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Tranz Rail Forklift Operations Contracted Out

For Immediate Release 21 December

Tranz Rail Forklift Operations Contracted Out

Tranz Rail today announced its forklift operations would be contracted to Goughs Forklifts - a move that continues Tranz Rail's drive to outsource non-core business.

The five-year agreement with Goughs Forklifts, a division of Gough Gough and Hamer, was finalised today and follows recent outsourcing of Tranz Rail's Locomotive Services and Infrastructure operations.

"We are very pleased to enter this partnership with Goughs as we believe they bring considerable expertise and benefits to our business," said Tranz Rail's Group General Manager Engineering William Peet.

Goughs will purchase the forklift fleet for more than $8 million and provide equipment to meet key performance standards included in the new contract.

"The agreement with Goughs will reduce our forklift fleet through improved utilisation of assets and improved reliability. Goughs is a very experienced forklift operator and their partnership with our business will ensure we have the right equipment available to match our needs."

Goughs Forklifts General Manager Ray Crocker said the agreement with Tranz Rail was a significant step for his company and one that would benefit both companies.

"As a specialist operator we are absolutely focussed on getting the best out of our equipment and will apply our knowledge and experience to Tranz Rail's needs," said Mr Crocker.

Tranz Rail staff affected by the changes will have an opportunity to meet with the new contractors in mid January.

Funds from the new agreement will be used to retire Tranz Rail bank debt.

ENDS

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