KiwiRail’s Hillside workshop in Dunedin is being brought to life with nearly $20 million dollars in Provincial Growth Fund investment.
The workshop has a long history, originally established in 1875, and has employed hundreds of workers at its peak.
It was largely closed down after being partly sold offshore in 2012 which saw around 90 job cuts.
Regional development minister Shane Jones and trade and export minister David Parker were in Dunedin on Wednesday to announce $19.9m funding for the workshop.
It will be re-established as a mechanical hub and heavy engineering facility to service KiwiRail’s trains.
“Hillside is the only heavy lifting rail facility in the South Island so it is vital to KiwiRail’s business,” Jones says.
“It makes sense to ensure there are quality facilities available to support KiwiRail to maintain their trains and undertake a range of heavy maintenance and upgrade work.”
KiwiRail chief executive Greg Miller says the investment will create jobs for the heavy engineering workforce.
“This is a significant investment from the Government that will not only revitalise Hillside, but also set the stage for a wider development that will bring Dunedin’s engineering sector together to deliver more economic benefits for the region,” he says.
KiwiRail will use the funding to upgrade the two main rail workshops at the site, including electrical and fire protection systems.
It will create new facilities so that locomotives and wagons can be taken apart for heavy maintenance and upgrade and will overhaul the aging heavy-lift crane and traverser.
It will also improve the site’s rail yard and roading and replace the existing office block.
“Improvements on the site will allow KiwiRail to maintain a lot more locomotives and wagons and undertake a range of new work, such as heavy maintenance and upgrades,” Miller says.
“It will make Hillside a crucial part of KiwiRail’s growing South Island freight and tourism operations, and create new skilled jobs.
“In the next three years we expect to create around 40 new jobs at Hillside, including hiring skilled mechanical, electrical and potentially light fabrication staff. From the 23 staff at the workshops right now we expect to have around 100 staff onsite within a decade.
“Revitalising Hillside also creates the opportunity to take on more apprentices and attract more talented young people to a career in rail.”
Miller says over the longer term, if further funding becomes available, KiwiRail will explore demolishing old buildings on the remainder of the site to free up a further 8000 square metres of the site for redevelopment.
“Industrial land is limited in Dunedin and there is potential to partner with developers to create a heavy engineering hub alongside the rail facilities at Hillside. It makes sense to bring in other engineering firms, to share skills and create an innovative environment.
“This is an opportunity to focus on the future and create a centre of engineering excellence for the South Island,” Miller says.
The Hillside investment is part of a wider funding package for Otago’s engineering and manufacturing sector.
This includes $5.8m towards the establishment of a dedicated manufacturing agriculture technology business unit within Dunedin-based company Scott Technology.
This unit will be dedicated to automation solutions and services for New Zealand food processors, producers and their suppliers.
The funding package also includes nearly $500,000 for the Southland and Otago Regional Engineering Collective (SOREC).
Other investments include:
· Petridish Limited ($240,000) towards equipment and salaries for its ‘Makerspace’ area that allows manufacturing businesses to trial and test new, innovative products.
· United Machinists ($520,000) towards purchasing a specific piece of engineering equipment to accelerate the manufacturing of parts and products.
· Site Weld ($350,000) to purchase three pieces of engineering equipment for its fabrication, repair and maintenance services business, which services mining, industrial, heavy transport, marine and forestry sectors and is regularly involved in health and safety solutions.
· Farra Engineering Limited ($325,000) towards the installation of a horizontal floor borer machine which will help complete maintenance work in shorter timeframes for several major South Island power generators.
· Bison Group Limited ($110,000) towards creating a demonstration space to showcase its products that lift and weigh shipping containers and for additional equipment.
· Red One Fabrication Limited ($93,000) towards a specific piece of engineering equipment to help this company, which is a leader in the innovation and design of stainless steel and aluminium products for the aviation industry, increase its output.
