Editing Tranz Rail (section)

=== Formation ===
[[image:NZR Dc4726 Leaving Avondale Rail Station (14460778931).jpg|thumb|left|DC4726 in New Zealand Rail livery at Avondale in the 1990s]]
The [[Fourth Labour Government of New Zealand|Fourth Labour Government]] passed the New Zealand Railways Corporation Restructuring Act 1990 on 28 August of that year.<ref>{{cite web|url=http://legislation.govt.nz/act/public/1990/0105/latest/DLM222631.html?search=ts_act%40bill%40regulation%40deemedreg_Railways+Corporation+Restructuring+Act+1990_resel_25_a&p=1|title=New Zealand Railways Corporation Restructuring Act 1990|publisher=[[New Zealand Government]]|accessdate=18 August 2014|archive-date=19 August 2014|archive-url=https://web.archive.org/web/20140819084007/http://legislation.govt.nz/act/public/1990/0105/latest/DLM222631.html?search=ts_act%40bill%40regulation%40deemedreg_Railways+Corporation+Restructuring+Act+1990_resel_25_a&p=1|url-status=live}}</ref> Two months later, on 28 October 1990, the New Zealand government removed core rail transport and shipping operations from the New Zealand Railways Corporation, creating a separate entity called '''New Zealand Rail Limited''', a Crown Transferee company created under the Act. At the same time, the [[Rail Heritage Trust of New Zealand]] was formed to protect heritage assets that New Zealand Rail planned to dispose of, especially heritage rolling stock, stations and other equipment.

The government wrote off [[NZD|NZ$]]1.08 billion in debt acquired by the company from the Railways Corporation (mainly for the electrification of the [[North Island Main Trunk]], a [[Think Big]] project), and injected a further $300 million in capital.<ref name="lookingback">{{cite web|url=https://businessdesk.co.nz/article/the-life/looking-back-alex-van-heeren-tranz-rail-and-legal-humiliation|title=Looking back – Alex Van Heeren, Tranz Rail and legal humiliation|author=Brian Gaynor|publisher=Business Desk|date=27 June 2021|accessdate=29 June 2021|archive-date=29 June 2021|archive-url=https://web.archive.org/web/20210629004016/https://businessdesk.co.nz/article/the-life/looking-back-alex-van-heeren-tranz-rail-and-legal-humiliation|url-status=live}}</ref> [[Fay Richwhite|Fay, Richwhite and Company]], financial advisers New Zealand Rail, argued the company had a better future with minimal debt.<ref name="lookingback" />

Despite this capital injection, the company remained only marginally profitable, reporting after-tax profits of $36.2 million in 1992 and $18 million in 1993. The Railways Corporation retained ownership of the land beneath the railway tracks and yards, which New Zealand Rail paid $1 per year to lease.<ref>{{cite web|url=http://www.justice.govt.nz/publications/global-publications/d/directory-of-official-information-archive/directory-of-official-information-december-1997/alphabetical-list-of-entries-1/r/railways-corporation-new-zealand |title=Directory of Official Information |date=December 1997 |accessdate=18 August 2014 |publisher=Ministry of Justice |url-status=dead |archiveurl=https://web.archive.org/web/20130223054227/http://justice.govt.nz/publications/global-publications/d/directory-of-official-information-archive/directory-of-official-information-december-1997/alphabetical-list-of-entries-1/r/railways-corporation-new-zealand |archivedate=23 February 2013 }}</ref>

New Zealand Rail re-branded, introducing a new logo similar to the Railways Corporation but with blue and yellow as colours instead of red and black, and a blue livery on locomotives, rolling stock and buildings.