Rail privatisation in New Zealand
Encyclopedia
Rail privatisation in New Zealand took place between 1993 and 2008.
. The Canterbury Provincial Railways
opened the first line, the Ferrymead Railway
, in 1863.
It was followed by railways in Southland
and Auckland
. In 1870, Julius Vogel
outlined his "Great Public Works" policy and the central government took authority for the construction and operation of railways, under the auspices of the Public Works Department
and New Zealand Railways Department
(NZR) respectively.
Some private railways were established in the late 19th century. The most prominent and successful was the Wellington and Manawatu Railway Company, whose Wellington - Manawatu Line
opened in 1886 and was acquired by NZR in 1908 to complete the North Island Main Trunk Railway.
The Midland Railway Company
was much less successful; after lengthy litigation, its assets were seized by the government after it proved incapable of completing its projects. On a much smaller scale, the Castlecliff Railway was privately owned from 1885 until 1956.
became a state-owned enterprise, the New Zealand Railways Corporation
. The railways corporation was split into two entities in 1991, New Zealand Rail Limited and New Zealand Railways Corporation. New Zealand Rail Limited was in turn privatised by the Bolger National government
in 1993 and renamed Tranz Rail
in 1995, when the company was listed.
After financial and commercial difficulties in the early 2000s, the Toll group from Australia bought Tranz Rail, and later sold the fixed infrastructure (track, signals and train control) to the Clark Labour government
for $1, which rebranded it ONTRACK
. Toll New Zealand operated the trains, except for the Auckland suburban services, under contract from ARTA to Veolia
. Toll New Zealand was purchased by the Clark Labour government on 1 July 2008.
History
New Zealand's railways were initially run by the former provincial governmentsProvinces of New Zealand
The Provinces of New Zealand existed from 1841 until 1876 as a form of sub-national government. They were replaced by counties, which were themselves replaced by districts.Following abolition, the provinces became known as provincial districts...
. The Canterbury Provincial Railways
Canterbury Provincial Railways
The Canterbury Provincial Railways were an early part of the railways of New Zealand. Built by the Canterbury Provincial government to the broad gauge of 5 feet 3 inches , the railway reached most of the Canterbury region by the time the province was abolished in 1876...
opened the first line, the Ferrymead Railway
Ferrymead Railway
The Ferrymead Railway is a New Zealand heritage railway built upon the formation of New Zealand's first public railway, the line from Ferrymead to Christchurch, which opened in 1863. On the opening of the line to Lyttelton on 9 December 1867, the Ferrymead Railway became the Ferrymead Branch and...
, in 1863.
It was followed by railways in Southland
Southland Province
The Southland Province was a province of New Zealand from March 1861 until the province rejoined with Otago Province in 1870.-History:When provinces were formed in 1853, the southern part of New Zealand belonged to Otago Province...
and Auckland
Auckland Province
The Auckland Province was a province of New Zealand from 1853 until the abolition of provincial government in 1876.-Anniversary Day:...
. In 1870, Julius Vogel
Julius Vogel
Sir Julius Vogel, KCMG was the eighth Premier of New Zealand. His administration is best remembered for the issuing of bonds to fund railway construction and other public works...
outlined his "Great Public Works" policy and the central government took authority for the construction and operation of railways, under the auspices of the Public Works Department
New Zealand Ministry of Works
The New Zealand Ministry of Works, formerly the Department of Public Works and sometimes referred to as the Public Works Department or PWD, was founded in 1876 and disestablished and privatised in 1988...
and New Zealand Railways Department
New Zealand Railways Department
The New Zealand Railways Department, NZR or NZGR and often known as the "Railways", was a government department charged with owning and maintaining New Zealand's railway infrastructure and operating the railway system. The Department was created in 1880 and was reformed in 1981 into the New...
(NZR) respectively.
Some private railways were established in the late 19th century. The most prominent and successful was the Wellington and Manawatu Railway Company, whose Wellington - Manawatu Line
Wellington - Manawatu Line
The Wellington and Manawatu Line is an unofficial name for the section of New Zealand's North Island Main Trunk Railway between Wellington and Palmerston North...
opened in 1886 and was acquired by NZR in 1908 to complete the North Island Main Trunk Railway.
The Midland Railway Company
New Zealand Midland Railway Company
The New Zealand Midland Railway Company partially constructed the Midland line between Christchurch and Greymouth and the Nelson railway in the South Island...
was much less successful; after lengthy litigation, its assets were seized by the government after it proved incapable of completing its projects. On a much smaller scale, the Castlecliff Railway was privately owned from 1885 until 1956.
1990s privatisation
In 1982, the New Zealand Railways DepartmentNew Zealand Railways Department
The New Zealand Railways Department, NZR or NZGR and often known as the "Railways", was a government department charged with owning and maintaining New Zealand's railway infrastructure and operating the railway system. The Department was created in 1880 and was reformed in 1981 into the New...
became a state-owned enterprise, the New Zealand Railways Corporation
New Zealand Railways Corporation
KiwiRail Network, formerly ONTRACK , is the infrastructure arm of KiwiRail. The ONTRACK trading name was introduced in 2004 after the government repurchased all of New Zealand's rail infrastructure from Toll NZ. It does not operate revenue rolling stock...
. The railways corporation was split into two entities in 1991, New Zealand Rail Limited and New Zealand Railways Corporation. New Zealand Rail Limited was in turn privatised by the Bolger National government
Fourth National Government of New Zealand
The Fourth National Government of New Zealand was the government of New Zealand from 2 November 1990 to 27 November 1999. Following in the footsteps of the previous Labour government, the fourth National government embarked on an extensive programme of spending cuts...
in 1993 and renamed Tranz Rail
Tranz Rail
Tranz Rail, formally Tranz Rail Holdings Ltd , was the main rail operator in New Zealand from 1991 until it was purchased by Toll Holdings in 2003.- Formation :...
in 1995, when the company was listed.
After financial and commercial difficulties in the early 2000s, the Toll group from Australia bought Tranz Rail, and later sold the fixed infrastructure (track, signals and train control) to the Clark Labour government
Fifth Labour Government of New Zealand
The Fifth Labour Government of New Zealand was the government of New Zealand between 10 December 1999 and 19 November 2008.-Overview:The fourth National government, in power since 1990, was widely unpopular by 1999, with much of the public antagonised by a series of free-market economic reforms,...
for $1, which rebranded it ONTRACK
OnTrack
OnTrack was a regional rail line that operated in Syracuse, New York from 1994 to 2007. During its operation, Syracuse was the smallest city in the United States to have regional train service. The line ran from Colvin Street on the city's south side via Syracuse University and Armory Square to the...
. Toll New Zealand operated the trains, except for the Auckland suburban services, under contract from ARTA to Veolia
Veolia (New Zealand)
Veolia Transport Auckland, formerly Connex Auckland Ltd, is a division of Australasia's largest passenger train company, French-owned Veolia. It runs Auckland's urban passenger trains under contract from Auckland Transport under their MAXX brand, on infrastructure owned and managed by KiwiRail...
. Toll New Zealand was purchased by the Clark Labour government on 1 July 2008.