Kelsian Group secures $500m contract extension with Transport for NSW
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The news: Kelsian Group has signed a two-year contract extension with Transport for New South Wales (TfNSW) to provide public bus services in Sydney’s inner west region (Region 6), commencing 1 July.
The context: The extension will secure an additional $500 million in revenue over the next two years.
This follows the company’s announcement in March that TfNSW was negotiating with Transit Systems West as the main operator of Region 6 bus services over a short-term extension period following the contract’s expiry on 30 June.
TfNSW subsequently sought NSW Government approval to proceed with a two-year extension through to 30 June 2028.
The Region 6 contract comprises the operation and maintenance of 528 buses across four depots, with TfNSW supplying an additional 151 electric buses.
What they said: “As with most of our public transport contracts, there are revenue indexation mechanisms included in this contract extension, which protect the business from fluctuations in the cost base of our key costs inputs, including fuel,” Kelsian Group CEO Graeme Legh said.
The source: ASX
