WELLINGTON, New Zealand, Aug. 28 /PRNewswire-Asianet/ Tranz Rail Holdings Limited (NZSE: TRH; Nasdaq: TNZRY) today reported that Tranz Rail Holdings Limited is part of a consortium which has been a successful bidder in the first stage of the privatization of Australia's railway system. The Australian Transport Network (ATN) consortium has been announced as the purchaser of Tasrail, the freight railway system in Tasmania which comprises rolling stock, infrastructure and maintenance facilities. ATN is made up of the United States rail operator Wisconsin Central Transportation Corporation, Tranz Rail, the United States investment organization Berkshire Partners and Fay Richwhite of New Zealand. Mr. Edward A. Burkhardt, Chairman of both Wisconsin Central and Tranz Rail, executed the agreement with Australia's Commonwealth Minister of Finance, Mr. John Fahey, at the East Tamar workshops of Tasrail in Launceston a short time ago. ATN has agreed to acquire Tasrail for A$22 million. It has also contracted to make capital investments of A$20 million in Tasrail over the next four years. "We are proud of our international track record of revitalizing ailing rail networks," said Mr. Burkhardt. He added that ATN has made a significant long-term commitment to building an efficient rail network in Tasmania which can compete with other forms of transport and offer existing and new customers a better transport solution. He said the consortium has identified untapped rail freight opportunities in Tasmania including forestry, pulp and paper, limestone, gypsum and agriculture. Tranz Rail's Managing Director, Dr. Francis Small, says he believes the Commonwealth and Tasmanian governments were attracted by ATN's commitment to extensively upgrade the asset base and invest in Tasmania. "The New Zealand rail system was privatized just four years ago and Tranz Rail is now established as New Zealand's leading transport company with strong rail, road and sea operations, warehousing operations and comprehensive logistics support." Wisconsin has rail interests in New Zealand, the United States, Canada and the United Kingdom. Berkshire Partners and Fay Richwhite have rail interests in New Zealand and the United Kingdom. Tasrail is the Tasmanian division of the Australian National Railways Commission which is owned by the Commonwealth Government. The Tasmanian rail system was established in 1871. It is a self contained system providing bulk and containerized freight services. The track gauge is 1067 mm (3 feet 6 inches) which is the same as that used in New Zealand. Tasrail has about 750km of track of which some 500km is currently in use. It employs about 175 people. There is an operational fleet of 30 locomotives and around 550 wagons. Tasrail also has a modern, well equipped workshop at Launceston. There is a well established customer base for which it transports coal, cement, newsprint and pulp as well as general and containerized freight. Shares of Tranz Rail Holdings Limited are publicly traded on the New Zealand Stock Exchange under the symbol TRH and the U.S American Depositary Shares (ADS) of the Company are traded on the Nasdaq National Market System under the symbol TNZRY (each ADS is equivalent to three (3) shares). The Company is the leading multi-modal freight transport and distribution company in New Zealand and operates the only commercial railroad providing freight and passenger services utilizing 3,900 route kilometres (2,400 miles) of track, approximately 340 locomotives, 7,000 wagons (freight cars), 90 carriages (passenger railcars), 180 self propelled passenger railcars, 2,400 shipping containers and three roll-on-roll-off rail ferries between the North and the South Islands. SOURCE Tranz Rail Holdings Limited CONTACT: Ronald G. Russ, Executive Manager and Chief Financial Officer, 011-644-498-2099, or Fred Cockram, Corporate Relations Manager, 011-644-498-3136, both of Tranz Rail Holdings Limited/