Lund South had won the contract to move Ja 1274 from the Otago Settlers Museum to its new resting place on the public car park about 20m south of the Dunedin Railway Station, council city life manager Graeme Hall said yesterday. The company's bid was $30,000 below budget, he said.
The 146-tonne locomotive is the 35th and last of its class built at Dunedin's Hillside Railway Workshops between 1946 and 1956. It has been on display since 1975.
It did not belong to the settlers museum but was donated to the citizens of Dunedin, Mr Hall said.
Members of the Ocean Beach Railway raised funds to restore it to display condition and build its present concrete-block display shed.
The new shed would be all glass, with one removable wall in case the locomotive was ever moved out to be restored, Mr Hall said.
While many people would think $700,000 was a lot of money to spend on the project, he said the council wanted to build an appropriate new home for the locomotive.
"This demonstrates that when the council accepts a gift in perpetuity it will build something to house that gift which will also last in perpetuity."
Taieri Gorge operations manager Grant Craig, a former chairman of Ocean Beach Railway, said he "knew the project was going to be expensive" and was not surprised at the cost.
Ocean Beach's preferred option was for Ja 1274 to continue to be displayed at the museum alongside Josephine, which arrived in Dunedin in 1872 and was one of the first two locomotives used on the Dunedin-Port Chalmers line. A new display shed is being built for Josephine at the museum.
Because it was decided the two locomotives were not compatible, Ja 1274's railway station location was "the next best option", he said.
Some people wanted Ja 1274 restored to working order, but Mr Craig said that would be very costly.
"There are quite a few already preserved in New Zealand [and] this one hasn't run for 40 years. It is the only one on display 24/7. The best option is to have a glass display shed so that people can admire it. That way we are making sure it is preserved for future generations".
