France's Transdev beats KiwiRail to Wellington Metro contract

Transdev SA will run Wellington's metro rail service next year.

It is the preferred operator for the Greater Wellington Regional Council and beat state-owned KiwiRail to a 15-year contract that generated $54 million in sales this year.  

The 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 says its joint venture with Keolis was "our strongest bid" and it will 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," KiwiRail chief executive Peter Reidy says.

Its Tranz Metro unit had lifted passenger volumes by 4% to 12 million in the latest year, delivered "high levels of customer satisfaction and on-time performance" and provided economic benefits to Wellington.

Council chairman Chris Laidlaw says 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 will be preserved as the contract requires Transdev and Hyundai to offer them the same or better work.

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 2000 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)