Pike River Coal Limited’s agreement with Solid Energy to rail coal from the West Coast to the Port of Lyttelton is a vote of confidence in the reliability of the Midland Railway Line, ONTRACK Chief Executive William Peet said today.
“The agreement is a very welcome development,” he said. “We’ve always considered that railing the coal was the best option available and we’re pleased that Pike River Coal has come to the same conclusion.
“Looking at Pike River Coal’s projected output in the short and medium term, we are confident that the work we have done since the rail infrastructure returned to public ownership in 2004, will enable us to cope with demand.
”Mr Peet said the $25 million ONTRACK investment in the line since 2004 (excluding Cobden Bridge) had improved the overall efficiency and reliability of the line. Much of this money had been spent on re-railing, re-sleepering, strengthening bridges, building new passing loops and improving the ventilation in the Otira tunnel.
“It seems no time at all that 30 wagon coal trains were deemed a break-through. Working with Solid Energy and Toll NZ we’ve now established that 45-wagon coal trains are technically feasible.
“There are constraints to growth but the important thing is that we’re confident we have the key to unlocking considerably greater capacity than exists at the moment.”