For Immediate Release
SALES BRINGS OPERATORS CLOSE TO RAIL HEAD
Tranz Rail has confirmed the $12.6 million sale of its Neilson St offices and warehouses in Onehunga, Auckland to one of
the North Island's largest trucking operators, Five Star Group.
Greg Miller, Group General Manager of Tranz Rail's Distribution Services Group, Tranz Link, said the sale opened up the
opportunity for new business for the rail network as Tranz Rail introduced a freight village concept to one of the
country's busiest rail sites.
"We are trying to bring the major road operators closer to the rail head as there are significant benefits to their
operations as well as ours in terms of the synergies between the two transport modes," says Mr Miller.
"There is great potential for the Five Star Group to become an even more significant client of our Rail Services Group
as a result of this arrangement."
Five Star Group, which includes Hooker Pacific, Provincial Freightlines and United Transport - three of the North
Island's largest trucking operators, will take over the 6.8 hectare site in March. The site includes a three-storey
office block, three warehouses and additional canopied space. Substantial bare ground is also available for further
Mr Miller said there was ample room to relocate Tranz Link's headquarters to the nearby Southdown operation and that the
Neilson St base was therefore surplus to requirements. Tranz Rail Chief Financial Officer Mark Bloomer, said the sale
was the start of a Tranz Rail programme to generate cash from the sale of surplus or inefficiently used assets.
Mr Bloomer said the funds generated would be used by Tranz Rail to retire bank debt.