24 Jul 2008

Govt to look at reopening railway engine plant

9:05 pm on 24 July 2008

An old locomotive plant in Lower Hutt may be taken out of mothballs.

The Government is to spend $80 million over the next five years on upgrading commuter rail services in Auckland and Wellington as well as scenic trains.

The Government bought the rail network for $665 million on 1 July and relaunched it as KiwiRail.

Finance Minister Michael Cullen says the funding will be used to upgrade locomotives and other rolling stock.

Some money will go towards a feasibility study on the benefits of assembling the engines at a workshop at Woburn.

Hutt City Mayor David Ogden says the engineering plant was very productive in its hey day and can be again. The plant was built in 1929.

Mr Ogden says it still has all the equipment on site which is needed for locomotive assembly and repair.