Keolis Downer dumped: Melbourne tram shake-up as rivals Transdev and John Holland nab contract with $6.8b bid

Callum Godde
AAP
A new contract has strict benchmarks to hold operators to account, the Victorian government says. (Joel Carrett/AAP PHOTOS)
A new contract has strict benchmarks to hold operators to account, the Victorian government says. (Joel Carrett/AAP PHOTOS) Credit: AAP

The long-time operator of Melbourne’s tram network has been dumped, with the state government favouring a rival bid.

French company Transdev and Chinese-owned construction group John Holland will run Yarra Trams after signing a $6.8 billion contract, Public Transport Minister Gabrielle Williams announced on Friday.

The consortium will operate the network of 500 trams, 1600 stops and 24 routes from December 1 for the next nine years, taking over from Keolis Downer.

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Keolis Downer has operated Yarra Trams since 2009 and was awarded a seven-year contract extension in 2017 for an undisclosed sum.

Transdev transports 12 million people on average each day across 19 countries, while John Holland has a 20 per cent stake in Melbourne’s Metro Trains and is one of the builders of the Metro Tunnel project.

The new contract features strict benchmarks and more monitoring points across day and night services to hold the operator to account, the government said.

More accessible trams will be rolled out to replace high-floor fleets during the contract term, along with new technology to provide passengers with more consistent information in real-time.

Extra training will be provided to network staff to better support commuters with particular needs and those from culturally and linguistically diverse backgrounds.

“Melbourne is home to the largest tram network in the world and this new contract will make sure our trams continue to move Victorians around safely, quickly and easily,” Ms Williams said.

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