6 RAIL DECLINES

In July 1973, the Labour government agreed to fund the cost of the electrification of the railway network between Auckland and Papakura, and an underground rail loop from downtown, via the central city to Newmarket. The proposed inner-city loop included an underground station on the Britomart site.

But in 1976, a National government decided that the proposed rapid-transport system was too costly and unjustified so they cancelled the projects.

Waitakere's train station

In December 1992, the Government announced that it was offering its 100% shareholding in NZ Rail for sale.

Following a competitive sales process, a sale and purchase agreement was entered into with Wisconsin Central Transportation Corporation, Berkshire Partners III L.P., and Fay, Richwhite & Company Limited (The Wisconsin Consortium) on 20 July 1993, for $328.191 million.

Whilst settlement period for NZ Rail was set at a maximum of 90 days, settlement occurred on 30 September 1993.

Prior to the signing of the sale and purchase agreement, the Government sought and received from the Wisconsin consortium certain assurances in relation to their intentions for a public share offering and the passenger network of NZ Rail. A public offering of shares is anticipated in three to five years. The Wisconsin Consortium  said it viewed the passenger network as an integral part of NZ Rail’s business.

Auckland's passenger trains

When New Zealand Rail Ltd was privatised, it became known as Tranz Rail and City Rail became branded Tranz Metro. Tranz Metro still provides commuter services in Wellington on two major lines – Upper Hutt and Paraparaumu, and three branch lines – Johnsonville, Melling and Wairarapa.

Mt Albert station: Signals were manually controlled

HISTORY PART 7 – BRITOMART ERA

previous -part 5