IFT - Infratil

[see weed]

Infratil Shareholders presentations between 27/6/17 and 27/7/17. Is Infratil still seeking to deliver 20% per annum after tax returns to it's shareholders?.... The short answer is yes. Go to infratil.com and click on Infratil Update newsletter May 2017 for more info. 20% sounds good to me. Is anybody going to one of the meetings?

[artemis]

Infratil Shareholders presentations between 27/6/17 and 27/7/17. Is Infratil still seeking to deliver 20% per annum after tax returns to it's shareholders?.... The short answer is yes. Go to infratil.com and click on Infratil Update newsletter May 2017 for more info. 20% sounds good to me. Is anybody going to one of the meetings?

I plan to go to the Wellington one. The invite asked for people to send in stuff they want covered- I asked for an update on conversion of Wellington trolley buses to electric, and for comment on the loss of recent bus routes. The company did make an announcement about the bus routes at the time but seemed like they were using different measurements to the media reports.

[huxley]

I plan to go to the Wellington one. The invite asked for people to send in stuff they want covered- I asked for an update on conversion of Wellington trolley buses to electric, and for comment on the loss of recent bus routes. The company did make an announcement about the bus routes at the time but seemed like they were using different measurements to the media reports.

Can you post their response?

Cheers

[artemis]

Can you post their response?

Cheers

Sure thing.

[artemis]

Following on from the above about NZBus. At the Infratil roadshow in Wellington yesterday there was an indication that NZBus would be put up for sale in a year or so. Although it is profitable, it does not fit the required growth profile of IFT investments, due to loss of route contracts and focus on cost cutting. The latter being the primary cause of the former it appears. Seems the company took a wrong turn a few years ago by putting investment into technical / green efficiencies as that was the direction understood at the time. Instead, a race to the bottom cost wise.

No doubt helped along in Auckland by GoBus tax advantage as it is owned by two iwi charitable trusts.

There was comment about the (electric) trolley bus decommission which is due this year. It was said that last time this came up for review there was public and Green Party opposition and the decommission did not proceed then. This time around there was no opposition so it is happening.

NZBus will thus shortly lose the trolley infrastructure so will replace these buses with diesel - they have these readily available due to losing the Auckland routes.

Wrightspeed trial of trolley buses converting to electric is well advanced though has not met original timetable. About to start testing on actual Wellington bus routes, on the basis if it can cope there it can cope anywhere! This info was given in discussion after the meeting.

Also the remaining Wellington routes are up for renegotiation, not re-tender so NZBus will retain them for a further 10 years. Once locked in, sale is likely.

[bull....]

glad to hear NZ Bus might be for sale always and still do see it as a bad investment.

[kiora]

Following on from the above about NZBus. At the Infratil roadshow in Wellington yesterday there was an indication that NZBus would be put up for sale in a year or so. Although it is profitable, it does not fit the required growth profile of IFT investments, due to loss of route contracts and focus on cost cutting. The latter being the primary cause of the former it appears. Seems the company took a wrong turn a few years ago by putting investment into technical / green efficiencies as that was the direction understood at the time. Instead, a race to the bottom cost wise.

No doubt helped along in Auckland by GoBus tax advantage as it is owned by two iwi charitable trusts.

There was comment about the (electric) trolley bus decommission which is due this year. It was said that last time this came up for review there was public and Green Party opposition and the decommission did not proceed then. This time around there was no opposition so it is happening.

NZBus will thus shortly lose the trolley infrastructure so will replace these buses with diesel - they have these readily available due to losing the Auckland routes.

Wrightspeed trial of trolley buses converting to electric is well advanced though has not met original timetable. About to start testing on actual Wellington bus routes, on the basis if it can cope there it can cope anywhere! This info was given in discussion after the meeting.

Also the remaining Wellington routes are up for renegotiation, not re-tender so NZBus will retain them for a further 10 years. Once locked in, sale is likely.

Thanks for synopsis ATM. IFT due for rerate in next 6 months as new investments get legs?

[huxley]

Interesting development regarding promoting overseas tourists to wlg region.
https://i.stuff.co.nz/business/95767...c-flight-offer

[Zaphod]

Seems the company took a wrong turn a few years ago by putting investment into technical / green efficiencies as that was the direction understood at the time. Instead, a race to the bottom cost wise.

I'd venture to add to the "wrong turn", increased investment in driver training and higher wages than those being offered by the new providers. As you note, this has become a race to the bottom! Squeezing the drivers seems to be the easy route.

[Bjauck]

If you have not used an Auckland Transport HOP card for two months, the balance on the hop card is no longer recognised. That sounds very inconvenient! Is that the same with a snapper card?
http://www.nzherald.co.nz/nz/news/ar...ectid=11920708