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Stratford - Main Trunk Railway. Okahukura-Tahora Section (41 miles 40 chains). £ Estimated capital cost . . . . . . 2,259,000 Total per mile .. .. .. .. 54,434 Expenditure to 30th June, 1930 .. .. .. 1,767,580 Per Annum. £ Estimated additional revenue . . . . . . Nil. Estimated additional expenditure .. .. 39,700 Estimated loss on operation .. .. .. 39,700 Interest at 5 per cent. .. .. .. .. 112,950 Estimated total loss .. .. .. .. 152,650 The Okahukura-Tahora Section is the final link in the Stratford - Main Trunk connection. At the western end 3 miles 30 chains between Tahora and Tangarakau should be ready for opening about January, 1931. Of the remaining 4 miles 50 chains at the western end 50 per cent, is tunnel. Two tunnels have been completed, a third is more than half done, and the fourth and last tunnel has the bottom heading well under way. Only about 20 chains of formation have still to be done. At the eastern end (33-| miles) the line has been completed between Okahukura and Ohura (19 miles 10 chains), and traffic has been carried over it by the Public Works Department for some time. Beyond Ohura the rails have been laid for 3f miles. There are five tunnels, aggregating 95 chains in length, of which 46 chains have been completed. Formation has also been completed except for about 70 chains of heavy work. Several bridges have yet to be built. A considerable proportion of the traffic now carried via Marton between the Main Trunk line and stations north of Wanganui will be diverted to the new and shorter route, resulting in a substantial loss of revenue, which will, however, be set off very largely by the reduced haulage costs and by any additional traffic that may be developed. On this basis the loss will be equivalent to the cost of working the new line, plus interest charges on the capital cost. South Island Main Trunk Railway. Wharanui-Parnassus Section (76 miles.) £ Estimated capital cost .. .. .. .. 2,581,000 Total per mile .. .. .. .. 33,961 Expenditure to 30th June, 1930 . . . . . . 193,631 Per Annum, £ Estimated additional revenue .. . , .. 112,300 Estimated additional expenditure .. .. 77,140 Estimated additional net revenue . . .. 35,160 Estimated interest charges at 5 per cent, (including allowance for rolling-stock) .. .. .. 135,160 Estimated loss . . . - . . . . . . 100,000 At the northern end 4 miles of formation were completed several years ago. An additional 8 miles is now in progress, and arrangements are being made to start work on a 27-chain tunnel under the Hawkswood Saddle. At the southern end formation is in hand for 4 miles. The permanent line has been surveyed for about 30 miles south of Wharanui and for about 10 miles north of Parnassus. The estimated revenue is based on the assumption that 60,000 passengers per annum will travel between Wellington and Christchurch by the new route in preference to the Wei 1 ington-Ly ttelton route. In estimating the expenditure due allowance has been made for the fact that the existing train services would be adequate to carry the additional passenger traffic between Picton and Blenheim, and between Parnassus and Christchurch.

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