27 Sep 2024

Government did not consult with rail users before cancelling Interislander upgrade - industry expert

6:00 am on 27 September 2024
A digital image of a new Interislander ferry to be built by Hyundai Mipo Dockyard.

A mock-up of the new large ships which would have replaced the current Interislander ferries. Photo: Supplied / KiwiRail

The government did not consult with rail users when cancelling the iReX Interislander upgrade project, an industry expert says.

Speaking on Nine to Noon, Mainfreight group managing director Don Braid said the industry was "living in a question mark" with no idea what the government was going to do.

He hoped there was at least discussion within the government about it, because he said there had been no communication with those who needed rail-enabled ferries.

"That would be good, if there's debate, therefore we might at least be digging deeper than just the swipe across the top of the desk that's appears to have been taken last December, without consulting with those of us in the industry that are actually users of rail and have a need for rail in this country."

Mainfreight has called it "appalling" that it was not included in the ministerial advisory group making decisions for the future of the Cook Strait rail ferry services.

Prime Minister Christopher Luxon had said the advisory group provided advice to the government on a way forward "a few months ago", but Braid said none of the three advisors were involved in domestic freight and his company got only one hour with the group to discuss the issues.

"I suppose the thing that disappoints us the most is that they offload all this sort of debate and research to sort of advisory groups, without the ministers who are making the decisions getting to the coal face and talking with those in the industry about how rail does work for the movement of freight across the country."

He told Nine to Noon that the the government did not understand the value of upgrading the connection between the North and South islands.

"The $3 billion [for] linking the two most important islands of this country is - with all due respect to throwing around money - is a drop in the ocean for the long haul," he said.

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Road-bridging has been suggested by the government as a way to upgrade the Cook Strait ferries without needing rail. Having only two new ferries has also been suggested.

Braid said those ideas showed the government did not understand that rail was a very effective mode to move freight, or that people and freight at times must be separated.

"It seemed to me that they thought that they could mix freight and passengers for every sailing using this road bridging type environment, which doesn't take into account the amount of land that's required at either end ... nor had there been any thought given to the movement of hazardous goods across the Cook Strait which we utilised the ferries for when there are on no passengers on board (only crew) as they are the DG [dangerous goods] regulations of this country," he said.

Braid said that past privatisation of rail in New Zealand had been part of the problem, not the solution.

"We've been involved in the privatisation of rail twice since 1990 and that's been a disaster. Each owner has not invested any capital into the longevity of rail infrastructure for the country and frankly that's probably why we're in the position we're in right now," he said.

The industry was worried that there seemed to be a negative view within the government of the necessity of rail, he said.

"If you look to Simeon Brown's transport review, he talks about rail in the golden triangle only between Auckland, Hamilton and Tauranga only. I think the country would be [in] serious trouble - our roading infrastructure could not cope with the amount of freight that would be transferred to road if we don't have a rail network that works, and that you think about the ferry sets the link between the North and South islands."

In a statement, Finance Minister Nicola Willis said the government was "working at pace on options to improve the resilience" of the Cook Strait connection.

"We will not repeat the mistakes of the previous government, with its disastrous iReX project and enormous cost blow-outs.

"We commissioned a Ministerial Advisory Group to provide us expert advice on how we can ensure the provision of safe and reliable ferry services into the future.

"Ministers are considering that advice, and other advice, and the government will make announcements when decisions have been made on a fiscally responsible option."

"The government sees an important ongoing role for rail in New Zealand's transport system."

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