Tranz Rail begins sale process for Tranz Metro

For immediate release
17 March 2003

Tranz Rail begins sale process for Tranz Metro

Tranz Rail has started the process for the sale of its Wellington commuter train services, Tranz Metro. Expressions of interest will be invited and investment bankers, Cameron and Co, will handle the sale process.

The sale of Tranz Metro Wellington is seen as a unique opportunity to invest in New Zealand’s largest and most successful commuter rail business. The Wellington network is defined as the Wellington-Johnsonville, Wellington- Paraparaumu, Wellington-Masterton, and Petone-Melling lines.

The sale will now go through the normal sale process of indicative bids being received followed by due diligence and final bids from a shortlist of bidders.

Chief Financial Officer Wayne Collins says they are keen to work alongside Transfund and the Wellington Regional Council regarding the ongoing service agreement.

“They need a new operator and we want to sell so we have common ground to work from. It makes sense for us to co-ordinate our efforts and we are hoping for the best outcome for all.

“We want to walk hand in hand with the Wellington Regional Council and ensure our process of sale is complementary to its process of securing a new operator under terms and conditions, which achieve the maximum benefits for the region.

“We appreciate the importance of the rail commuter service for the wider Wellington community and we want to ensure that the new owner, is in fact, the best operator for the Wellington rail passenger network.

“To this end we are keen to engage with the Wellington Regional Council to ensure these two processes are seamless, ”says Mr Collins.

Tranz Rail completed the successful sale of Tranz Scenic, its long distance passenger service last year and is now keen to sell off Tranz Metro so it can concentrate on its core business of being a linehaul freight rail specialist.

ENDS

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