Introduction

On 1 October 2008 the rail industry in New Zealand became a single entity. While its legal name is the New Zealand Railways Corporation (NZRC), it chose KiwiRail as its trading name.

KiwiRail is a statutory corporation operating as a single entity with multiple business units. Governance is provided by a Board headed by Chairman John Spencer. KiwiRail is managed by Chief Executive Jim Quinn.

KEY ELEMENTS OF THE BUSINESS

KiwiRail Freight provides rail freight services and locomotives for passenger services.

KiwiRail Interislander operates the Cook Strait ferry passenger and freight services.

KiwiRail Passenger provides urban passenger services in Wellington under contract to the Greater Wellington Regional Council through our Tranz Metro business. It also operates long distance passenger train services, TranzCoastal, TranzAlpine, Overlander and Capital Connection through our Tranz Scenic business.

KiwiRail Network (formerly ONTRACK) maintains and improves the rail network and controls the operations of trains on the network.

KiwiRail Mechanical services our locomotives and rolling stock at Hutt workshops and provides heavy engineering services at Hillside.

WHO WE ARE

KiwiRail is the owner of a business with a long and proud history of service to New Zealand. We need no introduction, but there is still much that New Zealanders don't know about us.

Most know that we are one of New Zealand's biggest freight movers. But it comes as a surprise to many that we are one of the country's biggest tourism operators and one of the most significant property owners and developers.

On one hand we are a new company bringing the different elements of the rail industry back together; on the other, an established business with a strong New Zealand history.

Many years of under-investment have reduced rail's competitiveness. Our challenge today is to improve the quality of our assets and services and to compete on even terms with other modes of transport while also cooperating with other players to create solutions for customers. The more successful we are in meeting this challenge, the greater the contribution we will make to the New Zealand economy.

Our aim is to grow the business by making the most of rail's natural advantages - moving bulky goods, linking export industries to major ports and moving people through congested cities. Rail is vital to New Zealand's export and domestic industries. We move 33 percent of the country's export goods.

Useful facts about the business

• More than 30 percent of rail freight traffic is import-export goods.
• One milk train carries the load equivalent of 28 road tankers.
• If the freight traffic that travels on rail was transferred to road, it would add an estimated one million more truck trips a year to the roading network.
• The Ministry of Transport predicts rail freight traffic will grow by 70 percent over the next 20 years.
• Auckland-Tauranga is the country's busiest rail freight route. Forty percent of the freight moving to and from Port of Tauranga travels by rail.
• A $13 million investment in passing loops on the ECMT (Hamilton to Tauranga) will double the line's capacity.
• The $600 million upgrade of the Auckland suburban network will enable six trains an hour (approx 10 minute services) to operate.
• Railway locomotives are on average 30 years old; wagons average 20 years.
• Approximately 200 km of the 4000 km rail network is approaching the end of its predicted life.
• Thirty-three percent of railway bridges are 80 or more years old.