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Solid Energy says Tranz Rail's service improving

By NZPA

Tuesday 11th June 2002

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Solid Energy says Tranz Rail has performed well over the last two months, significantly lifting its capacity to carry coal from the West Coast to Lyttelton.

This follows the state-owned coal miner's complaints two months ago that Tranz Rail was putting at "serious risk" its plans to double export production.

It said Tranz Rail had been falling 30 to 35 percent short of the required capacity, causing a critical shortfall of coal at Lyttelton.

Tranz Rail blamed train cancellations because of washouts.

Solid Energy International manager Barry Bragg said today Tranz Rail had shifted 185,000 tonnes of coal last month and 170,000 tonnes in April.

"There's been a big increase so we are hoping that it will continue."

At that rate Solid Energy would meet its target of 1.8 million tonnes for the financial year to the end of June.

The target for the next financial year was 2.1 million tonnes.

Tranz Rail had put on more locomotives, more crews, and done line maintenance to reduce speed restrictions on the Christchurch side of the Southern Alps, Mr Bragg said.

Capacity would increase further with longer trains and longer crossing loops.

"We understand that will be done towards the end of June," he said.

Tranz Rail announced in late April it was spending $3 million upgrading the main West Coast coal route. The work is part of a $10 million project between Solid Energy and Tranz Rail to increase capacity.

"There's quite a large investment at stake here and we expect performance," Mr Bragg said.

Tranz Rail wants to significantly increase its charges to Solid Energy. Mr Bragg said the current contract did not expire until 2009/2010 and Solid Energy did not accept a price rise was justified.

Meanwhile, Solid Energy is planning to barge more coal from the West Coast. It has already barged one load of coal from Greymouth to Lyttelton and plans another two barge loads.

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