Local Govt | National News Video | Parliament Headlines | Politics Headlines | Search


Tranz Metro Wellington

Tranz Metro Wellington

Tranz Rail announced today that the joint venture party between Wellington Regional Council and Stagecoach has ruled itself out as a purchaser of Tranz Rail’s Wellington Metro operations through failure to conform with the required sales process.

Michael Beard, CEO of Tranz Rail responded “We had asked that the joint venture submit an indicative, non binding bid after reviewing certain information that we would provide to them. That would have allowed the joint venture to proceed to due diligence and then negotiate a final price after confirmation of the information provided. Naturally the joint venture would be entitled to adjust its initial indicative bid in light of the greater knowledge gained by the due diligence process. This process is absolutely standard in commercial trade processes. There is no point, and in fact it could be damaging to Tranz Rail, to allow the joint venture to enter into due diligence with the resulting costs and disruptions to the business, if we have no understanding that the transaction will be completed at a value acceptable to Tranz Rail and its shareholders”.

“We are also very concerned that Wellington Regional Council (or elements of WRC) having disqualified itself from the sales process, is now talking about unilaterally reducing the subsidy or investigating running some 200 buses in competition at a capital cost of $50million and a higher operating subsidy component. Why the WRC would want to threaten the infrastructure asset that is Wellington Metro rail in favour of other less efficient and more costly forms of passenger transport, is beyond us. To do so after disqualifying itself as a purchaser of Wellington Metro also gives us concerns about the commercial maturity of its whole approach to the sale”.

“Wellington Metro is a vital part of Wellington’s commuter network and should be supported by local government in the best interests of the greater Wellington region. We believe recent comments from certain elements of the WRC to be inappropriate and in reality unworkable. It would be more productive for that sector to support Tranz Rail in its efforts to find the best operator for its passenger rail operations, not to actively look for ways to sabotage the operations. Ultimately we believe more cooler, wiser and rational heads will prevail”.

“Tranz Rail is now committed to conducting a competitive tender process to bring the best passenger operator to Wellington Metro operations. Shortly, the company will be asking for expressions of interest as the first step in the competitive sales process”.

© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Tax Working Group’s Road Map

Trying to analyse the interim report on the Tax Working Group (TWG) is like trying to review an entire All Blacks game, but at the half- time mark.

With so much still to be finalised, Sir Michael Cullen and his colleagues are going to need all the All Blacks’ fabled finishing skills to get a coherent, fiscally neutral package together by the February 2019 deadline. More>>


Meth Testing Report: Housing NZ "To Right Wrong"

Phil Twyford “Housing NZ acknowledges that around 800 tenants suffered by either losing their tenancies, losing their possessions, being suspended from the public housing waiting list, negative effects on their credit ratings or, in the worst cases, being made homeless.” More>>


No Reshuffle: Meka Whaitiri Removed As A Minister

Meka Whaitiri will be removed as a Minister with immediate effect... The decision was made after receiving a report into an incident that occurred on 27 August in Gisborne, involving Meka Whaitiri and one of her staff. More>>


Pay Equity Bill: Making History For Women’s Pay

The Equal Pay Amendment Bill, introduced to the House today, will make it easier for workers to make a pay equity claim , using a more simple and accessible process within New Zealand’s existing bargaining framework. More>>


Suffrage 125: NZ A Trailblazer For Women

“We acknowledge the work of Kate Sheppard, Meri Te Tai Mangakāhia, and all of the suffragists who tirelessly campaigned for the vote… Today we also need to ask each other: how we can continue to make our country a fairer and better place to continue the legacy of the suffragists.” More>>


Asylum: Refugee Quota Increasing To 1500

“The quota increase will take place from July 2020. In the meantime, we will work to increase the number and spread of refugee resettlement and support services. We need to make sure we’re prepared for this change in policy.” More>>





InfoPages News Channels