Bid for $400m KiwiRail contracts nigh

The campaign for Dunedin engineering firms to gain some of the nearly $400 million KiwiRail plans spending on new rolling stock begins in earnest on Monday with the release of an economic report.

The report, prepared by forecasting agency Berl, has been commissioned by the Rail and Maritime Transport Union, which represents workers at Hillside Workshops and the Dunedin City Council.

KiwiRail plans to buy 38 three-car electric multiple units (114 cars) and 13 electric locomotives. The new rolling stock is likely to cost $375 million to produce in New Zealand.

Discussions have been held about whether New Zealand has the capacity to build the rolling stock in the timeframe suggested by KiwiRail's industry engagement unit.

One man who has no doubt that New Zealand, particularly the Hillside and Woburn workshops, can deliver is Otago Chamber of Commerce chief executive John Christie.

Mr Christie chairs a working party in Dunedin that has been quietly building support for KiwiRail to seriously consider building the EMUs and locomotives in New Zealand.

The working party includes city MPs, trade union representatives, members of the DCC and the Otago Regional Council and representatives of Dunedin's engineering industry.

Mr Christie next week meets KiwiRail chief executive Jim Quinn to invite him to Dunedin to hear first hand about the capabilities and capacity of the city's engineering sector.

It appears Hillside, supported by Dunedin engineering firms, does have the capacity and capabilities to meet KiwiRail's requirements.

"Not too many people in Auckland know what we are capable of. We have identified that 70 businesses locally have a relationship with Hillside. The benefits of getting some of these contracts benefits not just Hillside, but many suppliers in the city," Mr Christie said in an interview.