Railway twists and turns timeline

Photo / Wanganui Chronicle

* 1982: NZ Railways Corporation formed out of old Railways Department.

* 1986: Becomes a state owned enterprise. Within six years, workforce cut from 21,000 to 5000, productivity lifts 300 per cent.

* 1990: NZ Rail created in preparation for privatisation, accumulated debt is $1.1 billion.

* 1993: Sold to consortium of Fay Richwhite, Wisconsin Central and Berkshire Partners for $328.3 million. Actual equity contribution was only $105 million - $100 million of which was returned to the buyers within two years.

* 1995: Renamed Tranz Rail.

* 1996: Company floated with sale of 31 million shares to the public at $6.19 per share.

* 1997: Share price peaks at $9. Track renewal and sleeper replacement surges. Original investors realise $370 million from share sales.

* 1998-2002: Track renewal and sleeper replacement plummets.

* 2002: Tranz Rail begins negotiation with government to buy back assets.

* 2003: Details emerge of need to sell assets to meet lease and debt payments. Share price collapses to nearly 30c. Toll Holdings takes control of Tranz Rail, renamed Toll NZ, assuming debt and lease obligations. Shareholders who followed board recommendations to retain stock receive only 28 per cent of original investment.

* 2004: Government buys back rail track for $1. Ontrack formed as the network provider; Toll is exclusive rail operator. Government spends $100 million upgrading network, committing a further $100 million over four years.

* 2006: Toll threatens to slash rail services, including main trunk line, after continuing disagreement over track access fees. It is losing $2 million a year on the Overlander service, retained under government pressure.

* 2007: Toll Holdings buys another 10 per cent of Toll NZ shares, compulsorily acquiring remaining shares at $3 each. Following Securities Commission investigation into insider trading, interests associated with Sir Michael Fay and David Richwhite agree to a $20 million settlement, in addition to $7.4 million paid by former US shareholders.

* 2008: Government buys rail and ferry business (Toll keeps truck freight operations) for $690 million. Three months later, asset value is slashed by $242 million.Track and rail integrated into single business, KiwiRail.

* 2010: Government announces new investment in KiwiRail of $750 million over three years. KiwiRail announces 10-year turnaround plan involving $3.8 billion in capital expenditure.

Sources: Institute for the Study of Competition & Regulation, KiwiRail