Ministry of Economic Development
The New Zealand Institute for the Study of Competition and Regulation report in 1997 concluded that the rail business had not been able to cover the replacement cost of its capital, as far back as 1983.
Capital investment levels 1997 has been reduced significantly further, at the same time as tonnage levels have continued to increase. It would seem reasonable to conclude, therefore, that the current maintenance practices and renewal programmes have not been improving the performance of the rail infrastructure, and that overall the rail infrastructure condition, while generally meeting a "fit for purpose" test for current freight operations, requires significant investment to cater for the changing and growing freight and passenger demands.
8.4.2.1 Regional Demand and Constraints
a) Northland
As with many other regions Northland is facing a "Wall of wood". The Northland region contains an exotic forest estate of 160,000ha, equivalent to 12.7% of the region's land area.
The volume of forestry wood flow in Northland (including Rodney District) is forecast to increase generally from 1.5 million tonnes per year in 2002 to 4 million tonnes per year in 2011.
The new deep water port at Marsden Point has been constructed to take advantage of, and enhance, Northland's economic growth prospects, especially in forestry. The new port could handle three to four million tonnes of forestry exports per annum including some from outside the Northland region. A laminated veneer lumber (LVL) plant has also been built at Marsden Point by Carter Holt Harvey to take advantage of the new port facility.
The major issue for rail in Northland is the lack of a rail access to Marsden Point. A link would enable the "wall of wood" to be railed at least part way to Marsden Point. From a purely commercial perspective, the link may not be justified. There may be wider economic benefits (regional and, perhaps, national) that need to be considered. Growth of rail transport from the south to Marsden Point would also require upgrades of the Auckland - Whangarei line. Integration with commuter services on the Auckland isthmus would also need to be considered.
Engineering design and an Alternative to Roading (ATR) funding application is in progress for a proposed 16km rail link to the Port from the existing rail network at Oakleigh. Whangarei District Council forecasts that the rail link will carry 1.2 million tonnes of logs per year, representing around 30% of the annual harvest in the next 6 years.
Most forests, with the exception of Mangakahia/Dargaville forests, are removed from the rail heads, with direct access to the Port via local roads and state highways. The use of rail generally involves road transport to rail heads at Otiria and Dargaville, additional double handling and relatively short haul rail from rail heads to port. The Mangakahia/Dargaville forests have access to the rail heads via a mix of forestry and local roads.
The last 20km of the Dargaville Line would need significant upgrade work to accommodate any significant increase in tonnage.
Reopening the line to Kaikohe, would compliment a new road bridge across Hokianga and would avoid, or lessen, the upgrade required of the road through the Mangakahia Valley.
The wood processing plants are generally not located on the rail routes. The existing rail wood chip shuttle from Portland to the Whangarei Port is at risk unless rail access is provided to Marsden Point.
Economic development and changing industry/ transport requirements due to the new deep water Port is likely to generate other traffic travelling further south (e.g. Inter Port container transport between Tauranga/Auckland/Northland Ports servicing Auckland via rail served inland Ports; fuel to Wiri and processed wood products).
Region wide transportation strategy studies commissioned by Northland Regional Council have been completed over recent years. These have recognised the strategic importance of the existing rail network in Northland providing a direct link to Auckland and points further south.
These studies recommend investment in the rail link to Marsden Point by 2005 as a strategy toward limiting the costs required to be spent on the roading network and toward preserving the existing Northland rail network. At the same time the rail link provides opportunities for future development of industries which would use rail transport and provides an opportunity for rail to become the prime mover of bulk cargo.
Auckland Regional Council Passenger services and freight access agreements are likely constraints to freight services from Northland especially during peak passenger times on the West Line.