Originally Posted by
artemis
Following on from the above about NZBus. At the Infratil roadshow in Wellington yesterday there was an indication that NZBus would be put up for sale in a year or so. Although it is profitable, it does not fit the required growth profile of IFT investments, due to loss of route contracts and focus on cost cutting. The latter being the primary cause of the former it appears. Seems the company took a wrong turn a few years ago by putting investment into technical / green efficiencies as that was the direction understood at the time. Instead, a race to the bottom cost wise.
No doubt helped along in Auckland by GoBus tax advantage as it is owned by two iwi charitable trusts.
There was comment about the (electric) trolley bus decommission which is due this year. It was said that last time this came up for review there was public and Green Party opposition and the decommission did not proceed then. This time around there was no opposition so it is happening.
NZBus will thus shortly lose the trolley infrastructure so will replace these buses with diesel - they have these readily available due to losing the Auckland routes.
Wrightspeed trial of trolley buses converting to electric is well advanced though has not met original timetable. About to start testing on actual Wellington bus routes, on the basis if it can cope there it can cope anywhere! This info was given in discussion after the meeting.
Also the remaining Wellington routes are up for renegotiation, not re-tender so NZBus will retain them for a further 10 years. Once locked in, sale is likely.