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Published: March 2008      

NZ rail going back to public ownership

The New Zealand government is negotiating with Toll New Zealand to buy back its rail and ferry assets and return the NZ rail system to full state ownership. The government already owns the track network, which it bought for NZ$1 as part of the deal that saw Toll New Zealand take over the other assets of the failed Tranz Rail.

As owner of the track, the government recovers the cost of operation and upkeep from Toll, but Toll has consistently underpaid track fees since a figure was agreed in 2004, arguing that rail revenues are insufficient to meet the full amount. The government has been unhappy with having to put in around NZ$10M so Toll could turn a profit....


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