Middlemarch train decision ‘narrow-minded’

Dunedin Railways chairman Kevin Winders (right) and chief executive Craig Osborne after speaking...
Dunedin Railways chairman Kevin Winders (right) and chief executive Craig Osborne after speaking at the Strath Taieri Community Board meeting last week. PHOTO: SHAWN MCAVINUE
Dunedin Railways is ‘‘ narrow-minded’’ for letting money matters dictate its decision to stop a train service to Middlemarch, Strath Taieri Community Board chairman Barry Williams says.

But Dunedin Railways chairman Kevin Winders says the railway operator is a commercial business and ‘‘that’s the way the game works’’.

Mr Winders and Dunedin Railways chief executive Craig Osborne spoke at a board meeting last week about a proposal to stop the service between Dunedin and Middlemarch.

Mr Williams said it was ‘‘disgraceful’’ Dunedin Railways had decided to consult the community only after receiving advice from the Dunedin City Council.

Earlier in the meeting, Mr Winders said the Middlemarch service accounted for 2% of its business.

The annual cost, including the maintenance of 18km of track between Pukerangi and Middlemarch, was $140,000.

‘‘It’s used for 19 trips and generates $20,000 [in revenue],’’ he said.

‘‘You look at that and ask: ‘Why are we doing it?’’’

A more ‘‘significant part of the business’’ was taking cruise ship passengers on a train trip from Port Chalmers to Pukerangi.

Mr Williams said the Middlemarch community had given ‘‘a lot of money’’ to support the train service to Middlemarch — long before cruise ships began sailing to Dunedin.

‘‘Once the tourists came, you’ve forgot all about the locals and their original support.’’

Dunedin Railways was ‘‘narrow-minded’’ for stopping the service to save $120,000 a year.

‘‘If everything needs to make money we wouldn’t have a library, a museum, a swimming pool or an art gallery, so bear in mind you’re partly owned by the council.’’

Mr Winders said Dunedin Railways was a commercial company, of which the council owned more than 70%.

Dunedin Railways had issues around sustainable profit and it was a high-cost business.

As many of the older locomotives and carriages required a significant amount of maintenance, compliance costs, such as health and safety, were rising.

Dunedin Railways was investigating options to turn the business around.

Another challenge was the decline in the number of tourists visiting the country, he said.

‘‘We’ve had a slower start to the tourism season this year and experienced lower numbers on the trains.’’

The two ‘‘major’’ services offered by Dunedin Railways were the Taieri Gorge Railway trip between Dunedin and Pukerangi

and taking cruise ship passengers on a trip from Port Chalmers to Pukerangi. The second was a ‘‘significant part of the business’’.

The service to Middlemarch was an ‘‘oddball offering’’.

‘‘We have got to look at what we can stop to improve the bottom line.’’

Mr Osborne said tourists visiting Dunedin were ‘‘time poor’’ and did not have the extra two hours to travel by train beyond Pukerangi.

Another reason for visitors not taking the trip was a belief the scenery on the 18km ride from Pukerangi to Middlemarch was similar to the scenery seen on an earlier section of the track, he said.

‘‘We understand it’s different but they see it as the same.’’

As part of the consultation, the board and Dunedin Railways would hold a public meeting in Middlemarch later next month, at a time to be announced, he said.

Mr Williams said Dunedin Railways ‘‘half-pie ruined’’ the Middlemarch Singles Ball last year

by making patrons return to the city on buses after having transported them to Middlemarch by train.

Mr Osborne said it was not safe to transport intoxicated patrons on a train from a function such as the Middlemarch Ball.

At a past ball, patrons had climbed on to the roof of the train, he said.

Mr Williams took issue with that reasoning, saying Dunedin Railways did a return trip from Dunedin to Oamaru for patrons wanting to see a Ranfurly Shield match in the town and some of the passengers on the return leg had been in a similar ‘‘condition’’ to ball patrons.

Mr Osborne said such returns trips, such as the ball and rugby, would not be held in the future.

Before leaving the meeting, Mr Winders said Dunedin Railways’ mandate was to operate as a commercial company.

‘‘If the DCC want to change our statement of corporate intent - that’s our shareholders’ prerogative ... That’s the way the game works.’’

SERVICE SHOULD STAY:  GALLERY MANAGER 

The train service to Middlemarch should keep running for many reasons, a gallery manager says.

O Tawhiri Gallery manager Jo Robertson, of Middlemarch, said the proposal to stop the service needed to be considered from the view of preserving and honouring the cultural heritage of the area.

‘‘We need to think creatively to acknowledge and nurture the future of Middlemarch as it is part of the greater city of Dunedin.’’

Historically, the trains functioned as a way to connect people and communities, Ms Robertson said.

‘‘Railway workers spent their life's blood on those lines to establish those connections. Now ceasing the train line from Pukerangi to Middlemarch as a mere business cutback for Dunedin Railways would likely make those workers turn in their graves.’’

She had taken the train as a mode of transportation to and from Dunedin more than a 100 times in the past 15 years.

‘‘Throughout those years, I have observed little investment back into the maintenance of the track line.

‘‘Originally the ride from Pukerangi to Middlemarch only took 10 minutes when the track was good. Now it takes around 30 minutes due to the state of the track,’’ she said.

‘‘I have no doubt that the train line from Dunedin to Middlemarch will one day be one of the most attractive, low-carbon modes of transportation in New Zealand.

‘‘The train line will become even more precious and Middlemarch will be seen as a haven and destination.’’

SHAWN.MCAVINUE @thestar.co.nz

Comments

There are lots of ideas that would be great to support. Dunedin Railways trains could run to lots of places and those trips would be enjoyed by the people who ride on them. BUT, Dunedin is a small city. There are serious limits to how much money can be spent propping up any business from ratepayer funds.

The same goes for lots of other fantasy projects, ego bridges and George St destruction spring to mind. It would be great to spend $50 million or so building a cable car around Dunedin. But if these things can't stand on their own financially then sorry, Dunedin can't afford them.

Councilors and DCC staff need to remember Dunedin is a city of about 120,000 people, not a place of 5 million where ego can take flight a bit easier.
And it is tough for people wanting to live in a regional town and have tourists fed to them. Sorry, you need to find other ways to attract tourists.

As Dunedin becomes more of a hub for cycle tourism, the rail link to Middlemarch will become even more of a key asset, and needs to stay functional. As for 'only 19 trips' so not enough revenue, that's an own-goal: schedule more trips and you'll get more patrons!

 

Advertisement