Auckland supports rail corridors plan

By BERNARD ORSMAN

Auckland City is the first council in the region to endorse a new proposal to pay Tranz Rail $112 million to gain access to its railway tracks for a new public transport system.

Councillors voted last night to gain full control of the rail corridors in Auckland even though the cost of the new deal is $47 million more than the original deal.

Councillor David Hay expressed concerns about financing the deal; so far the region has committed just $30 million towards it from Infrastructure Auckland and has little idea how to pay for the balance. He voted in favour to make progress.

Acting mayor Dr Bruce Hucker said access to the rail lines was crucial for the region to deal with growth and transport plans.

He said the chance to gain access to the rail tracks might not last forever, because there was pressure within Tranz Rail to sell its passenger services to an overseas operator.

The key change between the deal agreed to in principle on June 2 and the new one, centres on the section of the main trunk line running from Papakura to Auckland Central via Middlemore and Glen Innes.

In the June agreement, the region agreed to pay $65 million to buy out Tranz Rail's lease on the West Auckland line, the Newmarket branch line, the Onehunga branch line and the right to the proposed rail corridor between Avondale and Southdown.

For an extra $2.25 million a year, rising to $4.25 million as more passenger trains used the track, the region gained partial access to the main trunk line.

Tranz Rail initially refused to give up control of the main trunk line, which it regarded as a vital part of its freight network, but this attitude changed in August.

The new deal has the region paying $112 million, then receiving $2 million a year from Tranz Rail for the next 60 years.

Waitakere, Manukau, Papakura and Franklin councils have until next Thursday to decide if they support the new deal.

In a letter to the editor this week, former Infrastructure Auckland director Rodney Dearing said that before committing ratepayer money to a new public transport system, councillors should be mindful of the huge financial risks.

"There has been much hype and a paucity of good, well-researched business planning available ... rigorous financial examination may avoid another public project disaster similar to Britomart past."

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