New Zealand Railway History: New Zealand Railways Corporation Annual Report 1984

In 1984, the New Zealand Railways Corporation (NZRC) completed its second year of operation, and its last profitable year before six hard years of restructuring before it was reformed into a fully-fledged State Owned Enterprise in 1990 (NZ Rail Limited). This highly pictorial annual report contains details of notable parts of the operations of NZRC over the 1984 financial year and some images reflecting some highlights. At the time, the Chair was Mr Lyndsay Papps and the General Manager was Gordon Purdy.

The 1984 Annual Report saw it report a drop in rail freight tonnage, increase in ferry freight tonnage, but around the same net tonne kms of rail freight hauled in total. As it was the first full year of NZRC faces a fully competitive road freight market (with removal of the 150km limit of road competition with rail), it means NZRC was losing short to medium haul freight traffic, but retaining sufficient long haul freight and operating longer distance trains, to hold steady in total freight hauled. The locomotive and wagon fleet both reduced, reflecting greater efficiencies in operation.

On the passenger side both long distance and suburban rail patronage increased, but NZR Road Services lost patronage. It is worth noting that at the time, NZRC received direct subsidies from central Government (Social Services Payments) to subsidise long distance and suburban rail services, as well as some freight branch lines and NZR Road Services routes. This arrangement continued until 1987 with restructuring of funding of urban transport that saw regional councils required to share the cost of subsidising urban passenger transport.

The 1984 financial year was also the year that the Booz Allen Hamilton (BAH) report on restructuring NZRC had been received, and so the impacts of that report are not reflected in that year. It was noted that the North Island Main Trunk (NIMT) electrification project had been approved and was forecast to cost NZ$200m at the time (it would end up cost over 50% more).

Subsequent years would prove more challenging for NZRC as it started to more clearly identify elements of the freight market that it was commercially viable for it to service. It would also transition from being input focused (structured around supply of locomotives, rolling stock, right of way and buildings) to selling services to customers.

Key statistics include:

Net profit of $23.9m compared to $24.2m in 1983
Reductions in revenue of around $30m compared to 1983.
A reduction in staff numbers from 20 865 to 19 148.
Wages comprised 55.6% of expenditure.
Average rail freight haul distance was 298km, up from 285km in the 1983 financial year (this is a low average by today's standard).
1877 Cook Strait ferry round trips were worked compared with 2153 the previous year. 3.5% of sailings were stopped due to weather, urgent repairs and industrial action.
160km of new rail were installed and 16 rail bridges were reconstructed and strengthened.
471 locomotives in the fleet down from 504 the previous year

Highlighted changes to infrastructure and services include:

Introduction of new overnight freight liner express goods services between Auckland-Wellington, Picton-Christchurch and Christchurch-Invercargill. Train space sold on a "slot" basis to customers including freight forwarders.
Introduction of the "Doorrail" door-to-door general goods service in partnership with road operators at 28 key stations.
69 new goods wagons entered service and 191 wagons were modified to handle specialised traffic.
Patronage increased on the Silverfern (Wellington-Auckland), Southerner (Christchurch-Invercargill), Wellington-Gisborne and Picton-Christchurch Expresses. At the time the increasingly worn-out Ac "Grass Grubs" had been replaced with refurbished 56ft cars with new seating, with the Grass Grubs placed on the Wellington-Gisborne route to replace 56ft cars with old-fashioned bench style 2nd class seats.
The electrification between Paekakariki and Paraparaumu went live in May 1983
18 new long distance coaches entered service for Road Service and a programme to re-engine 45 coaches with more powerful engines was nearly complete. Noted new coaches with air conditioning ( a first for NZR Road Services) and some with sheepskin seat covers
25% off peak saver discount for midweek and Saturday long distance rail services was introduced
Ferry Aramoana was withdrawn from service in March 1983, but returned to service briefly to clear a backlog of traffic due to weather delays.
Its replacement, the Arahura was delivered in December 1983. Arahura had capacity for 1000 passengers, 60 four-wheeled wagons or 130 cars on the rail deck, 100 cars on vehicle deck.
Contracts awarded for Stage 1 of NIMT electrification
New travel centres for Road Services opened in Wanganui and Opotiki
New freight offices opened in Tauranga and Morrinsville
New administration building and apprentice school opened in Wanganui
New signals and apprentice school at Woburn
Installation of radio communications in locomotives and trackside was completed for Wellington-Auckland and Christchurch-Picton
Completion of the DC/DBR programme
Contract awarded for the NIMT electric locomotives to Brush Electrical Machines Ltd of the UK
Prototype DSJ locomotive entered service and work commenced on building four more at Addington Workshops
Two of out three Silverfern railcars had been refurbished
Makohine Tunnel daylighting on the NIMT (pictured)
Refurbishment of English Electric EMUs at East Town workshops (these were the 1950s series stock that remained after the Ganz Mavag units replaced the 1930s and 1940s stock).