New Zealand’s national rail operator KiwiRail has posted improved financials for the first half of FY19, with overall revenue up 12 per cent on the previous year.
KiwiRail chairman Greg Miller said on February 20 the company was making good progress shaking off the impacts of the 2016 Kaikoura earthquake, which inflicted substantial damage to infrastructure on the South Island’s Main North Line.
“It will take some time to get back to where we were before the Main North Line was closed following the quake but we are seeing increased demand in this result,” Miller said.
Following the reopening of the Main North Line, KiwiRail reported 30 per cent growth in domestic freight revenue in the first half of FY19.
This was bolstered by 15 per cent growth in forestry revenue, 8 per cent growth in bulk freight revenue and 8 per cent growth in tourism revenue.
The state-owned operator reported an operating surplus of $16.3 million, up 7 per cent year-on-year for the first half.
“KiwiRail has overcome enormous challenges in the past two years and there are still increased cost pressures resulting from increased regulation, compliance and committing to future investments that will pay back in the long term,” Miller said.
“What this result highlights, however, is that we are ready to embrace growth and invest in our next phase of development.”
Miller said getting more freight on rail would be crucial for the continued development of both KiwiRail and New Zealand as a whole.
“The more freight we get onto rail, the fewer trucks we have on New Zealand roads which increases safety for everyone, reduces carbon emissions and means less road maintenance for taxpayers.”
Acting chief executive Todd Moyle agreed.
“New Zealanders are increasingly seeing the benefits rail delivers in our cities, in growing regional economies and in making our roads safer,” Moyle said.