Introducing ONTRACK

ONTRACK (the New Zealand Railways Corporation) took responsibility on behalf of the Crown for the ownership and maintenance of the railway infrastructure following the Crown’s repurchase of the network from Toll in September 2004.

The organisation is the custodian of an asset that has played a pivotal role in the country’s history and early growth.

In the second half of the 20th century, railways faced significant competition from road transport. Protection for rail over road was lifted and volumes carried on rail declined to the advantage of road transport.

In 1993, the then New Zealand Rail was sold to a business consortium and renamed Tranz Rail.

In 2004, Tranz Rail was purchased by Australian-based Toll Holdings. Subsequently, the Government repurchased the infrastructure network and signed an agreement with Toll for exclusive commercial use of the network.

When the Government repurchased the network, it recognised there had been significant underinvestment in infrastructure during its years in private sector ownership. As part of the agreement with Toll, it agreed to invest $200 million to upgrade the infrastructure. For its part, Toll agreed to spend $100 million on upgrading rolling stock.

Ownership and management of the rail network was vested in the New Zealand Railways Corporation (ONTRACK)
 
Growing pressure on the roading network and a greater appreciation of the advantages rail has over roading for the haulage of bulk freight and passengers, has rejuvenated interest in rail.

The result is likely to be an increase on the volumes of traffic carried and an expansion of the track network.