KiwiRail’s long awaited “Turn Around Plan” was announced today, along with an announcement from the Government that they chipping in $250m from the Budget 2010 to support the plan.
This is a welcome (and somewhat surprising!) move from the Government, along with a pledge for an additional $500m over the next 2 years.
Of course it comes with the tag that the rail freight business has to “become sustainable within a decade by getting it to a point where it funds its costs solely from customer revenue.”
No word on when the trucking industry loses its subsidies from motorists and ratepayers.