Hillside Workshops Marks Milestone as 1,000th Rail Wagon Rolls Out

Hillside has been connected with New Zealand’s rail industry for generations, though its future looked far less certain a little more than a decade ago as operations were reduced.

Dunedin's Hillside Workshops has completed its 1,000th modern rail wagon, marking a major point in a manufacturing programme that has brought large-scale wagon assembly back to the historic South Island site. Rail Minister Winston Peters said the milestone shows how investment in local industry can support skilled employment while providing KiwiRail with newer equipment for its national freight network.

Hillside has been connected with New Zealand's rail industry for generations, though its future looked far less certain a little more than a decade ago as operations were reduced. Its redeveloped facilities are now assembling wagons again, giving local workers opportunities to build specialist mechanical and engineering skills while producing equipment that is already carrying freight around the country.

Modern wagons strengthen KiwiRail's freight fleet

The current assembly programme started in March 2024 and will deliver 1,350 modern wagons for KiwiRail. The first 1,000 have entered service across New Zealand, carrying goods for exporters, importers, ports and regional businesses while replacing older rolling stock and strengthening the reliability of freight operations.

Peters said rail has an important place in New Zealand's freight system because trains can move heavy loads, help reduce pressure around busy ports and provide regional industries with another way to transport goods to market. The development of road-rail freight hubs in different parts of the country is also allowing businesses to combine transport modes depending on their needs and costs.

Newer wagons are expected to play a role in KiwiRail's efforts to improve reliability and attract freight customers. Once the wider fleet renewal is completed, Peters said New Zealand will have one of the youngest rail freight rolling-stock fleets operated by a rail company anywhere in the world, creating a stronger foundation for future growth.

Hillside redevelopment brings skilled work to Dunedin

Rebuilding Hillside supported more than 200 construction jobs, while the workshops now employ around 60 mechanical engineers and wagon assembly workers alongside approximately 50 infrastructure staff. The operation also involves planners, logistics personnel, quality specialists, maintenance teams and other support workers needed to keep production moving.

The renewed site includes a purpose-built wagon assembly facility capable of producing as many as two wagons each day. Mechanical workshop facilities also provide support for rail operations across the South Island, giving Hillside a role that extends beyond the current wagon programme.

For Dunedin, the redevelopment has helped restore practical mechanical engineering capabilities that had diminished as work at Hillside was wound down in earlier years. Workers are gaining specialist knowledge through hands-on rail manufacturing and maintenance, skills that could remain valuable once assembly of the 1,350 wagons is completed.

Peters said attention is already turning towards what work could follow the existing programme, with the workforce having developed experience that can support future rail tasks.

Scale of production revealed in materials and checks

Reaching the 1,000-wagon milestone has required a sizeable manufacturing and logistics effort. Around 16,000 tonnes of steel and other materials have been used for the completed wagons, along with approximately 4,000 wheelsets, 40,000 bolts and 60,000 washers.

Quality control has been another major part of production, with workers completing more than 8,000 quality assurance check sheets during assembly of the first 1,000 wagons. Those checks are designed to make sure equipment entering the national network meets the required standards before beginning freight service.

The remaining 350 wagons will complete a programme that has combined fleet renewal with the revival of industrial work at Hillside. For KiwiRail, the project provides modern assets intended to improve freight performance, while Dunedin has gained skilled employment and renewed rail engineering capability at a workshop once facing an uncertain future.