“The team recently had discussions with KiwiRail (CEO Peter Reidy and members of his senior management team). It was a very encouraging meeting.”
Mr Dick said it was expected that the line would open next year.
“The aim is to have the line operating between Wairoa and Napier Port by this time next year to handle the significant volume of logs expected to be harvested.
“It was initially thought the line would open this year, however, after discussions with forestry owners and industry representatives it was agreed it would be next year before the volume of logs was high enough to make the line economically viable.
“Negotiations continue with the forestry companies in relation to freight charges etc and obviously these negotiations are commercially sensitive. There also still need to be discussions around the re-establishment costs of the line and underwriting the operating of the line.
“The focus remains on getting the line up and running again between Wairoa and Napier Port for three reasons: fostering economic growth in Northern Hawke’s Bay; improving road safety on State Highway 2 with the anticipated significant increase in log volume coming through; and the environmental reason of cutting back on fuel and carbon emissions.”
A statement from KiwiRail said KiwiRail, Napier Port and Hawke’s Bay Regional Council continued to work together to determine exact timings and costs for the Napier to Wairoa log service.
“Timelines for the project are fluid at this stage.”
The company confirmed that under that agreement logging freight would go no further than Wairoa on the rail line.
The Napier to Wairoa and Gisborne line was mothballed at the end of 2012 after the line was badly damaged in the Beach Loop area by a storm earlier that year.
