Rail travellers a dying breed

Time to think back to those Halcon days of late 2004 when Toll took over the Passenger Services to start with: http://www.railroad.net/forums/viewtopic.php?t=2911

Apparently among their first acts was to end the Northerner, if I am reading that thread correctly.

Wednesday, 23 August 2006 - Questions And Answers
Press Release: Office of the Clerk

Questions to Ministers

Railways—Overlander Service

4. JEANETTE FITZSIMONS (Co-Leader—Green) to the Minister of Finance:
Is he sufficiently concerned about the demise of the Overlander
service on 30 September to commit the Government to contributing
financially to a rescue package; if not, why not?

Hon Dr MICHAEL CULLEN (Minister of Finance): No, because I am yet to
see a sensible proposal for a rescue package.

Jeanette Fitzsimons: In view of the almost total lack of marketing of
the service and the growing international market for rail tourism,
would the Minister make a marketing campaign a condition of any
Government-supported rescue package?

Hon Dr MICHAEL CULLEN: I am yet to receive any proposals for a
package other than our spending as much money as Toll wants to carry
on the service in the future, starting at $1.75 million a year plus
$500,000. It is worth noting that the train is capable of carrying
only three carriages, so, in fact, if it increased in popularity, it
would run out of carriages. I also believe that the carriages may be
required for the Wairarapa suburban service within the near future.

Te Ururoa Flavell: Tçnâ koe, Madam Speaker, tçnâ tâtou katoa. What
consultation has the Government undertaken with Tûwharetoa paramount
chief Ariki Tumu te Heuheu, the chairperson of the United Nations
World Heritage Committee, and what are the economic and cultural
consequences that Tûwharetoa advise will result from the Government
not supporting the financial viability of this service, particularly
given that the Tongariro National Park is on the World Heritage List?

Hon Dr MICHAEL CULLEN: No, I have not consulted, and I have received
no advice. Given the fact that in terms of travelling from Wellington
to Auckland and back there are an average of about 50 people per day,
I doubt there will be that many economic consequences.

Peter Brown: Will the Minister clarify the situation: is he not aware
that Toll NZ has apparently told the local community that it is
prepared to operate the service at cost—it just does not wish to
operate the service at a loss—and has nobody put any figures to him
along those sorts of lines?

Hon Dr MICHAEL CULLEN: We do not have figures that I think would be
easy to disentangle the cost of the Overlander outside the general
passenger services that Toll provides. Certainly Toll would claim
that it was making a loss on that route, and certainly it has asked
for $1.75 million a year. Given the number of people involved, that
seems a very heavy level of subsidy.

Sue Kedgley: Is it sensible long-term planning to allow the
termination of an iconic and potentially viable North Island long-
distance passenger rail service, resulting in a greater use of fuel,
cars, and planes, at the very time when international oil prices are
rising sharply and New Zealand is struggling to meet its climate
change commitments?

Hon Dr MICHAEL CULLEN: I very much doubt that running an extremely
large diesel engine with three carriages that are usually less than
half full is more economic than running a bus or two with
significantly smaller engines over that distance.

Tariana Turia: Tçnâ koe, Madam Speaker, tçnâ tâtou. What advice has
the Minister given to Sue Morris, the Mayor of the Ruapehu District
Council, who has sought a meeting with him to alert the Government to
the way in which the economy of the district will be affected by
the "loss of business operations and employment opportunities, loss
of tourism dollars, and loss of transport options."?

Hon Dr MICHAEL CULLEN: I have not given any specific advice to Ms
Morris, but my general advice would be that I see very little future
in this route as a standard passenger route. If there is to be a
revived service of any sort I think it would be more likely to be a
dedicated tourism operation along the lines of the Otago Excursion
Train Trust and so on. I await any kind of offers in that respect. My
good friends the Auckland Regional Council perhaps could help by
ceasing to charge $200,000 a year for the train to be at the
Britomart transport centre for half an hour twice a day.

Jeanette Fitzsimons: Why is it that he is prepared to bail out Air
New Zealand to the tune of $885 million and spend an additional $1.5
billion of taxpayers' money on roads, yet sit back and watch the
Overlander go to the wall for the sake of less than $4 million?

Hon Dr MICHAEL CULLEN: Because very few people travel on the
Overlander, compared with Air New Zealand. We do not export anything
via the Overlander. We do not bring large numbers of tourists into
New Zealand via the Overlander. The Overlander is not, if I can
overuse that much misused word, the iconic symbol of the New Zealand
travel industry overseas.

Peter Brown: Does the Minister appreciate that I think most people in
this House would see $1.7 million as a huge loss, and would he be
receptive to seeing some figures of a more modest level and consider
a subsidy, at least for a short term?

Hon Dr MICHAEL CULLEN: I have been approached by a number of local
authorities. My understanding at this stage is their notion of a
business plan may be that we pay. I am waiting to see a business plan
that has someone else also perhaps paying.

Keith Locke: I seek leave to table a press release issued by the
Auckland Regional Council last night calling for a continuation of
the Overlander for an interim period of 12 months, and the
construction of a financial rescue package and an operational
strategy saying that the service does have huge potential.

Hon Dr MICHAEL CULLEN: Can I ask whether any member of the Auckland
Regional Council who issued that statement has travelled on the train
in the last year?

Leave granted.

Old mother Herald ( NZ Herald )predictably stating that there should be no subsidy for the overlander . but otherwise not a bad editorial with some valid points .
http://www.nzherald.co.nz/search/story. ... 027AF1010F

http://www.greens.org.nz/searchdocs/other10085.html

Not much meat in it , but its a start .

Purpose of Report: Information and Decision

Reporting From: The Chairs of the Auckland Regional Council, Environment
Waikato, Horizons Manawatu and Greater Wellington Regional Council
Date: August 2006

Staying connected - the Overlander - the future of passenger services and
the North Island Main Trunk line

1.SUMMARY

Toll Holdings intend to cease operating the Overlander train service on the
30th September 2006. This will mark the end of a passenger rail service
between Auckland and Wellington and will leave many communities along the
North Island Main Trunk Line without a passenger rail service.

The main trunk line (NIMT) is a key piece of economic infrastructure for the
North Island. It provides a strategic passenger transport connection between
the Auckland and Wellington and is an important lifeline for the cities,
towns and communities along the line. It is also provides a vital degree of
strategic resilience to the national land transport system. The Overlander
has been credited with creating 'hundreds of thousands of dollars' of
economic impact for communities along the line.

The Chairs of the Auckland Regional Council, Environment Waikato, Horizons
Manawatu and Greater Wellington Regional Council are very concerned over the
loss of this service. Ironically the closure decision comes at a time when
there is renewed interest in recommencing rail services eg Hamilton and
Auckland and Rotorua, Mt Maunganui and Auckland. The announcement has been
followed by speculation about the future of the freight rail services
including the including possible end of all services on the NIMT (NZ Herald
31/7/06).

This report advocates for the continuation of the Overlander for an interim
period of 6 months to enable the Auckland Regional Council, Environment
Waikato, Horizons Manawatu and Greater Wellington Regional Council to work
with the Government and Toll Holdings on determining the possibility of a
joint financial rescue package for the Overlander, and investigating the
suitability of supporting Toll NZ as the operator or a possible new
operator.

2.NARRATIVE

2.1 The Situation

Toll Holdings intend to cease operating the Overlander train service on the
30th September 2006. This will mark the end of a passenger rail service
between Auckland and Wellington, 98 years after the first service began. It
will also leave many smaller communities along the North Island Main Trunk
Line without a rail service.

Toll Holdings have approached the Government for financial support to enable
the service to continue and reached a decision to cease operating the
service once cabinet determined that financial assistance would not be
forthcoming.

Toll attribute the decision to cease operating the Overlander to falling
patronage. Passenger numbers are reported to have declined from 90,000 per
year to 50,000 per year over the last two years. The Government's view was
that the subsidy required was too high given that only around 90 people per
day now travel on the Overlander. Commentators and rail advocates point to
the lack of promotion and substandard rolling stock and services.

During the recent On Track industrial dispute Overlander services were
cancelled and remained cancelled for almost a full week after the strike was
over, despite it being the middle of school holidays when partronage would
be high. This raised questions in some quarters about the depth of Toll's
commitment to the service. Freight trains between Auckland and Wellington
were unaffected by the strike.

One issue that has arisen is the length of time for the Auckland -
Wellington trip, and the effect this has on patronage. The current trip
time is 12 hours, increased from under 11 hours since Toll took over the
operation. In the 1960s a railcar run was accomplished in 8.5 hours,
showing what could be achievable under the right circumstances. Arguably a
9.5 hour journey could be attainable if the schedule was reorganised.

Toll has indicated that in order to continue operation of the Overlander it
would require an operating subsidy of $1.75m per annum and a capital subsidy
to allow for rolling stock upgrades of $500,000.

2.2 Implications of losing the Overlander

The main trunk line is a key piece of economic infrastructure for the North
Island. It provides a strategic passenger transport connection between the
Auckland and Wellington and is an important lifeline for the communities and
towns along the line. It provides a vital element of strategic resilience
to the national land transport system.

The Overlander has been credited with creating 'hundreds of thousands of
dollars' of economic impact for communities along the line. For example,
losing the Overlander will remove a key means of getting tourists to Ohakune
and National Park. For example last year the Station Café in National Park
had 39,414 patrons who were Overlander passengers. Ruapehu District Council
has worked hard at building a visitor presence in Ruapehu and this move will
undermine that work.

A longer term implication of losing the Overlander is that once passenger
services cease the condition of rail infrastructure might be allowed to
deteriorate so that it would become even more difficult to reinstate
services in the future due to the cost of rectifying any deferred
maintenance. There is a concern that the progressive retrenchment of
services on the NIMT may lead to further deterioration of the line itself.

2.3 Proposed Way Forward

It has been suggested that the chairs of the Auckland Regional Council,
Environment Waikato, Horizons Manawatu and Greater Wellington Regional
Council approach the Government directly on this issue. However, the
Government has already indicated that it does not feel that the cost of the
subsidy required to save the Overlander is justified given the low levels of
patronage. However, the Minister of Finance has intimated to the Chairman
of the ARC that he is open to ideas and has noted the popularity of services
to National Park especially during the ski season.

Therefore, in order to stand a chance of success in persuading the
Government to reconsider supporting this service a number of issues will
need to be addressed. These include:

· Determining the full extent of the loses that will occur to the
communities along the main trunk line from the cessation of the Overlander.
It would be helpful for the four councils to develop a strong and well
informed case for supporting the service before seeking a final decision
from the Government.
· The four councils considering some form of financial rescue
package with the Government.
· Examining the factors behind the reported 45% fall in passenger
numbers over the last two years. This may help to determine if there are
practical steps that could be implemented to reverse this situation as part
of a rescue package.
· Examining running time issues. Actions such as different rolling
stock, reviewing priorities relative to freight traffic and track
improvements, or a combination of these measures, would provide reduced
running time and improved patronage.

Given these issues it is recommended that an urgent approach be made to the
Government and Toll Holdings by the chairs of the Auckland Regional Council,
Environment Waikato, Horizons Manawatu and Greater Wellington Regional
Council advocating for the continuation of the Overlander for an interim
period of 6 months.

This would enable the Auckland Regional Council, Environment Waikato,
Horizons Manawatu and Greater Wellington Regional Council to work with the
Government and Toll Holdings on determining the possibility of a financial
rescue package for the Overlander. This should include an assessment of the
local and national benefits of the Overlander and the opportunities for
reversing the recent decline in patronage.

2.4 Legal Implications for Toll Holdings

The National Rail Access Agreement between The Crown and Toll Holdings
contains a 'Use it or Lose it' provision. Under this provision Toll's right
of exclusivity in respect of individual line segments terminates under
certain circumstances. Under clause 5.1 (a) (iii) Toll's right of
exclusivity in respect of passenger services terminates if Toll ceases to
operate regular passenger services between city pairs, so long as the
service was in place at the time the Rail Access Agreement was signed and
the service ceases to operate for a 12 month period or longer. 'Use' is
defined as at least three services per week departing from each city.

3.Conclusion

Under the Local Government Act 2002 Regional Councils have elevated
responsibilities for regional economic development The main trunk line is a
key piece of economic infrastructure for the North Island. It provides a
strategic passenger transport connection between the Auckland and Wellington
and is an important lifeline for the communities and towns along the line.
The NIMT has social and cultural attributes as well as economic. The NIMT
is an historic talisman of New Zealand's national identity and national
unity, its completion in 1908 is considered a major event in the creation of
New Zealand as a nation state

On this basis this report advocates for the continuation of the Overlander
for an interim period of 6 months. This would enable the Auckland Regional
Council, Environment Waikato, Horizons Manawatu and Greater Wellington
Regional Council to work with the Government and Toll Holdings on
determining the possibility of a financial rescue package for the Overlander
and the question of the long term nature and management of the service.

4.ECOMMENDATIONS

The chairs of the Auckland Regional Council, Environment Waikato, Horizons
Manawatu and Greater Wellington Regional Council should approach the
Government and Toll Holdings advocating for the continuation of the
Overlander for an interim period of 6 months so that the possibility of
constructing a financial rescue package for the Overlander can be
investigated.

The chairs of the Auckland Regional Council, Environment Waikato, Horizons
Manawatu and Greater Wellington Regional Council seek to work with the
Government and Toll Holdings on determining the possibility of a financial
rescue package for the Overlander. This is to include an assessment of the
local and national benefits of the Overlander and the opportunities for
reversing the recent decline in patronage.

It is recommended that:

· That the Chairs of Auckland, Horizons, Waikato and Wellington seek
a meeting with the Minister of Finance to discuss with him the regional
councils concerns that the Overlander or a similar passenger rail service be
continued on the NIMT, either managed by Toll or another operator.

· That the Chairs report back to their constituent councils and RAC
to formulate agreed long-term solution with the government.

Hopes remain that New Zealand Rail's "journey of a lifetime" – the
Auckland-Wellington Overlander service – will survive.

Its owner, Toll NZ Ltd, announced plans in July to quit the service
from September 30, bringing to an end 97 years of direct passenger
rail services between Auckland and the capital.

Toll cited dwindling passenger numbers – just 68,000 in the year to
June 30, 2006 – and an annual loss on the service of more than $2
million as reasons for its decision.

But widespread reaction to the Overlander's planned demise has put
pressure on the Government to stump up with a $1,775,000 subsidy
needed to allow the service to break even.

Finance Minister Michael Cullen rejected contributing to the coffers
of an Australian-owned company which, he said, looked for "very high
rates of return on its investments".

Yet the subsidy would not require a cash handout or involve the
Government in rescuing another lame duck – as it did in 2001 with
the $885 million bailout of Air New Zealand Ltd.

Toll runs a highly profitable freight operation and is in New
Zealand for the long haul.

AdvertisementAdvertisementAll the Government has to do is heavy the
state track owner-operator, Ontrack, to limit plans to hike the
$36.7 million annual fee it charges Toll for access to the network.

Ontrack, the trading name for the New Zealand Railways Corporation,
took over the railway infrastructure in 2004 when Toll Holdings Ltd
sold it back to the Government after acquiring the rail business
from the troubled Tranz Rail Holdings Ltd the previous year.

The deal committed the Government to inject $200 million into the
rail network in return for Toll spending $100 million on upgrading
rolling stock.

Ontrack recorded an operating surplus of $91.8 million in the year
to June 30, 2005. It claimed the previous 12 years of private-sector
ownership – the period before Toll's involvement – had
been "characterised by under-investment in the network which had led
to deterioration of the asset and growing concerns about safety".

Certainly, poorly maintained lines and the speed restrictions that
result, are something Overlander passengers can relate to.

Few of the problems relating to long-distance passenger services can
be placed at Toll's door.

When it entered the New Zealand rail business in October 2003, Tranz
Rail had already axed the Auckland-Rotorua Geyserland Express, the
Auckland-Tauranga Kaimai Express, the Auckland-Hamilton Waikato
Connection, the Wellington-Napier Bay Express and the Christchurch-
Invercargill Southerner (cut by then Tranz Rail associate Tranz
Scenic).

Toll's contribution came in November 2004 with the ending of the
loss-making Northerner night express between Auckland and
Wellington.

The Northerner passed largely unmourned but not so for the
Overlander – the last surviving passenger service between Auckland
and Wellington.

The twin trains, which depart each morning from Auckland and
Wellington, offer a world-class rail experience through heartland
North Island, even if the rolling stock is old and the
carriages "tired".

The 12-hour journey, that once held sway over air travel, has little
commuter interest these days but massive tourism appeal.

It covers 681km of stunningly varied countryside on a track that
crosses 352 bridges and passes through 14 tunnels.

For train buffs, the greatest attraction is the Raurimu Spiral, an
Edwardian engineering masterpiece that allows the south-bound
Overlander to climb the steep gradient on to the Volcanic Plateau.

By any measure it is impressive, though New Zealanders used to the
Northerner, the long-gone Night Limited or the even slower night
expresses would never have seen it.

Indeed, until 1930 when the Daylight Limited was introduced,
virtually all train travel between Auckland and Wellington was at
night.

The Blue Streak and Silver Fern railcars, that plied the line
between 1968 and 1991, introduced a new generation of travellers to
North Island daylight travel.

Strangely, passengers on the most luxurious rail service seen in New
Zealand, the ill-fated, all-sleeper Silver Star Express, which ran
from 1971 to 1979, never experienced the joy of seeing the Tongariro
National Park or the majestic Rangitikei River in daylight.

The Silver Star Express was a bold attempt by the then state-owned
New Zealand Railways to recapture the hearts of rail travellers with
a Japanese or European-type train experience.

It failed miserably and the polished stainless steel carriages ended
up in Malaysia, unable to be converted to seated cars because they
contained asbestos.

The end of the Silver Star Express led to a long dispute between
railways workers and the management. There will be no such dispute
this time around with the Overlander.

The fight is between the Government and an eclectic mix of groups,
councils and individuals who want the service saved in the public
interest.

The Green Party, not normally friendly to private enterprise, has
led the charge, putting considerable pressure on Dr Cullen to save
the service.

In Parliament last month (SUBS: AUGUST), Dr Cullen was asked if he
would consider seriously a proposal from Toll requiring a modest
subsidy for a short period, providing he received a proper business
plan.

Dr Cullen replied that in the "extraordinarily unlikely event" that
Toll made that offer, he would seriously consider it.

"What I have received is an offer of an ongoing, in perpetuity,
subsidy, which, given our experience with the current contracts on
rail access, would no doubt be sought to being revised subsequently
in Toll's favour very substantially," he told Parliament.

Greens MP Sue Kedgley then asked how the loss of the North Island's
only long-distance passenger rail service fitted in with the
national rail strategy.

That strategy committed the Government to "retaining the existing
rail network" and "maximising the use of rail transport in New
Zealand".

Dr Cullen did not address the point but it was not lost on him.

It is understood that Toll, far and away Ontrack's largest customer,
is not necessarily seeking a reduction of its rail access fee but
rather a pruning back of proposed hefty increases in coming years.

Given the Government's drop in the opinion polls, a tweaking of the
rail access fee increase with the nod of the minister – sufficient
also to allow a $500,000 upgrade of the Overlander's aging
carriages – is not beyond the realms of possibility.

But for Ontrack, a scaling back of any fee increases is not
straightforward.

The rail network is in a far poorer shape than Ontrack first thought
and the acc ess fee it wanted to cover "reasonable" maintenance
expenses was beyond that which Toll was willing to pay.

It has been haggling with Toll, which has exclusive access to the
network until 2070, ever since.

Overlander survival talks on track
http://www.trademe.co.nz/Browse/Listing ... key=437700

http://www.stuff.co.nz/stuff/waikatotim ... 79,00.html

actually starting to look quite hopeful that train will be saved .
i'm not sure if George Bush would apporve of a model of an amtrak Loco been used by the green party of NZ !

http://www.nzherald.co.nz/search/story. ... 027AF1010F

wouldnt be surprised if this guy form redneck country is against the train just because the greens are trying to save it .

David Benton wrote:http://www.nzherald.co.nz/search/story. ... 027AF1010F

wouldnt be surprised if this guy form redneck country is against the train just because the greens are trying to save it .

Sounds like a Thatcherite.

The overlander provides a break in a parliamentary squabble about who wasted the most taxpayer funds .

"The Greens were the unlikely icebreakers, with that party's attempts to save the Overlander rail service being run off the rails by Finance Minister Michael Cullen.

Sue Kedgley asked Dr Cullen if he had taken the train recently.

"No, I do not usually have 12 hours to travel from Auckland to Wellington, and the pleasure sounds like too much for my elderly soul to manage," Dr Cullen replied.

New Zealand First deputy leader Peter Brown highlighted the recent upsurge in trade on the Overlander and wondered if it might not encourage the Government to consider subsidising the service? Dr Cullen suggested people were getting in while the getting was good.

"That could lead to what one might call an 'Irish solution' of continuing to announce the closure of the route every so often in order to increase the patronage."

David Benton wrote:
"That could lead to what one might call an 'Irish solution' of continuing to announce the closure of the route every so often in order to increase the patronage."

Sure, and isn't that an excellent solution?

that was doctor cullens suggestion , not mine . typical of his humour , but it does show that theres alot of people out there with very fond memories of nimt rail travel . he overlander name is quite recent , most people probably still identify with such names as the silver ferns , northerner , and silver star , or going further back , the daylight expresses .

David Benton wrote:that was doctor cullens suggestion , not mine . typical of his humour , but it does show that theres alot of people out there with very fond memories of nimt rail travel . he overlander name is quite recent , most people probably still identify with such names as the silver ferns , northerner , and silver star , or going further back , the daylight expresses .

My remark should be read with an Irish accent.

You will note the increasing urgency of scientists' worries about climate change, even yesterdasy. Something is going to have to be done about air transport which is the fastest growing emitter of carbon dioxide. This must include raising the price of flying.

lol George .
noone seems to remember that the govt bailed out air nz to the tune of 100's of millions od dollars a few years ago .
the govt seems confused on its greenhouse gas policy , it seems to genuinely want to do somehting but has made several strange decisions . The biggest would have to be not giving tax breaks or subsidies to landowners reverting marginal farmland back to forest .
Meanwhile on the overlander story , a petition is disallowed partly .
http://www.stuff.co.nz/stuff/0,2106,3798256a11,00.html