National rail track going, going, gone

By SIMON HENDERY

It took just three minutes yesterday for Tranz Rail to win shareholder approval to sell the national rail track back to the Government.

A special shareholder meeting in Auckland approved without discussion a resolution to sell the rail network and associated assets - including the Wellington Railway Station - to the Crown for $50 million.

A handful of shareholders and a smattering of institutional representatives showed up for the meeting, which was a foregone conclusion given Tranz Rail's 84 per cent shareholder Toll Holdings' support for the deal. But Tranz Rail chairman Mark Rowsthorn admitted afterwards to being surprised at how quickly the resolution was passed.

Rowsthorn's call for discussion on the motion - the only item on the agenda - was met with silence so after a call for a show of hands the chairman declared it passed.

"We've obviously got a very happy group of shareholders," he joked afterwards.

Tranz Rail chief executive David Jackson said after the meeting the company and the Crown were working well towards a handover date of July 1.

Under the deal the Government will spend at least $200 million on upgrading the rail network. Jackson said with Toll also committed to a $100 million investment in rolling stock, both sides were focused on getting the best return on their investment.