Is Maintaining a Train Network in New Zealand Worth the Cost?

Abstract

The IPCC highlighted the potential for rail transport to play a vital role in transitioning to a low-carbon economy. In many countries, rail networks are operated and maintained by private companies. However, in N.Z., the privatization was undone in 2008. The nationalization was necessary to enable public investments to gain long-term benefits for N.Z. as a whole. Literature shows that accurate life cycle cost analysis of networks is very complex, and benefits are financial, environmental, and social. The latter two categories of benefits are often not considered by private companies. The uncertainties in calculations are often so significant that perhaps a more relevant issue is determining the long-term benefits of a network for a country.

Keywords

• rail transport network
• rail maintenance
• rail rehabilitation
• sustainable transport
• IPCC
• state-owned enterprises