By Phil Boeyen, ShareChat Business News Editor
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Friday 30th November 2001 |
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Tranz Rail says details of the sale were finalised Friday, completing a further step in its plan to concentrate on freight services.
A new company will be formed to run the Tranz Scenic business and will assume responsibility for the operation from mid December.
"Following on from the $81 million agreement to sell Tranz Metro Auckland, we are now well down the track of divesting passenger operations to allow us to concentrate on our core freight business," says Tranz Rail boss, Michael Beard.
"West Coast Railway is a specialist passenger service operator with the marketing and management expertise to gain the best returns and provide the best service possible on the current Tranz Scenic routes."
West Coast Railway director Don Gibson says he expects to build on the existing tourism success of Tranz Scenic and to look at developing new routes.
The new company has purchased the Northerner and Overlander between Auckland and Wellington, the TranzCoastal service between Picton and Christchurch and the TranzAlpine, which runs over the Southern Alps between Christchurch and Greymouth.
It has also acquired is the Capital Connection long-distance commuter service between Wellington and Palmerston North and Tranz Scenic's charter business.
Existing Tranz Scenic staff will be offered positions with the new company and will be seconded to the new operation under the current agreement until new employment contracts are in place.
Tranz Rail will continue to operate The Southerner service between Invercargill and Christchurch until the agreement with Central and Local Government expires on February 10.
Mr Beard said proceeds from the sale will be used to retire Tranz Rail debt.
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