Train services to be axed under proposed sale

Three passenger train services would be axed and two others threatened if the proposed sale of Tranz Scenic to West Coast Railway goes ahead.

Tranz Rail has confirmed West Coast Railway as the preferred purchaser of Tranz Scenic, Tranz Rail's long distance passenger operation.

A non-binding term sheet has been signed with Melbourne-based company, and Tranz Rail is now negotiating solely with them to finalise the deal.

Tranz Rail managing director Michael Beard said the sale would mean the end of the line for the Auckland-Tauranga Kaimai Express, and the Auckland – Rotorua Geyserland.

Mr Beard said both services had experienced a big decline in patronage and were no longer viable.

"The rail system needs to be responsive to the needs of passengers, and that passenger demand has changed."

The recently launched Waikato Connection between Auckland and Hamilton would also close.

The Southerner, which runs between Christchurch and Invercargill, and the Wellington-Napier Bay Express, could also be on the chopping block, if West Coast Railway could not operate viable alternatives in these areas.

The services would end after the proposed sale is completed in two to three months.

All staff currently employed by Tranz Scenic would be offered jobs by the new owner.