Prospects for Hillside role in train tenders rise

The possibility of Dunedin's Hillside Engineering workshops winning some construction work on the $500 million tender for Auckland's trains appears to have increased with the release of KiwiRail's Request for Proposal (RFP) documentation.

KiwiRail released the documentation yesterday to the four companies short-listed to manufacture the 38 electric multiple units (trains).

It is a list of specifications for building the trains.

While it was not yet publicly known what was in the document, it has been hoped there would be encouragement from KiwiRail and Transport Minister Steven Joyce for the tenderers to investigate subcontracting some of the work to New Zealand companies.

A working group of Government, Dunedin City Council and Dunedin business representatives, established to win some of the construction work, was excited by Transport Minister Steven Joyce's announcement of the RFP.

Mr Joyce said while KiwiRail had made the call not to be part of the tender to build the trains themselves, it had been ensuring all bidders were aware of the capacity and experience that exists in New Zealand.

"I would encourage all players to investigate the potential to have some of the work done here," he said.

"I was heartened to hear that a number of bidders have already visited the KiwiRail engineering workshops.

"I hope others will do the same in the months ahead."

Otago Chamber of Commerce chief executive John Christie welcomed Mr Joyce's comments, particularly those encouraging the bidders to investigate incorporating New Zealand expertise.

"This is a signal from the minister that we could expect to see some local contribution to the project."

Mr Christie said the working group was looking forward to seeing the RFP document.

The Crown has invested $1.6 billion in the development of Auckland's metro rail system, which comprises $600 million for Project Dart, $500 million for the infrastructure required to support electrification, and $500 million to buy electric trains.

Eleven companies expressed an interest in tendering for the projects - four of which have gone ahead to the next stage.

Mr Joyce said the upgrade and electrification of the Auckland rail network would provide for more frequent trains at peak times and help meet future passenger demand.

"New Zealand's future success is tied to that of Auckland as our largest city and largest local economy.

"Getting Auckland transport working well is crucial to getting Auckland growing faster and providing more jobs."

KiwiRail hoped to award the tender by the middle of next year and have the first trains operational from 2013.

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