Rail is an integral part of the transport sector and play a key role in shifting goods to export ports around New Zealand. The performance indicators framework being developed will track the performance of the transport sector as a whole and develop the story around a pressure - state-response framework. As a precursor, some work on rail follows.
The recent history of the state of New Zealand's rail infrastructure is well known. Since the late 1990s, successive owners failed to generate sufficient revenue to cover the long-term capital costs of maintaining the rail network. This resulted in the running-down of physical assets such as track and rolling stock. While deferral of maintenance was effective in the short term, it soon had effects on the reliability of services provided, which meant that key customers sought alternative transport options.
The government bought back the rail network in 2004, purchased Toll NZ's rail and ferry operations in 2008, forming KiwiRail. Since that time, KiwiRail has embarked upon an ambitious programme to reverse the years of under investment through the Turnaround Plan. The Government has supported this through equity injections of $844 million, and agreements not to collect a dividend. This has enabled KiwiRail to successfully undertake an investment programme involving:
• new locomotives and refurbishment of the current locomotive feet
• increasing and improving the wagon feet
• Aratere Cook Strait ferry extension - creating 30 percent more capacity for rail and trucks and improving passenger facilities
• renewals and upgrades of the rail network to improve transit times, remove capacity constraints, improve reliability and continue to bring the national network to a sustainable level.
This has been undertaken within the context of difficult external pressures such as the global financial crisis which has affected demand for import/ export and domestic freight services.
As can be seen in the chart (left), based on an index for 2009/10, most rail indicators show a positive trend for the sector. This includes pressure indicators, such as demand and macroeconomic growth, as well as key state indicators, such as reliability and productivity.