Printed from https://fyi.org.nz/request/30654-wairopa-logging-trains on April 18, 2025 10:48

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Wairopa logging trains

Niall Robertson made this Official Information request to KiwiRail

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From: Niall Robertson

Dear KiwiRail,

I am the national coordinator of The Rail Advocacy Collective (TRAC) and it has been brought to our attention that KiwiRail suddenly jacked up the price for railing logs from Wairoa which rendered rail uncompetitive with the road transport industry for this work. KRL subsequently lost the contract to road transport. TRAC is aware of commercial sensitivities around costings, but is seriously concerned that rail seemed to have charge a rate that killed rail for this region. The trucks on the adjacent SH2 do not have to charge a premium for this region so why did KRL do so? What worries TRAC the most, is that the Hawkes Bay Regional Council stated in their last strategic plan that rail is "uneconomical" north of Napier, but if this is so, then road transport is equally "uneconomical". TRAC is very aware that road transport gets an 86% subsidy to function by motorists, taxpayers and ratepayers. Our fundamental question is who ordered the price increase and for what reason?

Yours faithfully,
Niall Robertson

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From: Dave Allard
KiwiRail

Good evening Niall

Thank you for your enquiry on price increases for logging trains on the Wairoa line.

We note that you are stating that "KiwiRail suddenly jacked up the price for railing logs from Wairoa which rendered rail uncompetitive with the road transport industry for this work" and your question on the matter is, "who ordered the price increase and for what reason?"

Please be advised the facts of the matter are quite different. The log exporter who co-ordinates the shipping and purchases the logs delivered to port from our customers completed a review of their stevedoring and log marshalling contractor on port in mid-2022. As a result of that review a new contractor was appointed, requiring a change also at Wairoa from Jan 2023.

The increase in operating costs for an end-to-end supply chain operation through the Wairoa Log Yard was driven by the log exporter and the change of its stevedore/log marshaller, not KiwiRail as you have implied.

At the time the log traffic Wairoa to Napier ended in late December 2022, the change of change of log marshaller and costs were under discussion noting that the Cyclone Gabrielle in early 2023 closed the line and it has been closed since.

Any further questions, please get in touch.

Kind regards
Dave

Dave Allard  | Senior Government Relations Advisor
DDI: 027 201 8182
Level 4, Wellington Railway Station, Bunny Street, Wellington 6011 | PO Box 593, Wellington 6140, New Zealand

www.kiwirail.co.nz

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From: Niall Robertson

Dear Dave Allard,
Thank you for your prompt reply.
The log exporter seems to have made a foolish decision which led to KRL losing the contract to road transport.
My next question, therefore, is did KRL challenge the decision by the log exporter to think again, as a very expensive stevedoring service was not going to go well. If KRL did not challenge this decision then why didn't they?
Also, did KRL come up with any other possible novel ways to reduce these costs? My understanding is that storing logs inland creates a lot of savings by avoiding the logs from being stored at the real port due to poor land availability there. Could KRL have made significant savings by offerring a storage service for the logs?
Also were there any equally higher prices at the port for the road transport industry leading to a generally higher prices for exporting/tyransporting logs from Napier port.
I am aware that Napier ports charges are significantly less than the Port of Tauranga and that many Tai Rawhiti log exporters would consider using Napier and could possibly store logs at Wairoa too.
I look forward to your further reply.

Yours sincerely,

Niall Robertson

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