An 18% decline was recorded in bulk milk and coal revenues by New Zealand operator KiwiRail for FY16.
Despite this, chairman John Spencer was able to praise a “strong” financial performance, which led to an $86 million operating surplus.
The operating surplus was calculated before around $10 million in significant restructuring costs.
It came off the back of an 11% growth for the operator in the import/export freight sector, a 10% growth in tourism revenue, and an estimated $27 million in savings from productivity initiatives.
“It’s been a year of significant change for the company as we’ve focused on reshaping the business and reducing future reliance on government funding,” Spencer said.
“Excluding restructuring costs, KiwiRail achieved an operating surplus of $86m, and delivered on its budgeted commitment to the shareholder.”
KiwiRail chief executive Peter Reidy said the result was indicative of the company’s leadership’s goal for a more efficient business.
“The Board and management are fully committed to lifting the company’s performance,” he said.
“Over the year we have made considerable progress delivering our strategy of simplifying our business, standardising our assets and investing in our people. We delivered $27m savings from productivity initiatives over the last year, reflecting the strong commitment across the organisation to implementing the changes that are required to achieve better results for our customers and shareholders.”
Reidy also praised a good year for safety, with a 33% reduction in injury frequency rate reported.