Logistics solutions provider Toll Holdings has announced the completion of the sale of its New Zealand rail and ferry operations to the New Zealand Crown.
Toll managing director Paul little said the transaction, which was announced in May this year, has now been finalised and the transition arrangements were well progressed.
“We remain absolutely committed to the development of our remaining logistics operations in New Zealand, which have recently been enhanced by the acquisition of United Carriers,” he said.
The company is seeking additional New Zealand-based acquisitions to extend the scale and reach of the ongoing operations, with one of its focuses put on rail.
Mr Little said the company believes rail can be a long-term sustainable business with the Government aiming at increasing the use of rail as freight flows continue to grow.
“We recognise the efforts of the entire workforce in significantly improving the business over the past four years, and positioning rail as the most efficient modal alternative for future transport demand throughout the country,” he said.
According to Mr Little, cash proceed from the sale of equity in the operation of NZD 690 million will be used to retire debt as well as increasing the company’s cash reserves.