KiwiRail’s revitalised Hillside Workshops in Dunedin were officially opened last week by Rail Minister Winston Peters and Regional Development Minister Shane Jones.
Hillside is KiwiRail’s main heavy maintenance facility for the South Island, and the rebuild includes a multi-purpose 5,500 square metre workshop with 21 workstations, so that numerous locomotives, wagons and other rail vehicles can be worked on at the same time.
The Hillside Workshops date back to the 1870s and one of the original buildings from the time has been preserved and earthquake-strengthened, and is being used for parts storage.
There are also new facilities for KiwiRail’s Dunedin track teams and a new office space shared by mechanical and infrastructure teams.
KiwiRail Chief Executive Officer Peter Reidy said the workshops have a long history in South Dunedin.
“Most locals have a family member or know someone who worked here and our current staff are part of a long and proud tradition.
“With significant Government investment, an aging 19th Century rail plant has been transformed into a modern 21st Century one, which is allowing us to better deliver for our freight customers and grow rail in the South Island and the rest of New Zealand.”
Wagon assembly began at Hillside in March 2024. By the end of April 2025, 401 wagons had already been put together on site.
“Not only is the new Hillside providing a modern environment for our mechanical teams, wagon assembly has created jobs, introduced new skills and is providing a wider experience base for our apprentices,” said Reidy.
“Our Dunedin track teams are also based at Hillside for the first time, helping to grow the culture of the place. With those teams now moved in, there are around 100 people working at the site.”
The rebuild of Hillside was funded with almost $20 million from the Government’s Provincial Growth Fund in 2019, $85 million from Budget 2021 to upgrade the facilities and fund wagon assembly, and $23 million from a wider Government investment in replacing KiwiRail’s aging locomotives and wagons.
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