ISCR February Seminar: The future of rail in New Zealand?
Thursday 19 February 2009, to be held at Old Government Buildings Lecture Theatre 2.
This seminar starts at 12.30pm - 2.00pm. Please feel free to bring your lunch. Tea and coffee provided.
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Did the 2002-08 renationalisation of New Zealand railways represent the end of a failed experiment in the privatisation of essential infrastructure and herald the renaissance of environmentally-friendly rail? Or was it a misguided attempt to stem the inevitable decline of a 19th century technology that has no place in a modern transportation infrastructure?
Dave Heatley examines the economics, structure and role of New Zealand's rail network since 1863. The economics of rail have become increasingly unviable and largely unresponsive to changes in governance and ownership arrangements. Technological changes in rail have been minor when compared with the changes in sea, road and air transport over that period. The role of rail has changed as it has adapted to competition from these substitutes.
Various reasons why "it's different this time" are examined, including externalities (greenhouse gas emissions and congestion), government policy to induce "modal shift" towards rail and predicted increases in the total freight task. It is argued that these factors are not sufficient to make the current rail network viable. Rail is likely to be increasingly squeezed between environmentally friendly sea transport and flexible road transport.
Closure of at least part of the rail network appears inevitable. Dave concludes by looking at whether there is a viable subset of the current rail network, and what factors might hinder us in moving towards that goal.
Presented by: Dave Heatley
Dave Heatley is a Research Fellow at ISCR. He is a successful software entrepreneur turned economist with particular interests in environmental and information economics. This seminar is based on a soon-to-be-available ISCR working paper The future of rail in New Zealand.
As usual there will be an opportunity for questions following the presentation.
If you would like to attend this seminar please contact:
Kathy McKenzie on 463 5562 or email kathy.mckenzie@vuw.ac.nz