ECONOMIC ASPECTS OF NORTHERN RAILWAY-NEW WAIOEKA ROUTE

Gisborne Herald, Volume LXXV, Issue 22637, 14 May 1948, Page 4

ECONOMIC ASPECTS OF NORTHERN RAILWAY-NEW WAIOEKA ROUTE

“If we oppose the linking- by rail of the last remaining large ancl fertile district in New Zealand on the grounds that railways are uneconomic we must, to be logical, consider the scrapping of our entire existing railways system,” stated Mr. 0. H. Cooper, president of the Gisborne-East Coast Regional Council, addressing the Junior Chamber of Commerce at its fortnightly meeting.

I “In view of the world's dwindling oil supplies, would this course be wise?. ! Admittedly, as a stop-gap, we are running a I'ew locomatives on fuel oil. We I may shortly be running them on elecj trie power,” he added. | Mr. Cooper pointed out that the 3300 I miles of existing railways in New Zea- | land carry about 9,000,000 tons of freight per year, and travel about 9.000,000 miles to deliver this volume of freight. In addition, about 36,000,000 passengers were transported. Service To Community The railways had played a tremendous part in developing the country, he I claimed, and when people talked of the j system "not paying axle grease” they had to take into account this service j to the community. i Until the recent rise in railway i freight charges the cost of transportation for all types of merchandise worked out at about 2fd per ton-mile. The new tariff had increased this average to 31d, but the alternative means of road transport was based on an average charge of about Is per ton-mile. Even at its prevailing low tariff the railways system earned about £12,000,000 per year. If its charges were on the same basis as road transport, the system would show a profit of perhaps £29,000,000 per annum, against the j present loss of about £2,000,000. j Higher charges on the rail would, of course, drive a good deal of freight on ! 1.0 the roads, continued Mr. Cooper, but this would be at a tremendous cost to the country, involving heavy overseas expenditure in rolling-stock, tyres, petrol and tar-sealing materials. “I don’t think it has ever been Government policy that our railways or roads should be put on a cash basis,” stated Mr. Cooper. “We can all agree, however, that they have paid by virtue of the development and production which they have made possible.” Discussing Gisborne's claim to a rail outlet to the north, the speaker said the district contained 5 per cent of New Zealand’s farm lands, and carried no krs than 10 per cent of the total sheep and cattle population of the Dominion. Its breeding capacity was recognised throughout the country, and in each year between 300.000 and 400,000 sheep and between 40,000 and 50,000 head of cattle were sent out to other districts. Even under the present handicaps, it Was estimated that 200,000 sheep and from 15,000 to 20,000 head of cattle were sent north each year, quite a large proportion being railed through Palmerston North. This route had three big economic disadvantages, since in the first place it entailed a higher cost, to the shipper, in the second place it meant that stock were on the rail from three to four days, and in the third place the traffic tied up wagons and overloaded the Taihape-Ohakune section of the Main Trunk line. Success of Napier Link The success with which the GisborneNapier line had operated since its opening was an indication of what rail con-

nection could do for a district, even though the connection was limited to one direction only. It would be recalled that at one time construction of this line had been abandoned on the grounds that it could not be economically successful. Its completion had given a great impetus to production in Gisborne, and the line was actually one of the best paying sections of the New Zealand railways system. “During the war the southern railway link was of vital importance to Gisborne,” Mr. Cooper pointed out. “It enabled our produce to be railed to the main ports when owing to war conditions we lost our overseas shipping from the port of Gisborne and coastal shipping was reduced to a minimum. “Increase of population is one direction in which this district has been able to make little progress. Ido not expect that we will be able to make much progress until our access is improved We are supporting a population of only about six persons per square mile—less than half that of Hawke’s Bay.

“Given a direct outlet to the Auckland Province, the biggest market in New Zealand, there can be little doubt that our fruit and vegetable production would increase. Canning and other industries would be established and we would have a northern market for much more stock than at present. “It is interesting to note that Gisborne was placed third on the list of eight towns in New Zealand selected as suitable for decentralised industries. So far we have seen little of that decentralisation. I am sure that you realise that decentralisation demands adequate transport facilities, more probably than any other factor.” Proposed Route Through Ranges The speaker exhibited a sketch map showing a proposed route through the ranges to the north of Gisborne, considered to be suitable for railway construction, and pointed out that a group of Gisborne settlers had gone to considerable trouble to sponsor a private investigation of this route. When earlier surveys were taken out, Motuhora and Motu were thriving townships experiencing a timber and land boom, and served by a busy railway. continued Mr. Cooper. It was only natural that these surveys should aim at passing through the heavytimber country between Motuhora and Opotiki. Today the Motuhora line was doing liit.e business, and there was an entirely new conception of the route to Opotiki. ©As would be seen from the sketch map, this new route branched off the established line at Rakauroa, and traversed part of the Te Wera country, by-passing the difficult country around Matawai and eventually emerging on to the floor of the Waioeka Valley beyond Trafford’s Hill. The maximum grade for railways construction was one in 40. but on the proposed route through Te Wera there would be nothing steeper than one in CO.

©There would, moveover, be no question of an immensely costly figure-of-eight tunnel, or even any substantial tunnels or viaducts. Cost of Highways “It is perhaps rather strange that we should hear such a lot about the cost of railway construction and so little about the cost of highways construction,” continued Mr. Cooper. “Possibly it is due to the fact that our , roads are constantly under alteration, jand that payment is or has been made 1 partly by the State and partly by local [bodies. However, we do understand that the railway requires a very much [ narrower track than the highway, and that track maintenance costs are less ! than half those of the highways. “The figure of £3,000.000, or £40,000 per mile, quoted recently by a Works Department engineer as the estimated cost of rail construction between Motuhora and Opotiki, is about twice the New Zealand average of costs of railway establishment. As you will recall, that figure included the cost of a figure-of-eight required to overcome a steep descent. “Even if we admitted the figure, it would, I am sure, compare favourably with the total cost of some of our highways. “I have no wish to start a controversy on railways as against highways. I bell -’vp that for a long time our railways will fulfil the important task of heavy haulage between provinces and from the provinces to main ports. Our highways are a vital communications link, and are naturally the feeders from the production areas to the railways.”