According to KiwiRail chairman Mr John Spencer this is a much more realistic valuation of the company's assets which will greatly assist KiwiRail in meeting its commercial objectives and provide more discipline in strengthening financial performance. The write-down of assets will occur in the accounts for the year ending June 30 2012. The final amount of the write-down will be determined after independent valuations are carried out.
Meanwhile KiwiRail has imported a RR24M-30A rail grinding machine from Australia. The machine, which is owned and operated by Speno, will spend two years from September grinding New Zealand's main lines to improve rail surface quality, which will allow higher operating speeds and improve efficiency. The grinding campaign will begin with the East Coast Main Trunk and North Island Main Trunk lines.