Struggling Kiwirail to explain poor results

  • 29/10/2015
A Kiwirail train in Wellington (File)
A Kiwirail train in Wellington (File)

Troubled Government-owned rail operator Kiwirail may reveal whether it's any closer to running without support when it reports on its 2015 results.

Kiwirail has struggled to meet income targets set in a 10-year, $1 billion turnaround plan and a public meeting today may give an idea of how big the gap is, as well as provide insights into the company's direction.

It produced improved figures in its year-to-June figures, significantly up on 2013-14. But the Government said it expected to keep pouring $200 million a year into the business to keep it going.

Difficulties the rail operator face include possible shrinking income from major freight client Solid Energy, which is undergoing a selldown.

During May's budget, Finance Minister Bill English warned the current level of support was not sustainable and KiwiRail had to improve its performance.

NZN

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