ASIANET: TRANZ RAIL'S AUSTRALIAN BUSINESS EXPANDS - newswit
WELLINGTON, New Zealand, April 5 /PRNewswire/AsiaNet/-- Tranz Rail Holdings Limited (Nasdaq: TNZRY) today reported that Australian Transport Network has agreed to acquire the rail operations of the Emu Bay Railway from the Australian based mining corporation, Pasminco, for AUD$7.8 million.
Australian Transport Network, which is 27% owned by Tranz Rail Holdings Limited, announced the sale in Australia today with the following press release.
Shares of Tranz Rail Holdings Limited are publicly traded on the New Zealand Stock Exchange under the symbol TRH and the US American Depositary Shares (ADS) of the Company are traded on the Nasdaq National Market System under the symbol TNZRY (each ADS is equivalent to three (3) shares). The Company is the leading multi-modal freight transport and distribution company in New Zealand and operates the only commercial railroad providing freight and passenger services utilizing 3,900 route kilometres (2,400 miles) of track, approximately 360 locomotives, 6,500 wagons (freight cars), 150 carriages (passenger railcars), 170 self propelled passenger railcars, 2,600 shipping containers and three roll-on-roll-off rail ferries between the North and South Islands.
ATN To Add Emu Bay Rail Operation To Its Tasrail Business Australian Transport Network (ATN), owners of Tasrail, today welcomed the addition of the Emu Bay Railway Company's (EBR) rail business and rail assets, to its growing Tasrail business.
ATN comprises internationally respected rail operators US based Wisconsin Central Transportation Corporation and Tranz Rail Holdings Limited from New Zealand, together with investment organizations Berkshire partners (US) and Fay, Richwhite & Company Limited (New Zealand).
ATN has agreed to acquire the EBR rail operation for AUD$7.8 million. In addition, it intends to implement a capital expenditure program of AUD$9 million over five years to improve and upgrade services.
EBR rail will add to ATN's Tasmanian operation another 145 kilometres of active track and approximately 630,000 tonnes of freight. Tasrail currently runs 581 kilometres of active track and hauls approximately 2.2 million tonnes of freight.
Pasminco will continue to manage EBR's engineering business. However, ATN has committed to assisting Pasminco in finding a suitable buyer for that business.
EBR will maintain its contract with Pasminco to continue to move zinc and copper concentrates from Pasminco's Rosebery mine to the Port of Burnie.
This deal offers Pasminco the opportunity to concentrate on its core business whilst maintaining access to a long term, reliable rail service.
Dr. Francis Small, Managing Director of ATN, together with Tasrail's GeneralManager, Mr. David Crispin, welcomed the sale today, at EBR's head office.
"ATN intends to grow EBR's rail business by servicing the mineral rich mines of the West Coast of Tasmania and moving into untapped frail freight opportunities such as the forestry industry," said Dr. Small.
ATN will offer EBR rail employees the same terms of employment as its Tasrail employees, which includes cash performance incentives, a flexible work environment and opportunities for multi-skilling.
"ATN will be relying on its new employees to develop and grow EBR's rail business and improve on current services."
"We see real synergies between the EBR rail operation and Tasrail and by integrating the two businesses we know we can make significant operational efficiencies and strengthen the business," he said.
Tranz Rail's Australian Business Expands
Tranz Rail's business interests in Australia have been increased with a purchase announced today.
The Australian Transport Network (ATN), owners of Tasrail, Tasmania's fully integrated freight railway, announced today the purchase of the Emu Bay Railway Company (EBR) rail business and rail assets from Pasminco, an Australian based mining company.
Tranz Rail is a major shareholder in ATN along with internationally respected rail operator, Wisconsin Central Transportation Corporation (WCTC) and investment organisations Berkshire Partners (US) and Fay, Richwhite & Company Limited.
Dr. Francis Small, Managing Director of both Tranz Rail and ATN said today that ATN agreed to acquire EBR rail operation for AUD$7.8 million.
"We welcome the expansion of Tasrail's business," said Dr. Small. Tranz Rail, as part of the ATN consortium, acquired Tasrail in November 1997 for AUD$22 million. At present, Tasrail runs 581 kilometres of active track and moves approximately 2.2 million tonnes of freight a year.
"EBR will add to ATN's Tasmania operations another 145 kilometres of active track and approximately 630,000 tonnes of freight," he said. EBR currently moves zinc and copper concentrates from Pasminco's Rosebery mine to the port of Burnie in Northern Tasmania.
"ATN will grow EBR's rail business by servicing the mineral rich mines of the West Coast of Tasmania and moving into untapped rail freight opportunities such as the forestry industry," said Dr. Small.
SOURCE Tranz Rail Holdings Limited
-0- 04/06/98
/CONTACT: Ronald G. Russ, Executive Manager and Chief Financial Officer of Tranz Rail Holdings Limited, 644-498 2014, Fax 644-498-2014 (TRNZY)
