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Otago rail has received a big boost today with the official reopening of the Hillside Workshops in Dunedin and the announcement of up to $8.2 million for part of a vital rail link between Port Chalmers and Mosgiel.
Rail Minister Winston Peters and Regional Development Minister Shane Jones attended the reopening of the Hillside Workshops this afternoon.
“Our nation was built in rail yards just like Hillside, a facility that has contributed significantly to connecting our communities and enabling New Zealand’s growth and development through the movement of goods and resources,” Mr Peters says.
“Hillside is a key part of New Zealand’s rail infrastructure, the only heavy lifting rail facility in the South Island and vital to KiwiRail’s operations.”
The transformation of the workshops was enabled by a total of $127.97m investment.
The project received $19.97m in 2019 through the former Provincial Growth Fund, as well as funding in Budget 2021 and from KiwiRail.
It created around 200 construction-related full-time jobs during the demolition and construction process.
The redevelopment added a new mechanical workshop, where up to 21 locomotives, wagons or carriages can be worked on at a time, as well as a new wagon assembly facility capable of assembling two wagons daily.
“KiwiRail expects to assemble up to 1500 wagons at Hillside before 2027, enabling safer and more reliable rail freight services that will benefit all New Zealanders,” Mr Peters says.
Hillside Workshops has played an important role in New Zealand’s rail journey since 1875, at its peak providing 1200 jobs.
As well as celebrating the reopening of Hillside Workshops, Mr Jones announced that the development of a three-track rail siding at the Southern Link Logistics Hub development near Mosgiel will receive a loan up to $8.2m from the Regional Infrastructure Fund.
The freight and rail hub will service Port Otago.
Mr Jones made the announcement for funding to Southern Link Property Limited and KiwiRail Holdings Limited at a regional growth summit in Dunedin earlier today.
“The project will address a regional priority and long-standing issues with the freight network in Otago. By reducing heavy vehicle movements through Dunedin, the logistics hub will reduce traffic congestion and reduce travel time to and from the port for freight vehicles, says Mr Jones.
The Otago regional growth summit was the last event in a nationwide series which aimed to facilitate conversations with regional stakeholders around opportunities for economic growth, regional priorities, prosperity and resilience through the use of the Regional Infrastructure Fund.