Toll to run network until new track company ready

By PAM GRAHAM

Toll NZ will operate the nation's rail network beyond the handover back to the Government on July 1 until the new track-owning company is ready.

The Government is expected to name the chair of Track Co this week. It is buying back the track it sold in 1993 for $1 but negotiations on the detail of the sale of associated assets and future working arrangements with train operator Toll NZ have dragged on.

The matter came to a head last month with an exchange of letters between Finance Minister Michael Cullen and Paul Little of Toll Holdings. Both sides now say talks are progressing and a deal is expected to be signed in the week starting June 21.

A Government spokesman said Track Co would come into existence on July 1 but Toll would operate the track until a safety certificate was received from the Land Transport Safety Authority and Track Co managers were put in place.

No cost has been assigned to the extra time involved in Toll NZ running the track, and the length of time needed is also not set.

Melbourne-based Toll took control of Tranz Rail last year and has renamed the company Toll NZ.