With an agreement to deliver 20 carriages for operator Tranz Scenic, KiwiRail’s Hillside Engineering in Dunedin has won a $49 million contract. To this, the Chief Executive of KiwiRail Jim Quinn, has confirmed the bond.

It includes the work of converting existing carriages into three open-air viewing cars and the KiwiRail-owned Tranz Scenic TranzAlpine train will travel from Christchurch to Greymouth.

Signaled 14 months ago, the project has brought in a news which states that KiwiRail will not call for tenders for part of a $500 million Auckland urban rail project to build 38 three-car, electric multiple units and 13 electric locomotives.

Two "very different projects" had been in line for Hillside. For the financial investment required for contract, the scale of the Auckland job did not warrant the size of "one-off"; whereas, the Tranz Scenic contract, without any need for financial boost, would be undertaken by existing staff and resources.

John Christie said admitted that he aware of some pending announcement but had no idea that it could have been worth of $40 million contract. After the contract he said, “Nice. This is a real compliment to the staff of Hillside and their abilities”.

On Monday, Hillside will unveil a one-third model of the Tranz Scenic carriages, and an initial work on construction of the first carriage.

KiwiRail Mechanical Design designed the carriages and they were the first of its kind to be wholly designed and built entirely in New Zealand for many years. "Key New Zealand component specialists" will support the construction of those.