Perhaps down, but not out. Details still unclear.

As reported by National Business Review (NBR) this week (paywalled), KiwiRail announced it was engaging with employees on possible reduction in rail service to Napier.

Apparently the re-think is part of a ‘transformational plan’ shaped in part by an $8 million efficiency study conducted by consulting giant McKinsey.

KiwiRail said service to Napier would continue, but expected factors like the closure of Winstone Pulp, a major shipper to Napier Port and the doubtful re-opening of the Napier-Wairoa line to affect freight volumes involving the Port.

Winstone Pulp exported between 15,000-19,000 TEU of containerised timber and pulp delivered by rail to Napier Port on an annual basis, with its net contribution to the Port’s FY24 earnings guidance in the range of 7-8%.

Napier Port has told BayBuzz: “We  have received confirmation from KiwiRail that they will continue to run a daily container train service to and from Napier Port offering a similar capacity to current operations on that line.”

NBR quoted KiwiRail’s acting chief operations officer Paul Ashton: “To be competitive, we need to lower our own costs and ensure our services are configured to meet the changing demands of the freight markets we serve, including in Hawke’s Bay where freight volumes to Napier Port have fallen.” He added that KiwiRail remained committed to rail service between Napier and Palmerston North, connecting HB into the national network.

Regarding the Winstone Pulp ‘gap’, Napier Port says: “With the cessation of pulp and timber production by WPI, there is now a greater supply of harvested logs available for export from the central North Island. Additionally, demand for space at Napier Port remains high, with both current and prospective customers seeking more on-port storage and packing solutions.”

Adding: “One of the positives of the past few years’ disruption is that we’ve become particularly good at adapting to fluctuations in cargo flows and managing our space on port and how we operate, dynamically. As and when we need to adjust for customers and cargo types we do.” 

Unclear at this point is the future of the Tūtaekurī River rail bridge. The cyclone repairs have been called temporary, but whether more assured resilience requires a different solution must be examined … and of course funded by an already financially strapped KiwiRail.