By Geoff Kreegher (Hamilton Ratepayer)
August 2024 – KiwiRail Monthly Operating Costs
Running between Hamilton and Auckland, the train named Te Huia is the latest attempt to operate this passenger connection by rail. As an operation, Te Huia has been running large losses. Taxpayers and ratepayers in the Waikato are heavily subsidising this underutilised service. Looking at the Te Huia operation for just the month of August 2024, Kiwirail reports that for each journey (one-way) a passenger on average generates only $11.84 in revenue. In the same month, total operating costs for Te Huia work out to be over $94 per one-way passenger journey. For most weeks in August, Te Huia was operating at less than 42% of the train’s seat capacity.
Currently, Te Huia operates as a 4 car consist (rail terminology for the rolling stock in a train). The train’s four carriages have a total seated capacity of 155 and hold and extra standing 130 passengers.
Official diagrams of Te Huia cars
Since 8th February 2024 Te Huia conducts:
- Two return journeys each Monday, Tuesday, Wednesday and Saturday, with a seated capacity of six hundred and twenty (rounded to 600 per day) and;
- Thursday and Friday three return journeys, with a seated capacity of nine hundred and thirty (rounded to 900 per day).
Te Huia timetable in 2024
The KiwiRail August 2024 Financials are:
Page 13, Te Huia Monthly Operational Report: August 2024
During August 2024 Te Huia operated for a total of 27 days – total capacity 19,200
17 days (62.96%) of the total 27 days @ 600 passengers per day were 2 return journeys per day on Mon-Wed & Sat – total capacity for the month 10,200.
10 days (37.04%) of the total 27 days @ 900 passengers per day were 3 return journeys per day on Thu & Fri – total capacity for the month 9,000.
The breakdown of August 2024 costs is as follows:
August 2024 revenue and patronage is as follows:
Weekly patronage, capacity used, and revenue for August 2024. Calculated from these sources (patronage, revenue)
The detailed patronage-revenue is displayed at:
https://acrobat.adobe.com/id/urn:aaid:sc:AP:e81863d0-8840-4b4e-91b8-0a81508e80dc
Deficit = Operating Cost less Revenue $741,360 – $93,125.90 = (-$648,236.00).
Land Transport subsidised the operating cost less revenue at 70% = $518,952.00
Waikato Regional Council subsidised the remaining loss at 30 % = $129,283.00.
Why do all New Zealand taxpayers have to subsidise a regional train?
Effectively Hamilton ratepayers pay twice:
- Once as tax payers contributing to the Land Transport subsidy and;
- Funding the bulk of the Regional Council subsidy as only Hamilton ratepayers are rated by the Waikato Regional Council.
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