In 1998, Tasman decided to sell its locomotive back to Tranz Rail, who would then take over the duties of shunting the Kawerau yard with more conventional shunting locomotives. DA512 was sold to Tranz Rail who immediately moved it to Hutt Workshops for further alterations to make it more suitable as a heavy shunting locomotive. This included fitting shunter's refuges at either end of the locomotive and extended drawgear to accommodate the extra length of the refuges, as well as a repaint in the then-current "Cato Blue" livery.