Editing Tranz Rail (section)

===Rebranded Tranz Rail===
<!-- Deleted image removed: [[File:TranzRail DQ.jpg|thumb|200px|[[NZR DQ class|DQ 6324]] at Palmerston North in Tranz Rail's Cato blue livery in use 1995–2001.]] -->
[[File:DFT7145 Ahuriri 8Jun2003 JChristianson.jpg|thumb|200px|[[New Zealand DF class locomotive (1979)|DFT 7145]] in Napier in Tranz Rail's [[Bumble-Bee (livery)|bumble bee livery]], in use 2001–2004.]]
New Zealand Rail carried its corporate brand until 18 October 1995, when Tranz Rail Limited was renamed Tranz Rail Holdings Limited and New Zealand Rail Limited was renamed Tranz Rail. On the same day Tranz Rail Holdings Limited made a $100 million capital repayment to the Fay Richwhite consortium, largely financed by the sale of shares in Clear Communications.<ref name="gaynor_tough_case" /> The Tranz Rail brand was created by Wellington-based Cato Partners, who also designed brands for the divisions of Tranz Rail:<ref name="cato">{{cite web|url=http://www.cato.co.nz/nz/en#/nz/en/work/transport/nz_tranz_rail?navigation=false|title=Cato Partners – Tranz Rail|accessdate=28 December 2011|archive-url=https://web.archive.org/web/20111223152440/http://www.cato.co.nz/nz/en#/nz/en/work/transport/nz_tranz_rail?navigation=false#/nz/en/work/transport/nz_tranz_rail?navigation=false|archive-date=23 December 2011|url-status=dead}}</ref>

* CityRail, urban rail commuter services in Auckland and Wellington, were renamed [[Tranz Metro]]
* InterCity Rail, long-distance rail passenger services were renamed [[Tranz Scenic]]
* RailFreight, rail freight services were renamed [[Tranz Link]]

The livery that resulted was nicknamed [[Cato Blue (livery)|Cato blue]] by rail fans.<ref name="cato" />

==== Initial Public Offering ====
Tranz Rail listed on 14 June 1996 on the [[New Zealand Exchange|New Zealand Sharemarket]] and [[NASDAQ]]. 31 million new shares, equivalent to 25% of the company,<ref name="lookingback" /> were issued to the public at $6.19.<ref name="gaynor_tough_case" /> At the time of the Initial Public Offering (IPO), Tranz Rail had term loans debt of $300 million.<ref name="lookingback" />

The share price reached $9.00 in the middle of 1997 due to the enthusiasm at the time for rail to have a revitalised future however the ongoing and unsustainable rail infrastructure costs were what failed the company in the end despite aggressive efforts to maintain a sustainable business. The rail traffic and extensive network were simply not sustainable to maintain by a private company in the long term even through Wisconsin Central Transportation were heavily invested in the future of the company. Some of the original Tranz Rail shareholders took advantage of the high share price to sell down their shares in the company. Berkshire Fund sold most of its shares at more than $8 each between November 1996 and March 1997.<ref name="gaynor_tough_case" /> In 1998, Alex van Heeren sold his holding for a profit of more than $42 million,<ref name="lookingback" /> and the next year Fay Richwhite sold 6.2 million shares at an average $3.67 a share. On 8 February 2002, Fay Richwhite sold 17.6 million shares at $3.60 a share and Berkshire Fund sold 4.3 million shares on 12 February that year at the same price.<ref name="gaynor_tough_case" /> The original investors made a $360 million profit from their investment.<ref name="lookingback" />