Investigation Of Suburban Rail Passenger Services

Press, Volume CVIII, Issue 31662, 24 April 1968, Page 32

Investigation Of Suburban Rail Passenger Services

(New Zealand Press Association)

PALMERSTON NORTH, April 23.

The Railways Department suburban passenger services would be investigated by a committee of inquiry later this year, the general manager '(Mr I. Thomas) said in Palmerston North yesterday.

The committee’s terms of reference would include: Future administration of the department; how to offset rising suburban passenger losses; introduction of containers; development of rail systems; and more economical suburban services.

"An inquiry is essential because the future of the New Zealand Railways is at present so uncertain,” Mr Thomas told a Rotary luncheon.

Mr Thomas said that the railway results for the last year would show a small profit in spite of substantial losses on suburban passenger operations. They would show that freight transport by rail was profitable.

“There are so many problems facing us that it is impossible to look ahead without a complete investigation.” In June, Mr Thomas will study railways operations in Britain, Canada, the United States and Europe. Good Image "The ability of the Railways Department to bear losses is becoming more and more difficult,” he said. “We need capital and a good public image for future development The question of whether we should participate as a business or a community service must be answered. “We can’t continue to pro-

vide a service without the proper equipment and we can’t get the equipment if we’re running at a loss. “Uneconomic suburban services—which lost $2,250,000 last year—can’t be carried «n much longer without some form of compensation. ‘Too Valuable’ “If this is not available, the system will gradually run down—and it’s far too valuable to let this happen. “At the moment freight users are carrying the suburban service’s losses. This can’t go on,” said Mr Thomas. “Wellington suburban services are a big headache. Because there are only two short peak periods in a day, they are operating on less than 20 per cent utilisation. The more passengers we get, the more money we lose. “We’re also charging low fares during these high-cost peak periods. This situation is economic nonsense, but we are stuck with it” Transport Body Mr Thomas said he would like control of the Railways Department to be assumed by a transport authority.

similar to that now being established in Britain. The airways would operate under contract to the authority, which could be financed from a variety of sources “rates, fares, or contributions from a reading authority such as the National Roads Board,” said Mr Thomas.

Jn Canada, the roading authority paid the s2m annual railways loss with the knowledge that the railways was actually reducing its roadiifg requirements. This was a system that could possibly be adopted in New Zealand, Mr Thomas said. Small Profit The department would show a small profit for 196768, in spite of last year’s 10day strike which cost about $1.5 million ’nd a 1 per cent drop in freight tonnage. Expenditure was reduced by more than s2m. Mr Thomas predicted that if things were handled properly the demand for rail services would grow with New Zealand.

“With heavy industry booming and new rail freight-hand-ling methods being introduced, the need for more locomotives, better track and sig-

nals, specialised waggons, more rolling stock, bigger yards and modem stations is rapidly approaching,” he said. Container System “We are also looking at the possibility of setting up container assembly and distribution depots. “Palmerston North is a prospective site for a container depot for the lower North Island. “On the passenger side, 1 believe we can attract more business,” he said. “Long-distance trains are running at a profit now; and the proposed luxury overnight Auckland-Wellington express should be a success. “But short-distance travel is a problem no-one can answer. The experimental luxury rail-car now running between Auckland and Hamilton is a genuine effort to study the short-distance market. New Engines “Turbo-jet powered railcars are a distinct possibility for New Zealand. “Because of our loading gauge limitations and tunnel sizes, rail-cars must have un-der-floor engines. A small turbo-jet could easily be adapted,” said Mr Thomas.