Kiwi railway coup for Stagecoach

BRITAIN'S Stagecoach Group scored a victory in New Zealand on Wednesday when it was named as preferred buyer of the passenger rail system for the capital Wellington.

Stagecoach, New Zealand's biggest bus operator, beat French companies Transdev and Vivendi subsidiary Connex in the race to partner Wellington Regional Council in operating the city's rail system. The network was previously operated by NZ company Tranz Rail, which recently agreed to sell it to the council. The price is believed to have been about NZ$80m (£27m).

Wellington Council chair Margaret Shields said Stagecoach had demonstrated a high level of 'expertise and experience' in running passenger rail services. Its application to bid for the network was initially rejected by the NZ Commerce Commission. That decision was overturned in April.

Stagecoach chief Brian Souter visited NZ last month and said the company's NZ$250m investments there were performing well, with its bus networks in Wellington and Auckland showing 3% to 4% 'consistent organic growth'.