Kiwirail triples its half-year earnings as demand rises

Kiwirail's half-year earnings nearly tripled to $73.4 million, with freight volumes up 7%. Photo / Samuel Rillstone / RNZ

Kiwirail has nearly tripled its half-year earnings as it carried more freight.

The state-owned rail operator’s operating surplus for the six months ended December was $73.4 million compared with $25.8m a year ago.

Freight volumes increased 7% as there was an increase in demand and bulk cargo volumes returned to normal.

Its revenues increased 4% to $537m but operating costs fell 6% to $464.4m.

Chief executive Peter Reidy said spending on engines and rolling stock, along with improvements in the rail network and infrastructure, were paying off.

“These gains were achieved while we continued to navigate network constraints, particularly in Auckland, and weather-related impacts across parts of the network.”

Board chairwoman Suzanne Tindal said it was a disciplined performance.

“We remain on track against a full-year operating surplus target of $160m,” Tindal said.

“This reflects improved operating performance across our commercial businesses and early progress from initiatives to strengthen productivity and reduce our cost base.”

Kiwirail said more than $9 billion had been invested to upgrade tracks, signalling and infrastructure assets, and to modernise rolling stock.

“In HY26, $601m was invested across the network and in key capital projects,” Reidy said.

Kiwirail said the Interislander operation was working “effectively” since the retirement of Aratere to support the ferry replacement project.

“We have strengthened our road bridging capability to maintain the movement of rail freight across Cook Strait, increasing staffing and equipment at terminals,” Reidy said.

“While passenger numbers were lower due to the shift from three vessels to two, commercial freight volumes remained steady for the half-year, reflecting improved capacity utilisation.”

– RNZ