D—2

The figures for the coal consumed show a reduction as a result of the greater use of oil-burning locomotives in the North Island. During the year it was again necessary to import coal, supplies being purchased from the United Kingdom, Africa, and India. The quantity imported, however, was 26,019 tons less than that of the previous year. The New Zealand hard-coal consumption declined by 2,417 tons, whilst soft coal increased by 6,273 tons. The percentage of soft coal consumed increased by 3-21 per cent, compared with the figure for the previous year, resulting in higher unit consumption figures. The increased consumption, however, has been offset by a lower unit cost as the result of using less imported coal. The following table shows for the same years the consumption of coal from the point of view of efficiency and economy :

During the year a further 17 locomotives were converted to burn oil, so that the total number in use at 31st March, 1949, was 51. The original plan of conversion provided for 77 oil-burners of the K, Ka, and J class locomotives, and it is hoped that the following year will see the completion of the programme. Further fuelling facilities have been installed, so that they can now operate from Paekakariki to Auckland and on the Napier and New Plymouth lines. Consequent upon the greater number of oil-burning locomotives and the extended fuelling facilities, the train-miles worked by these engines have increased, so that during the past year 20-55 per cent, of the steam-train mileage was performed by them. TRANSPORTATION With the improvement in the locomotive-fuel supplies and in so far as the staff position will allow, efforts are being made to improve train services and to restore as far as possible the pre-war services. A survey of all services, both road and rail and both goods and passenger, is now in hand, the purpose being to examine present services and explore all possibilities of improved service to the public. Some of the alterations made to train services during the year are as follow : Auckland-Wellington : " Limited " express restored, running six days per week as from 28th November, 1948. Wellington - New Plymouth : Express train service increased to four days per week. Wellington-Grisborne : Express train service placed on a faster schedule and now connects at Palmerston North with the Auckland express and at Wellington with the steamer express to the South Island. A commencement has also been made in restoring the popular Sunday excursiontrains, and these now run between Auckland and Hamilton, Wellington and Palmerston North, Christchurch and Timaru, and Dunedin and Oamaru. A further step in the policy of eliminating mixed trains has been made with the withdrawal of such trains on the Ashburton-Timaru-Oamaru section, the passenger traffic now being handled by road services.

9

Year ended 31st March, Steam-engine Miles (OOO's). (Coal-burners.) Pounds per Engine-mile. Steam Gross Ton-miles (OOO's). Pounds per 1,000 Gross Ton-miles. Percentage of Soft Coal used. 1941 17,072 69 2,991,761 396 44 1942 17,368 69 3,078,801 391 43 1943 18,840 73 3,467,082 395 45 1944 18,955 75 3,562,997 399 55 1945 16,087 80 3,117,337 415 64 1946 16,804 81 3,281,499 416 66 1947 16,403 81 3,243,256 410 61 1948 16,329 78 3,110,857 409 51 1949 15,373 80 3,643,894 420 54