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Friday September 3, 2010

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Derailed. Connex loses contract

Posted by: Clay Lucas, Mex Cooper and Luca Gonano | 25 June, 2009 - 10:39 AM


Connex has been stripped of its contract to operate Melbourne's train system, with Hong Kong company Metro Trains Melbourne to take its place.

The city's trams will also have a new operator with Keolis Downer EDI ousting the incumbent Yarra Trams as the government's preferred tenderer.

The decision to oust Connex is likely to be warmly greeted by train passengers who have become increasingly infuriated with late, overcrowded and cancelled services across the network.

May was the fifth month in a row that Melbourne trains did not meet punctuality targets with almost one in 10 failing to arrive at their destination on time.

Connex this year had $11 million wiped from its revenue by the Government after 2.8 per cent of all train services were cancelled in the first months of the year.

Premier John Brumby announced this morning that Metro Trains Melbourne (MTM) will operate the train network for eight years, with an option to extend its term for a further seven.

MTM is a joint venture between Hong Kong's MTR Corporation Ltd, Australian companies John Holland Melbourne Rail Franchise Pty Ltd and United Group Rail Services Ltd. MTR also operates the London Overground.

The new contract will include a customer service regime, offering incentives for MTM to improve customer service announcements, cleanliness, graffiti removal and increased personal safety on the rail network.

Beginning in December, the contract will also include a 50 per cent increase in funding for rail maintenance.

Mr Brumby said MTM had a proven track record of operating metropolitan train networks, achieving 99 per cent reliability on Hong Kong's mass transit system.

The new operator would bring "significant change" to Melbourne's transport network, he told reporters.

But he said the final cost of the contracts had yet to be decided, although he believed the two winning bids represented value for money.

Public Transport Minister Lynne Kosky said MTM would deliver improved reliability and fewer cancellations for Melbourne's train passengers.

She said the change in operators would not affect current train and tram employees, who would be transferred to the new companies.

The government is yet to release the new names or livery for the city's train and tram networks.

Keolis Downer EDI (KDR), a consortium made up French firm Keolis and Australian maintenance provider Downer EDI, will also be offered an eight-year term with an option for a further seven years to run Melbourne's trams.

Mr Brumby said KDR's bid showed it was committed to customer service, including a greater focus on staff training and providing more timely and accurate information to passengers.

"Our trams are an iconic symbol of our city and KDR has proven strategies to improve services, reduce cancellations and increase maintenance. KDR operates four tram networks in France,'' he said.

What do you think? Has Connex's performance been up to scratch or are you happy to see them go?

Blog comments Your Say

  • Australians have either forgotten or given up on this simple rule, Why Privatisation is wrong The government has given up a great deal of control to corporations.

    col Monday 3 August, 2009 - 12:26 PM

  • another PPP disaster in the waiting

    mark Thursday 25 June, 2009 - 4:48 PM

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