France's Transdev adds Wellington Metro rail to Auckland contract, beating KiwiRail

Thursday 17th December 2015

Transdev SA has been named as preferred operator for Wellington's metro rail service, adding to its Auckland contract and beating state-owned KiwiRail to a 15-year contract that generated $54 million in sales in 2015.

Greater Wellington Regional Council will begin talks with France's Transdev to finalise terms of the contract, which is to start on July 1 next year. Transdev partnered with Hyundai Rotem, the manufacturer of the region's Matangi electric train fleet, to beat KiwiRail, which teamed up with Keolis Downer on a joint bid. Serco, best known in New Zealand for its state prison contracts, also tendered for the work.

KiwiRail said its joint venture with Keolis submitted "our strongest bid" and would be examining the council's decision ahead of final confirmation of the contract, expected in March.

The council's decision "is disappointing for the company," said KiwiRail chief executive Peter Reidy. Its Tranz Metro unit had lifted passenger volumes by 4 percent to 12 million in the latest year, delivered "high levels of customer satisfaction and on-time performance" and provided economic benefits to Wellington, he said.

Council chair Chris Laidlaw said the rail contract is "the first of all new, performance-based contracts for our train, bus and harbour ferry services." the jobs of 400 Tranz Metro staff would be preserved as the contract required Transdev and Hyundai to offer them the same or better work, he said.

KiwiRail will continue to maintain and operate the track and signals in Wellington, as it does in Auckland, and will run the commuter rail until the handover in July.

Tranz Metro generated a $4 million operating surplus in 2015, running 2,000 services a week linking the Hutt Valley, northern suburbs and Kapiti Coast with the central city. Its total operating surplus for 2015 was $91 million. It also operates the Wairarapa line and has been given government funding of $2.3 million for urgent upgrades to lift its performance.

Transdev operates rail, tram, bus services and ferries in 19 countries.

BusinessDesk.co.nz

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