KiwiRail officially reopened its upgraded Hillside Workshops in Dunedin, signaling a major step forward in modernizing South Island rail services and supporting regional growth. This is reported by the railway transport news portal Railway Supply.

KiwiRail officially reopened its upgraded Hillside Workshops in Dunedin, signaling a major step forward in modernizing South Island rail services and supporting regional growth
Image: KiwiRail

KiwiRail Workshop Revival Brings Jobs and Innovation

The revitalized 5,500-square-meter facility includes 21 workstations, enabling teams to service several locomotives and wagons simultaneously. Original 19th-century buildings have been preserved and strengthened for safe parts storage.

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New infrastructure includes office space and facilities for Dunedin’s track and mechanical teams. For the first time, all divisions now work under one roof, improving coordination and efficiency.

KiwiRail CEO Peter Reidy emphasized the site’s community significance. Many local families have ties to the workshop, and its transformation marks a new era for regional rail.

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Government investment played a key role in the project. The $20 million grant from the Provincial Growth Fund in 2019, $85 million from the 2021 Budget, and $23 million from wider fleet upgrades helped bring Hillside back to life.

Wagon assembly began in March 2024. By late April 2025, the site produced 401 wagons, creating jobs, training opportunities, and expanding workforce skills in the region.

“Our teams now enjoy a modern work environment that supports both growth and innovation,” said Reidy. “The addition of apprentices and new skills strengthens our long-term capabilities.”

Approximately 100 people are now employed at Hillside. The site’s collaborative atmosphere is helping build a strong internal culture, focused on excellence and service delivery.

Source: www.railexpress.com.au

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