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New Zealand Railways Corporation
The logo of the New Zealand Railways Corporation, 1981 - 1991
Overview
Reporting marks: NZR
Locale: From Okaihau in the north to Bluff in the south
Dates of operation: 1981-1991
Track gauge: 1067 mm (narrow gauge)

The New Zealand Railways Corporation (NZRC), since 2004 trading as ONTRACK, is a state-owned enterprise (SOE) that owns and maintaining New Zealand's rail infrastructure. NZRC is deemed to be an SOE under the State-Owned Enterprises Act 1986 for reporting and accountability purposes. Like the former New Zealand Railways Department, the NZRC had a responsible Minister, the Minister of Railways, until 1993, when the office was dissolved.

History

New Zealand's rail operator: 1981 - 1990

NZRC was created as a statutory corporation by the New Zealand Railways Corporation Act 1981 from the New Zealand Railways Department.

NZRC was the operator of New Zealand’s railways from its formation until 1990. During this time it faced many tough challenges, such as the deregulation of the land transport industry in 1982 and the resulting growth of competition from road freight operators. In 1984 international consultants Booz Allen Hamilton reported to the National government on how a viable rail network could be created. This prompted the Opposition Labour Party to launch a ‘Save Rail’ campaign. Despite this, rationalisation of NZRC began with the election of the Fourth Labour government in mid 1984. Rationalisation cut right across NZRC – staff cuts were drastic, infastructure was reduced and older classes of locomotives scrapped, along with workshops closing. In 1985 NZRC began a major restructuring programme, eliminating the old branch structure of its predecessor. It was reformed into three core business groups:

  • Railfreight Systems (later Railfreight), including all engineering functions;
  • the Passenger Business Group, consisting of CityLine urban and InterCity long-distance services, the latter including Speedlink Parcels; and
  • The Interislander, the rail and road ferry service between the North and South Islands.

Privatisation of the railways: 1990-2004

New Zealand Rail Limited (NZRL) was established as a Crown Transferee Company under the provisions of the New Zealand Railways Corporation Restructuring Act 1990, and took over NZRC's rail and shipping activities, leasing the rail corridor from NZRC. Branding initially remained unchanged, except that urban passenger services were rebranded CityRail. NZRL was privatised in 1993 and renamed Tranz Rail in 1995, with urban passenger services rebranded Tranz Metro, long-distance Tranz Scenic, and freight Tranz Link. It was purchased by Toll Holdings in 2004.

Ownership of the rail corridor remained with NZRC, as did non-core assets prior to disposal. Speedlink Parcels was sold to New Zealand Post, and InterCity road services were sold in 1991 to Intercity Group New Zealand Limited [1], a group of four of the country's largest privately-owned coach companies (Ritchies, Tranzit, PTL Route Services and Nelson SBL). Railway stations in Oamaru, Christchurch, Napier and Dunedin were also sold, along with substantial tracts of land previously used for rail operations. CityLine bus services were sold to various purchasers.

NZRC managed the lease of the rail corridor from the Crown to Tranz Rail from 1993 until 2004, when the Crown re-acquired the rail infrastructure from Toll New Zealand.

Renationalisation of the rail network: 2004

From 1 July 2004, ONTRACK assumed the Crown’s responsibilities under the access agreement with Toll and both owns and manages the rail infrastructure. ONTRACK also manages the upgrading of the Wellington Railway Station.

Areas of Operation

ONTRACK has three main areas of operation:

  • It owns New Zealand's rail infrastructure. As owner, it provides rail operators, notably Toll NZ pursuant to its agreements with the Crown but also other operators, with access to the rail network in return for the payment of track access charges. It is also responsible for the maintenance and development of the network.
  • It is the rail network controller, providing rail network control services such as train control and signalling.
  • It administers a substantial portfolio of land on behalf of the Crown, and derives income from leasing land and buildings on a commercial basis.

The ONTRACK network consists of:

  • Route length: 3,898 km
  • Tunnels: 149
  • Bridges: 2,178
  • Electrification: 95 km at 1.5 kV DC, 411 km at 25 kV 50Hz AC

See also

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