Tranz Metro opens books to Wellington Regional Council

Tranz Metro has opened its books to Wellington Regional Council as the two parties edge closer to signing a new long-term contract for running Wellington's passenger rail services.

The two organisations said in a statement today that they met yesterday.

"Negotiations are progressing well and it is anticipated that a new contract will be signed within three to four months," the statement said.

The council previously made two bids to buy Tranz Rail's Wellington region passenger service, but in February the company's new Australian owner Toll Holdings told the council it intended to retain the service.

Tranz Rail's former owners had refused to open Tranz Metro's books to the council and joint venture partner Stagecoach.

In today's statement, Tranz Rail's national passenger manager Ross Hayward said a wide range of options for providing cost-effective solutions for rolling stock, stations, infrastructure and systems were being explored.

The council's regional transport manager, Dave Watson, said: "Tranz Metro have now opened their books, which has enabled us to have increasing confidence in their projected operating costs and revenues."

Projects under consideration involve major improvements to infrastructure and rolling stock. These projects include the electrification of services from Paraparaumu to Waikanae.

For the more urgent projects the council and Tranz Metro have agreed to jointly fund engineering studies. These projects include refurbishment of electric units, new carriage trains for the Wairarapa services, and double tracking between Pukerua Bay and Paekakariki.

Yesterday, Tranz Rail Holdings said it would be renamed Toll NZ Ltd from May 5. Also reflecting the partial takeover by Toll Holdings, major operating subsidiary Tranz Rail Ltd would become Toll NZ Consolidated Ltd, the rail operation would be known as Toll Rail and the freight forwarding business would be known as Toll Tranz Link.

- NZPA