16 Feb 2011

Kiwirail says Northland line losing millions each year

1:31 pm on 16 February 2011

KiwiRail is asking Northland businesses and civic leaders for ideas on how to increase freight volumes to save the North Auckland railway line.

The line is one of several under review as part of KiwiRail's turnaround plan.

The company says if there is no prospect of growth, it will have to be moth-balled.

Kiwi Rail chief executive Jim Quinn has told Northland Regional Council the 300 km line from Auckland to Otiria is losing the company up to $5 million per year.

He says only two trains a day run on it, mainly carrying logs and dairy produce, and the revenue of $9 million just covers the operational costs.

Mr Quinn says that leaves no margin for upgrading the line to take modern containers, or even maintaining it properly.

He says the company is keen to work with Northland interests to save the line and will seek proposals over the next year for increasing freight, before making a decision about its future.