IFT - Infratil [Archive] - Page 3

Toddy

12-09-2007, 01:42 PM

Now we all know why Air NZ has got the pip. IFT has recognised that budget airlines are going to provide the future growth for the domestic market. So, they included an international target for Air NZ to achieve a 'rebate'. AIR did not like the new target set so IFT removed the rebate.

In the mean time Air NZ has pocketed the cash and kept it quiet from the public.

Fees deal revealed in airport charges squabble
By ROELAND van den BERGH - The Dominion Post | Wednesday, 12 September 2007

Air New Zealand was refunded up to 20 per cent of its landing fees by Wellington International Airport during the past five years, helped by the demise of Origin Pacific last year, and Qantas reducing services.

Wellington airport acting chief executive Mike Basher said the refunds were part of a performance-based agreement under which Air New Zealand received a rebate if it exceeded passenger growth targets.

The five-year agreement expired on June 30 and ran alongside the normal landing charges which were also reviewed every five years.

The collapse of regional airline Origin Pacific and Qantas pulling out of the Wellington-to-Christchurch route had handed those passengers to Air New Zealand, helping the airline to easily exceed the targets, he said.

Passenger numbers through the airport increased by 1.74 million in the past five years to 4.64 million. Air New Zealand had also lowered airfares to generate demand during that time and increased its domestic capacity.

Wellington airport's aeronautical revenue had grown to $41.9 million from $33.6 million in 2003. Air New Zealand was the airport's biggest user.

The airport tried to talk to Air New Zealand three months before the agreement ended about the possibility of a new contract, Mr Basher said.

"They did not engage fully in those discussions." Instead, last month the airline filed for a judicial review of the airport's new increased landing fees.

That made it a lot harder to reach another agreement, Mr Basher said.

However, Air New Zealand's group general manager of short haul airlines, Norm Thompson, said the airline had told the airport it wanted to roll over the previous agreement, which also helped the airport to meet its targeted weighted average cost of capital.

But the airport responded with a proposal that required Air New Zealand to start long-haul services from Wellington to gain a rebate on landing fees.

Wellington airport is pinning its hopes on the new Boeing 787, which technically has the ability to fly from the capital's short runway to Asian destinations like Singapore with a full load of passengers - the first big plane with that ability.

"At this time, no such long-haul route out of Wellington is financially viable," Mr Thompson said.

But Air New Zealand had opened new domestic routes serving Wellington, including a direct flight to Invercargill and extending the Queenstown service to year-round.

Mr Basher denied the airport's proposal was linked to long-haul services.

Mr Thompson said Air New Zealand was willing to talk to the airport about a new target-based rebate agreement.

The judicial review in the High Court at Wellington would consider the airport's process for setting the new landing charges, and was unrelated to a rebate agreement.

Air New Zealand says that the new landing charges were a 34 per cent increase, not the 2.85 per cent a year for the next five years being imposed by the airport.

But Mr Basher said Air New Zealand was including the loss of its rebate under the passenger growth agreement in its increase.

Air New Zealand has also sought a judicial review of Auckland International Airport's landing fee increases.

It has also called for an overhaul of the way airports are able to set landing fees.

Airports must consult airlines but do not have to gain agreement on new charges.

tobo

16-09-2007, 08:33 PM

Not sure how visible the dilution for the rights issue should be, but looks like we have hit the falling trendline (from late August ). Trendline not broken(?), but friday's 3% increase was on good volume and coincides with MACD & slow stochastic 'buys'.

Phaedrus

16-09-2007, 09:45 PM

These are all good observations, Tobo, but to get an idea as to how reliable they might be we need to look at the history of the current downtrend.

It's true that Fridays's 3% increase was on good volume, but you can see from the chart that there have been 5 even bigger updays in the course of this downtrend, and they all came to nothing.

There is indeed an MACD buy signal, but it is the third since May. You wouldn't want to have acted on the others. To my mind this means that the MACD is too active, too sensitive for this downtrend.

I guess that the Stoch buy signal you speak of is using the "standard" slow stochastic oscillator (10,3,3). I think that this is still too "fast", because this is the 4th "Buy" signal it has given over the course of this downtrend. This is not to say that the latest signal is necessarily "wrong", but it doesn't give you a lot of confidence does it!

The chart here includes a really slow stochastic of 50 days. This period was chosen such that previous peaks just failed to trigger a buy signal. Same with the 25 day QStick. You can see that neither of these indicators is anywhere near triggering a buy.

In short, I see no technical reason to buy IFT - yet.

http://h1.ripway.com/Phaedrus/IFT916.gif

tobo

17-09-2007, 07:14 AM

Thanks, Phaedrus, another masterly explaination.

Toddy

17-09-2007, 05:36 PM

Interesting times. The OBV's were through the roof for the second trading session in a row. I'm not sure who was in control, but the buyers did end up pushing up the closing price after a solid days trading.

Maybe punters are positioning themselves for the governments long awaited 'environmental carbon emissions trading scheme' to be announced on Thursday.

Caesius

20-09-2007, 12:09 PM

Toddy

20-09-2007, 04:18 PM

http://www.nzherald.co.nz/section/1/story.cfm?c_id=1&objectid=10464825

Infratil looks like it would be set to do well under such a scheme, I mean which of their projects produces a lot of pollution?

Airports? Not really. Buses? Yes but they have those fancy new *clean* ones.

IFT have positioned themsleves to be 'green' for a very long time. We will have to wait to see how the AIA saga plays out before we can see the full impact of todays developments on the IFT SP.

I'm picking it will settle somewhere around $3.15-$3.20 over the next few weeks.

Toddy

26-09-2007, 05:42 PM

Big volume today for IFT. 1.85m shares traded. Closing price $3.03.

Something is up.

Caesius

26-09-2007, 09:26 PM

Awesome, I've always seen IFT as a very "quiet" company, Lyold never making a huge ramping speech etc, any news is presented for what it is, nothing more, nothing less.

Thats my impression anyway.

Volume does look relatively large.

TimeIsMoney

26-09-2007, 11:25 PM

Possibly a bid coming in for Whenuapai airbase from Colin Giltrap (according to Herald). Air NZ shares also up.

Infratil of course benefits from the new carbon scheme from government due to its Trustpower holding.

Toddy

01-10-2007, 11:44 AM

More good news for IFT.

GENERAL: TPW: TrustPower Welcomes Mahinerangi Wind Farm Decision

Media Statement from TrustPower Limited
1 October 2007
TrustPower Welcomes Mahinerangi Wind Farm Decision
TrustPower has welcomed the Resource Consent application decision, giving its
Mahinerangi Wind Farm the green light.
Chief Executive Keith Tempest says TrustPower will now wait until the appeal
period is over, before reviewing the business case for the project and then
progressing with detailed design.
"Wind farm construction is very dependent upon windows of opportunity, where
things like exchange rate, turbine price and turbine availability all have to
coincide, and until legislation is passed, there remains some uncertainty
regarding the application of the proposed carbon trading regime. In
addition, South Island projects such as this have the additional burden of
having to overcome the hurdle of HVDC or Cook Strait cable charges, even
although they are intended primarily to supply electricity to the local
region."
TrustPower's proposed 200 MW Mahinerangi Wind Farm, which could ultimately
supply enough electricity for 100,000 homes, is expected to be built in
stages.
Due to its location adjacent to the lake supplying TrustPower's four-station
Waipori hydro scheme, the wind farm will allow TrustPower to make best use of
both the wind and hydro resources. Because it will feed directly into
existing line connected to Dunedin's Halfway Bush substation, it will improve
efficiency and security of supply, and free up electricity currently imported
into Dunedin from Roxburgh and the Waitaki system for use elsewhere.
The total cost of the 200MW wind farm is expected to exceed NZ$400 million.

Caesius

08-10-2007, 01:47 PM

Damn, would someone be good enough to post the Sept Update? The announcement only states that it has been mailed out. Apparently I'm not on the mailing list.

Viking

08-10-2007, 02:47 PM

Looking at Phaedrus' graph above, few of the Buy Signal should have been broken by now. :)

Toddy

08-10-2007, 04:51 PM

Damn, would someone be good enough to post the Sept Update? The announcement only states that it has been mailed out. Apparently I'm not on the mailing list.

Look for Sept 2007 update under the following link.

http://www.infratil.com/company_reports.htm

Caesius

08-10-2007, 05:06 PM

Whoops.

Thanks toddy, I checked under announcements and there was no mention so I assumed it wasn't available yet..

Thanks again

Toddy

11-10-2007, 12:55 PM

Caesius

11-10-2007, 01:39 PM

Caesius

What did you think of the update. It certainly sparked some interest in the TPW share price. It was great timing as the report was released on the same day as the Medredian/Mighty Power/Genises financials with market updates etc.

Its been a busy few days for IFT. I cannot see alot stopping Lloyd from being successful with his AIA board seat bid.

Yes the Director's role with AIA interested me. Regarding the report the most interesting thing for me was the value of TPW versus the NZ dollar. I haven't had an in depth read yet though.

I'm pondering topping up on IFT smalltime soon? Which represent better value at this stage? Looking at IFTWB:

IFT - IFTWB exercise price = 3.10 - 1.62 = 1.48 > IFTWB price at the moment.

I've noticed that while before IFTWB's would have a 15c-20c "premium", lately they have been sitting just below their "true" value.

I hear that IFTWC's are overpriced and I haven't really got enough cash to make buying the heads worthwhile...Dilemma lol

k1w1

11-10-2007, 07:35 PM

Dont forget IFTIZA if you want to get really confused.

Rif-Raf

11-10-2007, 09:35 PM

Yes the Director's role with AIA interested me. Regarding the report the most interesting thing for me was the value of TPW versus the NZ dollar. I haven't had an in depth read yet though.

I'm pondering topping up on IFT smalltime soon? Which represent better value at this stage? Looking at IFTWB:

IFT - IFTWB exercise price = 3.10 - 1.62 = 1.48 > IFTWB price at the moment.

I've noticed that while before IFTWB's would have a 15c-20c "premium", lately they have been sitting just below their "true" value.

I hear that IFTWC's are overpriced and I haven't really got enough cash to make buying the heads worthwhile...Dilemma lol
Yes, I've also noticed the B warrants have been trailing the heads of late. To me the calculation is simple at todays 1.46+1.62 = 3.08 i.e a 1 c discount to the heads at 3.09
However to buy a parcel of X, you only have to outlay approx. half the amount and have got the use of the money for just under 2 years, however there will be no dividends on the warrants while the heads receive divvies of around 2%
So if the cost of money is say 9%, then if you do the maths in ballpark terms the B's would be worth paying a premium of at least 10c to the converted price.

discl. long on B warrants

gisborne_gold

11-10-2007, 10:08 PM

Based on my version of the Black-Scholes method of valuation, with IFT trading at 3.09, my view is that IFTWB are fairly priced at 1.46 which is close to my valuation of 1.48. In this case, with IFT being a low-volatility stoch, this valuation is close to the intrinsic value, as posted by Rif-raf.

In contrast, I value IFTWC at 0.33 yet it continues to trade at more than twice that; currently at 0.71.

Disclosure: Hold IFT and IFTWB.

Rif-Raf

11-10-2007, 10:31 PM

GG, I was interested in your post and thought i'd find this model. I found this http://www.blobek.com/black-scholes.html link and used the calulator and got 1.70 (This was based on strike of 162, price 309, interest 9% and days 635,) I tried using different voilatility rates 10-40% but didn't make much difference a few cents.
Then I took off dividends of 12c so I got to $1.58
What numbers did you use to get your 1.46?

Thanks

gisborne_gold

12-10-2007, 11:19 AM

Rif-raf, I appreciate your interest.

Price volatility of the underlying share is critical to option and warrant valuation. In the case of IFT, I calculate volatility to have been around 19% for 5 years or more. More recently it's been slightly higher, 20-22%.

The other factor to take into account is the IFT dividend yield which affects the cost-of-capital part of the calculation. Try subtracting dividend yield from your bond interest rate and use a net cost-of-capital.

The third factor seems to be that there are two main forms of the Black-Scholes calculation, one of which yields slightly higher valuations than the other in certain circumstances. You may have stumbled on an example of the higher-valuation form. I prefer the other, giving more conservative valuations and it appears to be consistent with market behaviour, at least in most of the situations I've looked at. Try this link, for example: http://www.tradingtoday.com/black-scholes (http://www.tradingtoday.com/black-scholes?callorput=c&strike=3.5&stock=5.33&time=912&volatility=19.8&interest=4.2)

Rif-Raf

12-10-2007, 12:57 PM

Thanks GG, I tried that link and used 19% volatility, but get same answer 1.70 less cost of capital component. This is a really useful tool

gisborne_gold

13-10-2007, 10:03 PM

Rif-raf, you're right, the online calculators are yielding valuations of 1.58 and in one or two cases 1.70 for IFTWB, which differs from the more conservative 1.48 valuation I came up with the other day. Take your pick.

A key point is that these warrants are worth more than the intrinsic value of 1.47 because of the potential increase in value which derives in part from the IFT stock price volatility.

Sideshow Bob

14-10-2007, 10:24 PM

Sorry, quick question - what is the exercise price/payment of the B's now?

Caesius

15-10-2007, 09:41 AM

Sorry, quick question - what is the exercise price/payment of the B's now?

$1.62

Also,

9:21 RELINT Replacement D&O Disclosure notice for Duncan Saville

New director?

Toddy

15-10-2007, 11:46 AM

I guess that IFT can now concentrate on becomming a major partner in AIA. More positives than negatives. Why fight regional and central politics when you can have your cake and eat it too.

'The new mayor of North Shore does not support the Whenuapai project.'

Sideshow Bob

15-10-2007, 06:27 PM

Thanks Caesius.

Likely going to top up on some more B's, once read the lastest e-mail update......

Toddy

30-10-2007, 02:01 PM

Time to take another look at IFT at these prices.

1. It looks like the Victorian electricity prices have come back enough for IFT to start making some good returns from its retail business once again.
http://www.nemmco.com.au/data/avg_price/avgp_daily200710.shtm

2. The TPW SP has had a good run on the back of the govt energy policy, windfarm developments (Otago and Aussie) and the all clear for the Blenheim Hydro development. Current SP sitting well above $9.

3. Wellington Airport is running smoothly and growing, Prestwick numbers look strong and there is new interest in AIA from IFT management. Kent and Lubeck are less significant longer term punts.

4. With the price of pertrol at the pump climbing we should start to see a direct impact on the number of Aucklanders/Wellingtonians starting to leave their cars at home and taking public transport to work. This sector is looking better by the day.

5. The share placement was successful leaving IFT with plenty of cash ready to make new acquisitions as opportunities present themselves.

6. ENE is back on track with all of its developments and the Aussie sharemarket is showing renewed interest in this stock.

In summary, the house is in good order and in my opinion its only am matter of time before we see another re-rating of IFT.

Caesius

07-11-2007, 08:52 AM

http://www.nzherald.co.nz/section/3/story.cfm?c_id=3&objectid=10474429

The New Zealand Superannuation Fund and infrastructure investor Infratil have further increased their combined stake in Auckland Airport, a notice to the NZX yesterday showed.

What? I see no such notice? The only announcement from the 6th was a new director. Does the media get this info before investors?

Very confused.

Toddy

07-11-2007, 09:42 AM

http://www.nzherald.co.nz/section/3/story.cfm?c_id=3&objectid=10474429

What? I see no such notice? The only announcement from the 6th was a new director. Does the media get this info before investors?

Very confused.

Morrison and Co issued a disclosure notice after close on Friday. The NZ Super Fund issued a disclosure notice prior to opening yesterday morning.
The Fund is buying up more than IFT and Morrison is controlling the stake.
I would love to be able to work out what the startegy is.

The IFT interim is due out any day now. The accompanying commentary may give us a few clues.

COLIN

12-11-2007, 02:51 PM

Why are the partly-paids (IFTCB) running at a not insignificant discount to the fully paids? (183 plus the remaining instalment of 100 = 283, which is 12cents less than 295). Makes no sense to me - one would expect to see the partly-paids trading at slightly more than the full-paids, given that there is still the best part of a year until the final inst. is due.
I have sold all my IFT and put the proceeds into IFTCB, thus getting "more bangs for the same bucks". Seems a no-brainer to me - or am I the one with no brains?!
(The dividends, net of tax, would not account for the difference)

macduffy

12-11-2007, 03:11 PM

Colin, looks to me like you've discovered a nice little arbitrage.
By the way, I've just cleaned out the offer at 183.

COLIN

12-11-2007, 09:25 PM

Colin, looks to me like you've discovered a nice little arbitrage.
By the way, I've just cleaned out the offer at 183.

Smart move I think, my Highland friend.

Toddy

16-11-2007, 04:41 PM

I'm waiting on the Sept interim result. I thought that they would have been out this week.

My only concern is what $$ impact the Aussie spot electricity prices have had on the retail business.

TPW results met market expectations, Stagecoach should more or less be inline, Wellington Airport should be growing (before for the AIR landing charges payback), Glasgow good, Kent and Lubeck still sucking up money, ENE building etc.

The market will judge these guys more on the outlook and any fresh future plans revealed.

I hope that the AIA play has not taken up too much of the managements time. (unless its the real thing and they have been foxing to date).

777

19-11-2007, 01:19 PM

From stuff.co.nz

Infratil H1 net profit falls 49 pc
Monday, 19 November 2007

Infrastructure investor Infratil has reported a 49 per cent fall in first half net profit to $12.5 million.
The reduction in the six months to September 30 compared to $24.6 million in the corresponding period a year earlier.
It followed a rise in interest costs to $68.9m from $31m, with Infratil saying today that $20m of the interest increase reflected the consolidation of TrustPower.
Depreciation and amortisation was $35.9m, up from $19.8m.
Earnings for the six months before interest, tax, depreciation, amortisation, realisations and impairments, and fair value movements of financial instruments (ebitdaf), was $165m, from $69m a year earlier, Infratil said.
The operating surplus was $82.2m from $29.3m.
Infratil has a majority stake in power company TrustPower, owns Glasgow Prestwick, Kent International and Lubeck airports, two-thirds of Wellington International Airport and a small share in Auckland International Airport. It also has investments in NZ Bus and stakes in Australian power generators and retailers.
The company is to pay a fully imputed interim dividend of 2.5 cents per share.
Infratil said that as a long-term investor, it considered each of its core investment sectors would deliver attractive returns.
The global trend to renewable energy and public transport was only starting, air travel was increasingly within reach of the world's growing middle classes, and restructuring of the Australian energy sector continued, the company said.
"Infratil's businesses are continuing to build long term value through efficient operations and providing excellent services in a manner which ensures widespread community support."
Developments during the half-year illustrated the disparate nature of its businesses and the relative complexity in measuring their performance, Infratil said.
As at September 30 debt comprised 42 per cent of Infratil's capitalisation. That reduced to 39 per cent if the proceeds of the October issue of partly paid shares was included.
The issue of new shares was undertaken to ensure Infratil was well placed to be able to take advantage of opportunities should current financial market volatility result in further deterioration.
With that possibility in mind, the company had started to purchase hedges against equity market risk, with $1.5m of those hedges expensed during the half year, Infratil said.
Infratil shares closed at $2.93 on Friday, having ranged between $2.26 and $3.25 in the past year.
The company said today that from next June it would stop issuing quarterly reports and work to upgrade the quality and materiality of its monthly reports.
Reporting had been done quarterly since 2004, but that frequency had attracted some negative feedback from share analysts and institutional investors.
Investors and financial analysts interviewed said the two quarterly reports were not of particular benefit, given the ongoing information Infratil provided about its operations, Infratil said.
- NZPA

777

19-11-2007, 01:31 PM

Also announced for information.

From NZX site

Wellington Airport October 2007 Traffic Statistics

International passengers grew 2.5% in October from the previous year, despite a 7.9% fall in capacity. The average airline load factor on international services for October was very high at 84.5%.

Year to date growth in international passengers now stands at 5.7%, with seats falling by 4.4% in the period since April 2007. The high load factor demonstrates the severe capacity constraints existing for Wellington services. It is inevitable that without more international capacity Wellingtonians will be increasingly forced to travel through Auckland or Christchurch to cross the Tasman, or worse still will not travel at all.

Domestic passenger volumes grew 1.3% in October on a 2.0% reduction in seat capacity. The average domestic load factor in September was 2.7% above the previous year. Year to date, domestic passengers remain marginally above the previous year despite a 2.8% fall in seat capacity.

Considerable work was undertaken during October to ensure that facilities were available to accommodate Pacific Blue's domestic start up in November. Reconfiguration works to departure lounge facilities will enable Pacific Blue to operate from a new aircraft gate that was completed in November. The capital development ensures that appropriate facilities also remain available for Air New Zealand and Qantas operations. WIAL will have to continue its capital development programme to ensure that it can accommodate further competition in the market. At the launch of its domestic services, Brett Godfrey, Pacific Blue's co-founder and Chief Executive confirmed that it would be considering regional services in New Zealand. Air NZ's domestic jet fleet expansion is now also evident with a leased aircraft from Thompson Travel appearing on the domestic network.

Progress on other development projects has occurred as follows:

Works to produce a 40% increase in public car parking capacity are underway with the full increase to be available by the end of November. At the same time a new car park operating system has been implemented that will provide greater efficiencies for travellers including ease of exit from the car parks.

Retail development has continued in the terminal, with the Travelex outlet now open in its new location adjacent to international departures. Development of the previous site will occur in coming months.

Construction of the Northern runway safety works has commenced with completion in 2008.

The Airport Retail Park is now fully leased. Construction of the remaining outlets continues with all stores expected to be trading early in the new year.

http://www.infratil.com/wial_financial_summary.htm

Infratil Airports Europe October 2007 Traffic Statistics

http://www.infratil.com/gpia_financial_summary.htm

Glasgow Prestwick Airport

Glasgow Prestwick handled 228,893 passengers during the month, up 1% on October 2006 and a 2% improvement on September's total.

Growth once again stemmed from Ryanair's Riga and Derry services, both introduced in the last year, and Wizz Air's Katowice route which was introduced in September. This was partly offset by some softness in domestic London services.

Ryanair launched a new daily service to George Best Belfast City Airport and a twice weekly service to Kaunas in Lithuania at the end of the month.

Elvis returned to Glasgow Prestwick in October. Prestwick Airport was the only place he ever set foot in the UK and his return was to open the contemporary Elvis themed airside bar. Elvis (in the form of award-winning Gordon Hendricks) performed concerts on consecutive nights for VIP guests and staff. Just prior to Elvis touching down, the Scottish Minister for Transport, Infrastructure and Climate Change, Stewart Stevenson MSP, unveiled a marble and brass floorplate commemorating Elvis' 1960 visit and welcomed the new retail and infrastructure upgrades at the airport.

The airport handled 2,617 tonnes of freight in October, which represents a 5% increase on September's total but 9% down on the prior year. The year to date freight volume remains ahead of the equivalent period in 2006 by 3%.

Kent International Airport

Kent International handled 4,173 tonnes of freight during October - a new record for the airport since Infratil's acquisition in 2005. This represents a significant freight tonnage increase of 164% on the prior year and 232% on the September total.

The growth was driven primarily by the introduction of daily MK Airlines services, along with consistent traffic from other regular customers and the arrival of a new customer at the airport: Rock-it Cargo.

Rock-it specialise in the shipping of band and stage equipment for global concert tours. This is an area of the business with good future potential given the flexible facilities, lack of congestion and the airport's highly committed team.

Rock-it used the airport for two 747 charters during October and more movements are planned for later in the year.

Luebeck Airport

Flughafen Luebeck handled 55,061 passengers in October, 14% down on the prior year but 4% up on September's total.

Again, soft loads on the London route were a major factor in the negative result against the prior year.

A new Ryanair service to Barcelona Girona started at the end of the month and appears to be attracting strong support from both the local market and, perhaps less obviously, inbound Spanish visitors.

It has been confirmed that Sky Airlines will operate weekly charter flights to Antalya in Turkey from April 2008.
S

Toddy

19-11-2007, 04:28 PM

Right, onwards and upwards here for IFT. Its always an interesting result from an accountants point of view. If you follow generally accepted accounting practices then one could conclude that a 49% drop in the bottom line does not look good.

However, IFT is actually a much more powerful and stable beast than the higher p&l reported this time last year. Operational cashflow profit is through the roof (cash in vs cash out the door) and there is a much larger asset base to launch the business off going forward.

The next six months will (should) be in contrast to the first.
- No EnergyOne writedowns.
- Victoria Energy back on track to turn a profit as electricity spot prices return to more appropriate levels.
- TPW stable with new generation coming on line plus announcement of new projects.
- Wellington Airport is doing very well. The European business is flat lining but the underlining asset value is growing.
- Stagecoach. You can read the frustration from IFT management around the politics involved with this buiiness. Not looking for any major growth story.
- The AIA saga should play itself out.
- No one really believes that IFT had a capital raising for the fun of it. They will have a target in mind for sure. What is it?

Overall, I cannot see the SP recovering in IFT under the current environment. However, all could change with the announcement of a new purchase.

peat

23-11-2007, 01:35 PM

anybody surprised to hear that IFT have been shorting the US stockmarket with put options.

COLIN

23-11-2007, 02:15 PM

anybody surprised to hear that IFT have been shorting the US stockmarket with put options.

Not at all surprised. Lloyd is one smart cookie.

peat

23-11-2007, 03:25 PM

Toddy

23-11-2007, 07:15 PM

well my point wasnt so much whether it was a smart thing to do , time will answer that question and indeed it may well be. But surely most investors will think its a infrastructure company not a mini hedge fund or speculation vehicle. Of course the argument is that with so much investment in the various economies where these assets exist then hes merely hedging against a US led glbal downturn. But if there is no downturn then and the infrastructure assets thrive then hes wasted resources.
I dont know how well this is signalled to his investors tho. just raising the question to see what others think. Unless these strategies are well signalled to the investors I think its kind of incorrect as its placing a limit on growth

Peat

I view IFT as a Risk Management Company first and an Infrastructure company second. Derivatives don't have to be a one way bet, but more of a risk adverse option. IFT is heavily involved in derivatives via its Energy asset businesses and Lloyd often talks about 'optionality'. Don't worry, IFT Management are not gambling away shareholders wealth on one way bets that go wrong.

This is exactly why I can sleep at night, knowing that IFT Management are minimising risk and doing all of the hard work for me.

COLIN

23-11-2007, 10:53 PM

Agree with your post (above) Toddy. It could be rightly argued that it would be tantamount to "indulging in speculation with shareholders funds" to be exposed to international equity positions without judicious hedging under current conditions.

Caesius

01-12-2007, 10:21 AM

Check out the volumes over the last couple of days...and this morning.

Toddy

01-12-2007, 06:59 PM

Check out the volumes over the last couple of days...and this morning.

Yeah, I was half expeting to see a buy back notice from IFT. But its not them. Interesting in these tough times.

Toddy

10-12-2007, 09:21 AM

Things are starting to look up for IFT again.

Rudd loves the environment and the Aussie spot electricity prices have come right back with the recent rain.

The dry spring in the South Island is starting to have an impact on the NZ spot market. I hope that it stays dry and the South Islanders can enjoy a nice sunny summer for a change.

From the Herald.
Dry weather sends spot price of power soaring
5:00AM Monday December 10, 2007

Major electricity consumers are being told to prepare for significant price rises as dry weather causes South Island hydro lake levels to drop drastically and wholesale power prices to shoot skyward.

Spring rainfall has seen Central South Island hydro lakes fall to their lowest December levels in 15 years, reduced river flows in many places and led to parched farmland.

Hydro storage lakes were only half as full as this time last year, TrustPower community relations manager Graeme Purches said yesterday.

Wholesale power prices rose 30 per cent to $62 a kilowatt hour in the past week and Mr Purches believed prices could soar as high as $200 kW/h if hydro lakes continued to empty.

Businesses and large industrial companies buying electricity on the spot market - where prices change every half hour - would be the first to feel the pinch.

There would not be any immediate impact on residential electricity consumers because they purchased power on the contract market, which changed annually.

Mr Purches said demand for electricity had increased in the South because of the growing number of dairy farms and irrigation units.

Power companies were trying to conserve hydro lake levels by curtailing generation and importing power from the North Island.

"The Cook Strait power cable has been extremely busy carrying power south ... since the start of November. It's very unusual for this time of year," Mr Purches said.

Dr Jim Salinger, principal scientist with the National Institute of Water and Atmospheric Research, said yesterday that farmers should prepare for a "tough drought".

"We're in the first decent La Nina for a while. It's arrived," he told the Otago Daily Times from Queenstown, where he spoke at a climate change seminar.

While a hot La Nina summer was ideal for sun-seekers, it could have a drastic effect on farmers, Dr Salinger said. Soil moisture was already at mid-summer levels, "which means there isn't any".

Water restrictions have been imposed in the Central Otago and Clutha districts.

bermuda

10-12-2007, 10:09 AM

Toddy

10-12-2007, 12:14 PM

I was down at Lake Tekapo last week and went down to the waters edge. It was quite a walk.

I have never seen the lake so low and because I hadnt read any news media warnings thought everything must be OK.

I know am finding out things are a lot more serious than we have been led to believe. I think Aunty Helen better change her mind about banning new gas fired power stations...or does she prefer coal?

And the real joke is that under Helen's policys the South Island generators are paying for the Cook Strait cable when all of the money is currently going into the back pocket of the North Island generators.

Huntly has plenty of coal piled up so everything is under control, at a price ofcourse.

Bermuda, keep the walking up as there is nothing like eye balling the real thing. I look forward to your next report. Don't forget to apply that sunscreen.

bermuda

10-12-2007, 02:07 PM

And the real joke is that under Helen's policys the South Island generators are paying for the Cook Strait cable when all of the money is currently going into the back pocket of the North Island generators.

Huntly has plenty of coal piled up so everything is under control, at a price ofcourse.

Bermuda, keep the walking up as there is nothing like eye balling the real thing. I look forward to your next report. Don't forget to apply that sunscreen.

Toddy,
Here's my next report.......

Buy VPE and VPEO and BOW...see the latest news announcements and today's SHG report.SHG is going to build an LNG plant fueled by their Lacerta CBM

And that's right next door to BOW and VPE's Don Juan CBM field. In fact I think it is a continuous caol bed.

Check it out. You wont be disappointed.

Toddy

12-12-2007, 01:31 PM

Infratil's full interim report is now available on their web site.

http://www.infratil.com/downloads/pdf/ift_interim2007.pdf

Toddy

12-12-2007, 03:26 PM

It sounds like its been a busy time down at Wellington International Airport.

Wellington Airport November 2007 Traffic Statistics

Domestic passenger volumes grew a significant 13% in November following the
commencement of domestic services by Pacific Blue. As Pacific Blue only
commenced services half way through the month the actual growth rate for a
full month of operation would be double this. Importantly there is no
evidence to date that any cannibalisation of the existing market has occurred
with all of the Pacific Blue passengers being additions to the market.

COLIN

19-12-2007, 12:10 AM

I see that the fully-paids ended up at 291 while the partly-paids (IFTCB) were down, at 176. A rather ridiculous situation. I moved out of the fulls into the parts some time ago - more bangs for my bucks. The arbitrage opportunity is even more attractive now.

Toddy

19-12-2007, 09:10 PM

This is FANTASTIC news for the IFT Australian business model. It gives certainty of revenues going forward when there are dry years resulting in spot electricity spikes.

Australia's Victoria Set to Scrap Caps on Energy Retail Prices

By Angela Macdonald-Smith

Dec. 19 (Bloomberg) -- Victoria is set to be the first Australian state to scrap caps on electricity and gas retail prices, with a regulator recommending regulation be removed starting Jan. 1, 2009.

Competition in the retail supply of electricity and gas in Australia's second-most-populous state is ``effective,'' allowing the removal of price regulation, the Australian Energy Market Commission said today in a report on its Web site. The move would extend the benefits of competition to consumers by enabling them to choose from wider range of energy products, it said.

Victoria introduced retail competition for energy supply to households and small businesses in 2002, yet retained some price regulation to safeguard consumers' interests in the transition to a fully competitive market. Earlier this year, regulation of retail prices contributed to the collapse of at least one retailer because it wasn't able to offer discounts from the standing tariff amid a rise in wholesale prices.

``Where the market is effectively competitive, price regulation adds unnecessary administrative and compliance costs,'' John Tamblyn, chairman of the commission, said in a statement on the release of the report. ``With such strong competition in Victoria's retail electricity and gas markets, price regulation is unnecessary.''

The regulator recommended allowing each retailer to determine and publish the price it will offer to supply energy and introducing a regime to monitor these prices for at least three years after retail price regulation ends. Retailers would also be under an obligation to offer to supply energy to residential customers.

The commission is seeking submissions on the recommendations by Feb. 1.

Toddy

16-01-2008, 07:36 PM

Draw your own conclusions.

IFT
16/01/2008
RELINT

REL: 1645 HRS Infratil Limited

RELINT: IFTWB: Relevant Interest - Morrison

DISCLOSURE NOTICE
Disclosure of Directors and Officers Relevant Interests
(Section 19T, Securities Markets Act 1988)

A. Disclosure obligation (tick box to note which disclosure obligation
applies)
Initial disclosure (complete Parts A, B, C, D, F, and G of this notice)

Ongoing disclosure (complete Parts A, B, C, E, F and G of this notice) x

B. Preliminary
1. Name Lloyd Morrison
2. NZX company code of issuer IFT
Name of issuer Infratil Limited
3. Name of related body corporate (if applicable) NA
4. Position you hold in the issuer Director
5. Date of this disclosure notice 16-Jan-08

C. Nature of relevant interest
6. Name of registered holder(s) of security (as required by regulation 6A(b)
or regulation 7(b)) ANZ Nominees Limited & Hettinger Nominees
Limited
7. Class and type of security (as required by regulation 6B or regulation 8)
1. Warrants (IFTWB)
8. Nature of relevant interest in security (as required by regulation 6A (a)
or regulation 7(a)) Beneficial & Non-Beneficial

D. Date (for initial disclosure)
9. Date of disclosure obligation (as required by regulation 6C) N/A

E. Transaction (for ongoing disclosure)
10. Date of last disclosure (as required by regulation 13)
11-Oct-07
11. Date(s) of acquisition(s) or disposal(s) (as required by regulation 9)
16-Jan-08
12. Number of transactions (as required by regulation 12(2), if applicable)
One
13. Nature or type of transaction (as required by regulation 11(1)(a))
On market acquisition of IFTWB's
14. Consideration (as required by regulation 10) Beneficial
$221,732; Non-Beneficial $234,268
15. Number of securities held prior, set out by class and type (as required
by regulation 8) Beneficial: 1. 25,413,718 Ordinary shares 2.
5,082,744 Partly paid ordinary shares (IFTCB) 3 .6,158,002 Warrants (IFTWB)
4. 3,157,172 Warrants (IFTWC)
Non-Beneficial: 1.8,494,686 Ordinary shares 2. 1,698,937
partly paid ordinary shares (IFTCB) 3. 2,623,680 Warrants (ITFWB) 4.
1,111,837 (IFTWC)
16. Number of securities subject to acquisition or disposal (as required by
regulation 11(1)(b)) Beneficial: 194,502 (IFTWB)
Non-Beneficial: 205,498 (IFTWB)

F. Extent of relevant interest
17. Number of securities held now, set out by class and type (as required by
regulation 6B or regulation 8) Beneficial: 1. 25,413,718 Ordinary
shares 2. 5,082,744 Partly paid ordinary shares (IFTCB) 3 .6,352,504 Warrants
(IFTWB) 4. 3,157,172 Warrants (IFTWC)
Non-Beneficial: 1.8,494,686 Ordinary shares 2. 1,698,937
partly paid ordinary shares (IFTCB) 3. 2,829,178 Warrants (ITFWB) 4.
1,111,837 (IFTWC)

Caesius

17-01-2008, 10:35 AM

Hadn't noticed that. I wouldn't say he's buying up large, but it can't be a bad sign.

Toddy

17-01-2008, 01:08 PM

IFT have a share buyback programme in place. I would have thought that now was an appropriate time to kick it off again.

Caesius

18-01-2008, 11:31 AM

LOL heads and warrants getting hammered after Morrison buys. IFT down 11c already.

Disc: Hold. But they're long term

Toddy

18-01-2008, 12:16 PM

LOL heads and warrants getting hammered after Morrison buys. IFT down 11c already.

Disc: Hold. But they're long term

Laid up in a hospital bed with a slip disk in my back while having to pay others to do the orchard work, and losing tens of thousands on the markets.

Things will turn around sometime though, IFT is all class. Morrisons derivatives must be doing alright too. There will be a fair bit of action with IFT in coming months so atleast we should see some SP improvement.

IFT are a great defensive stock and the business is doing well.

QOH

18-01-2008, 12:30 PM

I sold most of my "B" warrants for earlier in the week is starting to look good. If only I hadn't thought Rakon looked cheap and invested in them.
Still think IFT are good but too many shares on issue now.

Sideshow Bob

18-01-2008, 10:20 PM

B's were down under $1.00 today to 95c, after the heads got nailed 20c to 250c and bid at 225!

Snow Leopard

19-01-2008, 12:40 AM

Although I would not be able to prove it, I do believe that at $2.50 Infratil is trading at about or below its Net Tangible Asset value.

This is based on the the last half year accounts the decline in market value of Trust Power and the fact that their other assets are actually worth the book value.

With the WB's still having over a year to run I see them as a possible good safe buy once the panic subsides.

Toddy

22-01-2008, 11:34 AM

I've got no idea why IFT is being hammered more than other stocks. This has been going on for a number of days now, 9% down so far today. The only logical explaination that I can come up with is that an overseas fund has been told to sell out by their bosses and there are limited buyers around.

TPW, WIA, ENE, Victoria Energy, NZ Bus, GPIA etc all growing businesses with very limited exposure to the US.

peat

22-01-2008, 12:08 PM

and dont forget IFT have those puts on the market as an insurance against exactly this happening. (the ones which I questioned the appropriatenes of lol )

Steve

22-01-2008, 07:08 PM

and dont forget IFT have those puts on the market as an insurance against exactly this happening. (the ones which I questioned the appropriatenes of lol )

What are the key terms of the puts?

peat

23-01-2008, 12:14 PM

http://www.nzherald.co.nz/section/3/story.cfm?c_id=3&objectid=10477831

not much detail I'm afraid - see if you can find more yourself. I cant.

Toddy

23-01-2008, 04:12 PM

Oh yes.

IFT
23/01/2008
BUYBACK

REL: 1552 HRS Infratil Limited

BUYBACK: IFT: Share Buyback

As notified to its shareholders at its August 2007 Annual Meeting Infratil
intends to occasionally buy back its shares when market conditions warrant
and when such a transaction would be of benefit to the Company and to
Infratil's retaining shareholders. The Infratil Board has now authorised
management to undertake on market buybacks. Infratil has approval to acquire
up to 37.9 million shares at up to $4.75 a share. All transactions actually
concluded will be notified to NZX.
End CA:00159623 For:IFT Type:BUYBACK Time:2008-01-23:15:52:09

Steve

23-01-2008, 08:59 PM

Well now is as good a time as any to effect the buyback...

Toddy

29-01-2008, 10:58 AM

IFT are bolstering their management ranks. The future looks exciting.

Infratil announced yesterday that Bogoievski had been appointed chief operating officer at the utilities investor and its manager, HRL Morrison.

Infratil also announced the appointment of Peter Coman as chief executive of HRL Morrison and Infratil Property. Coman was managing director of Jones Lang LaSalle, New Zealand.

I know Peter from my early London days.

Lawso

30-01-2008, 02:19 PM

Is that the same Peter Coman that played cricket for Canterbury in - I think - the 1960s/70s?

Toddy

30-01-2008, 02:42 PM

Is that the same Peter Coman that played cricket for Canterbury in - I think - the 1960s/70s?

No, he is not that old.

Toddy

31-01-2008, 03:06 PM

The Trustpower result can best be described as 'steady'. Spot electricity prices have risen during January however this is offset by lower lake inflows in the North Island.

TPW
31/01/2008
QUARTER

REL: 1403 HRS TrustPower Limited

QUARTER: TPW: TrustPowerResult for the Nine Months Ended 31 December 2007

Media Statement
Thursday, 31 January 2008

TrustPower Limited Result for the Nine Months Ended 31 December 2007
TrustPower's unaudited after tax surplus for the nine months to 31 December
2007 was $78.9 million, compared with $87.6 million as restated for NZIFRS
adjustments, for the same period last year. The result for the period
includes a reduction in tax expense of $4.5 million attributable to a lower
deferred tax liability arising from the change in the corporate tax rate from
33 per cent to 30 per cent effective from 1 April 2008. Earnings before
Interest, Tax, Depreciation, Amortisation, and adjustments for Financial
Instruments ("EBITDAF") were $161.8 million versus $161.0 million for the
prior period.

The trading environment for the nine months to 31 December 2007 has seen a
continuation of the weak hydro inflows and lower than average electricity
spot prices experienced throughout the financial year to date. This was in
contrast to the trading conditions experienced by the Company during the
previous year when hydro inflows were significantly higher but in line with
the long term average.

TrustPower's own generation assets produced 1,600 GWh for the nine months
versus 1,570 GWh in the prior period. Wind production has been higher for
the nine month period than the previous period, boosted by the commissioning
of the 93MW expansion of the Tararua Wind Farm. Hydro generation was well
down on long term average and was 180 GWh lower in the nine months compared
with the prior period. TrustPower's hydro generation storage catchments are
close to average levels in the South Island but are currently well below
average levels in the North Island.

Electricity customer numbers were up slightly at 221,000 as at 31 December
2007. Total electricity sold to customers in the nine months totalled 3,475
GWh compared with 3,508 GWh sold in the prior period.

Telecommunication customers have increased to 22,000 from 16,000 at the end
of the last quarter.
The Company's balance sheet remains strong. The ratio of debt to debt plus
equity was 32 per cent as at 31 December 2007 up from 28 per cent at the same
time the previous year.

Construction on the 5 MW Deep Stream, Otago hydro generation scheme has been
slower than projected due to adverse weather conditions and commissioning is
now expected during March.
Provisional resource consent has been received for the 72 MW Wairau hydro
generation scheme in Marlborough. However, a further process is required to
determine the specific conditions of the consent. The hearing to determine
the conditions of consent is currently underway. Once conditions have been
finalised, subject to appeal, the Company will re-assess project economics.

The resource consent hearing for up to 46 MW of hydro generation at Arnold,
on the West Coast, has recommenced during January 2008.

The resource consent decision approving the 200 MW Lake Mahinerangi wind
project in Otago has been released. The Company is currently working through
the appeal process and appeals to the Environment Court are scheduled to be
heard in April 2008.
A resource consent application for up to 240 MW of wind generation at Kaiwera
Downs in Southland was lodged in November 2007 and a resource consent hearing
is scheduled to begin at the end of March 2008.

TrustPower continues to actively assess other wind and hydro generation
opportunities, particularly in the North Island.
The first wind turbine at Snowtown in South Australia was erected and
commenced operation prior to the end of 2007. The remainder of the project
schedule is on track with progressive erection and commissioning of turbines
expected during the period March to November 2008.

TrustPower has reached agreement with Suzlon Energy Australia to provide an
additional five S88 2.1 MW wind turbines for the Snowtown site, in addition
to the 42 turbine wind farm presently under construction. This will increase
the total capacity of the wind farm to 98.7 MW with an annual expected
production of 390 GWh. The expanded wind farm has been granted an amendment
to the existing generation licence issued by the Essential Services
Commission of South Australia. The forecast project cost, including
capitalised interest, is now expected to be approximately AUD 215 million.
The additional wind turbines are expected to be commissioned within the
original construction timetable.

The Board has resolved that TrustPower will cease reporting on a quarterly
basis from the end of the 2008 financial year. TrustPower will continue to
provide an operations report and an update on progress of generation
development projects on a quarterly basis.

The result for the nine months to 31 December 2007 was satisfactory given the
lower than average level of hydro generation produced. At this stage the
Directors are confident that the business fundamentals are sound, which
augurs well for a satisfactory annual result.

Steve

01-02-2008, 04:48 PM

Given that IFT could be regarded as a bit of a defensive share, has it been a bit over-punished by remaining in the low 250's?

Why have they not continued with the buyback at these levels?

Toddy

01-02-2008, 05:10 PM

Good question Steve. We can only speculate about this one. My guess is that IFT have put the buyback programme in place incase we have more volatile days like when IFT was sold down aggressively early last week.

I personally think that IFT have been working on a big deal in the background which current management know will give the SP some legs again. Hence, keeping the cash in the bank in the meantime.

The quarterly report is due any day soon so we will all know how the Australian energy business has been performing. If the result is better than average then we should see the IFT SP head in the right direction.

Toddy

12-02-2008, 11:04 AM

What we need right now is for IFT to pull a 'rabbit out of the hat' to stop what seems like a never ending share slide.

Hopefully the quarterly results will provide us with some bullish news.

POSSUM THE CAT

12-02-2008, 01:10 PM

macduffy

12-02-2008, 01:25 PM

I take your point Possum but NZ Bus only represents about 10% of IFT's investments.

They won't have to get much cheaper to tempt me to add a few more. ;)

Toddy

12-02-2008, 02:16 PM

Toddy Who in there right mind would buy a bus company off them and this is in my opinion is the millstone around their neck. Removed it from my watch list the moment they even suggested buying a bus company. How many have gone bust and how many have made a good profit in the last 20 years do some research you will be supprised.

Possum

No one expected IFT to enter into the bus business. However, Morrison & Co had experience in this area so backed themselves to make it work. It has been a tough road so far as the local and central govt influence has been difficult to digest. Having said that, progress has been made and the business is building. IFT added to the bus business as recently as January 08.
The public transport model is an interesting one and all of the right noises are being made to reduce green house emmissions and put more bums on seats.
I think that IFT can grow this business but if you are looking for large p&l figures then you will only be dissapointed. Its not politically correct to disclose large profits from providing public services. The benefits from owning such a business come from the large and consistent stream of cashflows which you then use to run and build other parts of your business where you can disclose larger bottom lines.

I do agree however that the rewards so far do not match the enormous effort and resources that IFT management have contributed to building this business for the benefit of themselves and the NZ Public . You can rest assure that every lesson learnt from Morrisons team will be taken on board to deliver a better performance in the future as the Govt grows the public transport model.

For the record, I do not think that the bus business has anything to do with the current softness in the SP. There are a number of factors contributing, some of which are, current market risk (softness in global markets), lower spot electricity prices for the first nine months of the year (which has now corrected itself), Australian energy business (opposite problem, spot prices were too high during the first six months but have come down during the last quarter), questions around the European airport business (The Prestwick landing fees vs new terminal debate for example. Kent is a long term hold and will work out well, Lubeck, who cares as IFT have an out option if their plans cannot progress), questions over where the AIA holding is heading, the current strength of the NZ dollar, what is the cash from the latest capital raising going to be used for etc etc

I'm picking that the IFT ducks will all line up again before the end of the year is out but one does lose a little sleep in these uncertain times. Hopefully the quarterly report with be a little more informative than usual to quantify a few of the perceived and real risks to the IFT shareholders.

POSSUM THE CAT

12-02-2008, 03:37 PM

Macduffy & Toddy to me the bus business represents 80% of the down size risk. To buy a business that is not for sale and have the owner say yess thank you. Either the business is performing poorly or the premium is to tempting to resist. This is in my opinion a crazy way to do business. Hence I basically stopped considering this company as an investment. Have A look at the history of the big private bus companies of the past and the government even gave the bigest one away for less than the value of the busses

Toddy

13-02-2008, 04:09 PM

We can put a tick in the Airport box for not being the cause of the 'collapse' of the SP.

And we already know that its nothing to do with Trustpower.

So that leaves the Aussie energy business and the NZ Bus business. We can already say that its unlikely to be the bus business with a great level of confidence. So, if the Aussie energy assets are making money then where is the added risk to justify the sell off.

Infratil Email Update

13 February 2008

Wellington Airport Monthly Overview - January 2008

The benefits of competition in the domestic market cannot be demonstrated
more clearly than occurred in January with passenger growth up 29.7% on
January 2007. While Pacific Blue's market entry created the impetus for the
growth the January result also reflects the benefits of a significant
competitive response by the established airlines. Available domestic capacity
increased by 28.8% from the previous year with aircraft loadings growing
marginally above the previous year. Year to date, domestic passengers are now
6.1% above the previous year following the substantial growth in recent
months.

The international market continues to be severely constrained at Wellington.
Growth in international passenger numbers for December was 1.4%% above the
previous year with seat capacity unchanged. The average airline load factor
continued to exceed 80%. The average loads were also above 80% on all of the
Australian routes serviced from WIAL. Until more capacity is offered many
Wellingtonians will be forced to travel through Auckland or Christchurch to
cross the Tasman, or may not travel at all. Year to date growth in
international passengers now stands at 4.2%, with seats having fallen by
3.9%.

WIAL's construction programme continued in January. A further new aircraft
gate is shortly to be brought on line with works scheduled for completion in
mid February. The replacement of two existing air bridges will also commence
in February. Work remains in progress to review the use of Wellington's apron
facilities to ensure short term demands can be met. With all of the airlines
making public comment about further expansion of domestic services, the
development programme must continue, to ensure this growth can be
accommodated.

The expansion of WIAL's international terminal will also commence in the near
future. Details of the expansion plans are soon to be made public.

Works continue on WIAL's North runway end safety enhancement to meet
increased international safety requirements. The works will be completed by
mid 2008. Infratil Airports Europe Monthly Overview - January 2008

Glasgow Prestwick Airport

Glasgow Prestwick handled 145,550 passengers in January, down 1% on January
2007. The year-to-date passenger total of 2,068,511 shows a marginal
improvement on the equivalent period for the prior year.

Wizz services to Gdansk and Warsaw improved against the prior year while
Katowice, introduced in September 2007, continues to perform well. Glasgow
Prestwick was also named Best Overall Airport by Wizz for the month of
December, following a second place finish the previous month.

Based on criteria such as aircraft turnaround times and baggage processing,
this accolade clearly demonstrates not only the ability, but the dedication
and teamwork shown by the Prestwick Handling department.

The airport handled 1,804 tonnes of freight during the month, 7% down on
January 2007. The adverse variance is partly a result of weather conditions
causing three inbound aircraft to divert elsewhere.

Year to date freight volume is 4% ahead of the equivalent period for the
prior year, with Cargolux and Polar showing improved performances for FY08.

The airport continues to benefit from new commercial developments and
investment, with Seguro Holidays opening a new purpose-built travel agency
and call centre in the main concourse, and The Change Group taking over the
foreign currency exchange concession with an enhanced airside unit planned.

Kent International Airport

Kent International handled 3,729 tonnes of freight during the month, an
improvement of 32% on January 2007 but 9% down on December's seasonal peak
total.

All scheduled carriers showed improvements on both the prior year and
year-to-date freight volume which, at 25,056 tonnes, is currently 20% ahead
of the equivalent period for the prior year.

Luebeck Airport

Luebeck Airport handled 29,477 passengers in January. This is down 22% on
January last year with year to date passengers of 495,531 being 14% down on
the equivalent period last year.
These lower levers of passenger traffic reflect a 24% reduction in overall
capacity against January 2007. This reduction is due largely to the
withdrawal of services to London however this will be offset in the future to
an extent by Ryanair's introduction of three additional weekly London
Stansted services.

The airport recently benefited from the opening of the new News and Books
store and a new larger food and beverage facility, both located airside,
while The Change Group have taken over the foreign currency exchange
concession.

Zaphod

19-02-2008, 06:17 PM

IFT
19/02/2008
GENERAL

REL: 1139 HRS Infratil Limited

GENERAL: IFT: Wellington Airport unveils New Zealand's newest icon

Wellington International Airport today revealed the design of its
international passenger terminal, which will complete the terminal's
expansion and upgrade. The building encapsulates Wellington's individuality
and creativity and will undoubtedly create a unique and memorable visitor
experience.

The bold and dramatic design, affectionately tagged "The Rock", is in
contrast to the bland halls that typify most international airports. The
airport's South Coast location is represented by the inside aesthetics and
outside shell of the building. Coloured fragments of glass in the roof
fissure let in a warm, natural light by day and backlighting at night creates
a glow which will be seen from the air.

"Our radical departure from traditional airport design worldwide is entirely
deliberate. What is set to become New Zealand's newest iconic building, The
Rock combines functionality and capacity with what will be a memorable
visitor experience. It's edgy and in keeping with our Wild at Heart attitude,
reflecting Wellington's status as a vibrant and daring cultural city. With
our commitment to regional tourism and further developing international
services, we are creating the airport to take Wellington into the next
decade," said Steven Fitzgerald, Wellington Airport CEO.

Two of New Zealand's leading design personalities have endorsed the project's
design.

"It is incredibly inspiring to think that Wellington will have a truly iconic
building at the doorstep to the city. Hooray to all involved in this highly
creative development at the Wellington Airport, as this wonderfully dynamic
architectural highlight will be a shining star for our city's future."
(Richard Taylor, Weta Workshop)

"Well done to Wellington Airport for being so bold in rejecting the ordinary
and embracing the extraordinary. WOW! The design of the International
Terminal makes a dramatic theatrical statement; it encapsulates beautifully
the personality of Wellingtonians and their surrounding environment."
(Suzie Moncrieff, World of Wearable Art)

Wellington Mayor Kerry Prendergast said the design of the international
terminal truly reflected the uniqueness and creativity of Wellington and
Wellingtonians.

"Wellington is the Creative Capital of New Zealand. We welcome and celebrate
creativity and innovation. It's great to see Wellington businesses thinking
outside the square and capturing the uniqueness of our city in this way. I
have no doubt this terminal will become a talking point, not just nationally,
but internationally, once again putting Wellington on the map. It's fantastic
and I congratulate all those involved."

And, from Tim Cossar, Positively Wellington Tourism CEO,
"Wellington has established a reputation for being leading-edge and
innovative. Wellington Airport's new international passenger terminal further
confirms that reputation. Its design is eye-catching and iconic, giving
visitors a feel for Wellington's creative spirit, right from the moment they
arrive. This is just the sort of new development Wellington needs to keep
positioning itself competitively in domestic and international markets."

Member for Rongotai, The Hon Annette King, said
"Wellington has consistently shown it is prepared to take bold approaches to
developing infrastructure and amenities. This design is another dramatic
example."

Functionality

The Rock element is a small proportion of the entire international terminal
upgrade. The new facility will complete the immense improvement in the
passenger's intuitive journey from the departure point from the main terminal
to the aircraft door.

The international passenger terminal upgrade is in two stages. Stage 1,
completed in December 2007, includes:
- A better defined international departure farewell area;
- Improved queuing for Customs;
- Enhancements to customs and MAF processing and aviation security
screening (doubling processing capability);
- Reconfigured and consolidated duty free shopping areas with a new
duty free concessionaire;
- Access to an additional international baggage belt;
- Additional aerobridge and domestic gates with international swing
capacity (being used to accommodate Pacific Blue domestic services and
increased services from other airlines).

Stage 2 is expected to be completed at the end of 2009, will involve a number
of components which are significant projects in their own right:
- Expanded and redesigned international departure lounge building with
extra lounge seating for 660 seats;
- Improved waiting and queuing areas to gates;
- Additional toilets and a new cafe;
- Another aerobridge (bringing the total number from 6 to 8 available
to international aircraft)
- New fuel hydrants and apron works.

Design efficiency and environmental sustainability

As well as creating a memorable visitor experience, and optimum
functionality, the architectural brief required planning efficiency and
economy in building materials and construction.

The construction itself uses standardised and economical building components
in a creative way. Examples include:

- incorporation of plywood and fibre-cement in the carcass of the
building
- windows are aluminium with plywood reveals

Meticulus planning has gone into recycling, refurbishing and salvaging.
Examples include:
- reuse of mechanical plant
- refurbishment of lifts and toilets
- reuse and salvaging of ceiling tiles, security cameras, PA, lights,
phones and gate signs
- reupholstering of lounge seats
- refurbishing of aerobridges
- retaining existing shear walls which would otherwise be expensive to
remove

Strong Environmentally Design features include:
- ramps instead of escalators or lifts where possible
- energy saving features such as double and laminated glazing, sun
protection louvres, natural daylight via skylights, low flow bathroom
fittings
- environmental range paint specifications
- low velocity mechanical thermal plant

Passenger growth

Wellington Airport's announcement is consistent with the current trend toward
better New Zealand airport infrastructure and the resulting capacity growth.
International passengers grew by 5.1% in the last 12 months compared to the
previous 12 months (Jan to Jan), a trend that is expected to continue.

The terminal expansion will address current passenger congestion and prepare
for future growth by doubling international processing capacity to 1000
passengers/hour.

Planning efficiencies and future flexibility have been accommodated in the
design to allow for growth:
- baggage swing belts and operable walls with domestic and
international capability
- additional AVSEC screening and customs facilities
- spare mezzanine space within the lounge for additional seating or
further amenities

Importantly, the aerobridges can accommodate existing trans-Tasman aircraft
as well as the B787, in fit with Wellington Airport's strategy of encouraging
airlines to provide long haul services.

Cost recovery

The new passenger terminal is expected to cost $39 million. The airport and
airlines discussed the allocation of aeronautical income towards this
investment during pricing consulations concluded in June 2007. Aeoronautical
charges were marginally increased in July 2007 by 2.85% (around 30c/pax) for
the next 5 years to fund the two-staged terminal upgrade ($53m) and other
aeronautical projects such as the runway end safety areas ($31m). There will
be no rise in the international departure fee.

Wellington architects Studio Pacific Architecture in association with Warren
and Mahoney have designed both stages of the terminal development.

ENDS

Issued by: Wellington International Airport Limited

Enquiries:
Louise Murray
Media Relations
ph: 027 256 8352
End CA:00160672 For:IFT Type:GENERAL Time:2008-02-19:11:39:36

Toddy

19-02-2008, 06:34 PM

The quarterly results are out. It sounds to me like IFT may take the cash on the AIA deal.

'The bid for a partial take-over of Auckland Airport may also be decided by a contest between short-term share price considerations on the one hand versus long-term value
on the other.'

REL: 1710 HRS Infratil Limited

QUARTER: IFT: Infratil Result for the Nine Months ended 31 December 2007

Infratil's results over the third quarter were flat, which is consistent with
the first half. Standout developments were registered at Wellington Airport
and Infratil Energy Australia, which resumed growth in its energy retailing
operations.

Shareholders will naturally be disappointed by the worldwide decline in
equity values, which reflect both credit concerns in capital markets and
apprehension about a weaker world economy. Fortunately, Infratil's airports,
energy and public transport operations are likely to be relatively resilient
to the fallout. There are however real consequences.

At present Infratil's businesses are investing in bus services, airport
facilities, generation plant and energy retail growth, but the timing of
these investments may be reviewed as the cost of capital rises and the value
offered by other opportunities becomes more attractive. The bid for a partial
take-over of Auckland Airport may also be decided by a contest between
short-term share price considerations on the one hand versus long-term value
on the other.

Underlining Infratil's focus on delivering returns to its shareholders over
the long-term has been the recent recruitment of senior executives to the
management team.

FINANCIAL

Infratil's earnings before interest, tax, depreciation, amortisation,
realisations and impairments, and fair value movements of financial
instruments ("EBITDAF") increased to $240.5 million from $101.3 million in
the previous comparative period. The operating surplus was $85.7 million
($29.4 million) and the net surplus attributable to Infratil shareholders was
$4.1 million ($62.4 million previously, higher predominantly from
realisations).

The growth in EBITDAF continues to mainly reflect the consolidation of
TrustPower from 31 December 2006, which also contributed to increases in
depreciation and interest costs.
As has always been its policy, Infratil's priority is growth in value rather
than immediate period income.

LIABILITIES & RISK MANAGEMENT

Over the quarter Infratil raised $88 million through an issue of shares
partly paid to $1 each. The second $1 instalment on these shares is due in
July-August 2008.

As at 31 December 2007 net bank debt of Infratil and wholly owned
subsidiaries made up 13% of capitalisation. Total debt, including
Infrastructure Bonds, comprised 42% of capitalisation, reducing to 38% if the
$88 million second instalment is included. Since 31 December 2007 Infratil
has renewed its bank facilities to provide additional capacity and duration
to its funding.

In addition to taking a conservative approach to its capital, Infratil has
also purchased a small amount of insurance against falls in the value of the
share market. This is designed to provide some protection should the
fluctuations in the share market increase and to ensure there is appropriate
focus on global market risk. Risk identification and management has been, and
continues to be, a hallmark of Infratil's approach.

BUSINESSES

Wellington Airport was the stand out performer for the quarter with net
profit up $5.9 million, 32% on a year earlier. This was driven by the launch
of Pacific Blue's services to Christchurch and Auckland and the robust
competitive response of Air New Zealand and Qantas. In November and December
450,000 passengers travelled through the airport, up from 396,000 a year
earlier. In January 2008 domestic passenger numbers were 30% higher than the
same month in 2007.

For the nine months, EBITDAF was up 18% to $44.1 million. Passenger services
income was $16.2 million with per passenger income $4.47 as against $4.05 for
the year earlier period.

This increase in activity has only been possible because of the Airport's
investment in facilities and work continues on the enhancement of the
terminals, car parking, bus access and runway, as well as the off-airport
retail centre.

Infratil Energy Australia group (IEA) resumed the growth of its energy
retailing operations, which had 252,765 billable accounts as at 31 December
2007, up 66,732 in the year to date. The resumption of profitable growth has
been possible because retail tariffs have risen and wholesale energy prices
have returned to more normal levels after being driven up by drought
conditions in winter 2007. Prior to that occurring, IEA had been gaining
15,000 to 20,000 accounts a month and with growth once again underway, the
next milestone is 300,000 accounts.

IEA's 30MW Hunter peaker power station is on schedule for completion in March
and work also progressed on the dual-fuel 120MW Perth generation station.

TrustPower continues to be a dominant influence on Infratil's results, and
value. For the latest quarter net profit was $15.8 million from $28.7 million
a year earlier. While low generation from TrustPower's hydro power stations
impacted the quarterly result this was within normal bounds.

TrustPower's investment in additional capacity progressed favourably. The
South Australian windfarm was increased in size by approximately 10%, to
almost 100MW, and remains on track for completion later this calendar year.
Consenting progressed in respect of the 72MW Wairau and 46MW Arnold hydros
and the 200MW Lake Mahinerangi and 240MW Kaiwera Downs wind schemes.

Infratil Airport Europe achieved good freight results at both Glasgow and
Kent while passenger aviation activity was weak at both Glasgow and L?beck.
Work continues on marketing the airports to potential users with incremental
progress against a backdrop of a weak European passenger aviation market. The
group delivered a better financial result due to a one off benefit arising
from a lease termination receipt.

NZ Bus passenger numbers continue to disappoint indicating the urgency of the
service upgrades that are now underway. NZ Bus is actively engaged with
Auckland and Wellington transport agencies and councils to deliver better
public transport services and users will start to experience the outcome of
these collaborations this calendar year.

CONCLUSION

Infratil's businesses are performing well in creating long-term value for
shareholders. The developments at Wellington Airport and Infratil Energy
Australia were stand-outs during the last quarter.

Infratil's financial position is solid with bank facilities recently
re-financed, very long term subordinated bond financing, additional equity to
arise from the second instalment on the partly paid shares and, next year,
the option expiry and some market-hedging protection. If capital market
turmoil continues, the Company should be well positioned to take advantage of
any discounted asset opportunities which arise.

POSSUM THE CAT

19-02-2008, 07:29 PM

So just as I said the main problem is the bus services. A sale might be the best answer if they can find anybody silly enough to buy them.

Zaphod

19-02-2008, 08:01 PM

NZ Bus definitely has potential for expansion in Auckland. The per capita utilisation of public transport is about on par now, with what it was during the mid 1980's when utilisation peaked. Given that the population has increased markedly, the significant rise in fuel and general vehicle costs, the increased costs of parking, increased congestion, pressures on incomes, and the new focus on so-called "Green issues" will all contribute positively. I think things will look up for them.
Having said that it's probably going to be a long hard slog getting people back onto PT. Morrison & Co's experience with GoBus has probably made them a little too enthusiastic.

POSSUM THE CAT

20-02-2008, 03:13 PM

20-02-2008, 04:36 PM

As in most places in Auckland I can drive a big V8 car in peak hour in half the time in a bus and only spend half the price of the fare on petrol and be able to go where I want to not where the bus goes to. What about parking costs?

However, i do agree about ticket pricing. They also need a fully interegrated ticket like Londons Oyster card - all you can travel (in certain areas), regardless of provider, for one flat monthly fee.

Zaphod

20-02-2008, 06:37 PM

Zaphod

20-02-2008, 06:43 PM

What about parking costs?

However, i do agree about ticket pricing. They also need a fully interegrated ticket like Londons Oyster card - all you can travel (in certain areas), regardless of provider, for one flat monthly fee.

As I understand, the current problem with integrated ticketing is that the regional authority does not have the legal authority to impose such a regime. That is one aspect that the Government are attempting to address. Once this issue is ironed out, then an Oyster-type card could be introduced.

BRICKS

20-02-2008, 07:11 PM

WHAT cant be understood if everything is traveling so well why is the share price trending down so will it become come the next BARGAIN..

p2r

20-02-2008, 08:30 PM

In Japan you take the train because it is twice as fast and all the motorways are toll

POSSUM THE CAT

20-02-2008, 08:32 PM

QOH

20-02-2008, 09:04 PM

director or CEO in charge of the buses at a recent shareholder meeting. ( Actually after a few wines I had offered my services to do an onboard survey of the buses for them) He told me they work on a bus costing $2 per km to run. Was quite useful information, now whenever I'm on a Karori bus I do a head count to try and estimate if the bus I'm on is paying its way. Fills in the journey.

POSSUM THE CAT

21-02-2008, 11:22 AM

Zaphod

21-02-2008, 12:59 PM

Zaphod A car has most of its costs in fixed items depreciation, registration, insurance and garaging remain the same no matter how little it is driven so the cost of extra mileage is in most cases fuel. And in some cases bus fares are over $2 per killometer depending on where you are travelling and the arbitrary zones rather than distance. And when the supply of cheap second hand busses from Britain and Japan dry up (as these busses do not comply with their anti pollution regulations) or we introduce similar regulations what is going to happen. The sooner the cut their losses the better. Many years ago I used to maintain busses and I have a pretty reasonable idea of the costs involved.

Yes I agree that most costs relating to cars are fixed, however your first post addressed the cost of running a car as the cost of putting fuel in the tank. If these other factors are taken into account then generally speaking, public transport is already a cheaper alternative.

A $2 per Km bus ride is a pretty unusual example. Either you are referring to the running cost, or perhaps this could occur from a patrons perspective if you are only travelling a short distance (i.e. from the inner border of Zone2 to the middle/outer border of Zone2) however that is far from the norm. There will always be such extreme examples for either public or private transport options.

NZ Bus's fleet is predominantly comprised of MAN, Merc and Volvo busses, almost all of which were built in NZ (with the exception of the odd-built Australian model) . The older models (MAN SL-202's, Merc 0305's, etc.) are non-compliant with emissions standards, but the modern busses used by NZ Bus and other providers such as the Volvo B7R's and MAN 12.223's etc. are all fully Euro 4/5 compliant. There really aren't many Japanese or (especially) British buses left on the roads.

The biggest problem for NZ Bus is the capital cost of new equipment, and that is quite concerning. A new Volvo B7R in city SLF configuration costs somewhere in the vicinity of $350K. In one of the updates Infratil indicated that they are placing an order for 121 new busses, of which NZ Bus will foot the bill for a sizable proportion of the cost with the rest being borne by local authorities and central Government. IMO this is a problem in such a low-margin business.

21-02-2008, 01:13 PM

As Australian tax allowance for reducing your taxable income to allow for use of your own vehicle for work related purposes was $A0.55, for a car between 1300 and 1600cc, two years ago. I think his pricing is very optimistic.
I use to get 63c per KM from work. I was running a second hand jap import (2l Turbo AWD) and that worked out to be very accurate by the time I sold it (including all costs). That was several years ago before petrol prices when up but as other shave said, depreciation and maintenace add up too.

shasta

21-02-2008, 01:27 PM

I use to get 63c per KM from work. I was running a second hand jap import (2l Turbo AWD) and that worked out to be very accurate by the time I sold it (including all costs). That was several years ago before petrol prices when up but as other shave said, depreciation and maintenace add up too.

I like Infratil's thinking regarding the NZ Bus business, especially in Wellington where the public transport works well.

Like QOH, i too use the Wellington bus system extensively, as it's cheap ($1 gets you most places within the city, else $2 will), reliable & extremely popular esp during the peak "business" hours.

I sold my thirsty Nissan Skyline over 3 years ago, as parking is a huge problem in the inner city & not withstanding the costs of parking, it's a hassle finding "free" parking.

Infratil would do well to replicate the Wellington model elsewhere.

The link between the buses & the train system is great.

Mind you fine warm days like today in the Nations Capital & everyones walking! ;)

Disc: Ex Infratil shareholder

POSSUM THE CAT

21-02-2008, 01:51 PM

CJ I agree so $2.00 A KM is very cheap for a bus more like $3 or $4 would be more realistic so as I said QOH saying some of infratils management was estimating the running cost of a bus at $2.00 per Km sounds Rediculous

POSSUM THE CAT

21-02-2008, 02:05 PM

Toddy

21-02-2008, 03:08 PM

Possum

IFT is primarily an energy company. The bus business only makes up a small percentage of their portfolio.
The bus business returns atleast the cost of capital and has not been losing money.
To my knowledge no fund managers out there have ever built a premium into IFT stock due to the outlook of the bus business.
The bus business provides IFT with large cashflows.
Public transport fits in well with the new environmental standards and does have a future part to play in NZ.
IFT does not always get it right but are along way off calling the bus investment a mistake.
Yes, they could have made more money elsewhere, but then we could all say that.

PS Possum, don't steer into those car headlights too often because where I come from it always ends up in disaster.

21-02-2008, 04:18 PM

Zaphod I know of bus companies that are still importing Busses from Britain and Japan and what is the damage from salted roads before they get here. Are the new busses you talk about being imported complete or built here as the Volvos built here the railways were running cost more than this over 18 years ago.

Most of the new buses will be bought in chassis form from europe (man/volvo/etc). The body is then built locally to individual spec (there is a big factory down in Ashburton but I also beleive NZ Bus is getting some built in Australia as they have too many orders for NZ to handle).

ARTA would not allow ex British and Japanese buses if newer ones were avaliable (when doing tenders) so if people are still bringing them in, they are probably not doing main stream public transport.

POSSUM THE CAT

21-02-2008, 04:52 PM

Zaphod

22-02-2008, 09:51 AM

CJ is this outfit in Dunedin the remains of the old Emslies outfit. You seem to be up with bus building at the present time. It is a main line bus company that is importing second hand buses from britain but I do not know if they are using them for mainline purposes but they hardly have two buses exactly the same.

Possum - I'm certainly not doubting that there are companies importing ex-British buses, but my point was that they're not being used for mainstream passenger transport services. Would be interesting to hear where they're going; PM me if you find out!

The company CJ is referring to is Designline in Ashburton.

22-02-2008, 10:57 AM

but my point was that they're not being used for mainstream passenger transport services.

The company CJ is referring to is Designline in Ashburton.

Correct. Only speck re Auckland but ARTA has quite a say on what new buses should have if they want to get contracts in the future.

correct. There are other builders around as well but I know that at least 3 of the Auckland bus companies use Designline.

Toddy

11-03-2008, 11:24 AM

Quote:
Originally Posted by CJ
IFT is a geared investment so will always go down in times of uncertainty like this. I dont think AIA has much to do with it. It is only a small portion of the portfolio.

In will be actually be interesting to see what his next move is if the Canada bid doesn't go though -Canada 20%, IFT 20% ??; or on market accumulation (should pick up at under $3 for a large stake).

Thanks for comments, CJ, but I am still more than a little puzzled at the extent of the current weakness in IFT. The conventional wisdom in a bear market such as we are experiencing at the moment is that infrastructure investment does not fare as poorly as most other sectors. Their two main investments are TPW and Wellington Airport; energy and airports are hardly in the "dud" class. No, there has to be some other explanation. Surely NZ Bus doesn't represent the missing link.
(Should probably conduct further discussion on the IFT thread.)

Colin/CJ

The current weakness of the IFT stock can be put down to the current state of the market. The IFT stable looks in good order. TPW, which represents over half of the IFT asset base will be doing better than last quarter as they now have water in their hydro dams, the Airports are consistently performing, the Aussie energy business is back on track and as fuel prices rise it is only a matter of time before we see the numbers heading up again in the bus business. IFT has a good debt structure and manages debt through its long term bond programme.

I'm personally down on paper by so much I am starting to lose sleep over it. However, if assets are performing in this quarter as I think they are then we should see some SP growth later this year.

The AIA shambles is not that significant to IFT in the big picture. IFT management could see value in doing a deal with AIA to unlock wealth by a restructure. The Dubi and Canadian bids came along around the same time and looked like a better deal for the AIA shareholders. If the govt blocks these bids then it would be even money that IFT and AIA can find some middle ground and do a deal. If not, it will be business as usual for IFT except having LLoyd on the AIA Board has to be an advantage to making better decisions for the shareholders.

We just have to ride out the storm, if NZ have a change of Govt later in the year then we may well see a change in monetary policy and some pro-business decisions help the share market to recover. Lower interest rates and exchange rates will boost the bottom line of the company's that we love to invest in.

Hanging in there.

COLIN

11-03-2008, 12:17 PM

Toddy, I agree that IFT has amassed a good stable of investments (although I do entertain reservations about getting tangled up in public transport). I have a lot of faith in Lloyd Morrison and his team, and their longer-term vision. I agree that everyone and everything is being whacked by the terror that seems to be reigning in the markets globally. Also, didn't Lloyd engage in a programme of shorting the DOW, a few months ago - to the indignation of some posters on this thread, if I remember rightly? That move would now appear to have been a masterly stroke.
So.............. perhaps we are experiencing a massive dose of over-selling of IFT.
I share your dismay at the savage beating that our portfolios are taking. I did switch out of some of my lesser-performing holdings some time ago, but stayed with the likes of IFT and FBU who have served me well, over many years, believing that they would be able to buck the trend (some good companies have held up well, e.g. EBO). However, the latest chart that Phaedrus has posted, on another thread, says it all, and we should have cashed up absolutely everything in November last. (But I would have missed out on the subsequent rise in my NOG's!)
But I am doing my best not to let it all get me down. I know that the charts are telling me to dump them all, even at this late stage, but if I did that I know that I would be too late in buying into the inevitable, eventual, rally.
So, ........................... perhaps I will give up following the markets as closely as I have been, for a while, and spend my time in more profitable pursuits - like spending more time with my grandchildren. That is one of the better investments one can make!
So, Toddy, keep your chin up. You are not alone. And it does help to talk it out, on forums such as this.

QOH

11-03-2008, 01:49 PM

11-03-2008, 02:07 PM

Interested in thoughts of what you consider the best outcome for IFT over the AIA debacle. Do you think IFT will sell their shares to Canadians?

Best out come is probably for the deal not to go ahead in the hope they can engineer a deal. Whatever offer comes out of this wont be as good as the canadians.

If it wasn't for the government intervention, I would have though IFT would have been buying up to sell into the canadians offer. IFT will definately sell as it is to good a short term return to ignore. They can always buy back in later.

Toddy

11-03-2008, 02:26 PM

for IFT shareholders is the thought of having to front up with another $1 per share soon, for the partly paid shares.
Didn't IFTs shareprice start going down after the share split and got worse after the latest rights issue?
Interested in thoughts of what you consider the best outcome for IFT over the AIA debacle. Do you think IFT will sell their shares to Canadians?

Thats the ironical thing. Lloyd did not actually come out and say it but I suspect that when they announced the capital raising at the AGM, AIA is what they had in mind for the funds. The market then went pear shaped.

I think that IFT's strategy should be to accept the offer (with the understanding that 24.9% is not control and that the offer will more than likey fail the govt test) to show goodwill towards the concept that shareholders own AIA, and not the govt.

IFT have been relatively quiet of late and have recently hired more brains for the team. Also we should not forget that the share buyback programe has been signed off so its only a timing issue of when IFT will start to purchase shares back off the market.

In the mean time, its bread and water for dinner.

11-03-2008, 03:39 PM

Toddy

11-03-2008, 04:16 PM

This might help IFT a little as index funds come on board and it gets more "reputation" overseas:

http://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSWEL22796620080310

Has anyone ever looked at the effect of companies entering and leaving indexes? It can be good news for Vector.

Well spotted CJ. Effective from 1 April.

Infratil Executive, Tim Brown said, “We are delighted to achieve a place in the NZX 10 Index. Over the last 14 years Infratil has been one of the strongest investments on the NZX providing an average return to shareholders of over 20% per annum after tax.

“We are committed to maintaining strong performance into the future and are in the right businesses to achieve this outcome notwithstanding current capital market conditions.”

macduffy

11-03-2008, 04:37 PM

11-03-2008, 05:13 PM

Care to elaborate on why this ( demotion) may be good for Vector?

Typo - should read "can't be good for vector"

macduffy

11-03-2008, 05:21 PM

Typo - should read "can't be good for vector"

Thanks, CJ.

Thought I was missing something!

:)

Toddy

11-03-2008, 05:26 PM

IFT
11/03/2008
TAKEOVER

REL: 1703 HRS Infratil Limited

TAKEOVER: IFT: Auckland International Airport

Infratil has today resolved to vote in favour of the Canadian Pension Plan
Investment Board partial offer for Auckland
Airport and accept the offer for its shares.

This decision follows CPPIB's significant concession to limit its voting
control to 24.9% on all matters and not to remove this restriction without
the prior approval of Auckland Airport shareholders.

Other factors considered, some of which have occurred since the Auckland
Airport board updated its views, include the Government's announcements with
regard to stapled securities, possible changes to airport regulation and the
amendment to the Overseas Investment Act regulations and the further
weakening of world equity markets.

Infratil continues to believe that Auckland Airport is a first class
infrastructure asset, with strong long term growth prospects, which will
benefit from shareholding stability.

Caesius

11-03-2008, 05:26 PM

Infratil has today resolved to vote in favour of the Canadian Pension Plan Investment Board partial offer for Auckland
Airport and accept the offer for its shares.

This decision follows CPPIB's significant concession to limit its voting control to 24.9% on all matters and not to remove this restriction without the prior approval of Auckland Airport shareholders.

Other factors considered, some of which have occurred since the Auckland Airport board updated its views, include the Government's announcements with regard to stapled securities, possible changes to airport regulation and the amendment to the Overseas Investment Act regulations and the further weakening of world equity markets.

Infratil continues to believe that Auckland Airport is a first class infrastructure asset, with strong long term growth prospects, which will benefit from shareholding stability.

For further information contact:

Paul Ridley-Smith
04 473 2399
0275 649 707

So they're selling to the Canadians. Or maybe they're confident the Govt will block the sale...

EDIT: Beat me to it Toddy :)

11-03-2008, 05:50 PM

Interesting. Is Lloyd one of the Directors who recommended rejecting the offer (but sell the shares if accepted).

Does this in effect change his recommendation as Director?

Is this also a public move to try and get more support for the takeover or do they always make announcements like this a few days in advance?

Toddy

13-03-2008, 08:47 PM

Zaphod untill they cut fares by at least 50% they will never get the increase in bus patronidge you are dreaming about. As in most places in Auckland I can drive a big V8 car in peak hour in half the time in a bus and only spend half the price of the fare on petrol and be able to go where I want to not where the bus goes to. The common law of business is if you offer a price for a business that is not for sale and they say thank you. You have payed far more than you should have. This is my understanding of what infratil did and interest rates were approximately half what they are now so cost of holding has increased dramatically. Please correct me if my belief is in correct.

Possum
I was wondering if you have had second thoughts about the bus business given that the model has been looking better on a daily basis.

1. Oil prices at record levels.
2. North Shore residents were complaining on Close Up tonight about the 'Park and Ride' car parks being 'full' so they had no where to park. Whow, what a good problem to have.
3. The NZ Herald had an article today about how the Americans are dumping their cars for public transport. Yes, the Americans.

Also, any thoughts on the ferrys.

FULLERS FERRIES: WE'RE CAUGHT IN FUNDING WASH
5 March 2008

JENNY KEOWN

Infratil-owned Fullers Ferries is pushing for more funding from the Auckland Regional Transport Authority for service development.

Chief executive Donald Hudson said ARTA had an "appetite to fund more services".

Hudson said the city's authorities needed to realise his firm was carrying a tenth of the commuter traffic in Auckland.

"We already carry almost as many passengers in Auckland as the rail service, and with the right support we can carry many more."

ARTA planned to spend $113m over the next 10 years on the development of the ferry system but the funding wasn't guaranteed and was subject to approval by the Auckland Regional Council and Land Transport New Zealand.

About $64.9m is set aside for an operating subsidy for Fullers and $48.8m for improvements to infrastructure. By comparison, ARTA intended to pour $2.84 billion into rail and $1.75b into bus.

Of the three main public transport modes in Auckland - bus, ferry and rail - the bus service annually carried 42.9m, 5.24m people travel by train and 4.2m on ferries.

Fullers said it could carry about 18% more people in five years' time, or 718,000 people a year. The company was planning new routes along the East Coast Bays to Takapuna and on to the CBD, a service to the eastern beaches, and another service down the Tamaki River to serve Panmure, Point England and Glendowie.

If these went ahead patronage could jump to 21% or almost a million passengers.

All-weather shore facilities, parking and feeder buses were needed to make better use of the harbour and gulf to battle congestion on the roads, said Hudson.

Source: The Independent Financial Review

POSSUM THE CAT

14-03-2008, 08:26 AM

Toddy Ifratil would have to be below 80cents per share for me to consider buying shares while they still own bus companies. All the financial models in will not change the fundamental facts that Bus companies are barely viable. Just look at the broken down busses that hit the traffic news in Auckland and that is only the tip of the iceberg suggest that maintenance is being skimped. Talking to a driver of one of the bigger Aucland bus companies that mechanics are pirating other busses for spare parts.

14-03-2008, 08:41 AM

Just look at the broken down busses that hit the traffic news in Auckland and that is only the tip of the iceberg suggest that maintenance is being skimped. Talking to a driver of one of the bigger Aucland bus companies that mechanics are pirating other busses for spare parts. It is well known that the stagecoach buses were run down under the management of Stagecoach (on the basis they were planning on exiting the business). NZ bus, under IFT, is undergoing a major upgrade of the buses. This wa factored into the purchase price.

Toddy

17-03-2008, 11:26 AM

Surely the best investment for IFT would be to buy their own shares back at the current levels. The numbers coming out of Wellington are amazing. I'm sure that we will see the same on the bus front in the next report.

Wellington Airport Monthly Overview - February 2008

February continued to show that the public is taking advantage of the
enhanced domestic market competition with domestic passengers 21% above the
previous year. While Pacific Blue has been the catalyst for the increase the
competitive response from the established airlines is also generating
significant passenger growth. Available domestic capacity increased by 28%
from the previous year. Average aircraft loadings reduced by 4.5% from the
previous February however the market average of 72.5% remains strong. Year to
date, domestic passengers are now 7.4% above the previous year following the
substantial growth in recent months.

The capacity constraints in the international market were not alleviated in
February. Growth in international passenger numbers for February was 6.8%
above the previous year with seat capacity marginally increased by 3% (a leap
year benefit!). The average airline load factor continued to exceed 80%. Our
message remains unchanged in that until more capacity is offered many
Wellingtonians will be forced to travel through Auckland or Christchurch to
cross the Tasman, or may not travel at all. Year to date growth in
international passengers now stands at 4.5%, with seats having fallen by
3.3%.

WIAL announced details of "The Rock" design for the international terminal
expansion with construction to commence in the very near future. The design
has created a lot of comment, both supportive and not, and we are pleased
that the public has been motivated to form opinions and express their views.
Comments and enquiries have been received from people in a number of other
countries.

WIAL's construction programme continued during February. A further new
aircraft gate is shortly to be brought on line and two existing air bridges
will also be replaced in March/April. Work remains in progress to review the
use of Wellington's apron facilities to ensure short term demands can be met.
With all of the airlines making public comment about further expansion of
domestic services, the development programme must continue, to ensure this
growth can be accommodated.

Works continue on WIAL's North runway end safety enhancement to meet
increased international safety requirements. The works will be completed by
mid 2008.

Infratil Airports Europe Monthly Overview - February 2008

Glasgow Prestwick Airport

Glasgow Prestwick handled 165,977 passengers in February, up 12% on February
2007 and a 14% improvement on January's performance.

The year-to-date passenger total of 2,234,488 shows a marginal improvement on
the equivalent period for the prior year.
Polish services continue to perform well, particularly Ryanair's Wroclaw and
Wizz Air's Katowice. Wizz also began operating flights to Poznan at the
beginning of the month and the early signs for this route are encouraging.
Ryanair's daily services to Belfast and Cork are the main drivers behind the
year-on-year increase.
The airport handled 2,429 tonnes of freight during the month, up 6% on
February 2007 and a 35% improvement on January's performance. Atlas Polar,
Air France and Panalpina all recorded year-on-year increases.

Year to date freight volume of 28,476 tonnes is 4% ahead of the equivalent
period for last year, with Cargolux, Atlas Polar, Panalpina and British
Airways World Cargo all showing improved performances for FY08.

A new freight operator, Cargoitalia, is due to commence services in March
2008 with Boeing 747 operations which will see freight for the oil industry
flown in from Houston and trucked to Aberdeen.

Glasgow Prestwick became one of the first organisations in Scotland to pick
up a Healthy Working Lives Award award for its efforts to boost health and
wellbeing in the workplace.
The airport is among the first 32 organisations to achieve the award, which
was devised by the Scottish Centre for Healthy Working Lives to encourage
employers to promote a healthier workforce.

Kent International Airport

Kent International handled 3,966 tonnes of freight in February, up 64% on
February 2007.

All scheduled carriers improved their prior year and year-to-date freight
volumes during February.

The airport's total year-to-date freight volume, at 29,022 tonnes, is
currently 24% ahead of the equivalent period for the prior year.

Luebeck Airport

Luebeck Airport handled 30,247 passengers in February, a marginal improvement
on January's total but down 25% on February last year.

The year-to-date passenger total of 525,778 is down 15% on the equivalent
period last year.

The passenger figures reflect a 25% reduction in overall capacity against
February 2007. This reduction is mainly down to the reduction of services to
London, and the withdrawal of services to Dublin and M****illes.

A planning application to permit further development of the runway, apron and
terminal facilities has been submitted, and is supported by environmental
groups.

POSSUM THE CAT

17-03-2008, 01:56 PM

Toddy think ouside the square do you buy a half million dollar asset that will work effiently 4 hours per day five days a week This is A bus. 2hours in the weekday morning & 2 hours in the weekday afternoon that is working the rest of the time it is usually parked up.

Toddy

17-03-2008, 02:39 PM

winner69

18-03-2008, 02:56 PM

Toddy - always looking at getting into some decent infrastructure stock and your ongoing passionate relationship with IFT convinced me just under a year ago that IFT was that stock ......... but the comments from the guys from Tower keep haunting me ... 'IFT is way overvalued and we remain underweight'

So to date I am not a IFT shareholder (will be through IFTWC)

When do you think the guys from Tower will be proved wrong ... and IFT will start to look more promising on the chart.

One thing though those IFTWC are getting cheaper and cheaper by the week .... even thought the 412 looks a long way off but then so is 2012

Thoughts

POSSUM THE CAT

18-03-2008, 03:14 PM

Zaphod

18-03-2008, 08:22 PM

Toddy well would you spend half A million dollars on an asset that was going to operate 20 hours in a week even if it did save carbon emissions. I might spend half a million on a house that mostly you life in 70 hours a week but depreciation is a lot less maintenace about the same but finance to purchase is cheaper.

Well, it's actually closer to $350K less the LTNZ capex funding component, which realistically leaves the company funding somewhere in the vicinity of $150-$250K dependant upon the agreed subsidy level.

Additionally there is patronage-based funding which is usually metered out by the regional councils. Typically these funds come 50-50 from a mix ratepayers and LTNZ with (again) the actual funding levels dependent upon the LTNZ's beliefs on the benefit of the service.

But what you have said is very true; they are a very expensive asset, that have traditionally provided a very slim return.

I believe Infratil are banking on relaxation of regulation, increased funding through fuel taxes and a boost from central government as part of their "green" initiatives in order to make the operation more profitable.

POSSUM THE CAT

19-03-2008, 10:15 AM

Zaphod As the capital cost of a Railways bus was well over 300k 20 years ago I sugest the 350k you mention must have a subsidy in it allready. What is really needed is very clear figures. As for ARTA it is simply pouring money down the drain as it is not puting the necessary infrastucture in for electricfication and levelcrossing upgrades in at the same time as they do the double tracking.

Zaphod

19-03-2008, 07:29 PM

Zaphod As the capital cost of a Railways bus was well over 300k 20 years ago I sugest the 350k you mention must have a subsidy in it already. What is really needed is very clear figures.

$300K twenty years ago was quite a large sum of money relative to current times.

Between 1986 and 1989 Auckland, New Plymouth and Christchurch city councils placed orders for MAN SL-202's from (then) Coachwork International which cost them between $240K and $280K (dependent upon the year of delivery) per unit.

More recently, the latest MAN 12.223's and Volvo B7R's in B43D config without A/C from Designline and Kiwi respectively have been selling for approximately $350K.

The costs are rising however as China's bustling economy scoops up the worlds natural resources.

Remember though, the that budgeted lifetime of these vehciles is normally around 25 years; that works out to (after central government subsidies) around $10K PA.

As for ARTA it is simply pouring money down the drain as it is not putting the necessary infrastructure in for electrification and level crossing upgrades in at the same time as they do the double tracking.

I just don't think they have had the money to do it. However, today’s announcement of a 5 cent per litre fuel tax ,will surely help those plans along quite nicely. How much it will benefit Infratil is yet to be determined.

P.S. Happy to discuss the costs via PM. No point in filling up the IFT thread with arguments over bus costs (unless other people are interested)

Romer

19-03-2008, 08:46 PM

By all means discuss the costs on here. We still have 114 pages to go to catch up to the NZO thread!!!! and many of us are interested in these discussions. - - -A lot of us don't have the time to do lots of research and might not know where to start, so we need all the information we can glean from those who do.

Rif-Raf

19-03-2008, 09:53 PM

Steve

19-03-2008, 10:20 PM

Amro's have a BUY on IFT. In particular they're very upbeat about TPW (50% of their assets)and how they will benefit due to their renewables and the carbon pricing regime etc. They have determined NTA as $3.64 which is the valuation they have on them. Selling at just 65% discount to NTA is crazy stuff.

Given the relatively defensive nature of the assets, it would appear that the shareprice has been oversold despite the current market...

POSSUM THE CAT

20-03-2008, 10:52 AM

Zaphod NZ Motor Bodies & Emslies prices in the early to mid eighties were for bodies only. Emslies were slightly cheaper than NZ Motorbodies but not as well built in the opinion of some of the coach builders that did the repairs. But the big thing was both firms prices quoted to both Railways and Auckland regional council were for bodies only. The Chasis were ordered some times 3 years ealier and were paid for on delivery by railwas & ARC are you sure these prices you are quoting are not for bodies built on a chassis supplied by recipient. ARC wanted at one time to import Leyland busses completely built up at considerably cheaper total prices but rear axle loading was higher than NZ regulations would allow. Govt. Would not give them exemption to exceed the axle loading regulation. But did slow down the delivery of Buses for railways from NZMB so ARC got their busses sooner. And Railways went to Emslies who had been moaning that they could not compete for railways bus order because some of the metal parts specified were NZMB Designs. To help make up the shortfall in bus deliveries and the chassis they could get very quickly were HINO bt51s. You price a big truck cab & chassis these days and see then if you think those prices you quote are for complete busses or just bodies as I think? Remember a bus Chassis is more complicated than a truck chassis

20-03-2008, 01:55 PM

The prices Zaphod quotes for a complete bus (chassis and body) are correct to my understanding - I will try to confirm over the weekend.

Remember that the fit out in commuter buses is relatively basic (I wont say cheap as the requires needed for commuters are rather low) when compared to a coach or otehr longer distance buses.

Toddy

25-03-2008, 05:59 PM

Hopefully this is a turning point for the down trend of IFT. Its amazing what a lack of liquidity can do to a stock price when a significant holder sells out. However, that said, Utilitico's strings are being controlled from off shore now days.

SSH: IFT: Disclosure of ceasing to have substantial holding

Utilico NZ Limited
Previous total percentage held in class: 10.23%
New disclosure, 0%.

macduffy

25-03-2008, 06:11 PM

An interesting development.

My guess is that Utilico's departure will be good for IFT and for its sp.

;)

Tanger

25-03-2008, 06:38 PM

Excuse my ignorance, but my reading of the SSH notice was that Utilico NZ Limited disposed of its shares to Utilico Limited. It seems they are simply agregating their shareholding into one vehicle. Interestingly, Utilico Limited has an address in Bermuda.

macduffy

25-03-2008, 07:32 PM

Oops!
In that case I retract my previous post.

:o

Toddy

25-03-2008, 08:00 PM

Oops, my fault. I did not read all of the disclosure notices.
Still none the wiser who the sellers have been.

QOH

25-03-2008, 08:19 PM

Rif-Raf

26-03-2008, 01:17 PM

disappointment in my share portfolio at the moment. Does anyone think it's partly caused by people knowing they are going to have to front up with $1 for each of their partly paid shares in June or July plus a year later $1.62 for the "B" warrants.Maybe there will be no upside until at least July.

I can relate to the sentiment, however if you apply the sporting analogy form is temporary and class is permanent, then at some point of time in the future holders are going to see a big rebound.

i don't think the unpaid portion would have much bearing as I believe many investors will have cashed up at least part of their portfolios in the recent times and have it waiting in the wings inlcuding ability to pay the part paids. The other thing, is I don't think the amount of B's and part paids are that significant in relation to the number of ord's on issue.

However the warrants may have assisted the slide as leverage works in reverse in a falling market. The beating taken for some warrant holders may have been too much to swallow.

QOH

11-04-2008, 10:16 AM

for Infratil after the AIA fiasco? Isn't it a good opportunity for them to increase their stake now?

beacon

11-04-2008, 11:29 AM

Toddy

11-04-2008, 12:10 PM

Maybe not. National may look favourably on Whenuappai airport proceeding, and IFT have already lost a bundle on AIA. Their push in AIA was a hedge, and it is costing heaps so far. Buses bleeding cash too, I hear ...

IFT's investment strategy has moved away from NZ in recent times. Their AIA play was based on the need for AIA to restructure to unlock the tax advantages that could then be passed onto shareholders. There is still a slim but real chance that IFT can do a deal with the AIA board but at a SP of about 20% higher than todays SP. Any investment in AIA is a good one as the business will only ever build. Remember that they are a monopoly and todays entry price to build another airport no longer stacks up and the govt just scared away any possible foreign cash to build any such infrastructure.

The 'other' Auckland airport is a dead duck in todays environment. IFT are much more energy focused and will concentrate on building an energy empire in Australia.

As previously stated, the bus business turns over large cashflows which is where IFT gain their benefit from investing in such an asset class. The buses will always be running and as NZ struggles to maintain the standard of living as other developed countries increase theirs, then you will see more and more bums on bus seats.

I think that IFT will surprise and come out with an ok quarterly result.

Rif-Raf

16-04-2008, 10:38 PM

With the exception of Lubeck, the strong airports perfomance continues.

MONTHLY: IFT: Infratil Email Update

16 April 2008

Infratil Email Updates are sent to interested shareholders, analysts, brokers
and other parties who have registered their interest on
http://www.infratil.com

Wellington Airport Monthly Overview - March 2008

Wellington Airport March 2008 operational figures are available here.

Passenger numbers in March continued to show the benefits of the competitive
domestic market following Pacific Blue's domestic start up in November 2007.
March domestic passengers were 17% above the previous year. The established
airlines continue to respond to the Pacific Blue challenge with reduced fares
and improved service offerings. Available domestic capacity increased by 23%
from the previous year.

Average aircraft loadings reduced by 3.5% from the previous March. However,
the market average of 74.1% remains strong for the domestic market. Total
domestic passengers for WIAL's financial year ended March 2008 were 8.6%
above the previous year.

The capacity constraints in the international market continued to be evident
in March. Growth in international passenger numbers for March was 9.1% above
the previous year despite seat capacity falling by 2%. The average airline
load factor again exceeded 80%. It remains evident that until more capacity
is offered many Wellingtonians will be forced to travel through Auckland or
Christchurch to cross the Tasman, or not travel at all. March year growth in
international passengers was 4.9%, with seats having fallen by 3.2%. Average
seat loads were 79% across the whole year compared to 72% the previous year.
Of most critical concern to WIAL is that despite the existing lack of
capacity further reductions have been announced in Trans Tasman services from
Wellington, exacerbating the challenges for Wellingtonians to cross the
Tasman - clearly, this approach is not sustainable.

WIAL continues to work on site preparation works to enable construction of
"The Rock" international terminal expansion. WIAL's construction programme
continued during March with the additional new aircraft gate brought into
operation during the month. The first of two of the older aerobridges has
been replaced and the new bridge is in operation. A second bridge is to be
replaced in April.

The use of Wellington's apron facilities to ensure short term demands can be
met is being reviewed. WIAL is also commencing a longer term master planning
process to consider future development requirements and options for the
entire airport site.

Infratil Airports Europe Monthly Overview - March 2008

http://www.infratil.com/content/view/1933/1/

Glasgow Prestwick Airport
GPIA's passengers rose 6% to 192,142 in March 2008 over March 2007, with full
2008 year passengers totalling 2,426,630 passengers, a marginal improvement
on 2007.

The airport's six Polish connections and Ryanair's Barcelona and Murcia
services were the strongest routes, although the passenger total was boosted
by the Easter weekend falling during the month.

Glasgow Prestwick handled 3,260 tonnes of freight in March, up 5% on March
last year and a 34% improvement on the February performance.

Atlas Polar had a particularly strong month against the prior year, while new
operator Cargoitalia made three rotations during the month.

The total FY08 freight volume of 31,735 tonnes marks a 4% increase on the
FY07 performance.

Scotland's First Minister Alex Salmond visited Glasgow Prestwick on March 11
to attend the launch of a new study into the economic benefits of the
airport.

The study, jointly commissioned by Infratil Airports Europe, South Ayrshire
Council and Scottish Enterprise, found that Glasgow Prestwick accounts for
nearly 3,000 jobs in Scotland.
It also revealed that total expenditure associated with the airport is more
than GBP200 million per annum, with GBP173 million generated by visitors to
Scotland.

Mr Salmond also said the visit reflected his Government's gratitude towards
the airport for its swift and effective response to the attempted terrorist
attack on Glasgow Abbotsinch in June 2007.

Planning approval has been granted for a new car parking facility on the site
of the former Prestwick Golf Driving Range which was acquired in 2006.

Kent International Airport

Kent International handled 3,602 tonnes of freight in March - an improvement
of 992 tonnes and 38% on March 2007.

Once again all scheduled freight carriers improved on their prior year
freight performance.

The airport handled 32,624 tonnes of freight during FY08 - 26% up on the FY07
total, with all scheduled carriers showing an increase over this period.

Luebeck Airport
Luebeck Airport handled 42,654 passengers in March 2008, down 15% on March
2007.

This downturn is also reflected on an annual basis - the FY08 passenger total
of 568,432 down 15% against FY07.

Wizz Air's Gdansk route showed a 25% improvement on March 2007 and the return
of Ryanair's Dublin route on March 15, on a seasonal basis, has shown
encouraging early signs with strong loads.

Toddy

18-04-2008, 08:24 AM

This congestion charge system works well in London. It did not take long for the public to get use to it. Its a no brainer with the benefits far outweighing any negatives. My money would be on Auckland beating Wellington to the gun on this one.

Putting the brakes on rush hour
Peak-time congestion charge proposed for Capital

By KERRY WILLIAMSON - The Dominion Post | Friday, 18 April 2008

Email a Friend | Printable View | Have Your Say
PHIL REID/Dominion Post
ON THE ROAD: Greater Wellington regional council is investigating charging drivers entering the city during rush hour.

Motorists could be stung with a congestion charge for entering and leaving downtown Wellington during rush hour, in an ambitious proposal to boost public transport use.

Greater Wellington regional council is pushing the Government for a law change that would allow councils to introduce a congestion charge on motorists.

One model, developed by a council-contracted consultant, suggests charging motorists between $1.50 and $4.50 to drive into the city business district. The congestion charge would apply on weekdays between 7am and 9am. Motorists would also have to pay to leave the zone from 4pm to 6pm.

Those driving longer distances into the city would pay more, as vehicles passed through charge points near Pukerua Bay, Tawa, Lower Hutt, Petone and Ngauranga Gorge.

The council conceded the public could baulk at a congestion charge, with motorists already facing record petrol prices. But the proposal's backers say it is designed to get people out of their cars and on to buses and trains.

"I think it is realistic, I think it could happen," said Peter Glensor, the regional council's transport and access committee chairman.

"I am very keen on it. We believe various forms of road pricing, including congestion charging, is something we should be working for."

Regional council chairwoman Fran Wilde said the proposal could help generate the many millions of dollars needed to improve the region's buses and trains.

She told The Dominion Post that "congestion charging is a good tool to have in your tool kit" - but stressed this proposal was one of a number of ideas being studied. A final plan would have to be approved by the city council.

Wellington Mayor Kerry Prendergast said she was not even lukewarm on the idea. "It's illegal now and I don't think there's been enough work done. We must do everything we can to protect Wellington cbd."

Transport Minister Annette King's office said she expected congestion charges to "be on the agenda for some government in the future, as infrastructure becomes stretched around the country". There was no proposal on the table at the moment, a spokesman said.

A regional council report issued last year suggested congestion charging could raise between $20 million and $40 million a year - money that could then be poured back into public transport improvements. It suggested the funding mechanism be introduced in 2011.

The report found that congestion charges could succeed in Wellington, reducing gridlock while at the same time having minimal social and regional economic impact.

Mr Glensor conceded the public could baulk at paying to drive into the city. "I'm sure we wouldn't want to make that move without very strong dialogue with the community."

Essentially a user-pays system, congestion charging can generate high amounts of revenue without much capital cost. It can also boost public transport patronage, in turn making cities greener and more sustainable.

Both the city and regional councils are committed to increasing public transport usage. Recent investment included 62 new trolley buses, 70 electric trains, electrification and double-tracking of the rail line to Waikanae and real-time information on buses and trains.

macduffy

18-04-2008, 09:02 AM

Singapore started charging a CBD congestion charge 25 years or so before London and long before they had the current superb underground/fast rail system.
My guess is that Wellington's CBD congestion is now about where Singapore was 30 years ago: Auckland " achieved " that some time ago!

Steve

19-04-2008, 03:37 PM

My guess is that Wellington's CBD congestion is now about where Singapore was 30 years ago: Auckland " achieved " that some time ago!

Doesn't that just make you proud to be a NZer?

As an aside, it appears that the 210 support level has held, with the shareprice poised to climb above the MACDUNK 30day MA...

Toddy

24-04-2008, 02:37 PM

POSSUM THE CAT. Are any of your buddies catching the bus yet as petrol prices start to bite on the family budget ?

POSSUM THE CAT

24-04-2008, 03:56 PM

Toddy No way I can transport 5 people for 1/4 of the bus fare As my fixed costs are static otherwise shanks's pony is more efficent and just about as quick. Other wise by an old carburettor car and try some of the second world war tricks for fuel. My dad was in the first world war and used to talk about paris being lit by gas lamps and the gas was made from SH*T

Toddy

24-04-2008, 05:46 PM

COLIN

30-04-2008, 01:32 PM

Why the sudden interest in IFT? Both sets of warrants up 18%, and respectable rises for the head shares and the partly-paids. Someone seems to know something.

macduffy

30-04-2008, 01:35 PM

Probably the effect of the takeover for ORG which has flowed on to Contact. Then on to Trustpower?
Aussie gas stocks are also up strongly.

;)

COLIN

30-04-2008, 01:41 PM

Probably the effect of the takeover for ORG which has flowed on to Contact. Then on to Trustpower?
Aussie gas stocks are also up strongly.

;)

Seems a rather tenuous link. The BG deal seems aimed at Origin's natural gas. Am not aware that TPW have any of that stuff.

macduffy

30-04-2008, 03:44 PM

Seems a rather tenuous link. The BG deal seems aimed at Origin's natural gas. Am not aware that TPW have any of that stuff.

You're right, and it probably is a rather tenuous link although stocks have moved on less.
How about then that it's the carbon tading thing hitting the headlines again, and Trustpower's favourable positioning in renewable generation?

:)

Meanwhile, IFT price has settled down.

Toddy

30-04-2008, 04:40 PM

You're right, and it probably is a rather tenuous link although stocks have moved on less.
How about then that it's the carbon tading thing hitting the headlines again, and Trustpower's favourable positioning in renewable generation?

:)

Meanwhile, IFT price has settled down.

Its POSSUM THE CAT taking a position as the sheep start catching the bus. One by one..... baa.

I expect the market to play a fair bit of catchup as IFT was one of those stocks sold out during the credit crises when it is atually a pretty good defensive stock.

Or, more likey the punters are happy that Trustpower has once again been de-risked as the rain pours out of the night sky and fills those hydro lakes.

Toddy

02-05-2008, 02:40 PM

IFT is soft again, albeit on small volumes. I'm struggling to work out why given the current level of the discount IFT is already trading at.

Market risk is reducing.
The NZD is slowly coming off.
Their MAIN asset TPW is trending nicely.
The airport businesses are trending nicely (especially Wellington that is doing super well).
The Aussie energy business looks like it would be turning a nice profit under the current electricity prices and is growing.
There has been limited news about the bus business and based on IFT disclosure rules 'no news' means no surprises.
AIA play is immaterial (3%) and will not be taking up hours of managements time anymore.
Have additional managerial resourses working away in the background.

I guess that there will be further disclosure in the quarterly due in a few days.

Caesius

02-05-2008, 02:57 PM

IMO it doesn't help that IFT is a relatively unknown company. People hear about the TELs and FBUs and AIAs every night on the news, IFT just doesn't get that kind of exposure.

Always seems to be the way, no news = drop in SP

COLIN

02-05-2008, 04:05 PM

The instalment due date on the IFTCB's is on the horizon (early August) and perhaps this is acting as a bit of a depressant on IFT as well (the full paids and the partly paids move more or less in tandem.) In other words, we could have a similar scenario here to the NZO/NZOOD situation. Most holders of the part-paids would also still hold their fully paids, and many will be trying to sell some FPO's to pay for the instalment or trying to sell the part-paids before due date. There's quite a bit of cash required for the final instalment, particularly in today's tightening circumstances.

POSSUM THE CAT

02-05-2008, 04:55 PM

Toddy the last report I saw was bus business not performing to expectations so if no suprises you should expect the status quo a gradual easing in share price

Zaphod

05-05-2008, 12:36 PM

Toddy the last report I saw was bus business not performing to expectations so if no suprises you should expect the status quo a gradual easing in share price

Perhaps we should just wait for the re-nationalisation of public transport. I'm sure that the taxpayer would happily purchase the business and provide Infratil with a handsome profit ;)

Toddy

05-05-2008, 02:06 PM

Perhaps we should just wait for the re-nationalisation of public transport. I'm sure that the taxpayer would happily purchase the business and provide Infratil with a handsome profit ;)

Its already happening via the NZ Superfund buying up IFT. IFT have wasted their money painting the buses all sorts of bright colours when they are all going to end up repainted 'communist' red.

Re-nationalisation of assets, FTA's with China, selling assets to China, increasing minimum wage, over taxing the wealthy etc. Anyone else see a trend here.

Caesius

06-05-2008, 09:08 AM

http://www.nzx.com/market/market_announcements/by_company?id=164146

Can anyone decipher this? I have trouble reading these...

COLIN

06-05-2008, 10:14 AM

http://www.nzx.com/market/market_announcements/by_company?id=164146

Can anyone decipher this? I have trouble reading these...

It simply means that IFT and/or NZ Superann Fund (managed by Morrisons) bought another 1.1m shares on market, in two separate purchases, but it is not apparent which party got what. Took advantage of the depressed share price following Clark/Cullen's rejection of the Canadian bid.

(Point to ponder: If Govt is so keen to "buy back the farm" a la Toll/Railways, when assets are considered "strategic", why didn't they offer shareholders in AIA the same opportunity, at the price the Canadians were prepared to pay?)

Viking

06-05-2008, 10:19 AM

It simply means that IFT and/or NZ Superann Fund (managed by Morrisons) bought another 1.1m shares on market, in two separate purchases, but it is not apparent which party got what. Took advantage of the depressed share price following Clark/Cullen's rejection of the Canadian bid.

(Point to ponder: If Govt is so keen to "buy back the farm" a la Toll/Railways, when assets are considered "strategic", why didn't they offer shareholders in AIA the same opportunity, at the price the Canadians were prepared to pay?)

Amen to that!
The govt should put up the money or shut up~
Well, I am looking closely how IFT would play out though~ since it has similarity with AIA, but again its quite different it feels~ perhaps because they are down in Wellington~

06-05-2008, 04:41 PM

It simply means that IFT and/or NZ Superann Fund (managed by Morrisons) bought another 1.1m shares on market, in two separate purchases, but it is not apparent which party got what. It is the superfund doing the buying (comparing the holdings to the previous disclosure). IFT interest hasn't changed. I am pretty sure IFT has said it wont increase.

Toddy

15-05-2008, 04:44 PM

This is one way to boost the IFT SP. TPW share buyback.

TrustPower Limited Audited Financial Results for the year ended 31 March
2008:

Operating surplus after tax of $98.1 million compared with $102.4 million as
restated for IFRS adjustments, for the same period last year.

EBITDAF of $208.0 million representing a 6 per cent increase on the previous
year.

Board of TrustPower has approved an on-market buyback of up to five million
shares for a period of six months. Further details can be found under the
announcement entitled "On-Market Share Buyback" which is attached.

Dividend declared of 15 cents per share payable 6 June 2008.

Interest on Subordinated Bonds payable on 13 June 2008:

TPW020 (ISIN: NZTPWD0002S7)
Amount per security 8.5%
Record date 30/5/2008
Payment date 13/6/2008

TPW030 (ISIN: NZTPWD0003S5)
Amount per security 8.3%
Record date 30/5/2008
Payment date 13/6/2008

TPW060 (ISIN: NZTPWD0006S8)
Amount per security 8.5%
Record date 30/5/2008
Payment date 13/6/2008

Directors Nominations Close 5pm, 3 June 2008. Further details can be found
under the announcement entitled "Further details can be found under the
announcement entitled "On-Market Share Buyback" which is attached.

Attachments:

Media Release RE TPW Audited Results
Appendix 1 Public Financials
PWC Auditors Report
Appendix 7 Dividend Payable 6 June 2008
Appendix 7 Subordinated Bond Interest Payable 13 June 2008
Media Release re Directors Nominations Close
Share Buyback

Market Announcement
Thursday, 15 May 2008

TrustPower Limited Audited Financial Results for the Year Ended 31 March 2008

TrustPower's consolidated operating surplus after tax was $98.1 million for
the year ended 31 March 2008, compared with $102.4 million as restated for
IFRS adjustments, for the same period last year.

Earnings before interest, tax, depreciation, amortisation and fair value
movements on financial instruments ("EBITDAF") grew by 6 per cent to $208.0
million from $196.4 million in the previous year.

Operating revenue of $681.5 million increased 9 per cent on the previous year
as a result of higher energy prices charged to those customers paying spot
market prices together with a $12.7 million revenue contribution from
telecommunication services. Total electricity volume sold was 4,540 GWh
compared with 4,575 GWh in the year to 31 March 2007. Customer numbers
increased to 222,000 at 2008 year end from 219,000 a year earlier.

The New Zealand electricity market has been characterised by lake storage
levels and inflows that have been below average for much of the 2008
financial year. However, spot electricity prices during the first nine
months remained below average but increased significantly in the final
quarter.

Generation production of 2,018 GWh for the year was up 4 per cent on the
previous year but around 270 GWh down on expected long term average. Hydro
production was down around 220 GWh or 13 per cent on long term average and
North Island hydro production contributed around 185 GWh of this shortfall as
a result of record low inflows into a number of catchments. Wind production
was up 272 GWh on the previous year due to nearly a full year's contribution
from Stage III of the Tararua Wind Farm which was commissioned in July 2007.
However, wind production was also down 50 GWh (8 per cent) on expected long
term average. This was due to a combination of lower than expected wind
speeds over the second half of the financial year and some Stage III turbines
experiencing post commissioning operational issues which have caused lower
than expected availability. The Company expects this situation to be
resolved shortly.

Operating expenses including energy and line costs increased 10 per cent on
the previous year, primarily driven by higher wholesale electricity costs.
High frequency keeping costs in the North Island due to low availability of
North Island hydro generation supply in the last quarter of the financial
year together with higher generation production costs have also contributed
to increased operating expenses.

Net profit after tax, return on average shareholders' funds, was 7.9 per cent
(last year 8.6 per cent).

Group operating cash flow was $161.0 million for the 2008 financial year
versus $161.2 million in the previous year.
Taking into account the significant shortfall in production from the
Company's own generation assets and high wholesale prices for the final
quarter of the financial year, the result was satisfactory and again
demonstrates that the Company's trading and risk management practices are
sound.

Included in accounts payable and accruals is an amount of $102.7 million
relating to milestone payments due under the Snowtown Stage I wind turbine
supply contract. A similar amount was held in year end cash balances
following settlement of foreign exchange hedge contracts matching the wind
turbine supply contract obligations.

Debt (including subordinated bonds) to debt plus equity was 34.3 per cent at
year end versus 29.5 per cent in the previous year. This increase is due to
the Company debt funding the capital expenditure programme of the last two
years which has included the 93 MW Tararua Stage III wind farm, the 6 MW
hydro expansion at Deep Stream in Otago and the partial construction of 98 MW
of wind generation for Stage I of the Snowtown wind farm in South Australia.

TrustPower continues to maintain high levels of committed credit facilities.
Including subordinated bonds the Company currently has NZD equivalent of 950
million of committed debt funding in place. Given the current uncertainty in
financial markets the Company decided to refinance early $100 million of bank
facilities due to mature in July 2008 and to establish an additional $100
million three year bank facility loan.

TrustPower's New Zealand generation development programme continues to
progress satisfactorily despite resource consenting taking longer than
expected for many development opportunities. Following commissioning of the
Deep Stream hydro enhancement project the Company owns 594 MW of renewable
generation capacity in New Zealand producing on average around 2,320 GWh per
annum.

Good progress is being made on the development of the 98 MW Snowtown Stage I
wind farm. Civil works have been completed and to date six wind turbines
have been erected and commissioned. The balance of the planned 47 2.1 MW
Suzlon wind turbines are expected to be progressively erected and
commissioned over the next three months. If all goes to plan the project
could be completed three months ahead of schedule which would be a pleasing
outcome for the Company's first Australian renewable generation project.

Expensed generation development costs for the year were $9.5 million compared
with $10.3 million in 2007. This expenditure reflects a range of costs
including preliminary design, environmental investigations and resource
consent application costs over a number of hydro and wind development
opportunities in both New Zealand and Australia.

Legislation to enact the New Zealand Emission Trading Scheme ("ETS") is
currently under review by a parliamentary select committee following public
consultation. The likely introduction of the ETS for the electricity sector
from 2010 together with a proposed ten year moratorium on thermal generation
should provide a supportive environment for progressing renewable generation
opportunities. However, the Company remains frustrated by the lack of
progress towards amendment of High Voltage Direct Current ("HVDC") pricing
methodology which is required to provide a level playing field for new
renewable generation in both North and South Islands. If this issue is not
dealt with it is difficult to see how the Government's objective of 90 per
cent renewable generation by 2025 will be achieved efficiently as many of New
Zealand's best future wind and hydro sites are located in the South Island.

TrustPower currently has resource consent applications pending for over 550
MW of hydro and wind generation projects in New Zealand. TrustPower is
working hard to ensure that it is in a position to progress renewable
projects should the Company conclude that shareholder value is likely to be
created. However, should this conclusion not be able to be reached due to
regulatory uncertainty or negative policy impacts, then the Company will aim
to protect the value of its development rights as longer term options.

Forecast capital expenditure in the 2009 financial year for committed
generation development projects is expected to be around $70 million which
mostly relates to the completion of Stage I of the Snowtown wind farm.

Generation development costs to be expensed in the 2009 financial year are
projected to be around $7 million.

The Board has approved that the Company be able to buy-back up to 5 million
of its shares over the next six months. Given the current volatility in
financial markets the Board considers that the Company should have the
flexibility to buy back its shares where there are opportunities to add value
for existing shareholders. Approval from shareholders will be sought at the
Annual Meeting for an annual share buy-back programme of a similar scale.

The Board has also agreed that Directors enter into a fixed share purchase
plan whereby Directors will allocate a percentage of their directors' fees
and automatically instruct a share broker to purchase shares in the Company
at market price following the Company's annual and interim announcements.
Fixed share purchase plans are quite common internationally and the Board
views individual ownership by Directors in the Company as a positive way of
ensuring that Board and shareholders' interests are closely aligned.

The Directors are pleased to announce a final dividend of [15] cents per
share, partially imputed to 11 cents per share, payable 6 June 2008 (record
date of 23 May 2008). This together with an interim dividend of 15 cents per
share provides a total payout of 30 cents per share for the 2008 financial
year compared with 27 cents per share for the 2007 financial year,
representing dividend growth of 11 per cent.

Shareholders should be aware that dividends for the foreseeable future are
likely to be partially imputed as the Company will pay relatively lower
levels of tax in the early years following the commissioning of wind farm
developments as the result of higher tax depreciation levels available for
wind farm assets. The Company expects that a minimum level of 60 per cent
imputation is likely to be achieved on dividends over the next two to three
years.

On 1 May 2008 Transpower, as the independent system operator, advised that
despite the recent rain hydro storage levels remain a significant concern to
the industry and as such the industry is continuing with contingency planning
efforts to ensure a secure supply of electricity this winter. At the time of
this announcement New Zealand hydro lake levels were around 60% of average
storage for this time of year.

While it is too early to make predictions about the 2009 financial year, it
is worth noting that the Company remains in a satisfactory position to meet
its customers' needs this winter.

Zaphod

20-05-2008, 07:01 PM

INFRATIL RESULTS
FOR THE YEAR ENDED 31 MARCH 2008
20 MAY 2008

Infratil had a successful year as measured by the value created in its core
businesses, the positioning of those businesses relative to the trends which
have been propelling their growth, and the management of increased risks
arising from the financial markets.

However, Infratil fell short in terms of delivering returns for shareholders
over the period. An Infratil shareholder who reinvested all dividends and
bonus issues would have suffered a 16.5 per cent fall in value in the year to
31 March 2008 (+31 per cent in the previous year), roughly equivalent to the
average fall of the New Zealand market. Despite this, Infratil's cumulative
return since its formation 14 years ago remains over 20 per cent per annum
after tax. The performance of the last year shows how financial market
conditions can overwhelm outcomes, even as energy, airport and public
transport businesses deliver good results.

Infratil was proactive in the management of its exposure to financial risk
before the market upheaval. Infratil undertook its first capital raising in a
decade, completed a subordinated perpetual debt issue having raised $240
million, and renewed and expanded its bank facilities. Infratil also actively
managed its financial market risks with partial hedges against falls in the
value of markets.

The economic, financial and regulatory environments continue to present
challenges. The economies in which Infratil's businesses operate are slowing,
financial markets have not yet stabilised and Government regulatory
initiatives are unpredictable. Notwithstanding, each of Infratil's core
businesses is expected to increase its value over the coming year and to
reflect the attractiveness of sectors experiencing long term growth which are
relatively immune to the business cycle. It is anticipated this will drive
better returns for shareholders and vindicate their support for the $176
million equity raising Infratil initiated in 2007.

FINANCIAL RESULTS (IFRS)

For the year to 31 March 2008, Infratil's earnings1. were $315.9 million
(2007 $157.1 million). The operating surplus2. was $87.8 million (2007 $32.4
million) and the net earnings after including realisations, impairments, fair
value adjustments, tax and minority interests was a small loss of $1.7
million (2007 profit $68.2 million).

FINANCIAL POSITION

As at 31 March 2008, total consolidated assets were $4.4 billion (2007 $3.9
billion). Net group bank debt was $792 million (2007 $548 million) and
subordinated bond debt was $961 million ($1,028 million).

Infratil's Shareholders' Funds were $1.47 billion (2007 $1.53 billion) and
after minorities $733 million (2007 $809 million). This value reflects the
market value of all Infratil's listed investments except TrustPower, which is
consolidated, while unlisted assets are included on the basis of their book
values. Shareholders' Funds declined by $144 million as a result of the mark
to market of Infratil's listed investments. The fall in value mainly related
to changes in the share price of Energy Developments and Auckland Airport,
and has been taken through reserves.

SHAREHOLDERS

A final dividend of 3.75 cps fully imputed will be paid on 16 June 2008 to
all shareholders with ordinary shares, on the register as at 5.00 pm on 6
June 2008. For holders of partly-paid shares, the final dividend will be
1.875 cps fully imputed. Because of the discounted rights issue, this is
effectively a small increase over the final payment last year.

In respect of the year, total dividends on ordinary shares amounted to 6.25
cps fully imputed. Shareholders also received, on a one for five basis, a
free warrant and a right to acquire, at a discounted value, a further
Infratil share. The second $1.00 instalment on these shares is due to be paid
between 14 July 2008 and 8 August 2008.

CAPITAL AND RISK MANAGEMENT

Over the year the number of shares on issue increased by 219,899,090 when
Infratil split its shares and by 3,837,448 through the exercise of warrants.

In May 2007 Infratil closed its issue of Perpetual Infratil Infrastructure
Bonds (PIIBs) when a total value of $240 million had been raised.

Infratil and wholly owned subsidiary net bank borrowing as at 31 March 2008
was $397 million from $192 million a year earlier. Infratil has total bank
facilities of $660 million.
Offshore assets comprised approximately 50 per cent of Infratil's equity
market capitalisation and were unhedged to changes in the value of the New
Zealand dollar.

Recognising the extreme financial market risk which pertained during the
year, Infratil purchased some insurance against the possibility of this
volatility increasing. As at 31 March 2008 this hedge gave rise to a "fair
value" benefit of $12.3 million. This is not intended to be an ongoing
feature of Infratil's operations, but risk identification and management is a
hallmark of Infratil's approach.

SECTOR DEVELOPMENTS AND TRENDS

Infratil's businesses are in sectors benefiting from global trends in urban
and air mobility and energy. While the year presented economic and financial
challenges, the trends driving Infratil's businesses were encouraging.

Renewable energy: New Zealand is to introduce pricing of greenhouse gas
emissions from 2010 and is targeting 90 per cent of electricity generation
from renewable sources by 2025 (now about 70 per cent). Australia has now
committed to the Kyoto Treaty and pricing of greenhouse gas emissions on a
similar timetable to New Zealand's.

Australian energy: The deregulation, privatisation and restructuring of the
energy market continues.

Airports: Competition on New Zealand trunk services initiated by Pacific Blue
spurred domestic growth and indicated the potential for international growth
when the current shortage of long-haul aircraft is alleviated. European air
travel was impacted by economic conditions but remains robust with low-cost
and freight airlines growth supported by significant new aircraft orders.

Public transport: Social and political interests are focused on having public
transport develop as a real alternative to the car.

WIN-WIN-WIN: CAPITAL PROVIDERS-EMPLOYEES-COMMUNITIES

Providing good services that people want to use requires staff with the
skills and confidence necessary to meet their responsibilities with a sense
of ownership in their businesses. Infratil is investing in its employees and
the enhancement of their working environments.

Businesses will do better if their communities are healthy and welcoming.
Infratil supports the communities in which it operates through involvement in
the Community Awards with Waitakere City, the Wellington Community Trust and
TrustPower; its support of the Wellington Marine Education Centre and,
together with Wellington Airport, Wellington High Performance Aquatics; the
support of NZ Bus for Starship Hospital, North Shore Netball, the Karori
Sanctuary, the International Arts Festival and Wellington Zoo; the support of
Wellington Airport for Miramar golf and many local organisations and schools.

Capital providers in airports, public transport and energy will only win over
the longer term if their employees have skills and commitment, if users are
satisfied they are receiving a good service at a fair price, and if their
communities benefit.
Communities have legitimate interest in these sectors and Infratil welcomes
the opportunity to work with parties such as Wellington City (Wellington
Airport), Waitakere, North Shore and Rodney Councils (Whenuapai Airport),
Tauranga Energy Community Trust (TrustPower), Greater Wellington Regional
Council (Wellington buses), Auckland Regional Transport Authority and
Auckland Regional Council (Auckland buses and ferries), and the City of
L?beck (Luebeck Airport).

DEVELOPMENTS 2008

Infratil's businesses are in sectors that are growing and support investment.
Over the last two years Infratil and its subsidiaries have responded by
committing $878 million to new and enhanced facilities and services, $493
million of which was expended over the last year.

These investment initiatives are crucial if Infratil is to continue its track
record of delivering excellent returns to its shareholders. They also have an
impact on short-term reported profitability. Infrastructure businesses tend
to have relatively fixed costs while revenue rises with use. Investment means
a step-up in costs in anticipation of later growth in use and revenue.

TrustPower: As at 31 March 2008 the market value of Infratil's 50.5 per cent
interest in TrustPower was $1,194 million, which made up approximately half
of Infratil's assets. TrustPower contributed $49.5 million to Infratil's
earnings for the year.
Over the year TrustPower's investment spend was $177 million ($171 million
the previous year) mainly in respect of its 98.5MW South Australian windfarm
and the 5MW enhancement to Deep Stream hydro in Otago.

TrustPower also has four major New Zealand power projects in consenting. One
of these is the $400 million 200MW Mahinerangi windfarm which is intended to
be operated in conjunction with Waipori hydro. In November 2007, 100 years of
generation from Waipori was celebrated. The station's development, including
into the future as back-up to wind, shows the physical and commercial
sustainability of this form of energy.

New Zealand's electricity generation sector is to be faced with a cost on
green house gas (GHG) emissions from 1 January 2010 which will be borne by
generation using coal and gas. This is expected to result in slightly higher
energy prices which will be of benefit to TrustPower, which produces no GHG
emissions from its generation.

Infratil Energy Australia group: IEA continued to grow into a substantial
energy retailing, trading and generation group with assets of $271 million as
at 31 March 2008 and EBITDAF for the year of $12 million.

Over the year retailing was a stand-out performer with customer accounts
increasing from 186,000 to 286,000 despite difficult market conditions. The
benefit of such periods is that they expose competitors that have
underestimated the skills and resources required to be successful.

IEA managed this growth and got close to achieving its target net margins of
6-8 per cent. It also continued the development of its generation portfolio
with investment now totalling A$68.9 million in three Peakers (Angaston and
Lonsdale, 70MW, in South Australia and Hunter, 30MW, in NSW which is due for
commissioning in June) and the Perth 120MW dual-fuel power station where
construction is to start later this year.
Over the year IEA has demonstrated its ability to tailor customer growth to
the market conditions. At present its focus is on Victoria and Queensland,
but South Australia and NSW are all being monitored for opportunities as they
progress retail deregulation.

Energy Developments (EDL): Over the year Infratil slightly increased its
holding in EDL to 28 per cent (from 26 per cent) which, as at 31 March 2008,
had a market value of $110 million. EDL has continued to struggle with legacy issues from previous management, in particular its major West Australian LNG/Generation facility has been affected by delays and cost over-runs which, due to the way this project was structured, have had an adverse financial impact on the Company.

Nevertheless, EDL is in a good sector and will deliver improved results if it
can better structure and implement its projects.
Wellington Airport: The Airport had a successful year in regard to
operational and financial performance, and investment for future growth.
Since Infratil made its initial investment in 1998 the Airport's passenger
numbers have risen from 3.5 million people to 5.0 million and earnings from
$15 million to $60 million. Relative to 2007 income and passengers increased
21 per cent and 8 per cent respectively.

The outcomes have been helped by excellent management of costs and provision
of attractive services, but the main impetus has been increased passenger
throughput which has resulted from airline competition and the Airport's
substantial investment in facilities to allow growth.

Work now underway will ensure the Airport can accommodate further growth
while ensuring that travellers consistently experience high quality services
that represent good value for money.
Wellington Airport also concluded Stage One of its off-airport retail
development and this is now fully tenanted.

Auckland Airport: Infratil has invested $125 million acquiring a 3.3 per cent
interest in Auckland Airport. The Airport is New Zealand's premier
infrastructure asset and will benefit from local growth and the rising global
demand for air travel. It was unfortunate that the well publicised process
surrounding Infratil's acquisition of this holding occurred as it did.

Infratil Airports Europe: IAE's three airports recorded three million
passenger movements (-3 per cent over the prior year) and 64,400 tonnes of
freight (+14 per cent). Management remains focused on attracting additional
carriers and doing so on profitable terms. The European aviation market
continues to grow markedly and Infratil remains confident as to its strategic
positioning. IAE's EBITDAF for the year was $1.2 million (nil the previous
year). The net contribution to Infratil was a loss of $9.7 million (from a
loss of $20.3 million previously).

NZ Bus: Work by the NZ Bus team is starting to result in better services
which are encouraging people to switch usage from their cars. Infratil is
supporting the initiatives to lift the quality and quantity of services by
funding NZ Bus'substantial investment plan.

Despite a complex and awkward regulatory environment NZ Bus and many of its
key local authority and agency partners continue to build the sense of common
purpose which is critical in making public transport a better option for many
journeys than the private car.

While the recent resumption in passenger growth is encouraging, cost pressure
is a difficulty for the business with road user charges and wages rising
markedly over the year. NZ Bus contribution to Infratil was unchanged from
the previous year at $21 million.

Continued [looking forward]
http://www.nzx.com/market/market_announcements/by_company?id=164851

Toddy

10-06-2008, 01:47 PM

In another market, on another day, this piece of news would have seen some real value added to the SP of TPW and IFT.

TrustPower wind farm gains consent
TrustPower was yesterday given the green light for its largest wind farm development, east of Mataura.

The Gore District Council's hearing panel has approved all resource consents sought by the company from the council and Environment Southland.

New Zealand's fifth-largest power generator, TrustPower, plans to spend $380 million on the wind farm. There would be up to 83 wind turbines, with the ability to generate 240MW, on the Kaiwera Downs site.

The development covers 2568ha, encompassing 10 farms, and was bounded to the north by State Highway 93. The turbines would be 145m tall, the highest in use in New Zealand.

In its 162-page decision, the hearing panel found any negative effects were localised while there were significant economic and environmental benefits nationally.

Turbines would dominate views within 7.5km of the site but the substantially positive effects of the wind farm outweighed negative visual effects, it says.

To offset any adverse effects the panel has ordered that TrustPower pay a development contribution of 0.2 percent of the project's total value.

This would equate to $760,000, less than half of what could have been awarded under the Gore District Council's financial contribution policy for large developments.

Any local roads used during construction were to be upgraded, at TrustPower's expense, to carry the increased traffic. The company would also have to pay for any maintenance needed as a result of road use during construction.

The company's request for an extended consent period from five years to 10 years has been granted to give it some flexibility during construction.

TrustPower community relations manager Graeme Purches said it was pleasing to get consent and the conditions, at this stage, looked all right.

Assuming there were no appeals, it would be at least three months before anything might happen in terms of ordering turbines if the economics, at the time, stacked up.

The panel's decision was open to appeal for 15 working days.

da puntzda

10-06-2008, 10:01 PM

Is IFT's sp being affected soley by perceptions that higher oil prices may reduce air traffic or is there something more?

macduffy

11-06-2008, 08:38 AM

Is IFT's sp being affected soley by perceptions that higher oil prices may reduce air traffic or is there something more?

Yes, it's a big, bad bear market out there!

Toddy

13-06-2008, 06:33 PM

Yes, it's a big, bad bear market out there!

And finally IFT management thinks that the time is now right to buy back IFT stock on market.

BUYBACK: IFT: Share buyback

Infratil Limited advises that it has acquired its own securities. The
following information is provided in accordance with Listing Rule 7.12:

Class of security: Ordinary Shares

ISIN: NZIFTE0003S3

Number of ordinary shares acquired: 375,000

Acquisition Price (average): $2.13

Payment: In cash

Toddy

17-06-2008, 11:57 AM

When it rains, it pours........

The financial impact on TrustPower of the 2008 drought is uncertain but it
could see Earnings Before Interest Tax Depreciation, Amortisation and Fair
Value Movement of Financial Instruments ("EBITDAF") fall below the Company's
mean year expectation by between $15 and 20 million.

Can any of you South Island boy's look out of the window and tell me that it is raining!

Zaphod

18-06-2008, 04:42 PM

This slipped past me....

$7.5M Whāngārei public bus contract awarded
Passenger transport company NZ Bus has been awarded a $7.5 million local authority contract to run Whāngārei’s public bus service for the next five years.

NZ Bus – which purchased Whāngārei-based bus company Adams Travelines in January – beat two other tenderers, including current operator Whāngārei Bus Services Ltd, to secure the Northland Regional Council contract.

Council Chief Executive officer Ken Paterson today (Fri 04 April) paid tribute to Whāngārei Bus Services, which he says has run the existing service successfully since November 2001 and which had carried its one millionth passenger last year.

However, he says the decision to award NZ Bus the contract comes after a detailed formal tender evaluation process. It will result in significant benefits to ratepayers as a result of efficiencies that NZ Bus can draw upon over the five-year life of the contract, which also includes a subsequent three-year right of renewal.

“NZ Bus is an extremely experienced operator with more than 2000 employees, which also runs bus services in the greater Auckland and Wellington region and owns and operates Fullers Ferries (Auckland).”

Owned by New Zealand based infrastructure investment company Infratil since 2005, its assets include more than 1000 buses, nine ferries and significant transport-related infrastructure.

Mr Paterson says the company will take over the Whāngārei service on July 1 and will operate a fleet of 10 new low-floor, low emission buses to an extended timetable.

The new fleet would also sport a new, locally-designed look and would operate under the name ‘City Link Whāngārei’.

NZ Bus Chief Executive Officer Bruce Emson says Adams Travelines, the company’s local passenger service company in Whāngārei, is excited about the opportunity to provide urban bus services.

“Providing public transport services is about listening to and serving people in our community. The opportunity to grow our business in Whāngārei is an exciting one and we look forward to extending our services focussed on the needs of the people we serve.”

Meanwhile, Mr Paterson says the new service will offer increased value for money as the new contract calls for buses to run more frequently and for longer hours.

However, he says fares will need to be reviewed in the near future as they have not increased for seven years, despite large increases in fuel and other operating costs.

The Whangarei public bus service is currently funded by the Whāngārei District Council and Land Transport NZ and administered by the Northland Regional Council.

ratkin

18-06-2008, 05:27 PM

Buses should do well from the petrol rises , apparantly people are flocking to them in droves

POSSUM THE CAT

18-06-2008, 07:29 PM

Ratkin Buses use diesel and that has increased more than petrol and will councils try to cut subsidies

Toddy

18-06-2008, 09:05 PM

Buses should do well from the petrol rises , apparantly people are flocking to them in droves

The buses are overfull. The Police have been doing random stops to check overloading.

Now we just need the standard weather to return down South and fill up those lakes.

Rif-Raf

18-06-2008, 09:29 PM

The buses are overfull. The Police have been doing random stops to check overloading.

Now we just need the standard weather to return down South and fill up those lakes.

and lastly we need the second installment of the part paids ($88m) and other capital raisings (ie NZO) to get swallowed up. I believe this has created some of the short term weakness we are seeing.

I imagine IFT are closely watching developments with BNB, some cheap assets potentially could come on the market for them to pick up.

Zaphod

23-06-2008, 07:07 PM

Ratkin Buses use diesel and that has increased more than petrol and will councils try to cut subsidies

It's inevitable that increasing fuel costs and wage-rise pressures will force patrons to pay more for public transport, but I could not estimate by exactly how much since the equation needs to take into account that it is election year and the Government are firmly glued to the green band-wagon, and hence will ensure that subsidies for PT are maintained or (more likely) increased.

What we will see IMO in the next few years is further consolidation of the industry in order to reduce costs through economies of scale. Indeed, we're now seeing NZ Bus move outside of its core Auckland and Wellington regions and into other areas by purchasing existing public transport businesses and successfully wining contracts. If they are extremely careful in their selections and leverage their economies of scale, this could translate into further positive cash flows for the business.

I do not however see that the PT sector will ever produce large profits, as other sectors such as airports traditionally have.

Zaphod

24-06-2008, 12:56 PM

Zaphod - But will this translate to increased demand or profitability for providers? I'm not convinced that it will. First, there's lots of room for patrons to reduce personal transport costs without using public transport, say by pooling, remote working, proximate living or using transport alternatives (such as their feet or cycles). Second, any increase in price of public transport (due to fuel costs or whatever) should translate to a commensurate reduction in patron demand. And, third, costs increases will hit provider margins.

I think it will translate to increased demand and hence profit, but I am not sure by how much. There are a number of variables that can influence the outcome.

You're correct that there are alternative modes of transport available and that a percentage of people will choose to use those (walking, cycling, car pooling, etc.) over use of PT. However there will always be a percentage of the population that either cannot or will not use those other methods - just as there are those who have similar issues with PT itself.

There also does not appear to be a linear correlation between price and utilisation of PT, in that as price increases PT utilisation does not fall in a equal amount. Studies on patronage have revealed that convenience is one of the primary drivers, so services must be reliable, regular, direct and operate at convenient times.

Given that Auckland's PT patronage rates currently stand around where they were in the mid 1980's, despite a massive increase in population and increased commuting distances due to continued urban sprawl, I believe there is significant room for growth.

As far as Wellington is concerned I would not expect to see too much room for growth there as the PT patronage rates per capita are on average extremely high, and the geography of the city largely precludes urban sprawl.

Aside from economies of scale benefits flowing from integrated administration, cross selling of products and bulk purchasing (of, say, oil and vehicles), which I suspect are only somewhat beneficial and max-out quickly, what economies of scale do you see that will materially reduce costs? Maybe, instead, what you're trying to get at are the benefits of pricing in a monopoly situation (given the "consolidation of the industry), which the Com Com mostly won't permit. I struggle to see, too, how this will affect IFT.

Most of the cost of the PT sector is in the areas that you've mentioned: vehicles, fuel and admin - perhaps even in that order. What we're seeing is dominance of the sector by either private companies with investment companies backing them or the acquisition of smaller companies by the dominant players such.

Three examples of this phenomenon are

1. Tranzit purchasing companies and/or tendering for urban routes in various centres (the incumbent in New Plymouth has recently sold to Tranzit).
2. The formation of GoBus from the amalgamation of Hamilton City Buses, Simpsons, Blue Worth, etc. in conjunction with Morrison & Co (and subsequently a new Auckland-based investment firm).
3. NZ Bus actively perusing tenders and acquisitions in regions other than Auckland and Wellington.

I too remember ComCom striking out the acquisition Mana Coachlines by NZ Bus, but they have not stopped NZ Bus purchasing companies in other regions. Adams Travelines in Whangarei is the latest example. NZ Bus purchased this company as a vehicle to tender for the Whangarei urban roots. NZ Bus subsequently won the tender in the region, no doubt due to their experience, their ability to provide modern vehicles (via their large capital backing) and the economies of scale they are able to realise over the smaller incumbent.

Overall, the PT business has extremely low margins, requires enormous amounts of capital and is highly susceptible to market conditions. The only way to be successful in this industry is through ensuing that they build economies of scale. NZ Bus has the ability to achieve continue to acquire companies, drive up patronage levels in (particularly) Auckland and to drive economies of scale.

What I would like to reiterate though is that in my opinion I would not say that huge profits can be derived from this business for IFT. It does however create the a great opportunity for cash-flow.

You've made some really good points. Good to see that there are some people putting thought into this.

Toddy

25-06-2008, 01:25 PM

Zaphod

Have a read of the IFT annual report released today. A copy can be found on their web site.

NZBus are positioning themselves for the long run. 150 new buses either received, or on order. Load numbers up 3% in Auckland and 6% in Wellington for the month of April compared to the previous year.

I like how IFT have formed a new property company and sold all of NZBus land and buildings into the new company. NZBus then leases the property back at market rates.

The bottom line for me is that Kiwi's don't like to spend money, so the future looks brighter than is has ever been as the market struggles with the oil price. Once the kiwi dollar drops away again then any future investment in high value public transport (new buses) will dry up, leaving the current suppliers in a monopoly situation.

25-06-2008, 04:54 PM

150 new buses either received, or on order. This is in part because Stagecoach ran the fleet to the ground as they were trying to exit. A lot of this is catch up rather than an "increase".

I like how IFT have formed a new property company and sold all of NZBus land and buildings into the new company. NZBus then leases the property back at market rates. That is a good way for NZ Bus to make a loss but the property company to make a profit (what is the land in the viaduct worth (do they own it or is it leased - my understanding is it is owned??)

Steve

25-06-2008, 09:36 PM

IFT are giving an Investor Update in Invercargill and Dunedin on Monday. I will go along to the Dunedin one...

da puntzda

25-06-2008, 10:01 PM

Is any of this nasty weather hitting the right spot for TPW?

Steve

27-06-2008, 07:15 PM

Is any of this nasty weather hitting the right spot for TPW?

Not according to the shareprice...

Romer

29-06-2008, 09:32 PM

Steve: If IFT are going to hold their updates way down there, there's not much chance of me attending. Hope you'll give us an update on the latest.
Cheers
Romer :)

Rif-Raf

29-06-2008, 10:25 PM

Steve: If IFT are going to hold their updates way down there, there's not much chance of me attending. Hope you'll give us an update on the latest.
Cheers
Romer :)
I think they are doing a number of cities as they are also holding one in Chch.

Toddy

30-06-2008, 04:48 PM

Is any of this nasty weather hitting the right spot for TPW?

Small lift for hydro lake levels
New 3:18PM Monday June 30, 2008

Hydro lake levels have lifted slightly, bringing a small amount of relief for the electricity sector even as cold and stormy weather sweeping the country raised demand.

As consumers are urged to save power to ensure supplies remain secure this winter, above average inflows for much of the past week gave hydro storage a small boost.

In its weekly market summary, published today, M-co said lake levels were up to 58 per cent of average by yesterday, having been at 55 per cent a week earlier and down to 49 per cent 2-1/2 weeks before.

Inflow rates got as high as 123 per cent of average on Saturday, and dropped below 100 per cent only once during the past week.

Spot market prices remained high but below levels reached in the late May spike, when the price got up to 44.06c.

At the North Island reference point of Haywards, the price peak during the past week was 31.37c per kilowatt hour on Wednesday, well up on the 9.21c a year earlier.

Toddy

02-07-2008, 12:58 PM

IFT are giving an Investor Update in Invercargill and Dunedin on Monday. I will go along to the Dunedin one...

Steve

How did the presentation go?

Rif-Raf

02-07-2008, 07:53 PM

Few observations of presentation:

International Infrastructure Assets
- There is huge demand for new assets to be built around the world $1000 billion p.a I think was mentioned.
- Despite the falls in stock markets, they don't believe there has been any change in the of value infrastructure assets.
- There is a huge wall of institutional funds looking to make investments in infrastructure assets e.g. Canadian Teachers Pension Fund
- Listed infrastructure assets are very cheap and expect more privatisation as they are out of kilter with what the assets are changing hands for.
- Airports assets are changing hands at 24x EBITDA. eg If Wellington was put up for sale it would be worth several times the $600m it is in their books for.

Trustpower
- Very bullish on this company due to the renewable exposure and pointed out 50% of their assets are in this company.
- Higher prices of electricity expected in NZ due to world gas prices and carbon and TPW will reap the higher prices which will go straight to its bottom line
- TPW has had a 1 in 20 year season that has knocked $15m off its result for this year, yet $600m taken off the SP.
- Also lots of investment in new generation in latest year has held the current years result back, but will reap big returns in coing years.
- They see wind generators as big beneficiaries going forward

Inf Energy Aus
- Very upbeat on whats been achieved here and see the model being rolled out in all the other states in Aussie.
- Profits more longer term here as they are following a path of growing the business.

Airports
- See a continuation of the long term (40 year) trend continuing for deacdes of increasing traffic
- Air traffic growth historically runds at double GDP growths
- Despite current concerns of fuel and soft economic times at worst generally results in a temporary halt in the trand and it catches back up the following years
- They say analysts tend to only look at a very small window to make forecasts in this industry, however they are forecasting based on the huge growth in aircraft scheduled to come onstream etc.
- Wellington they are very pleased with.
- Europe airports they concede are a bit of a drag on profits, but will benefit from the long term trends eventually.

NZ Bus
- The investment has been frustrating for them due to the government which has meant the timeline to get increase value has lenthened
- Despite the above, the investment pays its way and is quite profitable
- Value will eventually be created once the government stops bungling

Auckland Air
- Believe this is a very undervalue investment, for reasons mentioned earlier with long term trends
- They wanted Dubai to be involved as they would have added value rather than just paid $.
- Cullen intervention has meant the cost of their investment is $40m more than it may have been.
- They can't believe the incompetence of Cullen in the way he created the airport fiasco.

Energy Developments
- Not mentioned - average results

Austral Pacific
- Conceded a bad investment

Funding
- Very Robust debt position.

Acquisitions
- Focussed mainly on new investement in subsidiaries. See buying their shares as one of the best investments for them.

All in all very positive but not reflected in share price

Toddy

02-07-2008, 09:19 PM

Rif-Raf

02-07-2008, 10:09 PM

Thanks Rif-Raf.

I asked the question at the time re Austral Pacific as I thought that NZO offered more opportunities at a 'cheaper' entry price.

I think that the price has been driven down by offshore investors exiting as the kiwi falls.

On a positive note the weather could not be worse for NZ out until Monday. Enough rain is forecast to fill the lakes up, so TPW should be able to start clawing back some of the profit down grade.

He was embarrassed to talk about Austral as it was someone from the audience that asked. He said that part of the logic was as it was a gas play it provided a partial hedge to TPW as the higher the price of gas the more valuable TPW becomes.

Yes, the rain this week has already helped out a bit and if there's a lot more to come then perhaps the TPW downgrade warning may not be needed.

Another point is that I had read the annual report last night and felt the presentation tonight reflects a far more bullish tone than what the annual report portrays. That gave me a lot of confidence. I was also very impressed with Tim Brown, he really had his finger on the pulse.

Toddy

03-07-2008, 02:08 PM

Its good to see that the Councils are managing the Public Transport and making decisions that have to be made.

WELLINGTON COMMUTER FARES TO RISE 10PC
1 July 2008
COLIN PATTERSON

WELLINGTON's regional councillors have decided in secret to raise bus, rail and ferry fares by an average of 10.2 per cent.

The rises -- to take effect on September 1 -- were approved in a public-excluded session during a council meeting yesterday.

Councillor Nigel Wilson moved that the matter be discussed with the public and media present but failed to get a seconder.

Council chairwoman Fran Wilde said higher fares were needed to cope with rising oil prices, which had added $2.4 million to the costs of the council's bus contracts.

Other rising costs also played a part.

"Our rail contract has cost us $2.5 million more this financial year, largely because of higher labour-related costs. We're also paying more to maintain our infrastructure, such as bus shelters, car parks, and trolley-bus wires."

Rounding up and a policy of raising fares by 50c increments meant that some fares would not change while others would rise by substantially more than the average.

The city section fare in downtown Wellington remains $1. But the 50c child concession has been abolished.

Though the one-zone fare remains $1.50, fares for zones two, three and four will rise 50c to $3, $4 and $4.50 respectively.

The four-zone fare rises by $1 to $5.50. The $1 increase applies for all subsequent zones.

An adult single train fare between Wellington and Masterton will rise to $15, from $14.

Children's fares for zones one, two and three stay the same but rise 50 cents for subsequent zones.

Porirua, Upper Hutt Valley, Kapiti Coast and Wairarapa commuters will pay $8 more for their 10-trip concession tickets.

Monthly rail passes for commuters from these areas who travel to Wellington will rise by $24, with Masterton commuters paying the most -- $360.

Council public transport design and development manager Brian Baxter said the increases would not apply to commercial services, such as the Airport Flyer bus.

The Wellington Cable Car was also unaffected.

And though fare rises were expected to reduce patronage, Mr Baxter said that drop was expected to be temporary.

That depended, however, on what happened to petrol prices.

After the previous fare increase -- 15 per cent in September 2006 -- there were complaints from commuters who said they had not been told.

Mr Baxter said the council was planning a communications campaign to ensure public transport users were well informed about the latest rises.

"We've learnt a few lessons from last time."
©2008 Fairfax New Zealand Limited
Dominion Post

POSSUM THE CAT

03-07-2008, 04:24 PM

Just as usual they get some increase in patronage. So they decide they can rip them off some more. So back to cars.

QOH

04-07-2008, 09:31 AM

Any suggestions on what it might be.

COLIN

04-07-2008, 11:10 AM

Any suggestions on what it might be.

My guess is that it is something to do with AIA.
A "material announcement" they said.

COLIN

04-07-2008, 11:45 AM

Well, that was a bit of a fizzer.
Energy Developments represents less than 5% of IFT's assets. It seems to have had problems with its West Kimberley development which has had huge cost over-runs.

POSSUM THE CAT

04-07-2008, 12:26 PM

Read article in papers re appeal on NZ BUS court case

Toddy

04-07-2008, 08:30 PM

Well, that was a bit of a fizzer.
Energy Developments represents less than 5% of IFT's assets. It seems to have had problems with its West Kimberley development which has had huge cost over-runs.

ENE has some first class assets but has be held back by second rate management over the years. A number of their projects have been mis-managed and an even greater number have not even got off the ground.

IFT obviously thought that there was value here as they have invested over a number of years including recent times. However, they are not confident enough to make a full take over offer and the market has lost confidence in ENE.
Breaking up ENE and selling off assets will realise amounts far creater than the current SP has priced in.

macduffy

04-07-2008, 08:39 PM

Well at least IFT aren't thinking of taking ENE over. I hope not!

Toddy

04-07-2008, 08:57 PM

Well at least IFT aren't thinking of taking ENE over. I hope not!

I'm not sure what the game here is. Reading between the lines maybe IFT has initiated the exercise (being the major SH) with the end goal of ending up with the cream of ENE's generating assets.

Or, someone has come to IFT with a deal. Signing off saying that you are not going to sell your holding before 18 August may well mean that IFT has already lined up a buyer?

Has anyone out there had experience/or seen this kind of deal (strategic review) before?

macduffy

05-07-2008, 09:19 AM

I don't have any answers but the ENE story is a bit sad really. It was very successful several years ago, pioneering electricity from landfill gas in Australia, at a time when energy was much less valuable ( or at least, much less valued ) and building and operating remote power systems, some of them from coal seam methane, some diesel powered, for mines etc.
It was also a very good investment with a regular stream of heavily discounted cash issues and share purchase plans. One of my better investments!
The company started to go astray when it tried to develop a more sophisticated system for large scale gas from trash.
The name of the system escapes me now but suffice to say that ENE poured many millions into it before giving it up as a bad job. IFT became involved during this time so has never benefitted from ENE's golden period.
I wouldn't write ENE off entirely. It may be that IFT see some of the generation assets as attractive, although quite small scale, but as an IFT shareholder I'd rather they didn't make a big investment by taking over the entire company.

Steve

05-07-2008, 08:50 PM

Steve

How did the presentation go?

It was positive in terms of the potential of their investments, with frustration at the way the shareprice is being marked down in the current environment.

There was a good example of how the value of Trustpower's generation capabilities is determined and a local example of how it was considered that the Dunedin City Council made an error in keeping the 'lines' business while flogging off the Waipori generation assets.

It was noted that the bus investments were still struggling due to 'red tape', but the potential was still there to be extracted.

Airport assets were discussed with regards to Wellington Airport, and there were questions from the floor regarding the lack of returns from the overseas airport investments. They missed out on bringing a freight distribution contract to one of the overseas airports, which would have released a huge increase in value for the airport if it had been successful.

No mention was made of this weeks announcement regarding the Aussie energy assets...

Toddy

11-07-2008, 05:10 PM

Trustpower expects 15 pct earnings growth
Reuters | Friday, 11 July 2008

New Zealand electricity generator and retailer TrustPower says its 2008/09 earnings may grow around 15 percent, despite a dry and mild period hitting its electricity generation.

The country's second largest listed power company generates all its power through renewable sources -- wind and hydro -- making it vulnerable to drought.

Chief executive Keith Tempest said the company still expects growth in earnings before interest, tax depreciation, amortisation and financial instruments (ebitda) in the year to March 2009, despite the impact of the "one in a hundred year" dry and windless spell.

"Most analysts are looking in the $240 million region, which I'd put as achievable," he told Reuters in an interview.

Ebitda for the year to March 2008 was $208 million, with net profit of $98 million. Shares in TrustPower, 50.5 percent owned by utilities investor Infratil Ltd and 33 percent owned by a consumer electricity trust, last traded up 1.3 percent at $7.70. The stock has fallen 11 percent so far this year, compared to a 24 percent decline in the benchmark top 50 index.

TrustPower plans to almost double its renewable generation through new wind and hydro plants, which it expects to fund through debt.

Rif-Raf

11-07-2008, 09:46 PM

Toddy

15-07-2008, 01:16 PM

Trustpower will be in profit clawback mode now. Earlier than predicted when they gave the profit downgrade.

Electricity industry relaxes
http://www.stuff.co.nz/4618378a13.html

Toddy

15-07-2008, 04:46 PM

Just as usual they get some increase in patronage. So they decide they can rip them off some more. So back to cars.

Possum, got any stats to back your comment up.

According to the latest IFT email, Aucklanders love the new bus services.

NZ Bus Patronage

NZ Bus has seen an increase in year-on-year patronage as more Aucklanders and
Wellingtonians recognise and utilise the benefits of the cost effective
public transport system available to them. The reasons for increased
patronage are attributed to a number of factors and vary from route to route.

"We have seen significant growth in the number of customers using the Mt Eden
service" says Bruce Emson, CEO. "As a result of increasing service and
providing more buses more often, we have seen an increase in patronage of
approximately 17%."

"Community events also impact patronage. An example of this is that a number
of our Orakei routes have seen increases in the vicinity of 20%, largely as a
result of people travelling to and from the Sylvia Park retail complex" says
Mr Emson. Traffic infrastructure improvement has driven other increases -
for example, the installation of the Northern Expressway has driven increases
of up to 60% on some express services.

In Wellington, there has been noticeable growth on the Seatoun express
service (11%) and the Wainuiomata-Wellington commuter service (33%), which
has recently had extra capacity added. Improvements to the Airport Flyer
service have also increased patronage on that route by 15%.

"Naturally, travelling during peak times you can expect a degree of
congestion" says Mr Emson. "What we are seeing is that passengers who have
flexibility in their schedule are making decisions to travel off-peak."

"It is inevitable that as petrol prices continue to climb that people will
start to make smart choices with their disposable income. Catching the bus
is clearly one of those."

Auckland patronage June 2008 June 2007
Passengers 2,751,267 2,541,107
Adjusted for comparable days 2,718,487 2,541.107
Percentage increase 7.0%
Average passengers per day 90,616 84,704
Bus load equivalents per day 1,510 1,412

Wellington patronage June 2008 June 2007
Passengers 1,615,571 1,530,027
Adjusted for comparable days 1,592,926 1,530.027
Percentage increase 4.1%
Average passengers per day 53,098 51,001
Bus load equivalents per day 885 850

POSSUM THE CAT

15-07-2008, 05:53 PM

Toddy read your own post re Wellington city council increasing fares

QOH

15-07-2008, 06:04 PM

I find the statistics from their Kent and Lubeck airports very underwhelming. Maybe they should just sell off the land in Kent. I'd have thought an airport there would be doing well by now.

shasta

15-07-2008, 06:12 PM

Toddy read your own post re Wellington city council increasing fares

I can tell you that the off peak train fares from Wellington - Johnsonville are due for an increase from 1 September.

As someone who uses both the rail & bus system several times a week, the small increase from $2 to $2.50 for the train is quite acceptable.

(Im assuming the peak rates will go from $3.50 - $4.00)

You can get from the Railway Station to Courtney Place for $1 on the bus.

No wonder i've noticed a big increase in passengers on both, it's so cheap.

Parking is expensive, even ignoring the rising price of oil.

No wonder i sold my car 4 years ago & moved into the City!

QOH

15-07-2008, 06:53 PM

I can tell you that the off peak train fares from Wellington - Johnsonville are due for an increase from 1 September.

As someone who uses both the rail & bus system several times a week, the small increase from $2 to $2.50 for the train is quite acceptable.

(Im assuming the peak rates will go from $3.50 - $4.00)

You can get from the Railway Station to Courtney Place for $1 on the bus.

No wonder i've noticed a big increase in passengers on both, it's so cheap.

Parking is expensive, even ignoring the rising price of oil.

No wonder i sold my car 4 years ago & moved into the City!

Up here on the coast, we are going to be better off even with increased rail fares. They are having a trial for a few months of running free buses to railway station.

Toddy

15-07-2008, 09:42 PM

I find the statistics from their Kent and Lubeck airports very underwhelming. Maybe they should just sell off the land in Kent. I'd have thought an airport there would be doing well by now.

Agree, very frustrating.

Only consolation is that IFT management do have a medium term plan.
Lubeck Airport has just had a train station commissioned recently. My understanding is that Lubeck is still not a done deal until the planning consent has been successful for the runway extension, i.e IFT have an out clause where the council would buy back IFT's investment if the planning consent is not successful.

Kent. In theory the freight business should be doing significantly better. We should not be seeing seasonal dips, only growth. So far, most attempts to get passenger flights going have ended in tears for a number of reasons. It is a good piece of dirt and very modern. I'm sure that it would be a great asset to own in say, 20 years time.

I'll ask some questions at the IFT investor presentation. However, the answer would be along the lines that the assets are insignificant and offer IFT optionality in a growing industry. Budget air travel when I lived in London was super affordable to every level of society. Put it this way, it is cheaper to fly to Europe for the weekend than take the car for a Sunday drive.

The bus story is starting to take shape despite the red tape from Local and Central Govt.

ratkin

16-07-2008, 05:56 AM

Recently booked one of these so called cheap flights with a discount outfit called flybe.

Return amsterdam to exeter for two people . Was advertised as ten pounds (27 dollars)

Total cost turned out to be 180 (apx 500 dollars)

10 pounds per bag
10 pounds to book seat
50 pound taxes

etc etc

Turned out to be not much cheaper than british airways, unless they too had hidden extras

Rif-Raf

17-07-2008, 09:40 PM

Picked up a 1m warrants today.

Toddy

17-07-2008, 10:07 PM

Picked up a 1m warrants today.

Morrison did the same on the 14th.

Romer

17-07-2008, 11:04 PM

Hmmm. That's a good sign!

Toddy

21-07-2008, 10:59 AM

The sale process is underway.

July 20 (Bloomberg) -- Energy Developments Ltd. hired RBC Capital Markets to auction a 200-million-pound ($400 million) business generating landfill-gas power in the U.K., France and Greece, the Sunday Times reported today without citing anyone.

Likely bidders include Infinis, the renewable energy group owned by Guy Hands' buyout group Terra Firma Capital Partners Ltd, and Macquarie Group Ltd, the Australian infrastructure group, the newspaper said. Landfill-gas power produces electricity by burning methane created by decomposing waste.

Also, check out todays wholesale spot market ELECTRICITY prices. Any electricity crises is well and truely yesterdays news.

http://www.electricityinfo.co.nz/comitFta/ftapage.main

Romer

25-07-2008, 08:50 PM

The B warrants up 25% two days in a row. Down days at that.
Confirmation at last that IFT has been severely over-sold!!!

Rif-Raf

25-07-2008, 08:55 PM

I'm no expert in TA but the chart certainly looks very healthly having well and truly broken the long trend down that started in January.

Interesting to compare to TPW chart too but no conclusions on that one. The improved situation in the lakes will certainly have been great for TPW

The directors that bought the warrants last week have made a killing.

QOH

25-07-2008, 09:45 PM

might start moving soon. Wasn't today the last day for trading the partly paid ones. I stocked up on "Bs" last week.

Toddy

27-07-2008, 09:39 PM

Annanz

Talk about complicating a business plan. The only plan from here should be doing the big sell on a decent budget airline with decent capital backing. How do you convince a Ryanair or Easyjet to add services to Kent.

The local community cannot use the airport if there are no planes.

Zaphod

28-07-2008, 05:23 PM

I always take those types of surveys with a grain of proverbial salt. Locals will invariably say that they will use the service (perhaps due to the 'prestige' of having an international airport servicing the public), but the numbers never materialise at those levels in the end.

Toddy

28-07-2008, 10:17 PM

Monday 28th July 2008

TrustPower, the power station operator controlled by Infratil, said a decline in the New Zealand dollar may reduce the economics of wind farms.

The company typically buys its turbines in euros and its towers in US dollars, which have both weakened against the kiwi.

The company is gearing up to expand its wind farms in Australia, where it is to install about 140 MW of generators, and in New Zealand, where it has consents for more turbines.

The kiwi's decline "may make wind farm economics more challenging," the company said in slides for a presentation in Sydney.

This is code for............ if the Govt wants to get anywhere near its renewable energy target then the electricity prices in New Zealand are going to have to hike alot sooner and higher than has been forecast in the past.

Zaphod

29-07-2008, 06:20 PM

IFT
29/07/2008
ALLOT

REL: 1642 HRS Infratil Limited

ALLOT: IFT: Allotment Notice

The following information is provided in accordance with
Listing Rules 7.12

Class of security: Ordinary Shares

ISIN: NZIFTE0003S3

Number of Ordinary Shares issued: 8,726,534

Issue Price: $2.00

Payment: Final instalment $1.00, in cash

Amount paid up: Partly paid Ordinary Shares fully paid to $2.00

Percentage of the total class of securities issued (after the issue): 1.93%

Reason for the issue: Partly Paid shares converted (IFTCB).

Specific authority for the issue: Terms and conditions of the issue of the
Partly paid shares prospectus dated 29 August 2007. Board resolution dated 27
August 2007.

Terms or conditions of the issue: Partly paid shareholders have the right to
subscribe for Ordinary Shares, credited as fully paid, at the final
instalment price of $1.00

Total number of Ordinary Shares in existence after the issue: 452,150,088

Total number of Partly paid shares o
n issue after the above are converted:
79,281,527

K M Baker
End CA:00167955 For:IFT Type:ALLOT Time:2008-07-29:16:42:38

Toddy

30-07-2008, 09:43 PM

Looking good for the final investment decision to be made within weeks.

TrustPower asked to look again at project
The Environment Court wants TrustPower to look again at its $400 million Mahinerangi wind farm project, saying it is not confident 100 turbines can be accommodated on the 1723ha site.

In its interim decision released yesterday, the court rejected the appeal against the project by the Upland Landscape Protection Society but asked TrustPower to do more homework on how many turbines it needs and where they should go.
However, the court said it accepted the wind farm would benefit the district, the region and also the nation.
A significant advantage, it said in its 73-page decision, is that wind generation does not produce any greenhouse gases, while the court also accepted the prospects of work for local people, both during and after construction.
It has yet to decide on how costs should be awarded.
TrustPower now has 40 working days to review its site plan and consider whether it wants to stick to its plan of erecting 100 145m turbines on the site.
In a brief statement, it said it welcomed the decision.

"This is a positive step towards increasing New Zealand's renewable electricity supply and for continued growth of TrustPower's renewable asset base.

"We are still reviewing the details of the decision and will look to progress any actions required to secure a final decision over the coming weeks."

But the court has told TrustPower to have a re-think on exactly where the turbines should go.

A revamped design would need to avoid rows of turbines or give the visual appearance of a "wall" from certain angles.

"We are confident the site can accommodate more than 66 turbines but are not so confident that the 100 turbines envisaged can be accommodated.

"However, we consider that if significant cuts, fills and batters can be avoided, the site may be able to accommodate up to 100 turbines if placed and sited appropriately."

Because of this view, the court said it was giving TrustPower the opportunity to reconsider both the number and location of turbines "and to provide modified conditions to meet the concerns of the court."

Its revised plan must be given to the Clutha District Council, Otago Regional Council and society for comment and, if possible, signed agreement.

But there were several key positive benefits to be gained from the development, the court said.

These were the creation of jobs during and after construction, the provision of a renewable energy power source to meet New Zealand's energy needs, and a new energy source in the southern South Island which could enable community and business activities.

Society spokesman Richard Reeve said he and other members had yet to read the decision and could not comment yet.

A statement may be issued later today.

Major benefits

• Minimum irreversible long-term modification of
landformMajor visual effect of the activity will stop, if the activity
stops, with turbines removed..

• Existing farming can continue

• Improvement to ecological values of Scrappy Pines area.

Source: Environment Court

Key conditions

• TrustPower must prepare a site plan showing the number and
position of turbines, areas to be excluded from works, access roads,
cut and fill batters, surplus soil disposal areas and cut and fill
calculations in each area.

• Site plan to be prepared and circulated within 40 working days and talks with other parties within 30 working days thereafter.

• If all parties cannot agree, a further pre-hearing conference and hearing may be needed.

Rif-Raf

30-07-2008, 10:02 PM

There is great demand for commercial passenger flights from Kent International Airport, near Ramsgate, according to a survey completed by nearly 11,000 local residents.

The online survey undertaken on behalf of the airport found that 71% felt that scheduled commercial air passenger flights from Kent International Airport were very important. A further quarter of respondents felt that commercial flights were ‘somewhat important’ with only 2.7% considering them ‘not important at all’.

When asked whether they would use a commercial air service from Kent International Airport, 85.9% of respondents said it was very likely, and a further 10.7% felt it was ‘somewhat likely’.

Matt Clarke, Chief Executive of Kent International Airport, said: “This is an excellent vote of confidence in the airport and will boost our efforts to bring scheduled passenger services back to the county.”

According to the survey’s respondents, the time saving and locational benefits were seen as the top two advantages of Kent International, according to 91.3% and 86.5% respectively. The results also recognise Kent International Airport’s potential, with 72.5% of the 10,673 respondents acknowledging that the return of passenger services would have local economic benefits.

Importantly from the airport owner’s perspective and Infratil’s on-going efforts to secure the return of scheduled services, the survey showed that should commercial air services be offered from Kent International Airport they would pay a premium. More than a third of respondents (34.3%) said they would consider paying a £20 premium for a return flight from Kent International Airport rather than trek to Gatwick, Heathrow or Stansted.

Matt, Clarke added: “Interestingly, and probably in response to the experience of flying from the London airports, 16% who answered the survey said they would pay a premium in excess of £60 per round trip. In the current economic climate this news will be well received by airlines considering operating from Kent International.

“We believe that Kent International Airport has a major role to play in delivering passenger services to the residents of the South East. This was reinforced by the fact that more than three out of every four of respondents have been inconvenienced at other London airports due to the distance and travel time, traffic, parking and long queues and crowding when they get there.”

Infratil is currently analysing the demand for specific routes highlighted in survey. However, the survey suggests the airport has the potential to meet customer demand all year round, with 59.3% of respondents looking for package holidays and 53.2% interested in jetting off for winter sun. A further 20.8% were interesting in flights from Kent International Airport for skiing holidays.

Matt Clarke concluded: “This provides us with a snapshot of the demand for passenger services from the airport and has confirmed our understanding of the travel habits of Kent residents, importantly where they fly to and where they would like to fly to.

“Later in the year we will present our plans for the long-term future of Kent International Airport with an opportunity for local residents and authorities to give us their views.”

http://www.onlykent.com/20080725/latest-news-on-kent-international-airport/

This is all good. It takes times, but they have to know and understand the market and build the case accordingly. It will take patience though

Toddy

05-08-2008, 07:04 PM

This is very good news for TPW and IFT. 2008 is going to end up being the biggest year for them both in terms of getting the go ahead on a number of projects, investing hundreds of millions of dollars.

GENERAL: TPW: TPW Resource Consents Granted for 72 MW Wairau Valley Hydro

Media Statement from TrustPower Limited
5 August 2008

The Marlborough District Council has advised TrustPower that it has been
granted the resource consents required to build its proposed 72MW hydro
scheme in the Wairau Valley in Marlborough.

The proposed $275 million scheme will take water from the Wairau River, and
pass it though six power stations, including the existing Branch River hydro
scheme, before returning the water to the river some 50km downstream.

The full resource consents follow interim consents issued in June 2007 after
six months of hearings by a panel of independent commissioners, and a
subsequent hearing to determine a wide range of conditions designed to ensure
there is minimal adverse impact upon the environment.

TrustPower Chief Executive Keith Tempest says the issuing of the full suite
of resource consents and conditions has justified the time, effort and
expense TrustPower has put in to the proposal since it was first mooted in
2002.

"The proposed scheme will provide direct benefits to upper South Island
communities and indirect benefits to the rest of New Zealand through the
freeing up of electricity currently imported into that region for more
efficient use elsewhere. At the same time it will assist New Zealand to meets
its targets of increased sustainable generation using local natural
resources, with minimal impact on the environment.".

Toddy

14-08-2008, 08:49 PM

Its good to see that the monthly updates now include more than just the airports.

Victoria Electricity

At the end of July, billable customer numbers reached 350,000 (up from
286,000 at the end of 2007/08 financial year). This figure includes a
significant number of Queensland customers acquired over the course of this
calendar year. However, growth was curtailed in Queensland at the beginning
of June shortly after retail benchmark price caps were set at levels well
below those required to recognise the significant increases in wholesale
energy and network charges. Customer numbers in South Australia have also
remained steady due to elevated wholesale energy prices. Growth efforts are
currently focused on Victoria where the conditions for profitable competition
are best, albeit that growth is harder in this market due to the maturity of
competition and efforts of other retailers to acquire and retain customers.

The Federal Government recently released a Green Paper on its proposed Carbon
Pollution Reduction Scheme (a cap and trade system). While there are many
details to be worked through, there has been initial recognition that retail
price caps will need to be addressed as part of the implementation of the
scheme.

Toddy

19-08-2008, 02:45 PM

I couldn't make it down to windy Wellington this year for the a.g.m.

Did anyone attend?

Zaphod

09-09-2008, 07:30 PM

Toddy

09-09-2008, 08:54 PM

Here's an interesting piece on the The Public Transport Management Act, that will have a significant impact on the operations of NZ Bus.

Might spark some interesting debate.

http://www.nzherald.co.nz/section/story.cfm?c_id=280&objectid=10531029

The original PDF copy of the bill can be viewed here

http://legislation.govt.nz/bill/government/2007/0155-2/latest/viewpdf.aspx

I'm all for the Auckland rate payers following the Labour party model of NZ Railways and writing out a big fat cheque to the 'merchant bankers' so that can run the transport system themselves.

POSSUM THE CAT

10-09-2008, 02:24 PM

Zaphod

10-09-2008, 05:40 PM

Bankrupting PT providers by removing subsidies would create one giant shambles for local authorities both legally and logistically.

What would you propose as the most efficient and effective ownership/operation model?

Toddy

10-09-2008, 09:16 PM

Toddy You believe in competition they just stop subsidizing private operators and buy new busses or buy the bankrupt businesses off the receiver. They have no need to buy private operators out. They will be just trying to rescue as much as they can from the mess. The Ownership of Bus companies makes me forget about buying Infratil Shares

Possum, the Local Govt sold the bus business because they were inefficient at running it. Now they want the law changed so that they do not have to be involved in the day to day operations but want to be able to make all of the business decisions.

Infratil is like a good landlord who offers renovated properties. They have plenty of room to offer cheap budget services. The only loser would be the people that actually use the service (thats not you Possum).

Push the right buttons and I'm sure that Infratil can provide New Zealand standard services as opposed to International standard services.

If thats what Aucklanders want, then who am I to argue.

POSSUM THE CAT

11-09-2008, 10:11 AM

Toddy when a 25min journey in a car takes over 90mins by bus only the desperate use bus. No the bookeeping makes it looklike they are inefficient at running it. Apparantly Infratil are not very efficient at running it either as they admit it is not performing to expectations. I also look at walking as it is quite often quicker and definately cheaper than catching bus.

Toddy

11-09-2008, 02:51 PM

Toddy

11-09-2008, 06:26 PM

It looks like the bus subsidies will be increased to cater for fuel efficient, disability friendly buses and increased red tape. This means that the cheap bus providers will be pushed out.

Legislation giving regional councils greater control over public transport services has passed into law as Parliament sits under urgency.

Previously councils could set standards for public transport it contracts.

The bill will also allow councils to:

* require services to be disability-friendly, such as super-low floor buses and public address systems;

* require information about demand and cost;

* allow councils to require providers to give 90 days notice instead of 21 days for changes such as to timetables;

* require different operators to use the same tickets in some cases, for example, where different providers work the same route;

* allow regions to insist on low emission buses.

The legislation follows a review of public transport law by a working group made up of central and local government as well as public transport operators.

Transport Minister Annette King said the bill did not tell regional councils how to run their public transport systems, just gave them the tools to run them effectively

The National Party did not vote against the bill, but transport spokesman Maurice Williamson said he had reservations about it as it created needless red tape for operators.

Unsubsidised public transport services should be able to operate without regional council interference as long as they followed Land Transport rules, he said.

Zaphod

11-09-2008, 06:41 PM

Maybe the timing is right to head up to Auckland and start a petition.

Buy back our bus company from those money hungry capitalists. We give them 90mil a year. That will be a 90mil savings if we, the rate payers, owned it.

I know it would be a dangerous strategy as people get elected onto councils saying such things. And I would have to front on that socialist tv program called 'Close up' to explain.

That's the same rather questionable logic that was used to justify the re-purchase of the rail network.

If local authorities can operate the PT services more effectively, and at the same or lower cost, then perhaps it should be considered. History thus far does not support this argument, and I think that rate payers would revolt at the thought of the Cap Ex required to re-establish PT under rate-payer ownership.

POSSUM THE CAT

11-09-2008, 08:50 PM

Zaphod They Can buy for pittance there are no other willing buyers

Zaphod

11-09-2008, 08:56 PM

And that's exactly what happened when the Government bought back the rail assets off Toll, didn't it?

POSSUM THE CAT

12-09-2008, 01:10 PM

Zaphod trains do not run on public roads and parts were very profitable but busses are only profitable twice a day for short time and with just those times to produce revenue the fares would be astronomical so it would only take about a fortnight to have them begging to be bought out.

Zaphod

12-09-2008, 03:26 PM

The trains were running on publicly-owned rail tracks, so the analogy is still relevant. I also suspect the courts would not look too favourably upon the plan you have outlined for re-nationalisation of NZBus, neither would IRD.

Even if the business was picked up "for a song", would ratepayers be willing to suddenly bear the brunt of operating the PT business? Remember that a fair percentage of the total cost of the bus purchase price of $350,000+ is paid for by investors of NZ Bus. In a totally public system, this would be paid by the ratepayers.

But this whole discussion is hypothetical. I have not seen any indication by either the local authority or central government that they intend to re-nationalise the PT industry.

Zaphod

12-09-2008, 03:37 PM

Toddy

19-09-2008, 09:52 AM

Infratil hoping to land UK airport
By NICK SMITH - The Independent | Friday, 19 September 2008

Listed infrastructure investor Infratil is on the hunt for airports in Britain if the competition regulator forces London airport group BAA, owner of Heathrow and Gatwick, to sell some of its assets, Lloyd Morrison confirms.

The Infratil boss said there are a number of interesting smaller assets such as Southampton and larger ones in Glasgow and Edinburgh, although the Scottish airports might present ``competition issues'' as Infratil already owns Glasgow Prestwick Airport.

Infratil also owns airports in Kent and Hamburg Lubick, Germany. The potential acquisition comes as New Zealand analysts finally begin to warm to the company's European assets.

ABN Amro's Rob Foster said BAA's recent sale of Belfast City showed Infratil's ``unloved'' airports contained more value than previously thought.

``They've not been great performers and consequently have received little attention from analysts and the market has struggled to recognise value in the assets,'' Foster said.

Belfast sold for 133 million, while Leeds Bradford yielded a transaction valuation of 146m.

This implied a trade sale valuation for Glasgow Prestwick of 108.5m, Foster said, more than double its previous valuation of 44.5m.

Morrison said analysts made the mistake of treating its airports as mature assets, rather than the start-up or developing airports they actually are. ``There's another [sale] coming up called Southend, which is in the Thames estuary and that's a very small airport,'' Morrison said.

``That is more our scale.

``The sale of Belfast is an example of an asset the equivalent of Glasgow Prestwick and the sale of Southend will give an idea of what an airport like Kent might do.'' Analysts had valued Kent at only 27m but Foster has now upped that to 74m.

Morrison rates his company's ability to find ``asset opportunities'' in ways that avoid competition. Companies tend to pay full value at airport tenders, whereas ``we bought Kent out of receivership''.

``We're still active in that part of the market,'' Morrison said. ``If one of the Scottish airports came along it would be interesting but the issue for us is whether we would be allowed to bid from a competition perspective. Edinburgh would fit very well with Prestwick.''

The UK Competition Commission is recommending BAA, owned by Spanish infrastructure company Ferrovial, be forced to sell at least three of its UK airports Gatwick or Stansted in London and possibly Edinburgh or Glasgow, British media report.

``They haven't announced anything around Southampton, which is a small airport [and] they might sell that,'' Morrison added.

Despite the credit crunch, market interest in airports ``is as strong as it was 12 months'', he said.

Analysts have for years been telling Infratil to divest its European assets but Morrison backed his ability to extract further value.

``When you sell that's when you think there's a peak of demand that isn't sustainable,'' he said. ``It's quite clear that all of our assets have further value to be added to them.

``The level of interest in the sector is still high and there's no sign of it abating.''