$5m deal reached to maintain Ohai to Invercargill railway line
Monday, 18 January 2021
A deal has been reached to secure the short-term future of a Southland railway line; the same line where a train derailed last week with eight freight carriages leaving the track.
In July, it was announced that KiwiRail was considering closing the Wairio branch line from Ohai to Invercargill if it could not secure the funding for repair work estimated to cost $5 million.
A KiwiRail spokesperson said that a deal had been secured in December to maintain the line until 2025.
Bathurst Resources Ltd would contribute $5.2 million to maintain the line and it was expected upgrades to the line would start shortly, the spokesperson said.
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**
Last week, eight wagons, each carrying two empty 20-foot containers designed to move coal, came off the tracks, damaging 100 metres of track and also damaging rolling stock.
The cause of the derailment was being investigated and the cost of repairs were yet to be confirmed, the KiwiRail spokesperson said.
It was expected to take seven days for the repair work to be completed but trains resumed running on Saturday.
Bathurst Resources Ltd is the sole user of the line and uses it to supply coal from Ohai to Invercargill, before the coal is transported to Fonterra’s Clandeboye factory.
In July, KiwiRail chief executive Greg Miller said the line was dilapidated and required the investment to ensure it could operate safely.
New Zealand Rail and Maritime Union general secretary Wayne Butson said major concerns with the line were at the Oreti River Bridge, which required structural work.