Rail rolls into government ownership

In fairytales midnight is when carriages become pumpkins but for New Zealand's railways it marked the changeover from private to public to ownership.

Haggling over the details of the government buyback of Toll Holdings' rail business went right to the wire last night before a function this morning to reveal the new look business at Wellington's railway station.

In May the Government and Toll announced a heads of agreement for the Government to buy Toll's rail and ferry assets for $665m. There are another $25m of associated costs.

The Dominion Post reported today the new rail and ferry services were to be rebranded KiwiRail and the new livery would include a rust colour as well as safety yellow at the front and back.

It has been rumoured former prime minister Jim Bolger would chair the new crown company which would have a separate board from OnTrack.

However, the newspaper said it understood the two entities would be brought under one holding company within a few months.

Branding of the Interislander ferries, and TranzScenic and TranzMetro train services would not be changed.

NZPA reported yesterday the sticking point before the deal could go through related to road transport industry concerns that Toll's ongoing trucking business Toll Tranzlink would enjoy cheap rents on leased rail land and cheap rail charges.