Melbourne’s tram network will be handed over to a new operator at the end of this year, with promises it will improve reliability and customer service on the world’s largest light rail system.
Victorian Public Transport Minister Gabrielle Williams announced on Friday morning that Keolis Downer’s contract will not be renewed after running the network for the past 14 years.
Melbourne’s tram network is the largest in the world. Credit: Penny Stephens
French outfit Transdev and Chinese-government-owned construction giant John Holland will take over from December 1 and run it for nine years under a contract worth $6.8 billion.
Transdev and John Holland beat out Keolis Downer and another shortlisted consortium led by Melbourne-based SkyBus owner Kinetic.
John Holland, which is building Victoria’s Metro Tunnel and the West Gate Tunnel Project, is currently a partner in Metro Trains but will likely have to exit that operation to take over the tram network under the terms of the two contracts.
Metro’s contract was due to expire at the end of 2024. But the state government extended it by 18 months in 2023, to mid-2026, to avoid changing operators during testing for the new Metro Tunnel, which is due to open in 2025.
Last month, the Allan government again granted Metro another 18-month extension, meaning it will run the train network until at least November 2027.
More to come