China CNR Corporation (CNR) has been named as the preferred supplier by KiwiRail to supply 300 container flat deck wagons in New Zealand.
CNR will replace more than 3,000 wagons under the $29m contract over a ten year period.
Bids to supply the wagons, which are expected to be delivered by mid 2011, were considered from nine companies, including the KiwiRail-owned Hillside Workshops.
KiwiRail may consider Hillside Workshops for the supply of components and assemble wagons for its future rail needs.
Work on examining options for the local assembly of wagons in the future will begin next year.