Great Journeys New Zealand
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Great Journeys New Zealand

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Great Journeys New Zealand

Great Journeys New Zealand is the tourism division of KiwiRail that operate its three Scenic train services (TranzAlpine, Northern Explorer and Coastal Pacific). The new division was launched in May 2017 and replaced the former tourism brand KiwiRail Scenic Journeys. It has continuity with the earlier InterCity Rail (1987–1995) and Tranz Scenic (1995–2011).

Passenger trains in New Zealand were operated by the New Zealand Railways Department from 1880 to 1981, alongside private rail operators such as the Wellington and Manawatu Railway Company. The Department was corporatised as the New Zealand Railways Corporation (NZRC) in 1982, and later reorganised as a state-owned enterprise in 1986. A consulting study commissioned by the NZRC and carried out by Booz Allen Hamilton recommended re-orientation of long-distance passenger services toward tourist operations.

The Fourth Labour Government passed the New Zealand Railways Corporation Restructuring Act 1990 on 28 August of that year. 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. New Zealand Rail Limited's long-distance passenger trains carried the InterCity Rail branding. New Zealand Rail Limited was privatised and sold to a consortium named TranzRail Holdings Limited in 1993 and changed its name to Tranz Rail in October 1995. As part of the rebranding exercise, InterCity Rail was renamed Tranz Scenic.

As part of a restructuring programme, in November 2001, Tranz Scenic was incorporated as stand-alone subsidiary Tranz Scenic (2001) Limited. Tranz Rail then sold 50% of Tranz Scenic for $33 million to Donald Gibson and Gary McDonald, who were also directors of Australian railway operator West Coast Railway. The sale included long-distance passenger rolling stock and 10 diesel locomotives of the DC class (reclassified DCP), and two EF class electric locomotives. Tranz Rail intended to sell the remaining 50% share in Tranz Scenic, but this sale never eventuated. West Coast Rail withdrew several long-distance trains that were not profitable, retaining the routes that had sufficient passenger numbers (see below).

Tranz Rail was taken over by Australian transport firm Toll Holdings in 2003. The company was renamed Toll NZ and did not retain any of the Tranz Rail directors. In July 2004, the 50% share of Tranz Scenic was purchased by Toll, as one of the West Coast Railway directors had died and the business was not performing adequately. In May 2008, the New Zealand Government agreed to buy the rail and sea transport assets of Toll NZ Limited for $665 million. The government branded the new company KiwiRail.

In 2011, KiwiRail developed a new brand of passenger trains geared toward the increasing tourism industry in New Zealand. The new brand, named KiwiRail Scenic Journeys, was launched with new AK-class carriages designed to showcase New Zealand's scenery, as well as providing long-distance passenger train services. During the transformation, the Tranz Coastal train was rebranded as the Coastal Pacific and the Overlander became the Northern Explorer; whereas the TranzAlpine's name was retained.

In July 2012, it was revealed that KiwiRail was considering selling the remaining services. No buyers were found and the long-distance passenger services remain operated by KiwiRail Scenic Journeys.

Meanwhile, KiwiRail's ferry brand, Interislander, was building on its core business taking vehicles and freight across Cook Strait and looking to promote the trip as an iconic tourism experience and a scenic alternative to flying.

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