KiwiRail rejected a bid from New Zealand-based Hillside Engineering as too expensive and chose a Chinese firm instead.
Railway wagons built in China and bound for New Zealand’s railway network may end up gathering dust at a New Zealand port if the Maritime Union carries out its threat not to unload the ships on which they arrive.
Maritime Union of New Zealand national president Phil Adams, of Dunedin, said the union was considering industrial action over KiwiRail’s decision to award a $29 million contract to build 300 open-top wagons to China CNR Corporation instead of supporting New Zealand industry.
Mr Adams said the union would do whatever was needed and whatever was appropriate to encourage New Zealand to use its own industry.
The issue was due to be raised within the next month at a National Affiliates Council meeting, where members of associated unions would discuss the details and a possible way forward, he said.