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Home / Business / Small Business

'Rail work bankrupting my firm'

By Mathew Dearnaley
NZ Herald·
15 Mar, 2010 03:00 PM3 mins to read

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Bed firm owner David Klingenberg says he is now depending on his bank. Photo / Natalie Slade

Bed firm owner David Klingenberg says he is now depending on his bank. Photo / Natalie Slade

New Lynn bed manufacturer Dave Klingenberg fears being driven into the ground by a $160-million railway trench touted as the key to his suburb's economic transformation.

The Postureline Bedmakers owner has been losing sleep over a five-week closure of busy Portage Rd, which, he says, has driven away customers at
a cost of tens of thousands of dollars while his industry remains mired in recession.

Although KiwiRail re-opened the busy road yesterday morning, two weeks ahead of schedule after lowering it for a replacement rail level-crossing east of the trench, Mr Klingenberg says the lost sales may put him out of business in the absence of compensation from the state-owned corporation.

"The reality is that this business is on the verge of going bankrupt - the reality is it depends on the bank."

He is accusing KiwiRail and its contractor Fletcher Construction of reneging on a promise to guarantee access to his factory and retail outlet for customers and suppliers, resulting in a 70 per cent loss in sales during the closure of the road, which he says is normally used by 8000 vehicles a day.

Mr Klingenberg works at the Portage Rd site next to the western railway line with four others and also employs a handful of retail staff in Newmarket and Mt Roskill.

The rail operator says it has maintained access at all times to all businesses around the construction site for the 800m trench.

"In the case of Postureline Bedmakers the contractor has stationed a staff member at the entrance to ensure anyone approaching is directed into the business or safely away from the works, as appropriate," said KiwiRail spokeswoman Brooke Donovan.

Mr Klingenberg said that was nonsense, as the worker's first impulse was to wave drivers away, telling them the road was closed.

It was only when drivers argued the toss, emphasising to the man that they wanted to get to his premises, that they were allowed through.

He said his wife had been told on three occasions she was not allowed through, and he was facing extra rubbish removal bills after three disposal trucks were turned away.

Ms Donovan said KiwiRail had investigated Mr Klingenberg's allegations, but "on speaking to the contractor we are not aware of any such incidents".

"Senior members of the contractor's team have been on site to monitor activity and we have verified that construction staff stop each car approaching the level crossing and ask where they would like to go, with the intention that anyone heading to Postureline Bedmakers would be allowed through."

She said Mr Klingenberg had declined an offer of signage and advertising to lessen any impacts on his business.

Mr Klingenberg said the offer came too late, on Wednesday, and an angry scene developed the next day when workers pulled down a makeshift sign he had made to tell customers he was still open.

That happened after a supervisor "came storming in" to his showroom, yelling what he said was a false accusation at his wife that she swore at the worker on traffic control duties.

Ms Donovan said in a statement that the corporation had received a letter from Mr Klingenberg seeking compensation and would respond "when we have had the opportunity to fully consider the matter".

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