Public transport dream on track

By BERNARD ORSMAN

A new, modern rail system for Auckland can proceed after the Government struck an $81 million deal with Tranz Rail to buy back the lease on the region's rail corridors.

The long-awaited rail deal clears the way for Auckland councils to develop a $1.2 billion public transport system designed to give the region's 1.2 million inhabitants a fast, reliable alternative to the car.

Auckland councils want to run heavy diesel trains on the main trunk line south to Papakura, and light-rail units on a new double-track and electrified western line to Swanson and a new central city loop.



The train services will converge at the new $200 million Britomart transport centre in downtown Auckland.

The Auckland City Council plans to let the first tender for Britomart next Monday.

The Government and Tranz Rail yesterday exchanged letters concluding the main terms of the deal. A final agreement is expected by December, when Tranz Rail will be paid $81 million.

This sum is less than a $112 million figure Auckland councils agreed with Tranz Rail before the Government took over negotiations in March.

But the two deals are structured differently. As part of the new agreement, Tranz Rail will be contracted to handle signalling and track maintenance for at least five years for an annual fee of $2.85 million. Central and local government have yet to decide how to share this fee.

Tranz Rail also keeps some advertising rights.

With Tranz Rail's present passenger train service contract due to expire in June 2003, the region has agreed to buy 10 of Tranz Rail's 19 commuter trains for $3 million. These trains will be used until the new $1.2 billion rail system and a new operator are in place after 2005. The 10 trains will be refurbished at a further cost to the region. The other nine will be too rundown by 2003 to be kept running.

The chairwoman of the Auckland mayoral forum, Auckland City Mayor Christine Fletcher, said it was good to see that the Government had delivered on the deal.

Auckland Regional Council chairman Phil Warren called it a significant step towards building a public transport system to meet the region's needs for decades to come.

Finance Minister Michael Cullen said the deal also secured the rail freight link to Northland, a concern of Northland mayors.

Dr Cullen said he was pleased the Government had been able to negotiate a price lower than the $112 million agreed to by the Auckland councils.

He said the deal carried far fewer risks than the previous deal in respect to Treaty of Waitangi claims, the Public Works Act and other issues.

"There were very substantial risks for the Government with the previous deal, which was the reason we found it unacceptable," he said.

Tranz Rail managing director Michael Beard said he believed the deal offered value to Tranz Rail, the Government and Auckland.

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