A rise in freight traffic has helped KiwiRail to an operating surplus of over $108 million, exceeding early expectations.
Import Export and Forestry freight experienced increases of 8.1 per cent and 9.4 per cent respectively, with Domestic freight also receiving a two per cent boost.
Despite this, Bulk freight fell by 7.4 per cent because of a milk drought in the country last summer.
Revenue also rose in the last 12 months to $727 million.
KiwiRail chairman John Spencer said: “This is KiwiRail’s fifth year of revenue growth.
“Since the company’s establishment, despite the global economic downturn and the impact of the earthquakes, we have still managed to increase overall revenue by over 25 per cent since 2009, and freight revenue has grown by over $100 million in just three years.”
“Alongside this growth, investment in the business to improve performance and robustness has also continued with capital expenditure of $337 million for 20 more new locomotives, 300 more wagons, and on-going infrastructure upgrades.”
He added: “While this continued growth provides a level of confidence in our ability to achieve financial sustainability by 2020, the company still has a long way to go and we have to remain focused on achieving our strategic objectives, while keeping a close eye on costs and further improving safety.”
