KiwiRail funding comes with caveats

As part of the KiwiRail turnaround package, the Government will hand the state owned enterprise $750 million over the next three years .
Prime Minister John Key says if the company wants the money, it will have to show a strong business plan and be accountable.

Funny , I don't remember the billions handed out to transit for roads coming with the same caveat .

http://home.nzcity.co.nz/news/article.aspx?id=114721

a link from the minister .
http://www.beehive.govt.nz/release/gove ... turnaround

Funny , I don't remember the billions handed out to transit for roads coming with the same caveat .

Yes, I find it funny too, but apparently worldwide devotees of privitisation, deregulation, and "efficiency" always seem to have a blind spot when it comes to roads and highways. I wonder why???

kaitoku wrote:

Funny , I don't remember the billions handed out to transit for roads coming with the same caveat .

Yes, I find it funny too, but apparently worldwide devotees of privitisation, deregulation, and "efficiency" always seem to have a blind spot when it comes to roads and highways. I wonder why???

All the voters use the roads. Only some of them use the trains - probably rather few in NZ.

All the voters use the roads. Only some of them use the trains - probably rather few in NZ.

Fair enough for NZ, but I wonder if "all" the voters in other countries do so. I, for one, rarely use the road (I don't drive). I rely on the subway, trains, cycling, and my two feet to get around almost exclusively. And just because the majority of people use a mode of transportation doesn't mean it should be held less "accountable"- if some libertarians and their ilk were actually intellectually honest and consistent, they would apply their principles to all forms of transport not just the ones utilized by smaller (and less powerful- i.e. less likely to generate politically deadly backlash) segments of the population.

kaitoku wrote:

All the voters use the roads. Only some of them use the trains - probably rather few in NZ.

Fair enough for NZ, but I wonder if "all" the voters in other countries do so. I, for one, rarely use the road (I don't drive). I rely on the subway, trains, cycling, and my two feet to get around almost exclusively. And just because the majority of people use a mode of transportation doesn't mean it should be held less "accountable"- if some libertarians and their ilk were actually intellectually honest and consistent, they would apply their principles to all forms of transport not just the ones utilized by smaller (and less powerful- i.e. less likely to generate politically deadly backlash) segments of the population.

I have no car. I used to rent cars occasionally. I did own a car in Nigeria, and had the use of a company car in Saudi. But without a car I have been all over Europe from Narvik to Switzerland (in the same week) and to Krakow and Budapest.

But in NZ there are hardly any trains.

not many trains , but lots of trucks . nobody has really objected to this project , most people would love to see less trucks on the road .

the main point of this announcement , which may not be apparent to overseas posters , is the idea of going after road traffic .
the previous owner of the railway system Australian freight firm , Toll , has the view that the railway was for bulk shipments , anything smaller went by thier sizeable truck fleet . While perhaps this was the best use of scare railway resources , it also ignored the fact that long distance freight was most efficently carried by rail . it also limited carrying rail freight for freight forwarders , basically their competitiors . to some extent the labour govt exacerbated this situation on buying the railway , they pretty much gave toll exclusive access to railway freight terminals . now , under the national govt , this seems to be a signal that kiwirail will once again seek to carry all freight forwarders traffic . I do think that criticisim of the labour party for been abit businessworld naive on these points has some foundation .
i would like to see kiwi rail limit their efforts to running the trains and providing the service( bare wagon s for containers ) for major customers and freight forwarders to compete for on a level playing field .

In Britain there is one major freight company, formerly owned by Wisconsin Central, then by Canadian National, now by Deutschebahn Schenker.

But there are several other freight companies. Freightliner handles mainly container unti trains. Direct Rail started as the Nuclear carrier but has branched out into other mainly freight businesses. There are several others, including one owned by Eurotunnel that operates into Frabce and elsewhere.

Is there enough business in NZ for there to be more than one freight carrier? The track company NetWork Rail provides slots for passenger and freight business. Thus different companies can apply for slots.

Im not talking about another freight operator on the rails , george . I'm meaning , that all truck operators / freight forwarders will be able to have the chance to put their freight on trains run by Kiwirail . at the moment , while not offical of course , i believe toll logistics has virtual monopoly access to been able to forward goods by rail .

David Benton wrote:I'm not talking about another freight operator on the rails , george . I'm meaning , that all truck operators / freight forwarders will be able to have the chance to put their freight on trains run by Kiwirail . at the moment , while not offical of course , i believe toll logistics has virtual monopoly access to been able to forward goods by rail .

NZ has different conditions to Britain. For one thing there are almost no passenger trains to clog up the lines. The freight operators in Britain are always complaining about the lack of slots - a sign that we need investment in new lines. The main advantage of a High Speed Line would be to relieve the congestion on the existing lines.
But clearly it was an error to give Toll a monopoly, just as it was an error to give National Express (the privatised Coach operator) so many rail franchises. The coaches should be separate from passenger rail. They have now lost the East Coast route. The Labour transport minister wanted to take their other franchises too. Who knows what the new Tory minister will do.