AusRAIL, Market Sectors

NZ rail upgrade contract decision imminent

<p>The decision on who gets the job of fixing New Zealand’s rundown rail network is expected later this month.</p> <p>Three bidders have been shortlisted for the work and they are Australia’s Transfield Services &#8211 the present service provider &#8211 and two consortiums, John Holland&#47Fulton Hogan and Leightons&#47Queensland Rail.</p> <p>The New Zealand government had already described the track issue as "an appalling situation", the <em>Dominion Post</em> reported.</p> <p>The former track owner, Tranz Rail, now known as Toll NZ and controlled by Toll Holdings, had previously outsourced track maintenance work to Transfield.</p> <p>In 2004, the government bought back the track, agreeing to invest NZ$200m in exchange for Toll NZ agreeing to invest NZ$100m in new rollingstock.</p> <p>The government set up the organisation, Ontrack, to manage the network, including retendering the track work contract.</p> <br />