By Phil Boeyen, ShareChat Business News Editor
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Monday 24th December 2001 |
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The deal was first announced in September but finalised Monday and will see $75 million of the sale price paid immediately.
The remainder will be paid on satisfactory conclusion of negotiations over train control and track maintenance and other interim services, all of which Tranz Rail will provide for the next five years.
Finance Minister Michael Cullen and Transport Minister Mark Gosche claim the government entered the negotiations with clear objectives and we have
achieved them.
"Auckland can plan its future transport needs and the part rail will play with certainty," the Ministers say.
"Auckland now has the corridors it requires for a rapid transit system while freight services to Northland are preserved and we are satisfied a fair and equitable price has been negotiated."
Tranz Rail boss Michael Beard says completing the bulk of this transaction is another step in the company's strategy to exit non-core services and concentrate on freight business.
"In the past week or so we have finalised outsourcing of our Infrastructure and Locomotives Services operations, completed the transaction for the sale of Tranz Scenic and now we have largely completed the Auckland rail corridor
business.
"Once the details of this are concluded, we will move into progressing the sale of the Wellington Tranz Metro operation."
UK-owned bus operator Stagecoach was last week declined regulatory permission to operate Wellington Tranz Metro in conjuntion with the Wellington Regional Council.
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