LOSS ON NEW RAILWAYS

Taranaki Daily News, 26 August 1930, Page 13

LOSS ON NEW RAILWAYS

COSTLY CONSTRUCTION FIGURES FOR SEVEN SECTIONS. COMPARISON WITH OPEN LINES. A total annual loss of £737,553 is estimated to result from the operation of the seven railway lines at present under construction in various parte of New Zealand, according to a summary presented in the House of Representatives by the Prime Minister, the Hou. G. W. Forbes, in accordance with his promise to the Right Hon. J. G. Coates. The summary contains also details of the estimated annual revenue, expenditure, operating loss and interest charges. The estimated annual revenue and , expenditure of the seven lines is given in the following table: —

A COMPARISON. Lines under construction and lines open for (raffie-.are compared as follows:

X'ORTH AUCKLAND MAIN TRUNK. The estimated capital cost of the Okaihau-Rangiahua extension, 14 miles 19 chains, of the North. Auckland Main Trunk railway is shown as £680,000, or an average per mile of £48,184, The expenditure to Juno 30 last was £576,869. This line' is an extension of the line from Otiria to Okaihau (24 miles 42 chains). It is constructed through the most treacherous piece of country on which railway construction has been undertaken in New Zealand. The major < earthworks are nearing completion, ami it is thought that the worst slip movements have been overcome; The rails have been laid for ten miles,, The line may bo expected to give operating results very similar to the Otiria-Okaiha.u. section. , ■ ; '.. I).\R( !AVii.LE BRANCII.. , f < . .The summary shows at £510,000', or a 1 total per mile of £29,143, the estimated | : capital cost of the final section of the j Kirikopuni-Dargavillo line, 17 miles 40 ■ chains. The expenditure to June 30 was | £377,408. . . | This is the uncompleted portion of the j Waiotira-Dargaville line, the estimated ! 1 annual loss on which is £87,000, and j ' will be the connecting link between the < Kaihu section and North Island main • lines. The Tangowahino section (10. f miles) is practically complete, and goods traffic is being conveyed over it. On the Dargaville section (7£ miles) formation is complete for 51 miles, and platelaying for two miles. Four bridges have yet to be built. NAPIER-GISBORNE RAILWAY. j The estimated capital cost of the j Eskdalc-Gisborno section (120 miles 39 chains) of the Napier-Gisborne railway is £4,871,000, or a total per mile of £40,427. The expenditure to June ■3O was £2,998,904. The capital cost is apportioned as follows:-— Gisborne-Waikokopu, £1,898,600, or £53,465 per mile. ‘ Waikokopu-Wairoa, £G3s',oOoj or-x25,-.' . 683 per mile. Wairoa-Eskdale, £2,338,000, or £38,797 per mile. Nine miles of the formation has been completed, together with a considerable amount of preliminary work, including tunnels for watercourses, culverts, stream-diversions, camps and access roads. Traffic has been carried on the railway between Waikokopu Harbour and Wairoa for ’the past six years. Work is now proceeding on the Waikokopu. breakwater. The line between Eskdale , and Putorino (26% miles) is just about ready for opening. Traffic has been carried over this section for some time past. Between Putorino and Wairoa (33 miles) formation work has been completed for all but two miles, which 1 should be finished in about six. mo.nths, j Two large viaducts have yet: to be 1 built, one 1 of which (Maungaturanga) will be completed in fifteen months, and 'the other (Mohaka) about 15 months , later. Tficte w'dYks are the chief factor in the completion of the line, which ■ should therefore be ready for. opening I ; from Putorino to'Wairoa in about two I years and a-half. STRATFORD MAIN TRUNK. The summary estimates at £2,259,000, or a total per mile of £54,434, the capital . cost of the Okahukura-Tahora section' , (41 miles 40 chains) of the Stratford Main Trunk railway. The expenditure ( to June 30 was £1,767,580. ; The Okahukura-Tahora section is the ] final link in the Stratford-Main Trunk

connection, and at the western end 3 miles 30 chains, between Tahora and Tangarakau, should be ready for opening about January, 1931. Of the remaining 4 miles 50 chains at ths western end, 50 per cent, is tunnel. Two tunnels have been completed, the third is more than half done, and the fourth and last tunnel has the bottom heading well under way. Only about 20 chains of formation has still to be done at the eastern end (33% miles J. The line has been completed between Okahukura and Ohura (19 miles 10 chains), and traffic has been carried over it by the Public works Department for some time. Beyond. Ohura the rails have been laid for 3jJ miles. There are five tunnels aggregating 95 chains in length, of which 46 chains have been completed. 1 The formation has also been .completed, except for about 70 chains of heavy l

work. Several bridges have yet to be built..

A considerable proportion of the traffic, now carried via Marton between the Main Trunk line and stations north of Wanganui, will be diverted to the new and shorter route, resulting in a substantial loss of revenue, which will, however, be set off largely by reduced haulage costs and by any additional traffic that may be developed. On this basis the loss will be equivalent to the cost of working the - new line, plus >interest charges on capital cost. g,

SOUTH ISLAND TRUNK. 8 i The estimated capital cost of ibe t Wharanui-Parnassus section (76 miles) f of the South .Island Main Trunk rail- - way is £2,581,000, or a total per mile of - £33,961. The expenditure to June 30 . was £193,631. At the northern end four 3 miles of formation were completed several years ago.-' An additional eight miles is now in progress and arrangements are being made to start work on . the 27 chain tunnel under the Hawkswood saddle. At the southern end the i formation is in hand for four miles. The permanent litle has been surveyed for

about 30 miles south of Wharanni, an for about ten miles north of Parnassus i The estimated revenue is based on th assumption that 09,000 passengers pe annum will travel between Wellingtoi and Christchurch by the new route, ii preference to the W.ellington-Lytteltoi route. In. estimating expenditure, dir alloWaneo has been made for additiona passenger traffic between Pictoh and Blenheim and between Parnassus am Christchurch. , ? . WESTPORT-1 XAXC AHL'.A. .. ’ The estimated capital cost- of the j Westport-lnangahua railway (26 miles) I is shown as £877,000, or a total per mile of £33,731. The. expenditure to June 30 I was £373,398. This line will connect .the I Westport section with the South Island Alain Trunk lines. The line is completed between Westport, and Cascade station (nine miles) and traffic is being carried by the. Public Works Department. Beyond Cascade the formation is in hand for 12 miles, of which six and a-half miles have been completed. Rails have been laid for 75 chains beyond Cascade. Bush felling and clearing have been done well ahead of the formation. At the Inangahua end work, has been started on the formation between liiangahua and the Buller River. Bores have been put down to obtain information regarding the foundations of the bridge over the Buller River. i • ■ .MIDLAND RAILWAY. - The summary states that the estimated capital cost of utlie KaivatiriInangahua section (46 miles 43 chains) of the Midland railway is £1,853,Q00,- or a total _er mile of £39,817. The' expenditure to June 30 was' £187,560. This section will, when completed, link up the Nelson section with the South Island main lines; The line is ’ practically completed between Kawatiri and Gowan (three miles 73’chains’)'. Beyond .Gowan iiie formation is hi hand for eight miles, uf which four and a-half miles have been completed. The survey of a permanent line is completed for 12 miles ahead of the formation work.

Hailway. Miles. Hi venue. Expenditure! Operating Loss. In terest Charges, Total Loss. Okaihau-Ilangialnia ...... . 15 7,000 8.000 1,000 ' '34,000 ..35,000 Kirikopuni-DargavilJc. : . ■ 18 ' 9,000' ' 10,170 J,VO 25.500. . 26,670. Gisborne-Eskdale 121 • 60,876 100,459 39,583 .243.550, 283,133. Okahuhura-Tahora 42 — 39,700 39.700 112,950 152,650 South Island Main Trunk 76 I 12,300 77,1-10 35,160* J 35.160 100,000 Westportrlnangahua ... '47 38,200 36,000 7,000* 43,850 36,850 Kawatiri-Inangahua .... 47 38,200 48, SCO 10,600 ■ 92,650 103,250 315 L 70.370 320,200 49,593 687.630' 737,553 I’rolit. •

New Lines., £ Open Lines. £ Average cost per mile (exclusive of rolling stock 39,SW 14,109 010 Interest charges per mile 1,993 Operating earnings per mile 7 no 2 °74 Operating expenses per mile 936 2,083 Net operating earnings per mile . ' UG* 191 i Net loss per mile 2.1.38 419 1 * Loss., •' ■''' 1