KiwiRail freight volumes, operating profit up

Two DXBs at Patea with the 'milk train' (Andrew Hamblyn)

The announcement yesterday made by KiwiRail that its operating revenue for the 2010-11 financial year was up on the previous (+2.6% to $667 million), despite Steven Joyce's efforts to put as much freight as he can onto roads, is encouraging news.
This was 2.6 per cent under the projected $685 million, however, while ebitda (earnings before interest, taxes, depreciation and amortization) fell short by about $20 million."This was almost entirely due to the impact of the Christchurch earthquakes and loss of Pike River Mine volumes and the provision for restructuring," the company said in its statement. Revenue from freight, its largest operation, was 3.8 per cent under target and Tranz Scenic revenue undershot by 27 per cent. Overall, freight revenue climbed 8 per cent to $397 million, sales for the Interislander service rose 2.3 per cent to $122.9 million. Tranz Metro revenue rose 4 per cent to $65.5 million, property and corporate rose 5.4 per cent to $31.8 million and network jumped 46 per cent to $20 million.
Mechanical's revenue tumbled 68 per cent to $9 million and Tranz Scenic's fell 24 per cent to $21.5 million.

This marks the first year that KiwiRail hasn't received an annual $90 million operating grant from the government. Instead it receives funding for specific projects. In the latest year, grant income fell 24 per cent to $344.6 million.