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Expressions of interest process for Dunedin Railways and assets - Council

Contributor:
Fuseworks Media
Fuseworks Media

The Dunedin City Council is looking for alternative operating models that keep Dunedin Railways in the city - not a fire sale.

This week, DCHL called for Expressions of Interest from parties with a potentially viable alternative use for Dunedin Railways assets.

However, Mayor of Dunedin Aaron Hawkins says any proposal that involves a transfer of assets will be subject to full public consultation.

"This is consistent with the Council’s intention to protect the company for the future."

DCHL Chairman Keith Cooper says the Expressions of Interest process leaves room for an acquisition, but that does not mean the company or its assets will simply be sold to the highest bidder.

Potential options could include an alternative operating model for Dunedin Railways, a business partnership, or an acquisition.

Any acquisition would be subject to a range of considerations, including any potential buyer’s intentions for the company. Of special consideration would be any potential buyer’s intention to remain operating company assets based in Dunedin

The benefit to the city would also be a key consideration, he added.

"To be clear, this is not a fire sale. The company or its assets are not ‘on the market’ and we are not seeking to offload its assets.

"We appreciate the importance of Dunedin Railways to the community. We are looking for the best possible outcome for DRL and the city of Dunedin."

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