Tangiwai to Centreport rail freight – implementation funding

Applicant

NZ Transport Agency

Purpose

To seek the Board's approval for funding the implementation of the NZ Transport Agency's rail freight proposal by way of a subsidy payment to transfer from road the transport of sawn timber and wood pulp between Tangiwai in the Central North Island to CentrePort in Wellington.

Date of decision

18 December 2008

Resolutions

The NZ Transport Agency Board:

1. approves the addition of the NZ Transport Agency's Tangiwai to CentrePort rail freight proposal to the 2008/2009 NLTP as a 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 NZ Transport Agency's Tangiwai to CentrePort rail freight proposal by way of a subsidy paid up until 1 July 2009, initially to enable the cartage of logs by rail between Tangiwai and CentrePort at a rate of $5.51 per tonne for the first year, intended to start 28 February 2009, $3.85 per tonne for the second year and $2.89 per tonne for the third year, at an estimated total cost of $820,000, subject to NLTP Review Group approval of the Funding Agreement between the NZ Transport Agency and Winstone Pulp Industries Limited;
4. amends the reasons for this decision by adding the comment to reflect that the benefit of this proposal to the roading network and the removal of up to 3,000 heavy vehicles per year;
5. notes the reasons for this decision are as set out in the Reasons for recommendation section; and
6. agrees to take Board paper 08/12/0120 out of Committee when the Board has published the notice of decision.

Reason for the decision

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

This proposal will contribute to the NZTS target to increase rail's share of freight to 25% by 2040 and to the GPS targets to increase freight mode share for rail and to avoid deterioration of travel times and/or travel time reliability and reduce fatalities and hospitalisations related to transport by 2015.

The proposal also contributes to the implementation of RLTS freight policies for both the Wellington and Horizons Manawatu regions.

This proposal has benefit to the roading network by the removal of up to 3,000 heavy vehicles per year.

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.