IN THE MATTER of the Resource Management Act 1991

AND

IN THE MATTER of a Board of Inquiry appointed under section 149J of the Resource Management Act 1991 to consider the East West Link Proposal by the Transport Agency.

STATEMENT OF EVIDENCE OF DAVID GORDON FOR KIWIRAIL HOLDINGS LIMITED

10 MAY 2017

CONTENTS

1. EXECUTIVE SUMMARY ...... 2 2. INTRODUCTION ...... 2 3. KIWIRAIL – CONTEXT ...... 3 4. ROLE OF RAIL IN METROPOLITAN ...... 4 5. KIWIRAIL'S RELATIONSHIP WITH AUCKLAND TRANSPORT, THE TRANSPORT AGENCY AND AUCKLAND COUNCIL ...... 5 6. KEY RAIL INFRASTRUCTURE WITHIN AUCKLAND RELEVANT TO THE EWL ...... 6 7. KIWIRAIL'S MAIN CONCERNS FROM A CORPORATE PERSPECTIVE ...... 9

2

STATEMENT OF EVIDENCE OF DAVID GORDON

ON BEHALF OF KIWIRAIL HOLDINGS LIMITED

1. EXECUTIVE SUMMARY

1.1 This statement outlines the role that KiwiRail plays as the provider of a nationally and regionally significant piece of infrastructure within the Auckland region, and the interface between that infrastructure and the proposed East West Link ("EWL").

1.2 The Auckland rail network serves two functions, both as public transport routes and as freight routes. Both these uses result in large numbers of train movements throughout the region. As such, it is imperative that KiwiRail is able to continue to operate, maintain and upgrade its network within its existing footprint, to ensure the safe and efficient movement of freight and passengers around Auckland. It is important that the design and methods proposed to construct the EWL reflect this paramount concern.

1.3 KiwiRail remains supportive of the proposal as notified. However, we seek amendments to the conditions on the relevant approvals required to ensure adverse effects on KiwiRail's infrastructure are avoided, or mitigated to the greatest extent possible.

2. INTRODUCTION

Qualifications and experience

2.1 My full name is David Stuart Gordon.

2.2 I am the Group General Manager Asset Management and Investment for KiwiRail Holdings Limited (“KiwiRail”), and am authorised to present this evidence on behalf of KiwiRail. The specific accountabilities within my portfolio relevant to this evidence are:

(a) Network Planning and Capital Budgeting;

(b) Access Rights and Network Control Services;

(c) Asset Management Planning; and

(d) Resource Management Act Planning. 3

2.3 I have been involved in the rail business either as a contractor or employee for 15 years.

2.4 I have a BA and Diploma of Town Planning, although I have never practised as a planner and make no claims to be an expert in that discipline.

2.5 I am not an independent expert, given my employment by KiwiRail. However, I have expertise in rail matters by virtue of my long experience in the rail industry and provide this evidence to assist the Board on matters within my expertise, as well as to confirm to the Board the views of KiwiRail as an organisation.

Scope of evidence

2.6 My evidence will address:

(a) KiwiRail, and its role within the Auckland region;

(b) the role of rail in metropolitan Auckland

(c) KiwiRail's relationships with key stakeholders;

(d) how the East West Link ("EWL") aligns with the national rail network; and

(e) KiwiRail's recommended relief to give effect to the matters raised in its submission.

2.7 Separate evidence will be presented on specific details within the submission and the New Zealand Transport Agency's ("Transport Agency") evidence on planning matters.

3. KIWIRAIL – CONTEXT

3.1 The rail network in New Zealand, and particularly in the greater Auckland region, is regionally and nationally significant infrastructure. Rail is used throughout the country, not only for freight services between major metropolitan areas, but also for passenger services between and within those areas. The rail network (in certain areas) has been in place for well over 100 years, and is crucially important to the economic and social development of the areas it services.

3.2 The land upon which the rail network operates is owned by the New Zealand Railways Corporation, and leased to KiwiRail under the provisions of the Core Lease. KiwiRail 4

owns rail infrastructure (including rails, sleepers, sidings, depots (including the major depot at Westfield in Auckland), and the inland port at Southdown) and is a railway operator for the purposes of the Railways Act 2005. It is also the licensed Access Provider under the Railways Act, which affords KiwiRail broad powers under the Act to control and restrict the use of railway assets and entry onto railway land. KiwiRail holds financial responsibility for public railway assets within New Zealand, and is a requiring authority for the purposes of the Resource Management Act 1991 ("RMA") for the crucial network utility operations it undertakes as the operator of the rail network in New Zealand.

3.3 The rail network within New Zealand, and particularly Auckland, is subject to significant engineering constraints. Unlike roads or other forms of transport, rail has very limited flexibility with regard to alignment, grade and curvature. Once a rail line is laid into a corridor, it cannot change these parameters without substantial engineering. As a result of historical increases in development near the rail corridor, KiwiRail is constrained in its ability to expand or identify alternative sites for its infrastructure, which is why its existing designations across the country are pivotal to its operations, and its ability to safely operate, maintain, and upgrade its network within its current footprint. Unlike roads, when a rail line is taken out of action, there is no alternative lane or bypass available to KiwiRail, and the end result is disruption to KiwiRail's core business.

3.4 Therefore, it is imperative to KiwiRail that development proposed near (or, as in the case of the EWL, over) its infrastructure is sensitive to those factors, and avoids (where possible) or mitigates any adverse effects on the safe and efficient operation of the rail network. Fundamentally, development proposals near the rail network need to work within the constraints that the rail network presents, as it is extremely difficult, costly, and disruptive to require KiwiRail to alter its operations to accommodate new activities.

4. ROLE OF RAIL IN METROPOLITAN AUCKLAND

4.1 Accelerated patterns of growth within the Auckland region are driving demand for both passenger and freight rail infrastructure, and increasing the load on the rail network significantly. KiwiRail has recently undertaken a number of measures to help deal with that additional demand including: 5

(a) double-tracking of the North Auckland Railway Line between Swanson and Newmarket between 2007 and 2010, to improve the reliability and frequency of services on that line;

(b) the construction of the Manukau Rail Link between Davies Avenue in Manukau City to Onslow Avenue, Wiri and the Line between 2008 and 2012;

(c) upgrading the Branch Railway Line in 2010;

(d) most recently, the Auckland Electrification Project, which involved the installation of 560 kilometres of overhead lines carrying 25 kV AC to power Auckland Transport's new fleet of 57 three-car trains across 175 kilometres of track in the Auckland region completed in August 2015; and

(e) the completion of an initial portion of the third main line between Otahuhu and Middlemore to provide additional capacity for freight rail services between 2012 and September 2015

4.2 Rail patronage data for the 12 months to 30 March 2017 showed that train services totalled close to 19,000,000 boardings, an increase of 19.4% on the 12 months to June 2017, and a 35% increase on June 2015 figures. The Ministry of Transport also predicts that rail freight traffic will grow by 70 percent over the next 20 years. However, most (if not all) of the upgrades identified above were limited to what KiwiRail could achieve within its existing footprint. The levels of growth identified above demonstrate the need for KiwiRail to carefully and closely manage its resources in the Auckland region to ensure that an efficient, profitable, and reliable service can be provided across both business operations.

5. KIWIRAIL'S RELATIONSHIP WITH AUCKLAND TRANSPORT, THE TRANSPORT AGENCY AND AUCKLAND COUNCIL

5.1 As part of its role and responsibilities in the Auckland region, KiwiRail maintains a close relationship with both Auckland Transport, the Transport Agency, and Auckland Council more generally, both as a stakeholder in the success of transport infrastructure in Auckland and as a major partner in projects such as the . 6

5.2 KiwiRail also has a Network Access Agreement with Auckland Transport

("Agreement"), where KiwiRail acts as both the Access Provider1 and Network Controller, and Auckland Transport provides funds for the portion of the costs of operating, maintaining, and renewing the Auckland network (in respect of passenger

rail services).2

5.3 KiwiRail has a strong working relationship with those organisations, and is in regular contact with them regarding projects which may affect KiwiRail's operations and vice versa.

6. KEY RAIL INFRASTRUCTURE WITHIN AUCKLAND RELEVANT TO THE EWL

6.1 Specific to the EWL, the (“NAL”) runs from Westfield to and is approximately 280km long. There are up to 20 trains per week between Auckland and Whangarei along with main-line shunts servicing Otiria, Kauri and Portland. The proposed EWL runs directly across the NAL.

6.2 The North Island Main Trunk (“NIMT”) runs from Wellington to Britomart and is approximately 682km long. There are up to 36 freight trains a day on some sections of the NIMT, in addition to shunt movements. The Auckland to Tauranga route predominantly involves the movement of containerised export and bulk products. The Auckland to Christchurch route is predominantly the movement of containerised domestic goods and passengers. The proposed EWL runs directly north of the NIMT.

6.3 The Southdown site, over which the EWL runs, operates as an inland port. The current data for the inland port facility identifies that it has 28 trains a day, with a maximum of 37 wagons in a train, carrying a maximum 40 tonnes of freight per wagon. Allowing that some wagons are fuller than others, the total freight moved via rail through Southdown is between 37,000 and 41,000 tonnes per day. This equates to between 260,000 and 290,000 tonnes of freight per week, via rail. In addition to rail movements, there are currently 1,200 trucks per day that enter and exit the site. With the increased size of freight ships entering the Port of Tauranga, the number of trucks and trains, and the total tonnage managed through the site, is anticipated to increase.

6.4 As noted above, the proposed EWL route crosses over the only rail connection between Southdown and the rest of the rail network in Auckland, including the

1 As defined in the Railways Act 2005. 2 KiwiRail is responsible for the portion of those costs devoted to freight rail. 7

connection to the major depot in Auckland at Westfield. The existing rail infrastructure, and the proposed alignment, can be seen from the below drawings submitted by the Transport Agency with its application. As can be seen, the notified alignment passes directly over the NAL alignment, immediately north of the NIMT alignment, and across the junction of the Southdown rail siding:

Figure 1 – proposed alignment over Southdown site

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Figure 2 – proposed alignment over NAL designation

6.5 Current freight movements that are immediately relevant to the EWL are:

(a) Import / Export (“IMEX”) traffic from Westfield / Southdown to the Port of Tauranga, sometimes known as MetroPort traffic;

(b) Freight repositioning within Auckland between (Downtown), Westfield and Ports of Auckland (Wiri);

(c) North / South domestic traffic exiting / entering Westfield for destinations of Palmerston North, Hamilton, Wellington and Christchurch;

(d) Other repositioning shunts within the Westfield Area; and

(e) Freight services to and from Northland.

6.6 Both the existing connection to the Southdown inland port, the junction with the Westfield depot, and the existing alignments of the NAL and NIMT are essential parts of the KiwiRail business. Their importance to the day-to-day operations of KiwiRail cannot be understated, in light of the key roles they play, not only in moving freight within and outside of Auckland, but also in respect of the passenger services that operate on them. KiwiRail acknowledges the genuine consideration given to its 9

concerns during the consultation stages of the EWL project, and how the project design and proposed alignment has been altered over time to avoid adverse effects on KiwiRail's operations, or mitigate them where possible. The proposed alignment of the EWL over those existing KiwiRail assets represents the least disruptive outcome, if the EWL is to be constructed.

7. KIWIRAIL'S MAIN CONCERNS FROM A CORPORATE PERSPECTIVE

Safety

7.1 Safety is paramount in the rail industry – both the safety of our own staff and passengers we carry, and the safety of the general public. By its nature, the rail industry is an unforgiving workplace. We try to counter the inherent risks and give our staff and contractors a safe working environment through the provision of training, safety equipment, and specialist safety staff. KiwiRail has signed up to the Business Leaders Forum Zero Harm Workplaces Pledge, and is committed to health and safety in all its operations.

7.2 Public safety on the other hand, often relies on the actions of individuals who are outside our control. Relevant to the EWL, KiwiRail actively manages access to the rail corridor through the Permit to Enter process as a means of managing safety. Ensuring that contractors are safe during construction of the EWL, and that this impinges to the least amount practicable on rail operations, will be relevant considerations when considering applications for Permits (and have been relevant considerations in KiwiRail's consideration of the application). The proposed alignment reflects (from KiwiRail's perspective) an option which preserves the safety of its network, and those who work within it. KiwiRail will necessarily need to remain involved during the detailed design phase to ensure this is maintained.

Works within the rail corridor

Maintenance

7.3 The nature of rail operations being 24 hours a day 7 days a week means the practical ability to undertake maintenance and upgrading work on the rail network is limited. These works often need to occur when there is the least rail traffic on the line, generally meaning works occur at unsocial night-time hours, and with heightened effects on adjoining properties. The alternative is a block of line, which generally occurs on a 10

Sunday, over a long weekend, or during certain public holiday periods eg Christmas to New Year. There are financial implications from closing a line even for a short period of time, and this needs to be balanced against the benefit gained from the works proposed. Such blocks can be required for rail-related works, but also for works undertaken by third parties over the rail network. This will include the Transport Agency's works required to construct the EWL. Protecting the ability to undertake operate, maintain and upgrade the rail network as and when required without undue restriction (in this instance, from another party's infrastructure over the rail corridor) is paramount to providing a safe and efficient rail business.

Upgrading

7.4 Upgrades as the result of technology changes and growth in freight demand are likely to occur in the foreseeable future, and therefore ensuring the EWL protects the ability for this change and growth to be realised is paramount. As the application would enable a structure running over the top of the rail corridor, the only time to ensure sufficient clearances are provided both above the track and between the abutments to facilitate such future growth is now. Once the EWL is constructed, those opportunities will be lost. This issue arises both with increased freight movements to and from Southdown, but also passenger and freight movements along the NAL and NIMT.

7.5 As noted above, options for upgrading the rail corridor in future are limited by virtue of the nature of the existing rail in the area as well as topography. With the coastal margin to the west, one existing track into Southdown and the connection of the NIMT and the NAL at Westfield, the area is already congested. Therefore, ensuring that the EWL does not impinge on the operational requirements of the NAL and the NIMT (as well as those for Southdown) is important. As noted above, upgrades often occur when there is less movement on the network, therefore impacts on other rail networks, for example EWL-related works at Southdown impacting on the NAL, need to be avoided to ensure that minimal disruption to other rail traffic occurs. As such, it is imperative that KiwiRail takes part, through its own Permit to Enter processes and in the detailed design phase (including through the development of construction management plans, work programmes, and stakeholder engagement processes) to ensure that construction effects on the rail network are minimised. 11

Ongoing operation of the rail network

7.6 One critical matter that was raised in KiwiRail's submission and has been the subject of much discussion is the substation in proximity to the Southdown site. This substation is one of two sites which currently supply electricity to the passenger rail network in Auckland. Continuity and consistency of supply must therefore be available at all times to enable the passenger rail network to continue to operate. The substation is essential to enabling the continued operation of the passenger rail network, and KiwiRail must continue to be a party to any discussion and agreement of the works and associated methodology at or around the substation.

7.7 In that respect, KiwiRail representatives attended a meeting between various stakeholders on 4 May 2017 which discussed the proposed relocation of the substation, and a strategy for its relocation going forward. It is understood that concept design reports are being developed for stakeholder review, and KiwiRail welcomes the Transport Agency's engagement on this point. However, any location that is finally agreed for the substation must reflect the same (or improved) ability to provide continuity and consistency of supply, to ensure that this proposal does not adversely affect KiwiRail's ability to continue to provide the passenger rail network for Auckland Transport to operate on.

8. CONCLUSIONS

8.1 KiwiRail supports the proposed EWL as notified. We note that the Transport Agency anticipates that it will continue to work with KiwiRail on the proposal as it progresses through the detailed design phase and this is supported.

8.2 KiwiRail wishes to continue its discussions with the Transport Agency on matters relating to the detail around construction and sequencing, and to that effect seeks that the relevant approvals be granted, subject to conditions to address KiwiRail's concerns and ensure its involvement in further stakeholder engagement during the detailed design phase. Those conditions are discussed further in the evidence of Ms Beals.

8.3

David Gordon KiwiRail Holdings Ltd 10 May 2017