KEY POINTS:
Auckland rail operator Veolia Transport has won a long-term extension of its contract so passengers can be sure of continuity of service while electric trains are introduced in the region.
The Auckland Regional Transport Authority has extended the French-owned company's operating contract by four years, from
2010 to 2014, by which time it hopes at least 35 multiple-unit electric trains will be whisking passengers around the region at 10-minute frequencies.
Veolia has overseen a threefold increase in annual rail patronage, from 2.5 million passenger trips in 2004 - when it won its first operating contract to run elderly diesel trains over a creaking network - to more than 7 million this year.
Auckland is set to overtake Wellington's annual rail patronage of about 11.5 million trips in the next two to three years, even if today's passengers will have to put up with three weeks of bus replacements on the western line until January 19 while holiday-season track construction work takes precedence between Britomart, Newmarket and New Lynn.
The extension of the Veolia contract follows the transport authority's decision last week to start an international tender round for 140 electric rail cars to be delivered and maintained as trains of four or three cars.
The authority also says it may require 88 more cars after the $1 billion electrification project on which it is sharing costs with the Government is bedded in between 2011 and 2013.
Veolia Transport Auckland managing director Arthur Bruce said his company would combine its experience in operating the local network with that of introducing electric trains to overseas cities, to help Auckland through the transition from a solely diesel fleet.
Although the contract extension was not subjected to competitive bids, unlike the supply of electric trains, Mr Bruce said it would be rolled over annually on the expectation that his company would work continually to enhance service performance.
Transport authority customer service general manager Mark Lambert said his organisation believed it important, when faced with a period of potential disruption through the introduction of electric trains, to stick with an operator that understood the local environment.
Mr Lambert said the authority had not introduced any specific service enhancements to the latest contract extension, but had negotiated new performance requirements early this year to boost patronage and customer satisfaction.
He acknowledged difficulties with overcrowding and timetable performance on some parts of the network several months ago, but said customer satisfaction had risen after the introduction of three more refurbished diesel trains.
More customer service staff had been introduced to Britomart and extra ticket collectors had been put on trains.
The rail contract will cost the authority's funders - the Auckland Regional Council and the Government - $66.5 million this financial year.
Fare are expected to raise about $19 million, which Veolia will pass on to the transport authority in return for being paid an undisclosed management fee on top of its staff and other operating costs.
Mr Lambert said the changes to performance indicators were accompanied by a modest increase in the amount of "at risk" incentive payments to Veolia in return for meeting expectations, although he could not disclose figures.
The transport authority and Government rail agency Ontrack are appealing to passengers for patience over the next three weeks, during track closures needed to achieve progress on big track and station construction projects.
Buses will also replace trains throughout the network north of Panmure until January 5.
