Central log rail – implementation funding

Applicant

NZ Transport Agency

Purpose

To seek the Board's approval for funding the implementation of NZTA's Central Log Rail project in the Manawatu, Wanganui and Wellington regions.

Date of decision

27 February 2009

Resolutions

The NZ Transport Agency Board:

1. approves the addition of the NZ Transport Agency's Central Log Rail project to the 2008/2009 NLTP as an NZ Transport Agency delivered national activity;
2. delegates to the NLTP Review Group approval of the procurement procedure for this activity;
3. approves funding for the implementation of the NZ Transport Agency's Central Log Rail project, by way of subsidy over three years paid on the cartage of export logs by rail between Masterton, Marton and Wanganui to CentrePort at a rate of:
   1. $3.00 per tonne for the first year (effective from the start date for the service, being November 2008 for the Masterton log yard, and is expected to be March 2009 for the Marton and Wanganui log yards);
   2. $2.00 per tonne for the second year; and
   3. $1.00 per tonne for the third and final year, subject to:
      1. the NLTP Review Group's agreement that the wording of the funding agreement between Pentarch and the NZ Transport Agency is satisfactory from the NZ Transport Agency's perspective; and
      2. sufficient funding being available in the Government Policy Statement currently being considered by the Minister of Transport;
4. delegates to the Chief Executive the development of the comms strategy and stakeholder liaison issues associated with Board paper;
5. notes that the total subsidy payable over the three years is estimated at $975,000 based on forecast log volumes;
6. notes that the reasons for this decision are as set out in the Reasons for recommendation section; and
7. agrees to take Board paper 09/02/0152 out of Committee when the Board has published the notice of decision.

Reason for the decision

The assessment profile for the project has been determined as being of high seriousness and urgency, high effectiveness and high efficiency.

The project will contribute positively to LTMA objectives of safety, environmental sustainability and economic efficiency. It will remove long haul heavy logging trucks from lower North Island state highways, reducing NZTA's road maintenance costs. The proposal also contributes to the implementation of RLTS freight policies for both the Wellington and Horizons Manawatu regions.

We confirm that the matters in sections 20(2) and 20(5) of the LTMA have been satisfied, and that the matters in section 20(3) have been taken into account.

If you would like details of how the assessment profile for this activity was determined, please email us at boardsecretariat@nzta.govt.nz.