Only Part Of Rail Change Project

Press, Volume CIV, Issue 30936, 17 December 1965, Page 1

Only Part Of Rail Change Project

The World Bank’s £l5 million loan for the modernisation of New Zealand’s railways represents only part of an over-all rolling stock re-equipment project estimated to cost £25,560,000 and planned for completion by March, 1969.

This was stated in an explanatory release by the Minister of Railways (Mr McAlpine).

He said the project would allow the change from steam to diesel motive power to be completed throughout New Zealand. “The aim of the project is to modernise and improve the railway facilities, to increase the efficiency of its operations and to improve its finances.” said Mr McAlpine. He said the £l5 million World Bank loan represented the overseas expenditure on equipment being procured as part of the continuing policy to modernise the railways as quickly as reasonably possible The Minister said the loan would cover the purchase of 114 main line diesel locomotives (of which 25 were being built), 15 diesel shunters now at tender. 2300 freight waggons (of which 1300 were being built overseas and 1000 were now at tender), and the financing of the new Cook Straight ferry Aranui (now being built in Britain). World Tenders He said international tenders would be invited for the remaining 89 main line diesel locomotives early in the new year. Commenting on the World Bank Loan, Mr McAlpine said transport experts from the World Bank had fully investigated the required invest-

ment programme and revenueexpenditure forecasts through to 1971 when they visited New Zealand recently. “It was clear that the Government’s policy to modernise the railway system would—with the country’s undoubted growth and development—result in a substantially improved financial position for the railways,” he said. The Minister said the aim was to make railways a viable concern, and the approval of the World Bank to a loan which would expedite the implementation of Government policy was an expression of confidence in the part rail! transport would continue to; play in the over-all transport; needs of the country. Mr McAlpine said while replacement of passenger equipment was not included in the specific project, the necessity to modernise passenger rolling stock was not being overlooked.

Priorities “It was a case o.' first things first—having regard mainly to the limited technical engineering staff available for the detail design required in re-equipping with locomotives,” he said. The same consideration applied to freight waggons—many of which were of completely new design—and passenger cars, he said. Mr McAlpine said, however, that progress was being made with the design of new passenger rolling stock and he expected greater progress would be possible in die New Year.

“As modernisation proceeds, it will be the continuing aim of the railways to provide an increasingly efficient service—but this can only be achieved by the elimination from time to time, wherever practicable of uneconomic services, and at least the reduction of such services to a minimum,” he said.