestos issue."
The whole operation is expected to take about a month to complete. One carriage has been gifted to the National Railway Museum in Christchurch.