THE CONTRACT has been let that will overcome the last major obstacle on the Wanganui-Stratford rail line a few kilometres north of Wanganui.
Ontrack, the company responsible for New Zealand's rail infrastructure, plans to replace the existing Kai Iwi tunnel, north of Wanganui, with a 992 metre deviation, opening the track up to large 2.9 metre hi cube containers favoured by the dairy industry.
The $2.8 million contract has been let to New Plymouth-based company Hurlstone Earth Moving, with initial drainage to begin before Christmas.
The project is expected to be completed in autumn next year.
Walter Rushbrook, Ontrack's structures engineering manager, said the deviation will open the way for trains into and out of Taranaki to carry the larger containers.
There is currently no way through for large containers, with all freight having to be carried in smaller 2.6 metre containers.
"The Kai Iwi tunnel is the major impediment to the transport of the largest containers used extensively for dairy produce from Fonterra's Whareroa plant near Hawera," Mr Rushbrook said.
The overhaul will be beneficial for farmers in South Taranaki, with about 12 trains a day currently using the route during milking season.
Freight from the Whareroa plant would be able to use the larger containers to move products south, allowing more product to be carried by rail.
Mr Rushbrook said the deviation will completely by-pass the 70m tunnel and remove the current permanent speed restriction of 15km per hour.
"It will be a significant step towards making rail more competitive for the movement of containerised goods out of Taranaki."
Mr Rushbrook said there will be little disruption to existing traffic while the project is undertaken, as most of the work will be done away from the active track.
Plans for the deviation were announced three months ago and among the first to welcome it was Roy Weaver, chief executive officer of Port Taranaki Ltd.
Mr Weaver said the changes opened up opportunities for Wanganui importers and exporters through the New Plymouth port.
His company has been discussing prospects of an inland port, serviced by road and rail and with its hub in Wanganui.
Full steam ahead on Wanganui-Stratford line
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