Three more public transport franchises announced
The Government has announced the awarding of three public transport franchises to transport operator National Express. National Express has been awarded the franchises for Bayside Trains, Swanston Trams and V/Line Passenger, and has committed itself to over $1 billion of investments in the three businesses. The Premier, Mr Kennett, said the agreement with National Express would also save an expected $1.1 billion in subsidies over the terms of the three franchises: 15 years for Bayside Trains, 12 years for Swanston Trams and 10 years for V/Line Passenger. National Express has forecast that, through extra investment, improved customer service and marketing, it will see rises in patronage of 84% on Bayside Trains, 40% on Swanston Trams and 74% on V/Line Passenger. National Express is one of the worlds largest passenger transportation companies, operating rail, bus, coach and airport businesses in the UK, Europe, USA and Australia. The company intends to inter into contracts with infrastructure contractors Thiess Clyde Engineering, one of Australias leading rolling-stock maintenance suppliers; and AdTranz, an international rolling-stock manufacturer with workshops in Dandenong. The Premier said that the franchises would fall from $204 million in Government support in 1998-99 to $75 million by 2008-09 and create payments to Government of $18.5 million a year under the Bayside franchise by 2013-14. National Express will be required to meet the commitments enshrined in the public transport Passengers Charter. The investments to be made as follows:
An announcement regarding the remaining franchise contract - Hillside Trains - is expected in the next few weeks. (News Release, Office of the Premier, 25 June, 1999)
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