Tuesday, July 1, 2008

NZed Rail viability

The pitfalls of political economics were evident in the Prime Minister's remarks yesterday. "One locomotive can pull the equivalent freight of 65 trucks," declared Helen Clark. But one locomotive cannot take that freight to 65 different destinations. The train will need trucks to deliver much of its cargo at one end of the journey or the other, often both. Multiple handling probably costs more than single long haul saves. Witness Toll's wish to keep the railway's profitable truck depots.
^I was going to blog on this very point today's Editorial made.  The more I think about it the more I
question the viability of profitable rail in NZed.  In Aussie when transporting goods over a long distance e.g. Perth of Sydney it makes a lot of sense to use rail.  But in NZed, a country bisected by the Cook Strait, it makes more sense to use trucks.  On a 'long haul' from Auckland to Wellington a truck can deliver to various out of the way locations on the way. 
However, I still hope they're able to make KiwiRail successfull.
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