Electrification at Lyttelton.

The event of the month has been the initiation of electric traction to replace steam on the Christchurch-Lyttelton run. In reference to the arrangement made to mark suitably this historic event, I desire to express my appreciation the very thorough manner in which all branches concerned worked together to ensure that complete efficiency might mark the occasion. Details were worked out by the officers concerned in a manner that evoked favourable comment from all quarters. To achieve this result the Locomotive, Stores, Refreshment, Commercial, Maintenance, Signalling and Electric, and Transportation Branches exhibited a high degree of capacity and resource. It is occasions such as these that really serve to show the public the adaptability of the Departmental organisation to new conditions.

Traffic Fluctuations.

The revenue figures to the 5th January (i.e., for ten completed Railway periods) show a total increase of £95,405 as compared with last year. For the last four-weekly period there has been an improvement in the deficit position of revenue in relation to expenditure of £57,000.

The position in regard to expenditure is that with so considerable an addition to the mileage of lines operated by the Railways during the current year, all built at high cost per mile, the increase in interest charges is so great as to account almost wholly for the increase in net deficiency as compared with last year. The principal items that prevented our substantially better position in regard to gross revenue being reflected in our net position were the heavy increase (amounting to £53000) in the maintenance of rolling stock, due to the abnormal conditions resulting from the partial changeover from the old workshops to the new, and the expense working both sets of shops; and another main cause of the increase in expenditure has been in the cost of subsidiary services, amounting to over £70,000.

Bus Operations.

An economy which we have been able to bring about through the co-ordination of Railway and bus services in the Wellington-Upper Hutt area has been the elimination of twelve daily and seven Sunday train services. This economy is estimated to save £5,000 per annum and is the chief advantage that has so far accrued to the Department from its road service enterprise.

Operating Economies.

Further improvements have been attained in transport operating efficiency, an increase in the net ton miles handled per train hour being achieved both in goods and mixed trains, together with an increase of train speeds in relation to both types of trains. The average punctuality of passenger trains was also improved, as was their average speed. Considerable work still remains to be done in this field, and we are having further research made with a view to improving these operating figures. It is pleasing also to record that the cost of operating per 1,000 gross ton miles for the year to date shows a decrease of 3.29d.

General Manager.

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