This is a guest post from reader Louis Mayo. 

Although this is the Auckland Transport Blog, it is good to give some attention to transport issues in other parts of the country. You may or may not be aware that the “Capital Connection” is under threat of cancellation. The Capital Connection is a train from Palmerston North to Wellington calling at Shannon, Levin, Otaki, Waikanae, Paraparaumu & Porirua. It operates a single return train every weekday. It has been operating for over 20 years. From the KiwiRail brochure:

Start your day in style

The Capital Connection is a popular commuter train that runs between Palmerston North and Wellington from Monday to Friday excluding public holidays.
With comfortable, spacious seating you can spread out and work or simply relax. Plug in your laptop, read the paper or even have a bite to eat from our licensed café. With onboard toilets and super friendly staff nothing beats the Capital Connection.

People get a great deal of benefit out of the service. Transporting commuters to the capital in a way that avoids the stress of driving long distances. It take cars off the road. This will improve road safety. It is also reducing congestion on the roads and reducing carbon emissions. It is a great convenience for commuters to be able to eat, chat, walk around, do some work, make a phone call or have a nap on the way to and from work each day. Things that you cannot do whilst driving without it being illegal and dangerous.This is a great use of time for commuters as rather than wasting at least two hours each day driving , they can be doing something more productive.

I am not quite sure why Kiwirail have made an about-face and decided that they will cancel the service without a subsidy. One of the possible reasons is due to the extension of electric suburban trains on the Kapati Line from its traditional terminus of Paraparaumu to Waikanae. This has been a major success but not so great for the Capital Connection, with people moving to the more regular Tranz Metro services.

There has been some suggestions that there may have been some dodgy accounting going on, with this strange revision in the financial figures. If nothing else it seems disturbing that KiwiRail can make such errors in their accounting systems.

It seems that KiwiRail has lost interest in passenger services. While I understand the main money is to be made in long distance rail is in freight, passenger services should not be ignored. But given they are under the directions of a very roads and motorway focused government it is hardly surprising.

The bad news is that NZTA, with its usual roads, roads, roads focus have effectively said that they won’t be providing a subsidy. This is very poor form from NZTA and is only a fraction of the cost of the ludicrous Transmission Gully Road of National Significance. Hope still remains that Horowhenua and Greater Wellington Regional Councils will reach an agreement and offer a subsidy or that KiwiRail will reconsider and back down. I think a subsidy is quite reasonable really, as the Wairarapa Connection service (that runs between Masterton and Wellington) gets a subsidy and there are many trains of this type around the world (serving bigger populations) that get a subsidy and are not expected to return a profit. Lets hope that the councils make the right decision.

It would be a major shame and a major blow to the region and to passenger rail in New Zealand if we were to lose yet another service. We can make this service thrive again. With some of the money from the turnaround plan, KiwiRail could upgrade the line to enable higher speeds and faster travel times. Another option could be splitting the 8 car train into two 4 car trains so that would mean two return services could be provided, giving travelers a bit more choice. Adding a few more services during the day time and possibly a late evening and a couple of runs in the weekends would be fantastic. I would point out again that the Wairarapa Connection has five return weekday trips and two in the weekend.

Save the Capital Connection!

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39 comments

      1. I guess you could argue that its not Kiwrail’s job to care about the people within the area. But it certainly is Nathan Guy’s job. If I recall correctly, Nathan Guy was actually the associate minister of transport for a while?

  1. I see that aside from subsidsing the train the council is also looking an option of running a feeder bus service that links Palmerston to the train at Waikanae. Would that be a compromise that people would accept?

    The downside is that you would have to transfer, although the bus/train connection could be timed to mitigate these effects. The upside is that the bus would probably run more regularly than the current CAP-EX, providing people in Palmy with a higher frequency service.

    I know people seem to like trains and they generally dislike transfers, but there may be a silver lining here … in saying that the rail subsidy looks quite small, so it may be that keeping the train going is the best option.

    1. For the record: Intercity runs buses from Palmerston North to Waikanae M-F as follows (departure time/arrival time shown).

      0445/0600
      1000/1114
      1130/1234
      1300/1419
      1430/1539
      1650/1800 (two buses at that time)

      These buses are all going through to Wellington, but an 0600 departure from Palmerston North could work well in this context.

    2. A feeder bus would probably not be such a great outcome to be honest. The transfer wouldn’t be so bad but the very fact that it is a bus would probably put people off. Much less comfortable travel, no ability to walk around,etc. Buses work well for travel around cities when distances are reasonably short, but for longer trips there is very little advantage over a car. Having said that I recently caught an Intercity bus from Nelson to Picton and it was okay.

      1. But I think that comparison is a little simplistic … the decision is not one of “1 train per day versus 1 bus per day” but rather “1 train per day versus 5 buses per day”. I know I’d prefer the latter, but I do realise that I’m not very attached to rail.

  2. There are several issues here, to recap:

    * The Capital Connection became very popular with Waikanae and Paraparaumu-based commuters because of a better standard of vehicles and the faster service through to Wellington.

    * North of Waikanae the passenger loadings are middling and always have been. However, berthing and equipment reasons mean that the train has to be run from Palmerston North. A midday Capital Connection (WLG-PN-WLG) service was run in the past but abandoned from sheer lack of traveller interest.

    * Doing proper costings of passenger rail is always a tricky task, because of issues of cost-allocation. My guess is that the service can at least cover its direct operating costs, but starts losing money when overheads and capital costs are taken into account.

    * When the new train services were extended to Waikanae, a service which previously ran to Paraparaumu to arrive at about 0715, and then returning to Wellington after the Capital Connection had gone through, is now run up to Waikanae, arriving at 0720. It leaves Waikanae at 0734, after the CC goes through Waikanae at 0725, and then Paraparaumu at 0739. What seems to be happening is that the new services have taken passengers from the Capital Connection. The better idea would be not to run this train up to Waikanae – this would save money on operating costs for a train which wouldn’t be carrying anyone anyway.

    So: saving the Capital Connection service may be as simple as changing the operating pattern of one service – which begs the question as to why it was done, given that there isn’t much (if any) northerly flow at that time of the morning. And if there was anyone – you could as easily run a taxi for them. Actually, it would be cheaper.

  3. My understanding is there is also a problem with ticketing. A monthly pass on the CC can’t be used on the Waikanae service and vice a versa. This means the Waikanae commuters must choose which pass to buy, and they choose the suburban rail pass because of the greater frequency.

      1. The problem is the CC is run by Tranz Scenic and the suburban trains are part of Tranz Metro. Both services are owned and run by Kiwirail but it appears the tickets are non transferable.

        1. Which is really odd. When I was working as Tranz Metro’s business analyst (after 2000), and Tranz Scenic was in clear separate ownership, there was an established relationship in place in which the monthly passes were inter-operable; IIRC, Tranz Scenic was being paid for the privilege. It would be a simple matter of bookkeeping to resolve this.

          The other factor is that Kiwirail may wish to use the Capital Connection trainset elsewhere, hence the desire to remove it out of the Wellington system. But where?

        2. Not quite. Tranz Metro services are operated by Kiwirail, but essentially owned by GWRC. All fare revenue from TMetro tickets goes to GWRC, and therin lies the problem. GW dont see why they should subsidise the travel of passengers on the Metro servies if they are not paying towards that service. Likewise, Tranz Scenic wont accept Metro tickets otherwise they end up providing the service, but getting no money from the tickets. On one level the positions of both sides seems fair enough, but on the other hand, it has contributed to the current problem, The answer must surely be for the CC to be placed where it belongs as a commuter service, and that is with Metro. However GWRC would be looking for funding on the same basis as other Metro services, with a contribution from Central Gov, via NZTA, alongside thier own local gov input, and in this case across regional boundries, from Horizons also. The CC has always seemed an uncomftable fit alongside the Scenic Railway Journies branding of its sister services.

  4. The extension of rail services to Waikanae in February 2011 really hurt the CC, but even before that it was losing money – $759,000 in the past 18 months.

    A lack of advertsing probably doesn’t help, as outlined in the below link.

    http://www.radionz.co.nz/news/regional/107865/limited-advertising-spend-for-loss-making-rail-service

    Not sure I’d want to travel on a bus from Palmy to Waikane every morning and then jump on a train to get into Wellington. Still KiwiRail is in a tough spot. But given the commuter service receeives no subsidy – the only commuter service that doesn’t receive a subsidy – surely NZTA should or could step in. Two regional councils have said they’d contribute if NZTA did. But NZTA has been emphatic in saying no, as the CC would not relieve congestion beyond Waikanae and that there is not a congestion problem beyond Waikanae. That begs the question of why is the Wellington Norther Corridor road of national significance extending all the way to north of Levin if there’s not a congestion problem past Waikanae.

    1. Good call! NZTA carrying out a massive road expansion in a part of the network that *apparently* does not suffer from enough congestion to warrant public transport subsidies is wonderfully Orwellian. “All modes are equal, but some modes are more equal than others.”

    2. “there is not a congestion problem beyond Waikanae”

      Whoever said this has never driven through Otaki. The last time I did (on my hols a couple of years ago), I sat in a queue half way to Levin and it took me 90 minutes to make it to the other side of town. Apparently that isn’t unusual. It seemed to be a combination of a single bridge over the river, a congested roundabout, and forcing a huge amount of traffic down a street full of popular outlet shops so that shoppers and through traffic are forced to mix.

      Just to make the experience even worse, I had a three year old in the car. Not my own, either three year old or car. When we finally made it in to Otaki her mother asked her if she still needed to go to the toilet. “No, I’ve already been” was her reply. She seemed quite proud of this achievement.

      1. The Otaki Bypass is one part of the RoNS that makes sense, but triplicating the highway (going from 2 lanes, to 2 lanes for local, plus 4 motorway lanes) between Peka Peka and just south of the Otaki River and from just north of Otaki to Levin is, like most of the RoNS, pissing money up the wall.

        In is much like Puhoi-Wellsford when all that is really needed is a Warkworth bypass and some safety measures on the existing highway.

  5. I agree with Louis Mayo post dated 10 Jun 12, that The Capital Connection service should be retain with express service Wellington to Waikanae and all stations to Palmerston North.

    Yes, there has been some creative accounting in Tranz Scenic/Kiwirail Passenger Rail Services to portray that the Capital Connection is not economical. This creative accounting was used in 2003/2004 to terminate the Wellington to Napier train service and the Southerner service Christchurch to Dunedin and Invercargill. The Wellington to Napier service was making a a reasonable profit and so was the Southerner service between Christchurch to Dunedin.

    Comments from Kiwirail about the Capital Connection being uneconomic, is to do with a possible joint venture for the 3 long distance passenger trains under the ‘Kiwirail Scenic Journeys’ brand and that Kiwirail itself only wants to operate freight only services. Unfortunately, the Capital Connection does not fit the business model of the new ‘Kiwirail Scenic Journeys’ brand, hence it has to go.

    Horizons regional council do not want to subsidise the Capital Connection but are talking of operating regular bus services between Palmerston North and Waikanae. Will this work – it could but the council has not mentioned the cost, service frequency, etc.

    There are two options to save the Capital Connection, is that GWRC buys the carriages and operates in association with Horizons Regional Council or it is a standard alone business under the GRWC railway holding company operating on a ‘Franchise’ basis, relying totally on fares to cover costs. The question is, will there be enough people in Manawatu to support it as a ‘stand’ alone service?

    For a proper decision on the future of the Capital Connection, Kiwirail needs to make publicly the actual operating costs of the Capital Connection, so all parties (including the regional councils) can get around the table to discuss its future.

    With regards to the Wairarapa Connection – Wellington to Featherston and Masterton services, the carriages are own and paid for by the Greater Wellington regional council (GWRC) and is subsidise by the rate payers.

      1. NZTA has said no at the moment and the last I heard that Greater Wellington is not to fuss about the idea.

        The motivation has to come from Horizons.

        If the line is electrified from Waikanae to Palmerston North, then Palmerston North would have regular rails services to and from Wellington.

        Then if the line was electrified from Pukekohe to Hamilton, then you will electrification for both freight & passenger services from Auckland to Wellington.

        1. Electrification is the ideal but easier said than done. The reason is that line between Te Rapa and Palmerston North (as well as the electrification on the Auckland network) is AC. Wellington uses an older DC system which I doubt anyone will be keen to expand. The ultimate is to replace it with AC in my opinion and then fully electrify from Wellington all the way to Auckland.

        2. Duel voltage locos are available these days so not the biggest hurdle to overcome. Changing the Wellington system from DC to AC is unlikely for the next 30+ years, considering the investment in new DC powered EMUs which are still not fully in the country only ho many years late?

        3. The EF NI main trunk locomotives are AC and the Auckland new electrification network is AC.

          The EF’s could be upgraded to dual voltage during their next major upgrades which are due approximately 2013-2015.

          Making the EF’s dual voltage would allow them to operate Auckland to Wellington.

    1. After some more thinking about this: the real challenge is that the passenger numbers north of Otaki, and certainly Levin, are such that providing the amount of capacity which the Capital Connection does, is always going to be uneconomic.

      What is probably happening at the moment is that a fair number of people are driving from PN and Levin to Waikanae and taking the train from there. It would be helpful to know how many.

    2. The Capital Connection was initiated as a commercial venture, and became enough of a success that the privatised Tranz Rail invested in the ex.BR carriages that run it to this day. What has happened is a classic case of undermining a commercial service with a subsidised one. The volumes north of Waikanae are low, and any argument that they make a meaningful difference to traffic congestion is making much out of very little indeed (pretty much if it was making a difference, the loads would be high enough to pay for it). The Waikanae and the Paraparaumu loads made it viable, now with GWRC owned trains and scheduling that disadvantages it (and the lack of shared ticketing), it looks bleak.

      However, like all rail services, it will only get subsidised if the regional councils involved want to seek funding for it. Horizons Manawatu/Wanganui has never shown interest in this over many years, and GWRC wont do it alone because much of the service running is outside the region. So it is up to the regions.

      The Wairarapa Connection has been subsidised in its various forms for decades, so it is historical (and the last Labour government fully funded replacement rolling stock), but has also had a more robust argument to support subsidies given the higher frequency of service and levels of patronage (and the safety and environmental externalities of the rail service relative to motoring over the Rimutakas).

      However, let’s not pretend the Bay Express and the Southerner were cash positive, they carried less than a bus load per day on average each way. Back in 1981/1982 the Railways Department put out a document called “Time for Change” where it stated that the economics of passenger trains over buses didn’t start to stack up until you got to the equivalent of three full bus loads, given the capital costs involved in providing railway rolling stock. Long distance passenger rail that isn’t for sightseeing in NZ died because of the twin effects of significantly rising car ownership in the 1990s and the appearance of low cost air travel. Sadly (because I actually used long distance passenger rail services regularly) most people preferred faster trips so abandoned trains (and to some extent coaches) in favour of flying or driving themselves.

      1. Agreed – intercity coach travel is now very much oriented towards the domestic poor and the foreign rich (tourism).

        A particular problem for the Christchurch-Picton rail service, also, has been competition from low-cost shuttles, and their cost base was such that rail could not compete for the particular traffic. For the somewhat better-heeled they can provide door-to-door travel as well.

        I know that inter-city travel is not one of our major interests here, but there are some interesting things going on.

  6. Not sure that running that late, are they? First one was due to be in service early 2011 and instead it came mid 2011? Personally I thought the Matangis were dual voltage already but I’m not sure.

  7. The big problem with Capital Connection is that it don’t stop at some stations, Shannon being an example. I think if Capital Connection is to work then it should service all the townships along the route between Waikanae and Palmerston North.

  8. The Capital’s main problem is is poor service level. need to go to welly for work for a day – no problem. Miss the train and you’re stuffed. Want to go for half a day? nope. The rolling stock exist for additional services Break train in two, use silver fern, use spare Wellington SE train), but KiwiRail need to make a profit and political and public funding don’t exist to make it happen.

    1. Tim I fully agree about better service levels needed. I reckon 3 return peak time services with one extending to Whanganui and then a service every 2nd hour off peak and maybe 2-3 services a day on Sat-Sun. Similar sort of service level to the Wairarapa is required.

      1. They could extend the service from Palmy to Feilding, the second largest town in Manawatu. It’s just up the line, has about 15000 people, a relatively infrequent bus service which doesn’t start early enough. It can be both a local commuter service to Palmy and get income that way. Where do they store the CC train in Palmy? There are many sidings around Feilding station.

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