A proposal is being developed that might result in the Otago Excursion Train Trust and Auckland’s Glenbrook Vintage Railway running the Dunedin Railways operation.
"Taieri Gorge railway is an Otago treasure, and a new community-based model is being proposed so it can operate successfully in a post-pandemic world," Otago Excursion Train Trust chairman Murray Schofield said.
Glenbrook would bring business expertise to a joint venture, he said.
"Like Dunedin Railways, it has its own branch line, maintains a large vehicle fleet, and operates regular long-distance excursions.
"We are incredibly excited to have Glenbrook involved in this effort to preserve the operation."
Under the proposal, the Otago train trust and the Dunedin City Council would own Dunedin Railways’ assets and would contract above-rail operations to an entity formed by the Otago and Glenbrook groups.
The Otago Excursion Train Trust has commissioned a consultancy to prepare a business case, and the joint bid to operate Dunedin Railways is to be put to the council in the next couple of months.
The Dunedin Railways company, owned by the city council, went into hibernation in 2020 when Covid-19 had a drastic impact on tourism.
Limited services have been run under a temporary structure since and the council has yet to determine which model might work best in the years ahead.
The council has signalled it intends to facilitate a train service between Dunedin and Middlemarch, but a multimillion-dollar deferred maintenance bill for the Taieri Gorge tracks would need to be faced.
Dunedin train services are popular with passengers from cruise ships, but they have not in recent years broken even while keeping up with track maintenance.
An alternative idea would involve converting at least part of the line into a cycle trail.
Possibilities for extending the Otago Central Rail Trail past Middlemarch towards Dunedin are being looked into.
A feasibility study commissioned by the Otago Central Rail Trail Trust is set to be completed before the council runs consultation on its draft 2024-34 long-term plan.
Taieri MP Ingrid Leary described Dunedin rail as a precious heritage tourism product.
"Decisions on whether to continue the rail connection to Middlemarch are not just about an iconic rail journey for both New Zealanders and our overseas visitors, they speak to the very heart of our Otago heritage — a history full of pioneers and high achievers," she said.
"This provides another opportunity for central and local government to jointly support Dunedin Railways with a 10-year plan on investment."
Ms Leary said ideas about extending the rail trail should not be ignored, and she wanted to see a win-win.
