Rail service 'ditches' several North Island towns

Several North Island towns are to be given the chop by rail company Toll Holdings.

The rebranded Toll NZ, which bought Tranz Rail in 2003, says its Overlander passenger trains will "stop stopping" at Te Kauwhata, Huntly and Te Awamutu from April 10.

The same news is being given to Waiouru, Taihape, Otaki and Waikanae.

The cuts will slice 40 minutes off the Auckland-Wellington train journey.

Daily departures from Auckland at 7.25am will arrive in the capital at 7.25pm, rather than at 8.05pm.

Corporate affairs manager Sue Foley said the company had conducted a review to "ensure the continued viability of the Overlander".

"In some places the numbers of passengers were so low we could not justify keeping it (the service stop) going," Ms Foley said. "All the stations that have been dropped have had, at the most, one person a day in terms of patronage. We're certainly still stopping in places where there is reasonable patronage."

Ms Foley said Toll was trying to make the service more efficient . Places such as Marton were being retained because they simply had more passengers than towns such as Te Awamutu.

"Your normal Kiwi is taking advantage of cheaper air fares and buses are still stopping at all these towns," Ms Foley said.

She declined to reveal what cost savings would be made.

"We're still travelling the same distance and employing the same amount of staff."

Australian company Toll Holdings bought Tranz Rail in 2003 and last month signalled further acquisitions in New Zealand.

Toll NZ, the rebranded Tranz Rail, reported an after-tax profit of $9.1 million in late February for the six months to December 31, compared with a loss of $346 million in the corresponding period in 2003 after writeoffs on the track since sold back to the Government.

- NZPA