New Zealand’s state-owned operator KiwiRail achieved $55 million in earnings in FY19, up $6 million.
KiwiRail, which owns New Zealand’s freight railways and operates both passenger and freight services, reported an 11 per cent increase in revenue in FY19 on August 30.
That drove an increase to its operating surplus – earnings before depreciation & amortisation, interest, impairment, capital grants and fair value changes – of $6 million, to $55 million for the full financial year.
Improved revenue was driven by a $39 million increase in rail freight revenue and increased utilisation of the Main North Line following its restoration after the Kaikoura Earthquake.
KiwiRail acting chair Bob Major said the profit growth was an achievement during a transitional year for the operator. KiwiRail in May moved chairman Greg Miller to the role of CEO.
Major also noted a ‘transformational’ amount of funding committed over the next two years by the government would help drive further growth.
“Not only did KiwiRail deliver a solid result, we are also very grateful to our Government shareholders for securing the future of rail for New Zealand. The Government’s commitment of $1 billion in this year’s budget will enable us to bring our service up to standard over future years,” Major said.
The NZ budget in May committed $375 million for new wagons and locomotives, $331 million for track and infrastructure, and funding for KiwiRail to begin replacing its Interislander ferry fleet. It also provisioned $300 million from the Provincial Growth Fund for regional rail projects.
Major said KiwiRail had also had a successful year with its people.
“KiwiRail’s engagement survey achieved a highly satisfying response, at 87 per cent of all workers despite many being on shifts or unwired in remote locations,” he said.
“We are particularly proud of the way our South Island teams pulled together in Christchurch on March 15 [after the Christchurch mosque shootings] to ensure all our team members were accounted for, counselling was engaged promptly and a week of site visits ensued to ensure the wellbeing of our people.”