Presented by Robert Clark MP		www.robertclark.net

Hillside Trains franchise goes to MTE

Premier Kennett has announced that Melbourne Transport Enterprises (MTE) has been awarded the franchise to operate Hillside Trains, bringing private-sector investment in Victoria’s public transport system to more than $1.6 billion.

"MTE will invest $490 million in new and upgraded trains, improved services and better stations throughout the Hillside Trains network, which covers Melbourne’s eastern and north-eastern suburbs," Mr Kennett said.

"Travellers can expect improved service frequencies with a total of 130 extra services per week and an improvement in the punctuality and reliability of Hillside services in each year of the franchise.

"A revitalisation of Flinders Street Station as a tram/train interchange, with upgraded passenger security, refurbished facilities and an expansion of retail activities at the station spearheads an upgrade program proposed by MTE.

"Such a commitment is only possible because of the innovative approach adopted by the Government which allows the private sector to operate public transport services for set periods, prior to infrastructure and rolling-stock reverting to Government control."

The 15-year Hillside deal completes the franchising process, with Bayside Trains, V/Line Passenger, Swanston Trams and Yarra Trams all transferring to the private sector shortly.

"The franchising program will result in taxpayers saving an estimated $1.8 billion in reduced subsidies over the life of the franchise periods; making this a great win-win for Victorians," Mr Kennett said.

The agreement between the Government and MTE will save the State $389 million in reduced subsidies over the term of the franchise, with a first-year subsidy of $91 million declining to $25 million by the end of the 15 years.

The terms of the agreement between MTE and the Government provide for the company earning extra incentive payments if it beats Government targets for service quality and patronage growth.

MTE plans to increase patronage by 64% through new investment and improved marketing.

In addition to meeting all the guarantees set out in the Public Transport Passengers’ Charter, MTE has committed itself to:

• Investing $314 million in 29 new six-car trains, to enter service from 2002.
• Investing $75 million to refurbish and improve the reliability of the remainder of Hillside’s train fleet.
• Upgrading Hillside’s station network, with four new Premium Stations and the introduction of real-time passenger information displays, improved lighting and increased staffing at 20 other stations.
• Introducing 800 new car-parking spaces, and upgrading 200 existing spaces, at no cost to users.

MTE is a wholly-owned subsidiary of Vivendi, a major French-based company with significant transport interests. MTE intends to contract with Alstom Australia for the supply and maintenance of Hillside’s rolling stock and infrastructure.

(News Release, Offices of the Premier and the of Minister for Public Transport, July 13, 1999)