Why is Kiwirail failing so appallingly?
Because it is a neoliberal nightmare that just never ends.
Let’s remember that the wankers who privatised it, stripped it of assets and sold it back to Kiwis…
…so Faye and Richwhite advised the Government to sell off the railways, went and quietly bought it themselves for a fraction of the real value, made a fortune asset stripping it, left behind a broken clusterfuck the Government had to buy it back, and because it’s been so underfunded for such a long time, the entire struggling super structure of the system is broken.
Wellington train disruption could now last days instead of weeks
The organisation came under heavy criticism on Friday as it was announced Metlink train services would be reduced throughout May after a 70kph blanket speed restriction was to be imposed on KiwiRail’s Wellington network starting Monday – because the country’s only track evaluation car broke down.
Its chief operations officer Siva Sivapakkiam said on Saturday the track evaluation car could leave its Auckland workshop early Sunday morning and arrive in Palmerston North that night. The company is aiming to have all speed restrictions dropped by Friday night, May 5, at the latest.
…the exact same incompetence happened in Auckland in 2021…
A year ago yesterday, and in the middle of Auckland’s second lockdown, speeds on the entire Auckland rail network were slowed to just 40km/h as a safety precaution after Kiwirail revealed wear on the tracks, known as Rolling Contact Fatigue (RCF), was more widespread and severe than they previously realised. At the time they said they urgently needed to replace 100km of track across the network.
A week later they shut the entire Eastern Line between Quay Park and Westfield down for two weeks in order to accelerate that work. That two weeks extended to four weeks and over the subsequent six months or so the rest of the rail network experienced various closures as Kiwirail worked to fix the issues. As of early February, with just the Pukekohe line to go, Kiwirail said:
“So far we have replaced more than 112km of damaged rail which is 84 per cent of the required re-railing work overall. At the same time, we’ve replaced close to 20,500 sleepers and destressed 95km of rail track.
They now say they’ve replaced 130km of rail which is significant when you consider there’s just over 180km of track passenger services run on.
After thinking the work was all done, more issues surfaced in mid-June which saw Southern Line slowed down again and services reduced as a result which lasted till late July. This and issues like left over rail causing $250,000 of damage to Auckland Transport’s trains and Kiwirail prioritising of freight prompted letters from the Mayor and AT and included calling on the government to put people with asset management and public transport experience on the Kiwirail board.
…and how did this all happen? How did all these underlying issues suddenly spring up?
An independent report has been released providing a route cause assessment for how the network (AMRN – Auckland Metro Rail Network) got into this position.
Findings
There were three key areas studied, the track, the vehicles and the wheel rail interface (WRI). Here are the findings for each of them.
Track
The report highlights that while there has been investment in network improvements, such as double tracking, new stations, new signalling, electrification and new trains, the “existing track and civil infrastructure, including historic formation was not upgraded under any of those programmes“.
…here’s what does my head in…
In 2014, prior to the commencement of the new electrified service, AT engaged Network Rail Consultants to evaluate the overall state of the infrastructure. The evaluation effectively concluded that substantial investment (~$100m) in the AMRN [Auckland Metro Rail Network] track assets was needed to ensure it would be fit for purpose for the proposed EMU operation. This investment was not approved and the parties instead relied on increased inspections for safety, track speed restrictions, and accepted the infrastructure would provide lower levels of service.
…so they knew there were these huge legacy infrastructure problems and their cheaper solution was an increased inspection regime, the very regime that has broken down in Wellington.
So.
An asset that was privatised to the rich who helped sell it to themselves, stripped it of all its assets, left the Government to buy back a fucked up broken system and instead of upgrading, they chose a cheaper inspection regime, one that just broke down.
If the rich paid their fair share, we could rebuild the infrastructure they robbed us of.
Bernard Hickey has argued, “We could have gotten $200 billion in extra tax revenues if only there had been a fair tax system which meant that capital gains were taxed at the same rate as every other type of income.”
There are 14 Billionaires in NZ + 3118 ultra-high net worth individuals, let’s start with them, then move onto the Banks, then the Property Speculators, the Climate Change polluters and big industry!
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Rail is one area the government can make a difference in their carbon reduction goals that they’re so concerned about, apparently, that does not involve subsidising Grey Lynn and Birkenhead Point residents Tesla purchases! But they don’t get it, do they?
One track inspection car for the entire North Island? One? For fuck sake! I assume Kiwirail believe it is the only ever lasting man made object in existence. And they have it!…Morons!
Yesterday a chunk of Aucklands awful bus fleet just up and vanished. There are insufficient buses in Wellington to replace trains, leaving Richard Hills twittering for more buses which says more about our crap public transport system, than anything. Yet our Minister for Transport tells us he wants car use reduction and people using the alternatives publically provided.
Michael, get a real job.
Our Transport Minister is a bit dim so don’t expect anything.
Any sensible person would have their faith in public sector competence crushed by the KiwiRail saga.
Along with the local authorities’ running their water systems, NZTA, the mega-merged polytechnics, the centralised health system after the localised DHBs health system, plummeting vaccination rates, skyrocketing school absences, etc
Not really.
You can be damn sure that within KiwiRail there would have been people messaging the inadequacies of the existing infrastructure. You can also be damn sure that the business case for investment to rectify this would have been made and rejected at the top table in combination with the minister. Ultimately it comes down to a bet at the top, will I be around for the consequences of this decision to fall on my head? Usually the answer to this is “no” and the result is that the successors inherit the failed bet made by others. Not investing equates to cost control which makes the executive in charge look like they’re competent and ready for the next promotion.
Lack of investment is a blight on our futures but it has been institutionalised within the treasury and the neoliberal status quo. It’s not an easy fix but clear transparency around the investment deficit would be a great start.
Fair point – I originally had included Ministers in my comment about competence, but didn’t want to kick off a party political bun fight.
And the business case would have been made – but capex for SOEs is always up against other, more enticing spending.
Well said Ada and dispite their terrible track record some are calling for the government to run a grocery business to compete against the 2 main players. This mob could not run a bath.
Q: Why is Kiwirail so useless?
A: Because it’s an SOE.
Q: Why are our postal service and our universities similarly poor?
A: See above.
That’s such a distorted view it didn’t resemble anything like it’s 1980’s equivalent track system. Now look, your stick in 2 hour long tragic jams complianing it’s all rails fault.
except it’s not an SOE is it bratty?
Brilliant article, a reminder for those around at the time, and a strong lesson for younger people.
To paraphrase an old Marxist saying…“it is not enough to just interpret the world, the point is to change it”.
It looks more and more that a new left grouping is required for 2026.
A left wing is emerging output of the ashes of the Labour neo-liberal government. The Hipkins austerity initiatives are not welcomed by the progressives in the Labour government.
no shit…feel free to share the details…
You will read all about it very soon.
I have lived in Dublin. Where I used to nearly jog/ fast walk . between some stops..faster than the Lewis Line trams Mr Wood wants to put through Dominion Road.
So forget about ,18 billion for this. This money needs to go in to Kiwi Rail and fixing up highways.
You will have to forgive Mr.wood he’s not very bright,plus he has to keep up the Labour Government failure rate.(100%)
A fucking fire-sale. BTW there will be no beer at the 100th anniversary celebrations of the Otira Rail Tunnel, the pub has no licience
Kiwirail buy trains with asbestos that they can’t use. They then go back again and buy more trains with asbestos.
More Chinese trains to be bought despite asbestos headache
https://www.rnz.co.nz/news/national/308206/more-chinese-trains-to-be-bought-despite-asbestos-headache
“KiwiRail has confirmed it will buy another 15 Chinese locomotives, despite reliability problems and asbestos contamination in the engines it already has.
KiwiRail has spent at least $12 million clearing the material from the engines, and documents show that 24 – at least half of them – that had been given the all-clear still contain asbestos.”
They then bought in Chinese workers to fix the the asbestos that were so underpaid that the unions had to feed the workers and legal action everywhere (commercial, ERA) has ensued.
Kiwibuild seem to be on the private road gravy train to stop NZ getting trains working.
Trains are great, but those in charge of trains, keep making it worse for some reason!
Nobody wants to ride on asbestos trains for health and safety reasons, so why are Kiwirail bosses buying them – no normal train company would buy faulty and health issue trains.
Thanks.
Interesting story.
Buying more of something that does not conform with your specifications and requirements. Makes sense…..
There is a group of Green idiots that are holding up workers and people trying to get to hospital to have more trains that no one will use
Kiwirail is so useless because we only have 5 million people and 3 million taxpayers and we expect train systems like fucking Tokyo or Germany and we’re totally in unrealistic idiots and it’s a total waste of the little bit of tax income we have. Give it up New Zealand, it’s a stupid pipe dream. Nobody wants bloody trains here. We like cars that can tow boats and carry bikes. Just build a decent autobahn so we can drive our EVs from Auckland to Wellington in 4 hrs, not 10. Fuck sake!
We have identified 313 wealthy who are eager to help fill treasury coffers.
Fay & Richwhite needs to chip in a billion or two. Because they can.
I have seen it claimed elsewhere by insiders that kiwirails train and ferry issues are to do with its management structure and the practice of running down inventory of spare parts to push up future budget allocations and achieve performance bonuses.
This from the post is a perfect analogue for Labour and its dis-stress at present,
Kiwirail revealed wear on the tracks, known as Rolling Contact Fatigue (RCF), was more widespread and severe than they previously realised. At the time they said they urgently needed to replace 100km of track across the network.
Critique of the above: Yeah man, you said it good.. (Of course National would have installed a bullet train from Willingtown to Diptown.)
Let us not continue to trample on the corpses of our past merchant bankers. That the damage is still present within this and other organizations to this very day is the responsibility of the New Zealand Government as they chose to be advised and to take that advice on board.
I mean Martyn, you love to blame ‘the rich’ here but the government is primarily at fault.
Auckland tracks have been in the state hands since 2001.
The rail network outside of Auckland was bought back in 2004 for $1. <- looks like a horrible return on investment for the 'greedy rich'.
When Ardern's government came in in 2017 they cancelled a lot of roads the Nats were gonna build. They then committed to building most of them in the 2020 election.
Did they invest in the railways to avoid this problem? No. They could have though. So could Clark. So could Key.
easy peasy chocolate squeezy..when your owners business model is extract every penny for share holders by not investing this isn’t a surprise look at the UK/US for the results of the privatised utilities model it fails the customer every single time….and before the rightards jump in name one service that is better or cheaper as a result nof privatisation, g’wan just one, darezya