05/06/2002
Stagecoach Group confirms that it has been named as joint venture partner with Wellington Regional Council to purchase and operate the New Zealand capital's passenger rail services.
Stagecoach, New Zealand's biggest bus operator, was chosen by the council in a three-way contest with Connex and Transdev.
Stagecoach Group chairman Brian Souter said he was delighted with the decision.
"Stagecoach has worked closely with the authorities in New Zealand, and this first move into rail outside the UK fits the strategy of developing our businesses where we have most local knowledge.
"We are excited at the prospects for this public-private partnership with the regional council which will develop Wellington's rail system for the benefit of the whole community."
Dr Michael Cullen, New Zealand's minister of finance, welcomed the joint venture. "The government is promoting the use of public-private partnerships in the transport area, and this is a good example of what the model has to offer.
For the travelling public, it will mean a continuing service with improved facilities. There are no losers from this deal, only winners."
Margaret Shields, Wellington Regional Council chairperson, said Stagecoach had been chosen after a rigorous selection process.
"Stagecoach were able to point to a track record of investment in their Wellington bus services, and a demonstrated commitment to improving public transport in the Wellington region."
Stagecoach and Wellington Regional Council will now move to sign a Heads of Agreement later this month, and then begin negotiations with Tranz Rail. The joint venture will come under the group's rail division, Stagecoach Rail, which is headed by executive director Graham Eccles.
Inquiries to:
| Robert Ballantyne, Stagecoach Group | 01738 442111 |
| John Kiely, Smithfield Financial | 020 7360 4900 |
Notes to editors:
Stagecoach Group is the preferred bidder for a 20-year franchise for South West Trains, Britain's largest franchise with 10% of the UK rail network.
Stagecoach is joint venture partner with Virgin in Virgin Trains, which operates the West Coast Main Line and Cross Country franchises.
Stagecoach Group has now arranged financing for more than £3 billion of new trains for all three franchises, more than any other operator.
Stagecoach operates Sheffield Supertram, and is bidding for other light rail operations in the UK.
