JOC Staff | Mar 04, 2013 10:36PM EST
In the last six months of 2012, KiwiRail reported its operating revenue rose 4 percent year-over-year to almost $363 million and its operating surplus increased 7.6 percent to nearly $47 million.
The subsidiary of New Zealand Railways said the results were driven primarily by gains in the core freight business, whose revenue was more than $238 million in the latter half of 2012, improving nearly 8 percent from the last six months in 2011.
“This result is due to an increase in shipping and port movements, leading to higher volumes,” said John Spencer, chairman, in a written statement. “This result has helped offset less growth in the bulk and domestic freight businesses.”
“In the last six months, we have sold the Hillside foundry, mothballed the Napier to Gisborne line, restructured the infrastructure and engineering business and completed the balance sheet restructure,” Spencer recapped.
“The new, much needed rollingstock is performing well and we have ordered a further 20 new locomotives and 300 container wagons to be delivered this year,” he added.