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Mobil wins five-year contract to supply bulk fuel to KiwiRail

Mobil Oil New Zealand has won a five-year contract to supply bulk fuel to state-owned KiwiRail.

Under the arrangement, it is expected to supply between $435 million and $495 million of diesel and associated services over the five-year period, the Wellington-based railroad says in a statement.

Actual fuel supplied will depend on volumes used and fuel price movements, it says.

The contract can be extended for another five years.

(BusinessDesk)

Comments and questions
1

Didn't Z say in statements a couple of days ago this contract was uneconomic? I like the idea of a foreign oil company subsidising a government owned rail company.