Misplaced Pages

#372627

95-471: KiwiRail Holdings Limited is a New Zealand state-owned enterprise (SOE) responsible for rail operations in New Zealand and operates inter-island ferries. Trading as KiwiRail and headquartered at 604 Great South Road, Ellerslie , KiwiRail is the largest rail transport operator in New Zealand . KiwiRail has business units of KiwiRail Freight, Great Journeys New Zealand and Interislander . The company

190-643: A $ 40 million allocation to KiwiRail from the PGF. In 2019, the government began a "Future of Rail" review, and in December 2019 released a draft New Zealand Rail Plan, outlining changes it proposed making to the rail transport industry and KiwiRail specifically. The draft plan proposes a number of major changes, the most significant being future funding of the rail network through the National Land Transport Fund, and charging rail operators to use

285-427: A 25% discount to the freely traded value. The third step, titled "Trading Among Farmers", involves more far-reaching change to Fonterra's capital structure. The co-operative would no longer be obliged to issue or redeem shares at a price established via an independent valuation process. Instead, farmers would buy or sell shares among themselves at market prices through a farmer-only share trading market. This would have

380-529: A 40 by 40-metre banner reading 'Fonterra Climate Crime'. Greenpeace was protesting about Fonterra's use of brown coal ( lignite ) at the nearby Edendale Fonterra plant. Greenpeace alleged that the Edendale plant will burn 179,000 tonnes of lignite, which will release over 250,000 tonnes of carbon emissions. In response to the protest, Fonterra said, "We use 13.9 percent less energy to produce each tonne of export product than we did in 2003. That's equivalent to

475-433: A controlling interest. The aim was to give more access to funds for global growth. Praised by some as a bold move which would allow better access to outside capital, the proposals encountered significant opposition from both farmer shareholders and the government (who would be required to pass enabling legislation). Despite including a range of safeguards, farmers were clearly concerned at the risk of losing control; in what

570-528: A global commitment to protecting the environment. Sustainability, good environmental practice and environmental improvement are cornerstones of Fonterra's environmental commitment." Fonterra claims to have a number of initiatives such as the Dairying and Clean Streams Accord , relating to environmental protection to achieve this policy. In December 2011, the Green Party questioned Fonterra's credibility and

665-541: A higher payout to dairy farmers. The first two steps of capital structure change received good support from farmer shareholders at Fonterra's annual meeting in November 2009. The first step allowed farmers to hold shares above their level of annual milk production; farmers could now own an additional 20% of "dry" shares (i.e. up to a maximum of 1.2 shares per kgMS). There were also enhanced incentives for farmers to hold shares even if their production falls. The rules about

760-638: A joint venture with the Northland Regional Council to build a branch line (the Marsden Point Branch ) to connect to Northport at Marsden Point. Anchor freight customers: Key anchor customers include Fonterra, Westland Dairy Products (Rolleston and Hokitika), Bathurst resources and the various freight forwarders including Mainfreight and port companies including Port of Tauranga. Freight wagons: KiwiRail operates 4,855 wagons . An additional 120 wagons were acquired in

855-527: A move to address non-compliance with regional council dairy effluent rules. The 2012 independent audit spurred further progress in this area with Fonterra announcing that suppliers will be required to complete fencing of Accord waterways by June 2013. Whether this will occur is yet to be seen. In February 2008, the inaugural Fonterra Environmentalist of the Year was announced at the Beehive . The Award continues

950-748: A partnership between Keep New Zealand Beautiful and Fonterra. Fonterra is also a Corporate Sponsor of the Society and each year teams of staff from the company's manufacturing sites participate in the Keep New Zealand Beautiful Clean Up Week campaign, clearing rubbish from around roadsides, sports fields, parks and beaches. These activities have been criticised as token however as they have limited impacts on preventing stock from entering waterways and in assisting farmer to implement more effective fertiliser regimes that could cut farmers costs and improve water quality. Fonterra

1045-661: A public objective. For that reason, SOEs primarily operate in the domain of infrastructure (e.g., railway companies), strategic goods and services (e.g., postal services, arms manufacturing and procurement), natural resources and energy (e.g., nuclear facilities, alternative energy delivery), politically sensitive business, broadcasting, banking, demerit goods (e.g., alcoholic beverages ), and merit goods (healthcare). SOEs can also help foster industries that are "considered economically desirable and that would otherwise not be developed through private investments". When nascent or 'infant' industries have difficulty getting investments from

SECTION 10

#1732776433373

1140-495: A regular enterprise, state-owned enterprises are typically expected to be less efficient due to political interference, but unlike profit-driven enterprises they are more likely to focus on government objectives. In Eastern Europe and Western Europe , there was a massive nationalization throughout the 20th century, especially after World War II . In the Eastern Bloc , countries adopted very similar policies and models to

1235-533: A sustainable supply of palm kernel "and ensuring we do not support deforestation, directly or indirectly." Fonterra is a member of the Roundtable for Sustainable Palm Oil to ensure it was informed or sustainability issues in South-East Asia and "to actively contribute to more robust sustainability certification systems." Fonterra was also the subject of Greenpeace Aotearoa New Zealand protests off

1330-1358: A total of 17 rail freight depots. In the North Island, these are Whangārei , Auckland, Hamilton , Tauranga, New Plymouth, Napier, Whanganui , Palmerston North , Masterton and Wellington . In the South Island they are Blenheim, Christchurch, Ashburton, Timaru, Oamaru, Dunedin, and Invercargill. Inland Ports : KiwiRail serves a number of Inland Port yards, although does not own the tracks. These include Conlinxx (Wiri), Midland Port (Rolleston), Longburn International Freight Hub (Longburn, Palmerston North), Manawatu Inland Port (Palmerston North), MetroPort (Southdown in Auckland and Rolleston in Christchurch) and will include Ruakura (Hamilton) when it opens in 2019, and Ports of Auckland's site at Horotiu in Hamilton. Sea Ports : KiwiRail has major freight yards and sidings at Lyttelton port Company ( containers , logs , coal ), Port Chalmers (containers), Southport (Bluff), Timaru, Port of Tauranga (Mt Maunganui and Sulphur Point), Ports of Auckland, CentrePort (Wellington) , Port of Napier and New Plymouth. KiwiRail also has

1425-514: Is New Zealand's largest producer of biofuel, processing a waste stream from casein manufacture into bio-ethanol. The company produces around 20 million litres of premium ethanol annually. Since 2004, Fonterra has produced ethanol from whey, a by-product of casein, in the Edgecumbe, Tirau and Reporoa plants. In 2008, Fonterra began supplying Gull Petroleum with ethanol from its Edgecumbe plant. The fuel has significant environmental benefits as it

1520-452: Is a major land owner in New Zealand, and manages over 18 thousand hectares of land, has in excess of 1,500 property assets with a combined value of over $ 965 million (Annual Report 2016). Increasingly, KiwiRail is pursuing a commercial approach to asset management, and in the 2016 financial year received over $ 18 million from property sales. Re-branded along with Interislander as the single brand The Great Journeys of New Zealand in 2017, it

1615-909: Is a significant cause of climate change, and loss of bio-diversity. Greenpeace campaign director Chris Harris said only 4 per cent of palm oil came from sustainable sites. Greenpeace stated that forests were being cleared for the planting of the trees that produce palm oil. In August 2016, Fonterra announced a new palm products sourcing standard that was developed in consultation with key supply partners, and following discussions with Greenpeace that began in December 2015. "The new standard requires Fonterra to purchase on segregated supply palm oil by 2018, and to work with suppliers of palm products to ensure that plans are in place for full traceability to plantation by 2018", said Fonterra's director of social responsibility, Carolyn Mortland. On 17 November 2009, Greenpeace members protested at Solid Energy 's New Vale opencast lignite mine near Gore, New Zealand , by unfurling

1710-562: Is a viable argument for SOEs is debated. SOEs are also frequently employed in areas where the government wants to levy user fees , but finds it politically difficult to introduce new taxation. Next, SOEs can be used to improve efficiency of public service delivery or as a step towards (partial) privatization or hybridization. SOEs can also be a means to alleviate fiscal stress, as SOEs may not count towards states' budgets. Compared to government bureaucracy, state owned enterprises might be beneficial because they reduce politicians' influence over

1805-764: Is approximately 70% of total employment. State-owned enterprises are thus a major factor behind Belarus's high employment rate and a source of stable employment. In most OPEC countries, the governments own the oil companies operating on their soil. A notable example is the Saudi Arabian national oil company , Saudi Aramco , which the Saudi government bought in 1988, changing its name from Arabian American Oil Company to Saudi Arabian Oil Company. The Saudi government also owns and operates Saudi Arabian Airlines , and owns 70% of SABIC as well as many other companies. China's state-owned enterprises are owned and managed by

1900-400: Is currently, as of January 2022, unclear what direction KiwiRail intends to take, Project Restart suggests a shift to multi-day land-cruises, a form of Experiential tourism . This decision, or potential decision, has been seen by many New Zealand-based transport advocacy groups as an abandonment of interregional rail by KiwiRail. Campaign for Better Transport described it as the "latest stage in

1995-557: Is highlighted in the predominant local terminology, with SOEs in Canada referred to as a " Crown corporation ", and in New Zealand as a " Crown entity ". The term " government-linked company " (GLC) is sometimes used, for example in Malaysia , to refer to private or public (listed on a stock exchange) corporate entities in which the government acquires a stake using a holding company . The two main definitions of GLCs are dependent on

SECTION 20

#1732776433373

2090-539: Is now experiencing rapid double-digit annual growth, due to the growth of Chinese tourism to New Zealand, so much so that KiwiRail in 2017 may purchase an additional eight carriages to the 17 AK carriages purchased in 2012. In 2021, following a decline in tourism during the COVID-19 pandemic, KiwiRail announced the suspension of the Coastal Pacific and Northern Explorer as part of Project Restart '22. While it

2185-575: Is renewable and biodegradable. In July 2016, Fonterra announced that their tanker fleet was switching to ZBioD (Z Energy's biodiesel fuel) as a foundation customer. Chief Operating Officer Global Operations, Robert Spurway said "the move to biodiesel has the potential to reduce emissions for the tankers using it up to four per cent each year, and the partnership is an important milestone for Fonterra." In 2006, Forest and Bird asked Fonterra to 'clean up its act', instead of obtaining consent to continue to discharge 8,500 cubic metres per day of wastewater into

2280-560: Is required by Fonterra to protect streams and that evaluating success in this area may be better carried out by an independent third party auditor. In July 2007, the Green Party called on Fonterra to use financial penalties on its suppliers who were " dirty dairying ", and to particularly penalise the 'recidivist polluters' the Crafar Farms . In 2010, Fonterra launched its every farm every year initiative. Fonterra plans to check every farm's effluent management infrastructure every year in

2375-577: Is responsible for approximately 30% of the world's dairy exports and with revenue exceeding NZ $ 22 billion, making it New Zealand's largest company. It is the sixth-largest dairy company in the world as of 2022, as well as the largest in the Southern Hemisphere . Fonterra was established in October 2001 following the merger of the country's two largest dairy co-operatives, New Zealand Dairy Group (NZDG) and Kiwi Cooperative Dairies, with

2470-522: Is responsible for consists of: The Engineering division provides mechanical assistance to the Freight and Passenger businesses, as well as to Auckland Transport. Engineering maintains, refurbishes and occasionally builds rolling stock for the network. In 2012, KiwiRail announced it was putting its Hillside Engineering division on the market. and subsequently sold part of the division and transferred remaining work to Hutt workshops. KiwiRail now operates

2565-505: Is the company's largest business unit, making up the majority of KiwiRail's revenue with $ 390 million in the financial year ended July 2016. In the same year, KiwiRail moved around 18 million tonnes of freight and carried about 16% of New Zealand's total freight task (tonnes-km). Traffic grew from 2017 to 2019, dropped sharply during the COVID-19 pandemic and largely recovered in 2022. Freight types: Timber and dairy products formed 60% of

2660-474: Is the current chairperson and in March 2020, he foreshadowed that he would step down in November 2020. In June 2020, Peter McBride was announced as Monaghan's successor. In November 2007, the board of directors announced a two-year consultation programme regarding their preferred capital re-structuring option: putting the business operations in a separate publicly listed company, with the co-operative maintaining

2755-554: Is the long-distance passenger transport subsidiary of KiwiRail, operating the Northern Explorer , TranzAlpine and Coastal Pacific . The passenger trains are predominantly patronised by tourists to NZ, with the exception of the Capital Connection, which is a commuter train. In 2012, KiwiRail attempted to sell Tranz Scenic , but was unsuccessful, and KiwiRail continues to run these services. The division

2850-564: The 2017 budget the government announced a further $ 450 million in capital funding for KiwiRail, and that the company's operations would be placed under another major review, believed to relate to future funding models. The $ 450 million was earmarked for repairs following the 2016 Kaikōura earthquake and for further locomotive and rolling stock purchases. As part of the Turnaround Plan's agenda to standardise locomotives and wagons, in 2016 KiwiRail announced it would effectively switch off

2945-637: The 2022 Russian invasion of Ukraine . The company had exported NZ$ 240 million worth of produce to Russia in 2021. On 21 March, Fonterra closed its office in Moscow and withdrew from its joint venture with Russian company Unifood . In mid May 2024, Fonterra announced plans to sell its global consumer business as part of a shift towards becoming a global business-to-business supplier of dairy nutrition products. The company's consumer business brands included Anchor , Mainland , Kapiti , Anlene, Anmum, Fernleaf, Western Star, and Perfect Italiano; which comprise 15% of

KiwiRail - Misplaced Pages Continue

3040-551: The Hutt Workshops in the Hutt Valley of Wellington , along with a number of small wagon maintenance depots, for example, at Addington (Christchurch) and Frankton. Most rail operations are a 'there and back' service with motive power being held in a few key strategic locations. Motive power stabling yards are as follows: Some of the more prominent rail facilities used by KiwiRail include: The table below lists only

3135-545: The Manawatu River . Fonterra responded to Forest and Bird's request, agreeing to treat wastewater it discharges into the Manawatu River, greatly reducing its impact on the river. Treatment will be phased in so that by 2015 the discharge will be treated to a level where the water will be fit to swim in year-round. In 2010, Fonterra signed a voluntary agreement with local councils and freezing works to clean up

3230-547: The New Zealand Dairy Board . The name Fonterra comes from Latin fons de terra , meaning " spring from the land". In New Zealand, as in most Western countries, dairy co-operatives have long been the main organisational structure in the industry. The first dairy co-operative was established in Otago in 1871. By 1920, there were 600 dairy processing factories of which about 85% were owned by co-operatives. In

3325-914: The New Zealand Dairy Research Institute (NZDRI) was founded in Palmerston North as part of the Department of Scientific Industrial Research , which was renamed to the Fonterra Research and Development Centre (FRDC) when Fonterra was formed in 2001. FRDC is purportedly one of the largest dairy research centres in the world, and as of 2019, it hosts several hundred engineers, scientists and researchers and holds 350 milk related patents. A large number of technologies involving whey , casein , lactoferrin , nisin , anhydrous milk fat , as well as cheesemaking and milk powder production have been developed at

3420-715: The State-owned Asset Supervision and Administration Commission (SASAC) . China's state-owned enterprises generally own and operate public services, resource extraction or defense. As of 2017 , China has more SOEs than any other country, and the most SOEs among large national companies. China's SOEs perform functions such as: contributing to central and local governments revenues through dividends and taxes, supporting urban employment, keeping key input prices low, channeling capital towards targeted industries and technologies, supporting sub-national redistribution to poorer interior and western provinces, and aiding

3515-700: The Wairarapa Connection service. Suburban rail passenger operations in Auckland and Wellington are contracted by their respective local governments and not operated by KiwiRail. In Auckland rolling stock is owned by Auckland Transport which has contracted operation to Auckland One Rail , while in Wellington rolling stock is owned by Greater Wellington Regional Council which has contracted operation to Transdev Wellington. The KiwiRail Infrastructure and Engineering division, formerly known as ONTRACK, has three main areas of operation: The network it

3610-681: The 1930s there were around 500 co-operatives but after World War II , improved transportation, processing technologies and energy systems led to a trend of consolidation, where the co-operatives merged and became larger and fewer in number. By the end of the 1990s, there were only four co-operatives nationwide: the Waikato-based New Zealand Dairy Group , the Taranaki-based Kiwi Co-operative Dairies , Westland Milk Products , and Tatua Co-operative Dairy Company . Fonterra

3705-496: The 75% threshold required for a favourable vote. In May 2021, Fonterra started a consultation process to seek farmer feedback on potential options to change its capital structure. Based on farmer feedback over the consultation period as well as further expert advice, a proposal was put forward in September 2021 to move to a Flexible Shareholding structure, aimed at giving farmers more financial flexibility. In December 2021,

3800-720: The Governments energy and emissions policies, and while the government is also actively considering extending the North Island electrification for the first time since the 1980s. KiwiRail has made use of the Government's Provincial Growth Fund (PGF). In 2019 KiwiRail signed an agreement with the New Zealand Transport Agency , Palmerston North City Council to construct a road, rail and air distribution centre in Palmerston North , following

3895-823: The Minister of Finance II, the Minister in the Prime Minister's Department in charge of the Economic Planning Unit, the Chief Secretary to the Government, Secretary General of Treasury and the heads of each of the GLICs (the Employees Provident Fund, Khazanah Nasional Berhad , Lembaga Tabung Angkatan Tentera (the armed forces pension fund), Lembaga Tabung Haji and Permodalan Nasional Berhad . Khazanah Nasional Berhad provided

KiwiRail - Misplaced Pages Continue

3990-550: The NIMT electrification in late 2017 and replace the electric locomotives with an additional eight DL locomotives (additional to the 15 as reported in the 2016 Annual Report). On 30 October 2018 that capital funding was made available to by the new Labour-led Coalition government to refurbish 15 of the surviving 20 EF locomotives at the Hutt Workshops extending the service life by 10 years for their continued use, in line with

4085-535: The NZMP brand (95% of its New Zealand production is exported). It also operates a fast-moving consumer goods business for dairy products, Fonterra Brands. Fonterra has a number of subsidiaries and joint-venture companies operating in markets around the world. In 2005, the company purchased a large factory in Dennington, Victoria , Australia, from Nestlé , after they moved out of the collection of milk from farmers and

4180-591: The New Zealand Government, with subsequent legislation deregulating the dairy industry, allowing for the export of dairy products to be undertaken by any company. The two smaller co-operatives, Tatua and Westland (which would later be acquired by Yili Group in 2019), did not join Fonterra, instead remaining independent. The company has an annual revenue of around NZ$ 22 billion. Its core business consists of exporting dairy products under

4275-618: The New Zealand Railways Corporation (trading as ONTRACK). As part of this acquisition, Toll agreed to pay ONTRACK "Track Access Charges" (TACs) in exchange for exclusive network access for 66 years, subject to a "use it or lose it clause": if freight and passenger volumes fell below their 2002-2004 average for three or more years, Toll would lose its exclusive access. The agreement set a base track access fee but left future track access fees open to negotiation between ONTRACK and Toll. After several years of negotiations,

4370-634: The Palmerston North-Wellington Capital Connection and the SR class carriages, which KiwiRail owns and leases for the Te Huia Hamilton to Auckland regional service. Twelve carriages are also being overhauled to replace the current S class carriages and will be deployed in two sets of six. State-owned enterprise The terminology around the term state-owned enterprise is murky. All three words in

4465-476: The Port of Tauranga on 16 September 2009 and Port Taranaki on 5 February 2011, where Greenpeace activists invaded ships carrying palm kernel animal feed, destined for dairy farms. Palm kernel imports went from 0.4 tonnes in 1999 to 455,000 tonnes in 2007 and then to 1.1 million tonnes in 2008, one quarter of the world's palm-based animal feed. Greenpeace says that deforestation for the production of palm products

4560-1019: The USSR. Governments in Western Europe, both left and right of centre, saw state intervention as necessary to rebuild economies shattered by war. Government control over natural monopolies like industry was the norm. Typical sectors included telephones , electric power , fossil fuels , iron ore , railways , airlines , media , postal services , banks , and water . Many large industrial corporations were also nationalized or created as government corporations, including, among many others: British Steel Corporation , Equinor , and Águas de Portugal . A state-run enterprise may operate differently from an ordinary limited liability corporation. For example, in Finland, state-run enterprises ( liikelaitos ) are governed by separate laws. Even though responsible for their own finances, they cannot be declared bankrupt ;

4655-469: The basis of data collected by Fonterra. The integrity of this data was later questioned when a 2012 independent report commissioned by MAF indicated that while Fonterra's survey of farmers suggests that nationally 84% of properties have stock excluded from waterways, an independent audit by MAF revealed a position that only 42% of farms nationally had stock exclusion. The difference in Fonterra's results against those in an independent audit suggest further work

4750-437: The centre. FRDC has a substantial library of over 100,000 cheese starter cultures , which began in the 1930s under Hugh Whitehead . The centre has pioneered research on bacteriophages ; in 1935 a bacteriophage was identified as the cause of failure in cheese starter isolates, and in 1992 the centre sequenced the genome of bacteriophage c2, which was the first whole genome to be sequenced in New Zealand. John Roadley

4845-637: The co-op's total milk solids. Other brands affected by the proposed divestment include its subsidiaries Fonterra Oceania and Fonterra Sri Lanka. In addition, the divestment could affect Fonterra's 17 manufacturing sites including three facilities in New Zealand. On 11 November, Fonterra confirmed that it would be selling its consumer brands including Anchor, Mainland, Kāpiti, Anlene, Anmum, Fernleaf, Western Star, Perfect Italiano. The company also confirmed that it would sell its subsidiaries Fonterra Oceania and Fonterra Sri Lanka, as well as its 17 manufacturing sites including its three New Zealand facilities. In 1927

SECTION 50

#1732776433373

4940-432: The co-operative or increasing/decreasing their milk production. Additionally, Fonterra would set up a special fund that would financially help farmers purchase shares (or retain shares they would otherwise have to sell). The fund would pay farmers for the right to receive dividends and the gain/loss from any changes in value of some of their shares, but the farmer would still be the owner of the shares. The fund would raise

5035-604: The co-operative, which was required to buy the shares back off them. Consequently, Fonterra faced the risk of losing large amounts of share capital through redemptions during times of declining milk production. For instance, after milk production fell during the 2007/08 drought, Fonterra had to pay out $ 742 million of share capital to farmers via redemptions. The capital structure changes also sought to provide greater incentives for farmers to increase their investment in Fonterra shares, helping ensure Fonterra has sufficient share capital to fund profitable business opportunities and drive

5130-452: The co-operative. A key goal of the capital structure changes was to stop large amounts of money washing in and out of Fonterra's balance sheet each year as milk production fluctuates. Under the previous structure, farmers matched their shareholding with their milk production by owning one co-operative share for each kilogram of milksolids (kgMS) produced annually. If their milk production dropped in any season, they could redeem shares back to

5225-405: The company acquired the yoghurt and dairy dessert business of Nestlé Australia, which it on-sold to Parmalat Australia in December 2015. In 2010, leaked US embassy cables suggested New Zealand had only sent troops to Iraq in 2003, following the initial invasion, so Fonterra would keep valuable Oil for Food contracts. New Zealand was not a member of the coalition which supported invasion of

5320-478: The contract to supply 57 new locomotives for KiwiRail. Stadler Rail stated the contract was worth 228 million Euros, or NZD $ 403 million. The 2022 budget allocated $ 661.5 million to KiwiRail, with $ 312.3 million for improving the national rail network and $ 349.2 million for completing the replacement of "ageing" locomotives and freight wagons, including up to 29 new light-duty locomotives. The total government investment increases to $ 8.6 billion. KiwiRail Freight

5415-540: The country, but later sent combat engineers for mine clearance and other such tasks. In 2019, the Tip Top ice cream brand was sold for NZ$ 380 million to Froneri , a global joint venture between Nestlé and PAI Partners . In September 2019, Fonterra agreed to sell its 50% stake in DFE Pharma for NZ$ 633 million ($ 400.37 million). In late February 2022, Fonterra suspended exports to Russia in protest of

5510-475: The current locomotives in service with KiwiRail. The majority of passenger carriages in New Zealand are now owned by Auckland Transport , Greater Wellington Regional Council and Dunedin Railways . KiwiRail operates a small fleet of New Zealand built AK class carriages for long-distance passenger trains and heavily rebuilt former British Mark 2 carriages in several configurations, the S class carriages for

5605-403: The decline of what was once an extensive passenger rail service which serviced most of New Zealand". An announcement is expected by July 2022. Until 2016, KiwiRail division Tranz Metro had the contract to operate the Wellington services but lost a bid to renew this contract in 2015. KiwiRail is sub-contracted by Transdev Wellington to provide and operate the diesel locomotives required to haul

5700-421: The destruction of tropical forests as it is a waste by-product with almost no commercial value. A spokesperson John Hartnell stated that "Not one millimetre of forest is being cleared just to feed dairy cows". Fonterra says it shares community concern about tropical deforestation , "which in some cases has been driven by the establishment of palm oil plantations". Fonterra says it has been proactive in ensuring

5795-527: The effect of making Fonterra shares permanent capital, providing the co-operative with more confidence to invest in long-term projects without fear that some of its share capital might be needed to fund redemptions in future years. As part of the changes, farmers would have greater flexibility with their Fonterra shareholding. The maximum shareholding would be 2 times production (up from the 1.2 times approved in step one) and farmers would have up to three years to comply with shareholding rules when entering/exiting

SECTION 60

#1732776433373

5890-455: The effectiveness of the self-auditing approach given the wide discrepancy between Fonterra's claims and an independent audit of Dairying and Clean Streams Accord. In 2003, Fonterra became a signatory to the Dairying and Clean Streams Accord , which sets a timeframe for the improvement of water quality on farms. Progress on the Accord goals is reported by the signatories in March of each year on

5985-567: The first chair of the KiwiRail board, a position he held until 1 July 2010. Bolger's government had privatised New Zealand Rail Limited in 1993. A number of commentators, including Winston Peters , view this as ironic. In response, Bolger acknowledged his involvement in privatising New Zealand Rail, remarking that "my life is full of ironies," and added that "the world has changed." In 2011, KiwiRail proposed splitting its land and rail corridor assets from its rail operation assets. On 27 June 2012 it

6080-665: The following points: Two of KiwiRail's major customers, Mainfreight and Fonterra , invested heavily in rail-related infrastructure in line with the Turnaround Plan. Mainfreight has allocated $ 60 million for investment in new railhead depots, while Fonterra has invested $ 130 million in a new rail hub complex in Hamilton and another in Mosgiel . The plan has had mixed success, with company Chairman John Spencer stating in 2013 that for its first three years, rail freight revenue had increased by over 25%. Similar progress in attaining new customers and increasing freight volumes has been made over

6175-507: The form of Public Sector Undertakings (PSUs). The Malaysian government launched a GLC Transformation Programme for its linked companies and linked investment companies ("GLICs") on 29 July 2005, aiming over a ten-year period to transform these businesses "into high-performing entities". The Putrajaya Committee on GLC High Performance ("PCG"), which oversaw this programme, was chaired by the Prime Minister , and membership included

6270-422: The land beneath the rail network) in 1990, privatised in 1993 and then renamed in 1995 to Tranz Rail . In 2004 Tranz Rail's rail, ferry and trucking operations were acquired by Toll Holdings and renamed Toll NZ , with the central government buying back the rail network outside of Auckland for $ 1 (the Auckland metro rail network had already been purchased by the government in 2001). The rail network then came under

6365-412: The leading application of the incomplete contract theory to the issue of state-owned enterprises. These authors compare a situation in which the government is in control of a firm to a situation in which a private manager is in control. The manager can invest to come up with cost-reducing and quality-enhancing innovations. The government and the manager bargain over the implementation of the innovations. If

6460-471: The life of the Plan to date (other than with coal). Steady and at times rapid progress has been made on the enabling parts of the Turnaround Plan, such as new locomotives and wagons, lengthening of the rail ferry and track destressing, but not always effectively. The 10 Year Turnaround Plan was quickly undermined by a series of adverse events, including: Partially as a response to the events outlined above, in

6555-535: The manufacture of powdered milk in Australia. Also in 2005 the company made moves towards purchasing Australian companies Dairy Farmers and National Foods . It also converted its 50 per cent stake in Victoria dairy producer Bonlac to full ownership. At this time $ 1 billion of Fonterra's revenue was from Australian sales, which was 14 per cent of the dairy products it sells around the world. In June 2008,

6650-456: The money it needed to pay farmer shareholders by selling investment units to investors. Fonterra would require the fund to target "friendly" investors such as sharemilkers, retired farmers and offshore Fonterra suppliers, although the public and institutions would also be able to participate. The "Trading Among Farmers" proposal went before a special meeting on 30 June 2010 and received 89% support from farmer shareholders voting, easily exceeding

6745-592: The negotiations fail, the owner can decide about the implementation. It turns out that when cost-reducing innovations do not harm quality significantly, then private firms are to be preferred. Yet, when cost-reductions may strongly reduce quality, state-owned enterprises are superior. Hoppe and Schmitz (2010) have extended this theory in order to allow for a richer set of governance structures, including different forms of public-private partnerships . SOEs are common with natural monopolies , because they allow capturing economies of scale while they can simultaneously achieve

6840-643: The network. Prior to the establishment of KiwiRail, rail transport in New Zealand has been under both public and private ownership. Government operators included the Public Works Department (1873–1880), New Zealand Railways Department (1880–1982), and the New Zealand Railways Corporation (1982–1990). New Zealand Rail Limited was split off from the Railways Corporation (which continued to own

6935-810: The new Flexible Shareholding structure received a strong mandate with [85.16%] of total farmer votes cast in support of the recommendation and [82.65%] participation based on milk solids voted.   Fonterra is continuing to work with the Government on how the Flexible Shareholding structure can be given effect under the Dairy Industry Restructuring Act, the legislation that enabled the formation of Fonterra back in 2001. Dairying stock entering waterways due to lack of fencing and poor use of fertilisers are major contributors to water pollution in New Zealand. Fonterra's environmental policy states that "Fonterra shall demonstrate

7030-406: The pricing of end of season share transactions were also tidied up. The second step changed the way Fonterra shares were valued to reflect that share ownership is restricted to farmers only. Previously, Fonterra shares were valued on a theoretical basis as if the shares were freely traded like a public share. An independent valuator subsequently assessed that the restricted market value should be at

7125-399: The private sector (perhaps because the good that is being produced requires very risky investments, when patenting is difficult, or when spillover effects exist), the government can help these industries get on the market with positive economic effects. However, the government cannot necessarily predict which industries would qualify as such 'infant industries', and so the extent to which this

7220-428: The proportion of the corporate entity a government owns. One definition purports that a company is classified as a GLC if a government owns an effective controlling interest (more than 50%), while the second definition suggests that any corporate entity that has a government as a shareholder is a GLC. The act of turning a part of government bureaucracy into a SOE is called corporatization . In economic theory ,

7315-451: The question of whether a firm should be owned by the state or by the private sector is studied in the theory of incomplete contracts developed by Oliver Hart and his co-authors. In a world in which complete contracts were feasible, ownership would not matter because the same incentive structure that prevails under one ownership structure could be replicated under the other ownership structure. Hart, Shleifer, and Vishny (1997) have developed

7410-479: The rail network via Track Access Charges. A number of other projects are proposed under the draft plan. They include a new train control centre in Auckland, replacing two Interislander ferries and rolling stock. On 17 March 2020 KiwiRail released a tender for the supply of new mainline locomotives. 2021 New Zealand budget allocated NZD $ 722.7 million to purchase new mainline locomotives, shunt locomotives and wagons. In October 2021, Stadler Rail announced it had won

7505-399: The river. Fonterra has since encouraged its farmers to clean up their waste and plant trees alongside waterways. In August 2009, Greenpeace claimed that Fonterra was implicated in the destruction of Indonesian and Malaysian rainforests , causing deaths of orangutans and increased global greenhouse gas emissions . In response, Federated Farmers said the use of palm kernel does not cause

7600-621: The secretariat to the PCG and managed the implementation of the programme, which was completed in 2015. As of 2024, Philippines Amusement and Gaming Corporation (PAGCOR) is the most profitable state-owned enterprise in the Philippines. It is the third largest contributor to government revenues, following taxes and customs. Fonterra Fonterra Co-operative Group Limited is a New Zealand multinational publicly traded dairy co-operative owned by New Zealand farmers. The company

7695-469: The service. Conversely, they might be detrimental because they reduce oversight and increase transaction costs (such as monitoring costs, i.e., it is more difficult and costly to govern and regulate an autonomous SOE than it is the public bureaucracy). Evidence suggests that existing SOEs are typically more efficient than government bureaucracy, but that this benefit diminishes as services get more technical and have less overt public objectives. Compared to

7790-624: The single brand The Great Journeys of New Zealand in 2017, The Interislander is the company's second largest business unit. It operates ferry services across Cook Strait between Wellington in the North Island and Picton in the South Island . In the financial year 2012, $ 123.9M of KiwiRail's revenue came from the Interislander, with the majority of the Interislander's revenue coming from rail and road freight transport. KiwiRail

7885-465: The state answers for the liabilities. Stocks of the corporation are not sold and loans have to be government-approved, as they are government liabilities. State-owned enterprises are a major component of the economy of Belarus . The Belarusian state-owned economy includes enterprises that are fully state-owned, as well as others which are joint-stock companies with partial ownership by the state. Employment in state-owned or state-controlled enterprises

7980-497: The state's response to natural disasters, financial crises and social instability. China's SOEs are at the forefront of global seaport-building, and most new ports constructed by them are done within the auspices of the Belt and Road Initiative . As of at least 2024, an Ethiopian SOE is Africa's largest and most profitable airline, as well as Ethiopia's largest earner of foreign exchange. In India , government enterprises exist in

8075-657: The term "enterprise" is challenged, as it implies statutes in private law which may not always be present, and so the term "corporations" is frequently used instead. Thus, SOEs are known under many other terms: state-owned company, state-owned entity, state enterprise, publicly owned corporation, government business enterprise, government-owned company, government controlled company, government controlled enterprise, government-owned corporation, government-sponsored enterprise , commercial government agency, state-privatised industry public sector undertaking, or parastatal, among others. In some Commonwealth realms , ownership by The Crown

8170-607: The term are challenged and subject to interpretation. First, it is debatable what the term "state" implies (e.g., it is unclear whether municipally owned corporations and enterprises held by regional public bodies are considered state-owned). Next, it is contestable under what circumstances a SOE qualifies as "owned" by a state (SOEs can be fully owned or partially owned; it is difficult to determine categorically what level of state ownership would qualify an entity to be considered as state-owned since governments can also own regular stock , without implying any special interference). Finally,

8265-408: The tonnage moved in 2022. Bulk commodities include coal, logs, milk ( dry and wet ), IMEX (import/export intermodal) and domestic intermodal freight . Formerly large scale freight types such as petroleum products have entirely been withdrawn, and fertilizer has almost disappeared. The freight trading revenue by sector, as per the December 2016 Half Year Report is: Rail freight depots : KiwiRail has

8360-676: The two parties could not come to an agreement on the amount that Toll should pay. On 1 July 2008, the government announced the purchase for $ 690 million of Toll Rail, the rail and ferry assets of Toll NZ, but not its trucking operation, which continued under the Toll brand. The new company was named KiwiRail and launched on 1 October 2008 at a ceremony at Wellington railway station. The New Zealand Railways Corporation then owned both KiwiRail and ONTRACK, with both companies merging to create one company that controls both rail and ferry operations and rail infrastructure. Former Prime Minister Jim Bolger became

8455-525: The year ending 2016, with over 1,000 new wagons added since 2008. One of KiwiRail's stated aims is to progressively move towards standardized wagons, with the container flat-top being overwhelmingly the dominant type (carrying curtain sided swap bodies , liquid containers , Log cradles and so on to meet almost all freight tasks). The Norwegian coupling is progressively being replaced with semi-automatic Janney coupler on all wagons. Key freight routes: Re-branded along with KiwiRail Scenic Journeys as

8550-415: The years following. In support of the turn-around plan, from July 2008 to December 2016 KiwiRail received over $ 2.1 billion of Crown investment, which was mostly spent on infrastructure and new rolling stock. The focus of the Plan is to increase rail traffic volumes, revenue and productivity, modernise assets and separate out the commercial elements of the business from the non-commercial. The plan included

8645-428: Was announced by the company that the value of the land and rail operations would be written down from NZ$ 7.8 billion to $ 1.3 billion, and KiwiRail would continue as the rail and ferry operator, while the New Zealand Railways Corporation would manage KiwiRail's land. The de-merger took effect on 31 December 2012. In 2010 KiwiRail released a 10-year turnaround plan and significant government investment in support of this in

8740-531: Was formed in 2001 from the merger of the two largest co-operatives, New Zealand Dairy Group and Kiwi Co-operative Dairies, together with the New Zealand Dairy Board , which had been the marketing and export agent for all the co-operatives. Fonterra effectively has monopsony control of the New Zealand domestic and export dairy industry. The merger was initially turned down by the New Zealand Commerce Commission , but later approved by

8835-495: Was formed in 2008 when the government renationalised above-rail operations (having previously renationalised the network in 2004) and inter-island ferry operations, then owned by Toll Holdings. In 2021, the government launched the New Zealand Rail Plan, with funding for rail projects to come from the National Land Transport Fund (NLTF), and with KiwiRail remaining an SOE but paying Track Access Charges (TACs) to use

8930-411: Was sometimes described as a demutualization . The board responded in 2008 by shelving the November 2007 proposal and continuing consultation and discussion with farmer shareholders. In September 2009, the board announced a three-step process to revamp Fonterra's capital structure. The new approach abandoned thoughts of a public listing of Fonterra shares and retained 100% farmer control and ownership of

9025-565: Was the inaugural chairman of Fonterra's board. He foreshadowed his resignation in August 2002 and was succeeded, after the next annual general meeting, by Henry van der Heyden . Van der Heyden held the chairmanship until December 2012. John Wilson succeeded van der Heyden and announced his resignation in July 2018 due to illness (he died in January 2019 aged 54). John Monaghan succeeded Wilson. He

#372627