KiwiRail is among short-listed contenders to run Auckland's metro trains once Transdev's $60 million-plus management contract expires next year.
The Government-owned rail company, which ran the city's trains before Transdev's predecessor Connex took over in 2004, is one of three organisations short-listed by Auckland Transport.
As well as continuing to run all rail freight, it also operates 2200 metro passenger services a week in Wellington.
French-owned Transdev has also been shortlisted, as has British service giant Serco, which runs Mt Eden prison and will be in charge of the 960-bed Auckland South Corrections Facility when it opens in a fortnight.
Auckland Transport says a new contract from July 1 next year will be performance-based and reflect "the huge changes in the Auckland passenger rail system" since 2004.
AT Metro general manager Mark Lambert notes that rail services have more than trebled since then, from 40,000 to 140,000 a year, and are now providing more than 13 million annual passenger trips.
Transdev's contract was quietly extended without an open tender in 2012 despite criticism of its performance at the start of the Rugby World Cup the previous September, when trains ground to a halt after being unable to keep up with the demand, making almost 1000 people late for the opening ceremony.
Auckland Transport indicated then that it wanted to retain the same operator for continuity reasons while rolling out its new electric trains.
Services have been under renewed pressure in recent weeks, exacerbated by trains breaking down and staff shortages created by training demands for the new electric fleet, but Auckland Transport expects improvements once it retires most of its diesel fleet by the end of July.