Toll NZ talks of building engines here

By PAM GRAHAM

Toll NZ wants to build more rail equipment in New Zealand, including new locomotives.

In his first interview since becoming Toll NZ's rail chief, Gary Taylor said yesterday the company was now considering options for new locomotives.

Since Toll Holdings of Australia took control of Tranz Rail a year ago it has been refurbishing old locomotives to increase their power.

This is the first public suggestion of investment in new locomotives which cost about $6 million each.

Taylor said Toll could also bring in parts and assemble the engines here as the company's engineering division was capable of building more of its own equipment. "It's a real opportunity," he said.

Rail union boss Wayne Butson said he would be surprised if Toll NZ got into assembling locomotives because of the skills shortage and because there would be no warranty from manufacturers.

The Hillside workshop in Dunedin was Toll's only facility. It once employed 600 people and made locomotives from scratch. Now it employed 180 workers and half of them were on fixed-term or casual contracts. Taylor said: "We want to try to redress the skills shortage."

If the company had more work for the workshop, it could offer more permanent employment.

Taylor reiterated that Toll NZ was likely to spend more than the $100 million over five years on rail - pledged as part of the deal to sell the track back to the Government. Under that deal, the Government invests $200 million in the network.

Turning rail around is a slow job and some people wonder if it can be done. But not Taylor. "It can and it will be turned around," he said.

The man making such a definitive statement has no background in rail and only arrived here in May. The Australian's first job was as a professional rugby league player, for St George. Then he became a Qantas flight attendant.

When he wanted a more settled life, he moved to Qantas' freight division. When Qantas started retrenching, he took voluntary severance and used the money to set up an airfreight forwarding company, Pace Express, with three other partners. Within 12 months, the company was turning over A$150 million. The business was later sold to US corporate AEI.

Taylor rejoined Qantas as regional freight manager and his patch included New Zealand. After three years, he moved to Ansett Australia as cargo sales manager. He was with the company when it collapsed under Air New Zealand's stewardship, putting relations between the two countries at an all-time low.

He was Sydney airport manager for Virgin Blue before joining Toll.

Taylor admits being on a steep learning curve with rail. But the man who celebrated his 50th birthday just last weekend says he has moved to New Zealand permanently.

Already people in the transport industry are saying Taylor is good to deal with, though he has not yet delivered what they want.

Rail has struck a new deal with Solid Energy and one with Fonterra is expected soon. The relationship with track owner New Zealand Railways has got off to a good start.

But Toll NZ still has to build relations with Carter Holt Harvey and Mainfreight. And with its own workforce.

Taylor said he understood why workers were cynical about another set of management.

But even with all that had happened to railway workers, he still found a sense of family and commitment among staff.