KiwiRail loses Wellington commuter contract

Kiwirail has lost its bid to continue running Wellington's metro rail service.

The Greater Wellington Regional Council has announced Transdev Australasia, in association with Hyundai Rotem, preferred operator for next year.

The new contract is expected to start mid next year.

KiwiRail said the council's decision was disappointing.

Chief executive Peter Reidy said the company had "a very proud record" of operating passenger services in Wellington.

He said their joint venture with Keolis Downer was their strongest bid, and they would be examining the regional council's decision ahead of the final announcement next year.