Will robot-rail help roll our radiata to market?

A glimpse of the future, where ‘Robot Rail’ threads its way through the landscape, with another train-load of logs. Even on regional rail corridors that undulate through the contours of New Zealand’s landscape, the fuel efficiency of steel wheel on steel rail cannot be beaten. This is especially the case, when the substrate beneath is soft and unstable, for heavy trucks on regional roads.

POLICYCLIMATE CHANGERURAL COMMUNITIESREGIONAL RAILFREIGHTTHE FUTURE

Mark Gasson

5/19/202512 min read

One of the better outcomes for rail freight in the regions of New Zealand over recent months, is the switch to rail of log traffic between the Whanganui region and Port Taranaki. Starting in late January 2025, 6 wagon-lots of logs per day, or 80 truck-loads per week equivalent, have been travelling by rail from a log-handling site in Whanganui East. Preparation of the loading site was funded by Forest360, a Whanganui based forestry management company

It was reported that Forest360 director; Marcus Musson, said the decision was purely financial as fuel, tyres, and repairs and maintenance were all contributing to spiralling cartage costs.

“With rail, a train will use 10% of the fuel per tonne, compared to a truck,” he said.

“The switch to rail means there is less exposure to increasing fuel costs.”

Musson noted that “The biggest benefit to trucks being off the road will be to the people living and driving through the main arterial routes in Whanganui, Pātea, Hāwera, Normanby, Eltham, Stratford, Midhirst, Inglewood, Egmont Village, and New Plymouth.

Figure 1 - New log handling facility on Eastown Rd, Whanganui East. Logs are dropped by trucks at this location, and transferred to rail, for the journey to Taranaki Port. (Photo: Forest360)

KiwiRail Executive general manager freight and rolling stock operations Paul Ashton welcomed the return of regular services, after a pause of 18 months.

“Rail is an excellent way to get primary product, such as logs, to export and we’ve been working closely with Forest360 to make it happen. It’s also low emissions, given rail has 70 per cent fewer emissions per tonne carried, compared to heavy road freight.”

Port Taranaki general manager commercial Ross Dingle said it was exciting to have the service operating again.

“We’re very pleased to have this service up and running as it improves efficiency for exporters, helps alleviate congestion and the impact on the roads, and helps reduce carbon emissions.

“Our log yards are directly adjacent to the rail line and the log ships that berth, which enables the logs to be easily and efficiently unloaded from the train, stored nearby, and loaded onto the vessel when required.”

Figure 2 - Wagons awaiting unloading at Port Taranaki. (Photo: Port Taranaki)

Rail’s current threshold for being price-competitive to cart logs

It was noted that two key factors in the rail vs road economic equation are the distance to port and hilly terrain. The matrix needed to be long rail cartage and short truck cartage (to the rail handling facility).

Musson said “It doesn’t make sense to cart logs by rail if it is less than 180km to port, and rail is more efficient if there is a geographical issue like the Remutakas.”

Forest360 has access to multiple rail handling facilities around Whanganui, Manawatū and Wairarapa, and Musson said many forests were within a 30km range. Forest360 envisaged securing additional log wagons to enable 12 wagon-lots of logs per day between Whanganui and Port Taranaki, making up a dedicated 530 tonne train.

Taking a longer-term view in the context of large-scale investment in roads and low / zero emissions trucks, then in a commercial environment, rail has to become more cost competitive, and have a long-term plan to become more efficient, and more environmentally sustainable.

Freight tonnage charge-out rates

The foremost means to enable more trucks off state highways and other public roads, and onto rail, is to facilitate a process, by which rail can charge lower freight rates that balance the level of subsid, that trucking operators receive.

Heavy trucks do not pay their full cost of damage to roads. A study commissioned by The Future is Rail shows this clearly.

This helps truckers undercut rail freight. For example, trucks pay the same Road User Charges (RUCs) whether they are on lightweight high maintenance cost rural roads, or heavy-duty high usage urban motorways.

A higher gross weight category of truck, officially designated in New Zealand as High Productivity Motor Vehicles (HPMVs), came into operation from 2010. The two biggest economic impacts of HPMVs have been to; (a) lower freight rates charged by all modes including rail, and (b); generate an unanticipated level of damage to national highways, regional and rural roads. In summary, the outcome has been a transfer of costs from the private sector, to national and local government, to pay for the damaged roads.

In contrast, freight rail charges to customers, may vary according to the underlying infrastructure maintenance cost, and usage. Fewer trains on any given route, mean that the fixed costs of the rail corridor, get shared among fewer customers.

These key points are well covered in this recent post by The Future is Rail:

These current economic constraints preclude rail from a lot of potential log traffic. If the financials were to be correctly aligned, to allow a fair haulage price to be charged by rail, then existing log traffic would be boosted, and there could also be potential to re-open portions of the many hundreds of kilometres of now mothballed railway corridors in New Zealand.

The Whanganui to New Plymouth rail line has a "saw-tooth" gradient profile, and the railway corridor undulates through the landscape, with many twists and turns. This railway was built in the early days of rail in New Zealand. Wikipedia provides a good overview of the rail corridor and its history.

With such a twisting route profile, maintenance and operating costs are higher than an equivalent rail corridor that is level and straight. Therefore, capital investment in productivity enhancements is critical.

The role of technology

A correct alignment of pricing could also enable tail to consider a longer-term horizon for investment, and productivity enhancing new technology.

AI, automation and autonomous systems are a good fit with rail internationally, with an increasing number of driver-less passenger metro systems, including across the Tasman in Sydney.

Figure 3 - Typical driver-less Sydney Metro trainset supplied by Alstom. With one line operating since 2019, and two further lines under construction, the network is expected to ultimately expand to 46 stations and 70km of track. (Photo: Alstom)

Rail freight systems are also beginning to switch to autonomous operation, for driving the trains, and a range of solutions are being developed. Rio Tinto’s 1700km, 200 locomotive long-distance networks in the Pilbara region of West Australia, represents the heavy-haulage side of the rail industry. Although Rio Tinto is clearly an early adopter of new technology, it is important to note that, the technologies will ultimately become widespread through-out the industry.

More recently, locomotive builder Wabtec, has supplied the first 4, fully-battery powered FLXdrive locomotives. They are currently working with the diesel-powered fleet, in a hybrid consist, and recharge during the trip through regenerative braking and at charging stations. Wabtec’s next generation energy-management software system will determine the optimal times to discharge and recharge the batteries along to route ensuring the most fuel-efficient operation of the entire locomotive consist during the trip.

Figure 4 - Driverless automated Rio Tinto trains have been operating since 2018. Hitachi Rail's role included signalling, telecommunications and traffic management system (TMS) systems integration. (Photo: Hitachi)

A variation of the autonomous freight locomotive concept, with potential for battery-electric, (bio-) diesel or hydrogen power is being developed by Wabtec, for use is a range of applications. According to Wabtec, range could be up to 1600km. A developed Pathfinder version will be equipped with cameras, sensors, and autonomous control systems. The project is part of a broader initiative by Wabtec to integrate automation and digital technologies into rail operations. Other developments include teleoperation capabilities for remote train movements, as well as robotic inspection tools such as Rail Ghost, which can inspect the underside of railcars without removing them from the tracks.

Figure 5 - Wabtec Maverick is battery-powered module is designed for freight applications, with potential configurations that include diesel or hydrogen propulsion. (Photo: Wabtec)

Smaller, localised concepts are also being developed. For example, autonomous battery-electric intermodal container carrying wagons, are being developed to operate on short and regional rail networks. In an April 14 2025 press release, Parallel Systems, a US company developing battery-electric railcars that operate autonomously, announced that it will launch testing this month on two Georgia railroads. The seven-phase testing program on the two Genesee & Wyoming short lines will begin with testing on 2 miles of track on the Heart of Georgia that will be disconnected from the rest of the railroad. It will gradually progress to platoon operation of the cars with loaded containers over a 160-mile segment of the two railroads. Parallel has rail partners in the US and Australia. This technology, adapted to log wagons, seems to be an ideal long-term fit for Whanganui to New Plymouth, if the gradient / range constraints can be met, and the power bogies or wheelsets can be adapted to suit New Zealand’s narrow gauge and axle load.

Figure 6 - Parallel Systems’ autonomous freight cars will have the ability to assemble themselves into platoons. An FRA-approved testing program will begin this month in Georgia. (Photo: Parallel Systems)

Current railway track inspection practices typically involve either the use of dedicated vehicles or converted road vehicles that require a train path to operate. In other instances, personnel are required to be located within the rail corridor to perform visual inspections where, in some cases, inspections in a railway environment can be inherently dangerous.

The use of AI for many aspects of rail corridor monitoring is being developed. For example, the use of drone technology provides massive safety and efficiency benefits in awkward locations such as tunnels, and in remote regions, with difficult-to-access rail corridors.

Australia based, Monash University’s Institute of Railway Technology (IRT) has been developing Unmanned Autonomous Systems (UAS), commonly known as drones, to help assist the transition to autonomous inspections. This technology can be considered as an integral part of a “family of systems”, that will also include equipment on rolling stock to monitor rolling stock and tracks, and vehicle inspection technology, located at key points along the rail corridor.

This type of technology is currently in the process of becoming deployed in the electricity industry of New Zealand. Artificial Intelligence is being trained to assess, and report back on all the power poles and wires in Auckland to better help lines company Vector with its maintenance.

Figure 7 - A drone, also known as a UAS (Unmanned Autonomous System), is extremely useful in monitoring remote and potentially hazardous areas of a rail network, for example tunnels. (Photo: Monash University)

Figure 8 - An SNCF train in France approaching previously installed TreadView® and WheelView® systems from Wabtec's KinetiX Inspection Technologies portfolio.

A key aspect of US railroading, that could be adaptable to a New Zealand context, is the principle of what are known as ‘slugs’ and ‘MATE’s. MATE means Motors for Additional Tractive Effort. A simple overview of the concept, is that it is a means to provide the low-speed pulling power of two locomotives, but without the second prime-mover / engine or crew cab. The concept has been around for many years, and was devised as a cost-effective solution for older locomotives, where their engines, cabs and other equipment was removed, but key items such as their frame, bogie / wheelsets and tractions motors were retained, along with electrical and control connections to adjoining fully functional locomotives.

The key update to this technology, is that where previously concrete was added to provide weight for adhesion, a modern version could be a full battery-pack. In effect, the end product; a locomotive + MATE concept could be a form of diesel / battery hybrid. This could be an ideal sort of design for lightweight, low-cost small-scale regional operators, such as New Zealand.

Figure 9 - Norfolk Southern locomotive, with accompanying ‘slug’ or ‘MATE’. A modern version of this concept could make the back vehicle one that is filled with batteries, in support of the front diesel locomotive, to create a hybrid unit, well suited to regional New Zealand operations. (Photo: Wikipedia)

Scalability for New Zealand

A key question is; can AI / autonomous technology can be packaged up to suit a small narrow-gauge network in New Zealand? The answer is a resounding yes!

AI / autonomous technology is a mix of modular electronic equipment and control systems, that are unconstrained, by what is typically a physically tightly integrated railway environment.

Software code and IT support is unconstrained by borders and boundaries. This could largely eliminate typical scalability issues often inherent in the rail industry. The constraint will be the commercial appetite for suppliers to provide support. Within the context of global communications, then it seems clear that all of New Zealand’s network should be AI enabled, whether the Golden Triangle, or log traffic between Whanganui and New Plymouth. In remote regions, rail will be able to take advantage of universal GPS /satellite comms delivery systems.

While financial and physical constraints loom large, it seems clear that with investment in the right technology, there are opportunities for dramatic improvements in the efficiency and productivity of rail in New Zealand.

Imagine a future Whanganui to New Plymouth log train, also including slash for the production of bio-diesel and aviation fuel, utilising aspects of Taranaki’s existing petroleum infrastructure, and skilled workers.

For locomotion of the log train, an interim step may be a diesel / battery hybrid, locomotive + MATE unit. One section of the locomotive can contain a forestry slash powered bio- diesel engine, and the other, will accommodate the batteries. All axles can be powered for maximum traction at typically low speeds. This will allow the operation to work like a battery or hybrid car, moderating fuel consumption and engine stress uphill, then using regen to boost the batteries downhill. This will be an ideal fit, with the "saw-tooth" gradient profile, and undulating railway corridor of the Whanganui to New Plymouth rail corridor. Over a longer term, as battery technology improves, the requirement for the diesel aspect of the hybrid will diminish.

It is noteworthy that NZ Government Agency, EECA has a Low Emissions Heavy Vehicle Fund (LEHVF) aims to increase the number of zero and low-emissions heavy vehicles on New Zealand’s roads, and provide market signals to manufacturers to encourage supply. If they can fund trucks, surely, they can fund trains which are inherently more efficient due to steel-on-steel rather than rubber on bitumen (which is essentially heavy fuel oil as used on ships):

Shunting locomotives in New Zealand have used a form of driver-less operation care of the remote-controlled Arataki system for decades. Most recently, to align with new Stadler shunting locomotives being manufactured for KiwiRail, members of the existing fleet are being upgraded with a similar new Wabtec RCL (Remote Control Locomotive) system. Working with international rail technology leaders, will enable the development of remote control to AI / autonomous control, as is happening globally.

On track maintenance autonomy, cost-effective observational tools to facilitate an operating train to monitor track, and rail right of way exists today, in a form that will work on remote networks like New Zealand. This will allow track defects, and things such as filled culverts and potential slips to be identified, recorded and reported early. Things like replacing rails are a fundamentally dangerous and difficult handling environment, a good choice for greater automation.

For bulk traffic such as logs; as with coastal bulk shipping for example, speed is not the ambition, lowest possible cost and efficiency, along with class-leading lowest emissions is the prize. The pieces of the jigsaw puzzle to allow this to happen are ready to be placed.

With a solid baseline of logs and other types of freight traffic using the rail corridor between Whanganui, New Plymouth and Port Taranaki, there is a better economic case to maintain the railway line in a condition suitable, for the resumption of regional passenger trains. In New Zealand, one of the challenges for passenger rail has always been juggling a small potential market against operating costs. Could the economics of new regional passenger trains, also be transformed by AI / autonomous technology?

Figure 11 - A classic scene from half a century ago, showing Mt Taranaki and a “Blue Streak” railcar. Passenger service on the Whanganui to New Plymouth railway line finished a year or two after this photo was taken. Might a future version of this railcar be a forestry slash powered bio- diesel engine / battery hybrid, and driverless?

AI / autonomous technology and jobs

AI / autonomous technology will unquestionably replace some jobs that currently exist. However, it will also create other jobs to support its deployment. However, it will create other jobs, especially in fields related to AI development and maintenance. AI will help support the growth of a more productive economy, with more jobs overall.

For a rail network with marginal operating economics, such as exists in New Zealand, every innovative step has to be made, for rail to stay relevant. Backed by powerful industry lobbyists in New Zealand, the global trucking / roading industrial complex, will roll out its own version of alternative fuel sources, and autonomous operation over the next few years. That process has already started. The downstream costs to taxpayers and ratepayers of heavy trucks on light regional highways, and associated social and environmental costs, have been well document elsewhere by The Future is Rail.