Auckland to get 57 new trains – in 2013

Transport Minister Steven Joyce

A deal between the government and Auckland Council will bring 57 new trains into the city in two years time, said Transport Minister Steven Joyce today.

The funding and ownership deal is part of a $1.6 billion government-funded upgrade to the Auckland metro rail network.

The package includes:

- a $500 million Crown loan to Auckland Council for the purchase of electric trains

- funding assistance from NZTA to help Auckland Council repay the loan (initially set at 60% of the costs of the loan repayment in 2011/12; will move to 50% on an annual 1% glide path starting at 59% from 2012/13)

- a Crown grant of up to $90 million to assist in funding the additional trains.

Mr Joyce said having an all-electric fleet would mean significant savings in operational costs for the network, and help reduce the present operational deficit of approximately $30 to 40 million a year.

The all-electric three-car trains are in addition to existing non-electric stock.

Initial plans were for 38 new trains, but Mr Joyce told NBR the strong New Zealand dollar and a competitive tender process internationally meant 57 trains were “almost affordable”.

He said a fleet of 57 all-electric trains - in comparison to the previously plan of purchasing 38 all-electric trains to run alongside existing diesel stock - would result in $5 million in operational savings.

A contract for the purchase of the new trains will be signed on 30 September 2011, with new trains arriving progressively from 2013.

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KiwiRail chief executive Jim Quinn announced a shortlist of bidders for the procurement and maintenance contract for the new Auckland trains earlier this year.

The first of the two is the Hyundai Rotem Company; a South Korean business who have shipped trains to countries including: Brazil, Canada and Greece, and are the suppliers of Wellington’s Matangi all-electric trains. They recently signed a contract for a project in the US city Denver. The second is a combined bid by the Madrid-based Construcciones y Auxiliar de Ferrocarriles S.A. (CAF) and the Japanese Mitsubishi Corporation. This year CAF has won contracts to supply trains to the Santiago de Chile Metro, the Sao Paulo Metro, Stockholm and France.

The selection of the preferred bidder is expected to be completed by the end of the third quarter 2011, Mr Quinn said.

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11 Comments & Questions

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So where does all this NEW electricity demand gets it's supply from ? By increasing the demand versus supply balance the householders etc etc will have to pay more for their electricity coinsumption. And most likely any new generating assets will be paid for by existing price increases to existing consumers rather than supply-company INVESTORS !
UNfair !!!!!

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All great for Auckland transport and probably overdue

But where is all the money the Government is spending coming from?

Time to consoldate for a couple of years

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This is great news. Bigger trains mean more people can get to productive CBD jobs. Faster and more frequent trains will encourage people to leave there car at home, reduce road traffic, and air pollution.

Based on current growth trends these trains are indeed overdue. The existing trains will be extremely overcrowded before then new ones arrive in 2013.

@ George, The electrified auckland rail network will use less than one percent of auckland electricity capacity. Although significant this is far less than natural demand growth, I doubt it will have any significant effect on wholesale or retail power prices. Electrification is the way to go. Electric trains are faster, quieter and and cheaper to buy/ run. A lot more money stays in the NZ economy compared to importing more diesel too.

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How much longer are we going to stick our heads in the sand and deny public transport is essential. Just embrace it and move on. I need more room on the road so I can wind my bentley up.

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Without more suburban station car parks, there is little incentive to leave the car at home.

Bring on the St Johns station!

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Would have been even better had they been made in NZ workshops. It would have reduced unemployment, and provided some skill developing apprenticeships.

Get stuck into this labour, because there no excuse for this. Now National are promoting a youth wage. You can really see who they are working for, and its not the people.

Just wonder how long these trains last. If its anything like other China made stuff, not very long.

Wonder who got the kick back on this deal? It certainly was the taxpayer, with increased unemployment and related social costs.

Key promotes himself as a socialist. Well the bottom now is way lower than I use to remember it. This is due to the erosion of the middle class, at the expense of a few fat greedy pigs at the top; who could not hope to spend their annual income in a lifetime let alone the enormous level of capital they continue to build at the expense of the rest. Free market is nothing more than an illusion!!

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Richard S.
You want the trains made here so they cost NZ twice as much. Initially it would reduce unemployment but the extra costs would reduce employment somewhere else.
The chinese now have the money to buy our milk powder.

Instead of youth rates you prefer young workers to be sitting at home instead of on the job training, building work skills and personal capital.Youth rates are only temporary before someone will pay a lot more for your learned skills.

Kickbacks I dought.We have free trade. Its called comparative advantage where each country sells their individual strengths.

The erosion of the middle class. The 400,000 who get working for families, contribute nothing and everyone else pay for their kids.

The greedy pigs who spent years training, work endlessly, bring us great skills and life quality. Their saved capital buys the trains and sets up other peoples business who then employ your kids.

Free markets bring you the fantastic choice of goods and services at the cheapest prices. Thinking more and more taxation is the answer is definitly the illusion.

Now Richard you should feel a lot better cause I do.

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Richard, The quality of Chinese made goods is of little reliance here. Neither of the shortlisted train tenders are China based.

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Great news at last a good investment for Auckland a long time coming. Now lets get training tracks rolled out over the large parts of Auckland without coverage starting in the East. 1 hour peak time bus from Botany to central Auckland does not get people off the road. And then the airport.

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Hey Richard - you sound a lot like an unhappy Unionist that already knows of no "lollies" coming your way after the November election... hence the little tanty in the corner?

Since the Unions and Labour are the “workers saviour” perhaps the Unions could form a company, put in a competitive bid to win the work and then create all the employment and apprenticeships from winning the project... Numerous problems solved if it's just that easy.

Or can the Unions only survive by parasitic means off someone else’s efforts?

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Sounds like a great idea look for to seeing Union Corp... hahahaaa yeah right!! that would involve work, planning, budgets and not just moaning with your hand out!!

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