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Toll NZ is not offering new rail freight services fast enough, pushing more freight on to roads and driving up transport costs, Mainfreight chief executive Don Braid says.
He said yesterday that Mainfreight spent almost $25 million on rail a year. "We think we could double that if we could get services over more routes and to more destinations."
The transport company was passing on the rising fuel prices to its customers but could alleviate this if more freight went by rail, Mr Braid said. "Rail is a far more efficient use of fuel and is a better way to move freight."
He acknowledged that Toll NZ had inherited a rail network that was in bad shape.
There had been some improvement of services on long-haul routes, he said. "But we haven't seen improvement in terms of additional services on a number of routes as quickly as we would have expected."
Toll NZ, which is controlled by Australia's Toll Holdings, bought rail operator Tranz Rail in 2003. The following year, it sold the rail network – apart from the Auckland rail corridor, which Tranz Rail had previously sold – to the Government.
The two parties struck a deal under which Toll was given monopoly access to the network and the Government pledged $200 million to upgrade the network outside Auckland.
If freight levels fall too low Toll risks losing its monopoly.
About $120 million of the pledged amount has been spent but further spending is dependent on the negotiation of access fees between Toll NZ and the Government. These would allow the Government to recover the cost of upgrading the network.
Neither Toll NZ nor the Government is commenting on the negotiations.
Mainfreight would like more services on regional routes such as Hamilton to Christchurch, Hamilton to Palmerston North, Wellington to Christchurch, and Tauranga to Wellington, as well as improved services between its Southdown depot and the port of Auckland.
"These are the sorts of routes that we would like to move a lot more freight over by rail," Mr Braid said.
Toll NZ spokeswoman Sue Foley said she was surprised by Mr Braid's comments given that Toll had introduced a new daily freight service between Hamilton and Christchurch, which Mainfreight was using.
The Government was working on improving the network, but speed restrictions remained, she said. "If the demand is there Toll would be happy to look at providing new services."
Mr Braid said Mainfreight's rail spending as a percentage of total revenue was about half the amount it was five years ago.
"We're moving more freight by road and that's wrong. At a time when freight costs are at an all-time high because of fuel we should be looking at the most efficient way to move our freight."
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