Infratil's NZ Bus to lose South Auckland contract
Infratil's NZ Bus unit has missed out on a tender for South Auckland's public transport services, where it currently runs about 153 buses.
Infratil's NZ Bus unit has missed out on a tender for South Auckland's public transport services, where it currently runs about 153 buses.
Auckland Transport advised NZ Bus it wasn't selected as a preferred bidder for any of the agency's South Auckland services which were put to tender last year, Infratil said in a statement. The company said it's still in direct negotiations with the local body agency to renew other contracts representing about half of its existing business in Auckland.
"Not being selected as a preferred tenderer in one of our incumbent locations is a disappointing outcome, particularly for our staff who work hard every day to deliver a high-quality service and are part of the South Auckland community," NZ Bus chief executive Zane Fulljames said. "As an incumbent, we understand clearly the costs of operating in the South Auckland market and submitted a strong, high-quality tender to reflect this."
Infratil's bus division generated earnings of $22.7 million in the six months ended September 30 on revenue of almost $119 million, up slightly from a year earlier.
The South Auckland services make up about 14% of the Infratil subsidiary's national fleet of 1070 buses, and will have a nine-month transition period to the new contracts, which NZ Bus said it will use to minimise the impact on its workforce.
Infratil shares last traded at $3.14 and have declined 4.4% so far this year.
(BusinessDesk)
Paul McBeth
Fri, 29 Jan 2016
Fri, 29 Jan 2016
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Infratil's NZ Bus to lose South Auckland contract
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