Tranz Rail picks up speed

By DANIEL RIORDAN transport writer

Tranz Rail is enjoying one of its busiest periods, with trains and trucks operating at close to full capacity and little impact from the global economic slowdown.

Chief financial officer Mark Bloomer, announcing results for the three months to September, said last month had been busy and he expected a strong operating performance over this quarter.

The outlook contrasted with a typically quiet September quarter in which Tranz Rail lost $7.5 million, compared with a $16.4 million loss for the same period last year.

Operating profit before abnormals (largely restructuring costs) was $1.2 million, compared with $5.8 million the year before.

Total revenue was $143.3 million.

Freight revenue for the quarter fell $1.9 million, or 1.7 per cent, to $107.4 million.

Passenger revenue rose $3.2 million, or 12.1 per cent, to $29.7 million. The increase was mainly due to higher patronage on the Interisland Line after the introduction of a year-round fast ferry service in December, Tranz Rail said.

The first benefits of the company's restructuring programme, begun a year ago and six months from completion, would probably not be felt till near the end of the present financial year, said Mr Bloomer.

Bookings on the company's Tranz Scenic passenger services were up 5 per cent on the same period last year.

Mr Bloomer expected the sale of the business to Australia's West Coast Railway (with financing support from France-based Connex) to be clinched soon.

Tranz Rail's share price closed unchanged yesterday at $4.35.

The result was released half an hour before the market closed.