ASIANET: ATN OFFICIALLY ADDS EMU BAY RAIL OPERATION TO ITS TASRAIL BUSINESS - newswit
WELLINGTON, New Zealand, May 22 /PRNewswire/AsiaNet/-- Tranz RailHoldings Limited (NZSE: TRH) (Nasdaq: TNZRY) today reported that AustralianTransport Network has finalised its purchasing of the rail operations of the Emu BayRailway from the Australian-based mining corporation, Pasminco, for AUD$7.8million.
Australian Transport Network, which is 27% owned by Tranz Rail HoldingsLimited, announced the sale in Australia today with the following pressrelease.
Shares of Tranz Rail Holdings Limited are publicly traded on the NewZealand Stock Exchange under the symbol TRH and the US American DepositaryShares (ADS) of the Company are traded on the Nasdaq National Market Systemunder the symbol TNZRY (each ADS is equivalent to three (3) shares). TheCompany is the leading multi-modal freight transport and distributioncompany in New Zealand and operates the only commercial railroad providing freightand passenger services utilizing 3,900 route kilometres (2,400 miles) of track,approximately 360 locomotives, 6,400 wagons (freight cars), 150 carriages(passenger railcars), 170 self propelled passenger railcars, 2,600 shippingcontainers and three roll-on roll-off ferries between the North and SouthIslands. The Company also holds a 27% equity interest in AustralianTransport Network Limited which operates freight services in Tasmania, Australia,utilizing 577 routs kilometres (361 miles) of track, 37 locomotives andapproximately 630 wagons (freight cars).
ATN Officially Adds Emu Bay Rail Operation To Its Tasrail Business
Australian Transport Network (ATN) finalised its purchase of Emu BayRailway's (EBR) rail business and assets this morning, adding EBR to itssuccessful Tasrail business.
ATN comprises internationally respected rail operators US-basedWisconsin Central Transportation Corporation and Tranz Rail Holdings Limited from New Zealand, together with investment organisations Berkshire Partners (US) and Fay, Richwhite & Company Limited (New Zealand).
The purchase of EBR has increased the number of employees working forATN in Tasmania, with a total of 27 employees having signed contracts with the company for its new business. Of the 27 employees, twenty are former EBRemployees, two have been transferred from Tasrail, and five have been hiredexternally.
With the addition of the EBR to its growing Tasrail business, ATN isclearly becoming a major employer in Tasmania.
"ATN's business growth, with the EBR acquisition as the latest example,reflects the company's confidence in the long-term future of the railfreight industry and ultimately Tasmania's economy," said David Crispin, GeneralManager of Tasrail.
As part of the sale, Tasrail has entered into a long-term contract withPasminco to move zinc and copper concentrates from Pasminco's Rosebury mineto the Port of Burnie, as well as serving the Aberfoyle and Copper Mines ofTasmania.
"Tasrail anticipates a long and mutually beneficial relationship withPasminco and is looking forward to investing in, and providing a reliableservice to the mining industry on the west coast of Tasmania into thefuture," said David Crispin.
Mr. David Crispin will officially welcome all EBR staff to the companyat a function in Burnie on Monday afternoon. ATN executives see Tasrail and EBRas being a key part of their business, and are taking a keen interest in theTasmanian operations. Next month, ATN Chief Executive Officer, Dr. FrancisSmall and its Chairman, Mr. Edward Burkhardt, will visit the EBR operation.
The acquisitions of Tasrail and EBR have established ATN as a key player
in Australia's freight industry and the consortium is participating in theupcoming privatisation of V-Line freight, Victoria's major rail freightoperator. ATN is one of several bidders for V-Line freight and is alsolooking for other interstate opportunities. Clearly, expansion of ATN'srail freight business on the mainland would be of benefit to all currentemployees who are currently based in Tasmania.
Last month, ATN announced the acquisition of EBR for AUD$7.8 million,and its intention to implement a capital expenditure program of AUD$9 millionover five years to improve and upgrade services. EBR rail will add another 145km of active track and approximately 630,000 tonnes of freight to ATN'sTasmanian operation.
SOURCE Tranz Rail Holdings Limited
-0- 05/22/98
/CONTACT: Mr. Ronald G. Russ, Executive Manager and Chief FinancialOfficer of Tranz Rail Holdings Limited, New Zealand, 04-498-2099, orInternational, +644-498-2099, or fax, +644-498-2014; or Media, YolandaStratford or Ian Smith, both of Gavin Anderson & Kortlang, +61-3-9654-6555,
orfax, +61-39654-8179, for ATN/
(TNZRY)
