Tranz Rail and Genesis look to sign coal moving deal

Rail operator Tranz Rail and Genesis Power today confirmed they are in talks to move one million tonnes of coal a year from Tauranga to Huntly.

The coal would be taken by train from Port of Tauranga to Genesis' Huntly Power Station in the Waikato.

Tranz Rail managing director Michael Beard said the proposed deal would see two trains a day make the journey, each carrying 1500 tonnes of coal.

"It is a significant development and we welcome this opportunity to form a long term relationship with Genesis," Mr Beard said in a statement.

"Design of the rail loading facility at Port of Tauranga and unloader at Huntley Power Station is well advanced."

Genesis chief executive Murray Jackson said rail offered flexibility and competitive pricing for Huntly over the long term.

A heads of agreement was expected to be signed within two weeks with the transport of coal starting in July 2004.

- NZPA