KiwiRail appointment a Bolger powerplay?
KiwiRail Group's announcement of Jim Quinn as its new group chief executive has surprised industry sources, who expected current acting CEO William Peet to continue in the role.
KiwiRail and Kiwibank chairman Jim Bolger announced Mr Quinn as the new chief executive yesterday.
Mr Bolger has worked closely with Mr Quinn before; Mr Quinn is currently CEO of Express Couriers Limited, a joint venture between New Zealand Post and DHL.
Mr Bolger is chairman of New Zealand Post and Express Couriers.
"Jim Quinn combines experience in the private sector and with a major state owned enterprise. He brings to the rail industry experience from his work in the postal, electricity and transport sectors as well as a strong customer service dimension from the courier business,” Mr Bolger says.
Several sources in the sector have told the NBR that they were very surprised at the announcement, and expected Mr Peet to stay in the top job after a positive performance to date.
"William has done an outstanding job in managing the process that resulted in the creation of KiwiRail Group. The board will be looking to retain his skills for the future,” Mr Bolger says.
A KiwiRail spokesperson confirmed that Mr Peet was an applicant.
Mr Peet told NBR that he was disappointed with the decision.
“I'm also proud of what we have achieved over a number of months. There is still work to be done over the next few months and I would like to have had the opportunity to do it. Beyond that, I am looking forward to working with Jim Quinn and I will be talking to the board about longer-term opportunities,” Mr Peet says.
It is unclear what Mr Peet’s future role with the company will be, especially since his position as CEO of Ontrack has been filled by Thomas Davis.
Neither KiwiRail nor Mr Peet was prepared to comment on the matter.
Mr Peet took the top job after the October 1 merger of the operational, infrastructural and ferry businesses, following former minister of finance Michael Cullen’s controversial billion-dollar renationalisation of the network.
Mr Quinn has held a number of senior posts within New Zealand Post, including general manager express and logistics, general manager processing and general manager courier services.
He also has past experience with freight and logistics company Freightways.
Mr Peet will remain in the job till March 1.
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Comments and questions13
If the appointment of Jim Quinn as CEO leads to the loss of William Peet to the NZ rail sector, then we will be much the worse off....this is not a reflection on Jim (Quinn) but a very strong endorsaement of William. If Jim Bolger doesn't recognise this then so much the worse for all of us.
This is another example of the "generalist" approach to management of rail that led to the collapse of Tranzrail in the first place - the idea that all you need is a good manager to lead the organisation, regardless of their lack of knowledge of the sector. Rail is a highly specialised field, and no matter how competent Jim Quinn is he will be unable to give it the specialist knowledge that is needed to lead its recovery as a viable transport option for New Zealand. William Peet will be in great demand in Australia - best of luck to him.
I have to disagree strongly with the above - the rail infrastructure in New Zealand is still in a state of chaotic disrepair after 5 years of government invetsment, due mainly to Ontrack's inability to deliver major projects and day-to-day/backlogged maintenance items (under William Peets' leadership - please refer to last years Auditor General's report into Ontrack.)
One can only hope that a change of leadership will force changes to the current archaic mode of opperation and that the private - and tax payer's - dollar will now be better spent.
I am surprised that NBR found industry insiders surpised at this news and one must wonder whether the industry insiders consulted worked for Ontrack or any of the consultants or contractors that work in rail in New Zealand (the general held belief outside of Ontrack's own staff is that the organisation is disfunctional and is staffed by people who have never worked on a functioning and profesionally opperated railway infrastructure system.)
Bolger strikes again ,seems he is out of his depth,just like his MMP FIASCO.
I cannot comment on the suitability of the new CEO but a change had to be made, see the Auditor General's report into Ontrack of last year (where William Peet had been CEO for 4 years!)
The sooner Kiwirail is relocated to it's correct location in Wellington the better, it is a subsidiary of the New Zealand Railways Corp which is domiciled in Wellington, where kiwirail should be also.. Talk about duplication!!
Those referring to the Auditor General's report should consider the impossible task faced by the Ontrack team in growing the business in a very short time from a workforce of a handful of people running property leases to a fully fledged maintenance, operations and construction group with a large workforce from disparate backgrounds, trying to meet near-impossible expectations from Government and the public. By the way, William Peet has been CEO for only a relatively short time, having inherited many of the organisation's problems from the monumentally inappropriate David George
William Peet was COO during David George's time as CEO so he is hardly blameless for the Auditor General's scathing report into Ontrack. Ontrack had had the business and the funding for four years as of last year and it does not take four years to put processes and procedures in place to ensure efficiency in maintenance and management of infrastructure.
Most of Ontrack's problems stem from the fact that their management team and workforce has hardly changed since it was re-nationalised - it is still being managed on a shoe-string team of people with no experience whatsoever of working outside of that environment. There are many experienced rail people in NZ, a lot from the UK and Australia with vast experience, but they pretty much all work for consultants and contractors as Ontrack is seen as a closed-shop and only promotes from within. Hence, many people at Ontrack have been promoted way beyond their ability and - more worryingly now that they are attempting to deliver major projects in Auckland and Wellington - have no experience of anything other than trying to keep the railway running on the smell of an oily rag during the dark years of practically zero funding under the provatisation debarcle.
Somebody was saying that for one particular project that Ontrack had put to tender there was an 15-20% wastage due solely to Ontrack's inability to manage the project.
Ontrack had not identified all the resources it needed or the constraints it faced in carrying out maintenance and renewal work. Ontrack documents reported that insufficient staff resources or a lack of time to access the tracks had made some planned maintenance and renewal work more difficult. This raises questions about Ontrack's ability to do all the work it needs to do to maintain and renew the rail network.
Ontrack was not keeping up with planned work, which in turn could create further work. Ontrack did not have an overview of the planned work, or the overall progress it was making against its planned work. Therefore, we could not determine whether Ontrack was close to keeping up with its planned work or whether the amount of overdue
Ontrack did not have all the information or systems it needed to prepare a long-term plan.
Until service levels are established and there is clear, accessible information about the state of the rail network, Ontrack will not be able to determine optimum strategies for managing the rail network or how much this will cost.
Managing day-to-day work on the rail networkOntrack planned maintenance and renewal work on a short-term, reactive basis using inspection results. The planning relied heavily on inspections to find problems before they could worsen or lead to failure. Similarly, Ontrack relied on decision-makers to accurately judge how quickly problems needed to be fixed.
I wonder if William Peet put all this on his cv when applied for the KiwiRail job?
Fresh thinking is exactly what Kiwirail needs here. The same old, same old tired thinking is what has made rail into a complacent and uncompetitive industry.
It's not an easy task to change, but there are people in Rail that want to see the industry become reborn. Cost management for capital expenditure, a move away from overengineering solutions that eat up valuable funds and investment in more IT infrastructure will surely reap great gains if the Kiwirail board start thinking outside the square..
Quinn must take leadership and unlike his predecessors, turn rail into a centre for innovation - staff are smart but have had the stuffing kicked out of them due to all the changes over the years and having to run things on the smell of an oily rag. Call on the expertise that is still within rail for ideas and feedback, its time to dust off old projects and ideas to look at them with a fresh light and revisit "modern" work and other internal practices that ramp up costs for minimal safety gains.
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