Tranz Rail to Complete Exit from Passenger Service

Tranz Rail to Complete Exit from Passenger Services

Tranz Rail will complete its exit from all passenger train services with the sale of Wellington’s Tranz Metro network and an exit from its current holdings in long distance passenger services.

Tranz Rail today signalled its intention to complete the sale of the Wellington network by the end of the year.

“We believe the future needs of commuters in Wellington will be best met by specialist passenger operators in a private/public partnership similar to the arrangements now being put in place in Auckland.

“We will work through a smooth and quick exit process with the ARC in Auckland, beginning next July, and want to quickly progress the sale of the Wellington network following the WRC’s decision on its joint venture partner,” said Tranz Rail’s Managing Director Michael Beard.

“We have also decided to divest our remaining 50% share in Tranz Scenic, the company that now runs long distance passenger trains in New Zealand. “

Mr Beard said that decision was consistent with the company’s desire to concentrate its efforts on the freight business and Tranz Rail would now look for a buyer for its share in Tranz Scenic.

“Tranz Scenic is running a good operation with very definite and innovative ideas for the future. However our core business and its prospects for significant future growth is freight and that is where we are concentrating our efforts.”

ENDS

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