Sharechat Logo

Infratil's NZ Bus concludes Wellington negotiations

Thursday 25th January 2018

Text too small?

Infratil, the publicly listed infrastructure investor, finished its NZ Bus negotiations in Wellington, with contracts to begin in the second half of this year.

In a release to the stock exchange, Wellington-based Infratil said it has secured five long-term contracts in the capital, and the deal is "consistent with Infratil’s market messaging on the expected future scale of the NZ Bus business and earnings guidance."

Last year, the company said NZ Bus’s loss of certain public transport contracts meant it would shrink to about two-thirds its original scale, with 75 percent of the business in Auckland and 25 percent in Wellington. In May 2017, NZ Bus lost most of its bus contract with the Greater Wellington Regional Council to Masterton-based Tranzit Group, which the council said could offer the service cheaper, reducing its share of services to 28 percent from 73 percent.

Zane Fulljames, NZ Bus chief executive, said the contracts were worth about $323 million with an average term of 10.8 years. The company expects to invest some $31 million in its new fleet, including an additional 17 doubledecker buses.

"Electric vehicles are the future of public transport and will be a key focus now the contracting process in Auckland and Wellington has concluded," Fulljames said. "We are extremely well positioned for future market and technology challenges and have a solid platform to continue our journey towards cleaner and greener transport solutions."

Infratil shares fell 1.5 percent to $3.22, and have risen 8.6 percent in the past 12 months. 

(BusinessDesk)

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

NZ dollar falls with Aussie after Westpac's RBA rate cut call
Intuit juggernaut grows QuickBooks subscribers but momentum slows
Reaction to Budget rules relaxation shows balance 'about right', says Ardern
Augusta lifts net profit six fold as investors flock into new funds
Annual exports to China top $15 billion for first time
Gentrack posts $8.7M loss on CA Plus write-down
Westpac says RBNZ capital proposals would add $6,000 p.a. to an Auckland mortgage
Cavalier says market conditions still challenging
Ryman hikes dividend as annual earnings grow on wider development margin
24th May 2019 Morning Report

IRG See IRG research reports