History

In August 1872 the Double-fairlie locomotives, Rose and Josephine, arrived at the railway pier at Port Chalmers aboard the vessel Wave Queen. There was no railway workshop and the locomotives had to be assembled on the pier. A workshop was later built at the port, but it was too far away and work done there was expensive.

The first railway repair shop in DUNEDIN was established on a site near the present railway station by a private enterprise in 1875. At this time several private engineering firms and foundries in Dunedin contracted for most of the construction of passenger coaches, wagons and small locomotives.


In May 1875 one of several repair shops planned along the hill side (hence the name 'Hillside") was completed. It  measured 193ft by 80ft and housed ancillary departments and provided accommodation for three locomotives. A carriage Shop was completed the following year.


By 1880 the Hillside Workshops were unable to meet the demand for repair facilities and extensions began in order to keep pace with the requirements of a rapidly developing railway system. By 1905, Hillside employed 400 workers and was the second largest engineering plant in New Zealand.

The buildings, machinery, and shop methods had become obsolete by the 1920s. At this time the Railways Department undertook to reorganse all railway workshops in New Zealand and by 1928 Hillside Workshops had been completely re-arranged with several large, new buildings bought into use.  

The first half of the 20th centuary is considered the golden age of rail and Hillside staff numbers peaked at over 1,200.

By the 1950s, with the increased competition of raod and air transport, we see the end of this golden age of rail. Many lines, services, stations and facilities were later closed. 

The deregulation of road transport in the 1980s added significantly to the loss of rail business.
 
This, together with the lack of investment in infrastructure and rolling stock to modernise and be more competative led the Government of the day to sell the rail assets to the private sector (Tranz Rail) in the 1990s, however heavy investment requirements led to high debt.
 
By the year 2000 Hillside hit a low of about 160 employees in an ageing site that saw little investment over the decades. 
 
In 2003 a financially strapped Tranz Rail is taken over by Toll and investment is assets increase.
 
Over the next few years Hillside is awarded several large contracts producing YJ ballast wagons, CE coal wagons and GWRC and ARTA passenger carriages). Staff numbers grow to about 190 employees.  
 
In 2008 the Government buys back the rail business. 
In 2009 Hillside is awarded the contract of producing new Tranz Scenic passenger carriages.