By CHRIS DANIELS
Toll NZ has done an about-face on plans to stay out of passenger rail, with its decision to buy back half of Tranz Scenic, which Tranz Rail sold in 2001 for $33 million.
Tranz Scenic's services are the Northerner (the night train service between Auckland and Wellington), the Overlander
(which travels the same route during the day), the Tranz Alpine (between Christchurch and Greymouth), the Tranz Coastal (between Picton and Christchurch) and the Capital Connection (between Palmerston North and Wellington).
It is not saying how much it paid for the stake.
Spokeswoman Sue Foley noted that Toll managing director Paul Little had said last month that the company had "changed its mind" on its involvement in passenger services.
"Toll NZ provides both the freight and passenger services through Tranz Metro Wellington, the Interislander and now Tranz Scenic," she said.
"Their reviews indicate that all the services are both strategically and operationally significant to Toll Rail.
"Obviously, they have far greater knowledge than when they made those comments, which was prior to them actually getting a hands-on involvement with the company."
The review that led to the re-purchase of half of Tranz Scenic was continuing, she said.
Tranz Rail Holdings officially became Toll NZ early this month.
Some of the first signs of Toll's warming to passenger services came in February, when it told the Wellington Regional Council that it wanted to continue running commuter services in the region.
Toll failed last year in its attempt to wrest full control of Tranz Rail in a takeover bid, finishing up with 85 per cent of the company.
During the period of the takeover, Toll said it had no interest in running passenger services.
The half stake in Tranz Scenic was sold to two Australians, Don Gibson and Gary McDonald.
McDonald died in May last year and his share of the company has since been managed by his estate.
