By Phil Boeyen, ShareChat Business News Editor
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Thursday 13th December 2001 |
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Tranz Rail says it has agreed a three-year contract for $150 million with Transfield Services to provide infrastructure services such as track and overhead lines maintenance and a seven-year, $200 million deal with Alstom NZ for locomotive services.
Managing director, Michael Beard, says company is expecting total savings of about 10% a year from the initiatives and resulting internal efficiencies.
He says the majority of the 800 Tranz Rail staff currently employed in the infrastructure and locomotive power operations would be offered employment by the new contractors although there will be some redundancies.
"Over the next couple of weeks, staff in these operations will have an opportunity to meet with our new partners and discuss potential employment opportunities.
"It is not be possible to indicate which jobs will be required where, until the new partners have completed meetings with staff and unions on-site."
Mr Beard claims the company's change programme is designed to give New Zealanders a better rail service through specialisation.
"We are effectively creating a new rail industry that is no longer run by one vertically integrated business -Tranz Rail. We will soon have separate providers of infrastructure and locomotive power and we are still working through plans to outsource our wagon engineering."
"It's an exciting time for rail in this country. Alstom NZ and Transfield Services are world-class operators in their fields and we expect significant performance improvement from their involvement. For example, Alstom NZ's processes are expected to drive a three-fold reduction in locomotive failures."
Tranz Rail says the new contractors were appointed after a 12-month process, involving 50 companies. The transition to the new owners is expected to be completed by March next year.
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