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Freight & Logistics

Christchurch rail hub opens as new locomotive fleet rolls out in South Island

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A new rail maintenance hub in Christchurch and the rollout of a modern locomotive fleet are set to lift reliability and capacity across the South Island network, with the Government and KiwiRail highlighting the upgrades as a major step for freight and rail services.

Rail Minister Winston Peters officially opened the Waltham Maintenance Hub in Christchurch on April 24, a $110 million facility designed to support maintenance of locomotives, wagons and passenger carriages across the South Island.

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The opening coincides with the introduction of the first of 66 new DM class locomotives, part of a $533 million Government investment, with 47 units set to replace the ageing South Island fleet.

Peters says the upgrades continue a long history of rail supporting economic activity in the region.

“The South Island has hauled goods from the hinterland to coastal ports since the first track was laid in Christchurch in 1863 and vastly expanded by Julius Vogel from the 1870s, and we are rebuilding rail for the benefit of the national economy today,” he says.

KiwiRail chief executive Peter Reidy says the Waltham hub will provide a modern and safer environment for staff, while improving maintenance capability.

“The building will allow work on 24 different assets to be carried out at the same time, it has electronic safety systems to protect staff from any unplanned rail movements and is supported by enough solar panels to meet half of the site’s electricity needs,” he says.

Reidy says the new DM locomotives, built by Stadler in Spain, are already beginning to enter service, with four currently operating in New Zealand and the remainder due to arrive over the next two years.

The locomotives are designed to deliver improved fuel efficiency, increased hauling power and greater operational flexibility, including dual cabs to simplify yard movements.

Interior view of the new mechanical maintenance building.

“More efficient maintenance, combined with more reliable locomotives will mean better and more timely services for our South Island customers. It is the crucial foundation that will allow us to get more of the island’s freight onto rail,” Reidy says.

Peters says the investment is already delivering results, with KiwiRail reporting improved performance.

“We are now seeing the benefits with KiwiRail reporting a $73 million half-year profit, schedule reliability improving, and rail freight volumes increasing by 7 percent when road freight volumes lifted by 2 percent – indicating market share shifting from road to rail,” he says.

The Waltham hub and locomotive programme form part of a broader $1.2 billion investment in South Island rail since 2019, covering workshops, rolling stock and infrastructure upgrades.

Peters says the focus remains on improving the efficiency and value of the rail network.

“We want to see every asset built by the taxpayer generating value – including road and rail – and this is what is now happening,” he says.

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