Toll Holdings will sell its rail and ferry operations in New Zealand back to the Government, the logistics giant has
Toll Holdings will sell its rail and ferry operations in New Zealand back to the Government, the logistics giant has announced.
The New Zealand Government will purchase the business for $430 million, including a six-year rent-free period on existing premises.
Toll Managing Director Paul Little says proceeds from the disposal will “enhance” its capacity to “aggressively pursue” acquisition-based growth in Asia.
He says the sale will also give New Zealand the opportunity to move forward “in an environment with greater clarity and ability to better plan its development”.
“We are very proud of our achievements in managing the rail assets and believe that the Crown is acquiring a well-run business with a highly motivated workforce,” he says in a statement.
“I am also pleased that the Crown has acknowledged the role that Toll has played in improving the efficiency of rail freight movements within New Zealand.”
Toll will retain Tranzlink, the company’s rail and road forwarding business, together with warehousing and contract logistics operations.
Toll will continue to be “major users” of rail capacity, Little says.
“We support the Government’s objective of boosting capital spending on rail,” he says.
“While we had not been looking to sell the rail operating business back to the Government, the sale has enabled us to re-focus our efforts on accelerating growth in our road and rail forwarding and logistics businesses, and this will include acquisition-based growth.
“New Zealand remains a vital and attractive market for Toll both from a domestic and cross-border viewpoint.”