Editing Tranz Rail (section)

===Privatisation===
The [[Fourth National Government of New Zealand|Bolger National government]], elected following the defeat of the fourth Labour government in [[New Zealand general election, 1990|elections held in October 1990]], [[privatised]] New Zealand Rail Limited in 1993. The [[New Zealand Treasury]] supported privatisation of the company, even though it stated Fay Richwhite had an unfair advantage over other bidders.<ref name="lookingback" /> Business journalist Brian Gaynor noted that New Zealand Rail was an attractive investment because of its strong balance sheet.<ref name="lookingback" />

Six consortiums made bids to buy New Zealand Rail Limited:<ref>{{cite news|publisher=[[The Dominion (Wellington)|The Dominion]]|date=23 June 1993|title=Lining Up For A Slice of Transport History}}</ref>
* Freightways and the Noel Group: Freightways is a major New Zealand freight operator, Noel Group was a US-based investment company with investments in railways in the United States.
* [[Fay Richwhite]] and [[Wisconsin Central Ltd.|Wisconsin Central]]: consortium made up of Fay Richwhite (31.8% via the investment company Pacific Rail, later renamed Midavia Rail), the American railroad [[Wisconsin Central Transportation|Wisconsin Central]] (27.3%), [[Berkshire Partners]] (27.3%), Alex van Heeren, the owner of Huka Lodge,<ref name="lookingback" /> 9.1% and Richwhite family interests, 4.5%.
* [[Sea Containers]], [[Anschutz Corporation]]: Sea Containers was particularly interested in the ferry business, and the rail operations as well. Anschutz owned [[Southern Pacific]] and the [[Denver & Rio Grande]] railways in the US (both later acquired by [[Union Pacific]]). 
* [[Mainfreight]], [[Brierley Investments]] and [[Railroad Development Corporation]]: Mainfreight is a major NZ Rail customer, but Brierleys was seen as having an interest as it was a part shareholder of the Union Shipping  Group. RDC was a minor owner of railroads in the US and Argentina. 
* [[Port of Tauranga]] and [[Port of Lyttelton]], [[China Navigation Company|Pacifica Shipping]], [[National Mutual]] and [[AMP Limited]]: At the time Port of Tauranga took 25% of rail freight, and Lyttelton was important for coal traffic. Pacifica saw the acquisition complementing its coastal shipping operation, and the insurance and investment firms were there for the later stock float.
* [[Ports of Auckland]] and [[CentrePort Wellington|Ports of Wellington]], Sofrana-Unilines and [[Stagecoach]]: Mirroring Port of Tauranga for competition, Auckland saw the investment as strategic. Wellington saw NZ Rail as its biggest customer with the Interislander. Stagecoach was seen as wanting to complement its bus business in Wellington. Sofrana was a French shipping line.

The company was sold to the Fay Richwhite-Wisconsin Central consortium for $328.3 million<ref name="gaynor_tough_case" /> through an entity named Pylorus Investments Limited, shortly afterwards renamed '''Tranz Rail Limited'''. The sale was completed on 30 September 1993.<ref>{{cite journal|periodical=[[Rails (magazine)|Rails]]|title=Rail sale completed|date=November 1993|publisher=Southern Press Limited|issn=0110-6155|page=80}}</ref> Tranz Rail Limited raised funds to buy New Zealand Rail by borrowing $223.3 million, and its shareholders contributed $105 million to the acquisition price through the purchase of 105 million Tranz Rail shares at $1 each.<ref name="gaynor_tough_case" />

In 1994 the company sold its 15% stake in [[Clear Communications]] for $72.6 million, $20.1 million above book value.<ref name="gaynor_tough_case" /> The company had gained its shareholding by selling its fibre optic network along the [[North Island Main Trunk]] to Clear.<ref>{{cite journal|periodical=Rails|title=NZ Rail Annual Report|date=November 1993|publisher=Southern Press Limited|issn=0110-6155|page=90}}</ref><ref>{{cite web|url=http://canterbury.cyberplace.org.nz/community/CAFCA/cafca94/sept94.html|title=September 1994 decisions|publisher=[[Campaign Against Foreign Control of Aotearoa]]|access-date=19 June 2009|archive-date=27 September 2011|archive-url=https://web.archive.org/web/20110927043016/http://canterbury.cyberplace.org.nz/community/CAFCA/cafca94/sept94.html|url-status=live}}</ref>