COMING INTO LINE

Dominion, Volume 20, Issue 52, 25 November 1926, Page 10

COMING INTO LINE

WORKSHOP RECONSTRUCTION

FINAL CONTRACTS LET

SUCCESSFUL DUNEDIN TENDERER

As a result of a Cabinet decision yesterday, all the contracts for the constructional work in connection with the railway workshops’ organisation programme have now been let. The tender accepted for the erection of the two remaining shops, Addington and Hillside, was that of Mr. W. McLellan, of Dunedin, and the contract price is in the neighbourhood of £200,000.

The scheme of workshop reorganisation embarked upon by the Government makes provision for the expenditure of approximately £1,500,000, spread over a period of three years. A sum of £300,000 was allotted for the year, which ended on March 31 last, £600,000 is set aside for the period closing on March 31 next, and a similar amount is to be ear-marked for the third term. As a result of the reorganisation it is anticipated that an annual profit of £115,000 will be effected, and it has been estimated that the economies will repay the total cost in 10.7 years after completion. The first contract let .was for the construction at an approximate cost of £200,000 of the new locomotive repair shops in the industrial area at Petone. Then followed the tender for the new car and wagon, shops at Otahuhu, the approximate price being £150,000. Yesterday Cabinet considered the tenders for the locomotive shops at Hillside and the car and wagon shops at Addington. Eight complete tenders were received, and one for the supply of special material. The successful tenderer was Mr. W. McLellan, of Dunedin, who named Sir William Arrol and Company, England, as supplier of the steel work. The contract price is approximately £200,000, and the work is to be completed about fourteen months from the date .of the acceptance of tenders. The unsuccessful tenderers wqje: Messrs. W. Williamson, Christchurch; Love Construction Company, Dunedin; P. Graham and Son, Christchurch; Hansford and Mills. Wellington; C. F. Pulley, Wellington; J. W. Jamieson, Christchurch; and Anderson’s, Ltd., Christchurch.

All British materials are being employed in each case, and ffk soon as the buildings have been constructed the installation of the machinery and equipment wilt be proceeded with. Since it is recognised that the economies on which the scheme of improvement is based would not be obtained in their fullest measure until the works are completed, every effort is being made to complete them in the three years as planned.