Trains: Unresolved Issues(Repost)


Today, KiwiRail has today called for Expressions of Interest from potential suppliers for Auckland’s new electric commuter trains.
Funding, leasing issues and even the maintenance are unresolved issues as KiwiRail go forward in purchasing electric trains for Auckland.
A partnering agreement between the key parties spells out those issues.
Those parties are KiwiRail, Veolia, ARTA, Ministry of Transport and the ARC.
The unresolved matter issues are listed below from that document along with other relevant points.
The parties acknowledge that a number of issues remain to be resolved between parties:

  • the terms on which the $500m of funding will be provided to KiwiRail for example whether it will be provided by way of loan or equity
  • the terms on which ARTA will lease the EMUs and electric locomotives from KiwiRail
  • how the projected while of life operating expenditure ‘funding gap’ for Auckland metro services will be funded
  • maintenance strategy
  • whether the EMUs will be owned by a special purpose vehicle and the composition and ownership of that vehicle



  • to provide project implementation and management services to ARTA as the planner and specifier of Auckland metro rail service
  • to fund the capital and implementation cost of the project excluding ongoing maintenance under the $500m of funding for capital expenditure


  • to specify the requirements for the project as the planner, specifier and purchase of Auckland metro rail services and monitor the implementation of the project against these requirements
  • to lease the EMUs and locomotives from KiwiRail and fund the lease and other operational costs with a mixture of fare revenue via a service operator, regional public funding via ARC road user funding via the NLTP and if required central government funding via NZTA
  • to fund, develop and procure Auckland metro rail via collected rail passenger rail revenue collected by Veolia
  • to provide joint governance of the procurement


  • to monitor implementation of the project against the terms of this protocol and central government funding
  • to co fund subject to approval by NZTA in accordance with the land transport management act 2003 operating costs of Auckland metrol rail via the NLTP


  • to communicate the government’s expectations to thr parties and monitor the delivery of the project against those expectations
  • to act as a referee and negotiatior between parties where necessary


  • to oversee and assist the performance of ARTA of ARTA’s role
  • to liaise with KiwiRail, ARTA,NZTA and MoT on funding issues in connection with the project
  • to co fund the operating costs of Auckland metro rail via the  Long Term Council Community Plan


  • to share with the project the information and experience gained as the incumbent operator of Auckland services to ARTA
  • to provide at no cost limited technical operational and engineering services as agreed by Arta and Veolia on a cost by cost basis
  • to collect fare revenue on Arta’s behalf to co fund operating costs of Auckland’s services


  • earliest completion of the project
  • minimal disruption to passenger services
  • effective project management and implementation to achieve the most cost effective outcome for the project
  • increase the contribution of rail to public transport by improving service quality, punctuality, reliability and customer service, improve frequency where possible and reduce passenger journey time
  • set up a competitive and transparent process for procurement that complies with probity standards
  • to maintain positive working relationships
  • achieve value for money with whole of life cost optimisation across both procurement and maintenance
  • minimise and effectively manage delivery risk and ensure timely delivery
  • maximise operational efficiency and performance
  • make effective use of the parties available resources and materials
  • develop an appropriate forum for addressing integration and implementation risk between the project, the project by the DART and AEP
  • achieve a sustainable contract structure with an appropriate allocation of risk between the parties that is sufficiently flexible to change over the performance life of the EMUs




  1. ingolfson says:

    Nothing showing up…?

    (Oh, and in other news - the “Video: Crane update” also doesn’t show up either from home or work computer, and the comments section is closed on said post, so I couldn’t ask about that).

  2. nickw says:

    Yeah not a good idea to use .tiff files on a website - should convert them to .jpg

    Congrats on a great blog otherwise

  3. LucyJH says:

    Would be great if you could repost Jon as would like to see. Or provide a link.


  4. Jimmy says:

    If you click on the boxes you can download each image.

  5. ingolfson says:

    There ARE no boxes (at least not in Firefox). There may be in IE, but I hope Jon can fix - it would be depressing to HAVE to use it.

  6. Jon C says:

    @ingolfson Odd things going on. Video crane reposted.
    You should now be able to read above.
    Will do separate posting on procurement document

  7. ingolfson says:

    “to provide at no cost limited technical operational and engineering services as agreed by Arta and Veolia on a cost by cost basis”

    This doesn’t seem to make sense - “at no cost” vs “on a cost by cost” basis?

    Also, I am again flabbergasted at the clusterf*** that is our transport organisation. SIX partners? I just hope they aren’t expecting the TENDERER to negotiate that minefield.


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