KiwiRail Freight & Bay of Plenty Overview. Eastern BOP Regional Transport Committee. October KiwiRail Group. KiwiRail Freight.
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1 KiwiRail Freight & Bay of Plenty Overview Eastern BOP Regional Transport Committee October 2012 KiwiRail Group Logistics KiwiRail Freight Shipping Interislander Tourism Experiences Trans Scenic Alpine, Coastal & Overlander Interislander Public Transport Trans Metro Infrastructure Construction Maintenance 1
2 KiwiRail Freight Key Statistics Our Immediate Challenges Legacy of years of underinvestment Complete national vs short lines debate Strategic long term relationship with more customers The ability to move to a more time certain model Reliability with ageing rolling stock and network To become a neutral line haul provider to all modes Attracting new and younger people to the industry 2
3 Locomotive & Network upgrades New Heavy Rated CFT Wagon IA Type wagon 56 tonne capable wagon per year over next 5 years 535 in service for in service for 2013 peak season 3
4 Intermodal Rail Containers 260 Units available combination of 25ft and 48ft Replacement for purpose built hard side wagons 60 with Mezzanine decks Gates and curtains per year over next 3 years 21 tonne intermodal lifting capacity 46M3 / 14 pallet footprint 25ft unit 89M3 /26 pallet foot print 48ft units Prototype of 53ft unit ordered due early 2013 Cost effective wagon option New Forestry Capacity Payload circa 20% more efficient than current log wagons Use older UK type wagons Potential markets Central & Lower NI and Eastern BOP 100 bolsters FY in service additional in
5 Rail Success in the Bay of Plenty 2,000Tonne Trains AKL- TGA 2500 Tonne Trains Eastern BOP Auckland and Sulphur point / container hubs Kinleith & Murapara hubs connect through to Mount Manganui Crawford Street Dairy Hub 5.9M Tonnes Railed FY K TEU Railed FY M Tonnes Intra region 3.6M Tonnes Inter region Eastern Bay of Plenty Traffic Profile 2.3M tonnes FY12 Key commodities; logs, pulp and newsprint Log fleet 330 wagons + 50 pulp wagons 145km haul Murupara Mt Maunganui 40 trains week Kawerau- Mt Maunganui 27 trains week Murupara Kawerau Trains capable up to 2500t gross (55 wagons) Log volumes doubled in last 7 years Rail volume dependant on off highway lead to Murupara and Kawerau Mt Maunganui / Tauranga largest rail terminal in NZ 5
6 Investing for Growth in Forestry Deployment of new DL class locomotives into EBOP trains Proposed longer trains 55 wagons Kawerau-Mt Maunganui 45 wagons Murupara Kawerau Wagon coupler upgrade New 3 bunk log wagons Increased wagon payloads Increased number of trains Terminal and Infrastructure developments New high tensile steel log bolsters Infrastructure Improvements in eastern Bay of Plenty 15,000 new sleepers 25km track de-stressed 2km new rail signalling upgrades level crossing upgrades (4) bridge upgrades 6
7 Metroport Offering Current capacity: 2,000T DL Locomotive 6MP trains / day 1260 round trip TEU per day 31 IM plus 6 UK/UKV (105 TEU) Per Train 8820 TEU per week round trip AKL- TGA AKL Total maximum capacity is determined by combination of: Train Weight Train Length Train Density Wagon Consist Other factors: Container Terminal capacity Rail terminal infrastructure Port terminal infrastructure Line haul assets (Wagons / Locomotives / Drivers) To move to a MP 9 service would be circa 3-6 months with existing rail infrastructure Capacity Scenario s Current Track Note, assumes 7 days. Likely will need an 8-10 hour BOL once per week for track maintenance 7
8 AKL TGA Infrastructure Improvements Significant investment continues to be made on the East Coast Main Trunk to facilitate future growth Key element to increasing train density through both creating new and extending existing crossing loops; New Crossing loop Lengths: Ruakura 900 (COMPLETED 2011 ) Eureka 900 (Completed August 2012) NEW Motomaho 900 (COMPLETED 2011) Morrinsville 779 Kereone 856 Tamihana 900 (Commissioning November 2012) NEW Hemopo 863 Whatakao 870 Apata 900 (December 2012) current 474m Te Puna 917 Current length = 779m (1DL+40IM = 120 TEU max) From early 2013 all major infrastructure constraints for growth on the ECMT will have been removed Increased Capacity and Train Configuration Note, assumes 7 days. Likely will need an 8-10 hour BOL once per week for track maintenance 8
9 Headwinds and Opportunities Larger HPV trucks and growing road capable network Eastern Tauranga SH2 corridor Norske Skog PM2 closure early 2013 Increasing pressure from urbanisation of rail corridor Growing log volume Increased demand for hub Port in NZ Improving rail productivity Investment in rail infrastructure and rolling stock Investment in rail infrastructure from our partners to cater for growth Summary We see Rail in the Bay of Plenty as a success story for KiwiRail Our strategic partnership with our key customers in the region provide both the platform and confidence for future growth We are investing heavily in our business and network to cater for this growth From new investment we will increase overall capability, reliability and on time performance We thank you for your continued support 9
10 Thank you 10
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