The Victorian Labor government has announced franchise contracts for a third of Melbourne’s bus network which will fast-track the replacement of existing diesel buses with 600 new battery electric buses by 2035.
Billed as the state’s first zero emission bus contracts, the Labor government awarded three contracts as part of its new Metropolitan Zero Emission Bus Franchises.
The three 10-year franchise contracts, covering 131 public routes and more than 230 school services across Melbourne, require the new operators to transition their respective franchises to full zero emission bus transport, including new battery electric buses and electrified bus depots, by the end of the contract period.
The new bus contracts were awarded to Victorian-based bus operators Dysons, CDC, and Kinetic, following a thorough competitive tender process.
Kinetic currently operates the Melbourne Metropolitan Bus Franchise, covering 30 per cent of Melbourne’s public transport bus services, after it won the tender process in late 2021.
The 9.5-year contract included a commitment to introduce 36 battery electric buses to the network by 2025, while more than half of the fleet would be replaced with low- or zero-emission vehicles.
As of July, Kinetic had grown its number of zero emission buses in Melbourne to 30 two years after the first electric bus hit the network.
The three contracts are among seven new franchises to be competitively tendered under a single procurement process, with new operations to commence on 1 July 2025.
The new franchises will also support local manufacturing and create Victorian jobs through increased local content requirements, while new social procurement targets have also been applied to these contracts which will ensure investment will benefit Indigenous businesses, priority job seekers, and increase the number of women across the workforce.
In addition to operating the Melbourne Metropolitan Bus Franchise, Kinetic will begin operations in the city’s northern suburbs, adding 107 drivers and 25 full time staff to its team as a result. By the end of its contract period, Kinetic will operate 532 battery electric buses.
“We’re excited to support more Melbournians with cleaner, greener and more modern bus services, and continue the incredible work of the team behind the Melbourne Bus Franchise which has been world-class,” said Michael Sewards, Kinetic Group CEO.
“From attracting a more diverse workforce and modernising facilities for drivers, to introducing electric buses and improving reliability of services, it’s progress we’re incredibly proud of and will now continue in more suburbs and communities.”
CDC Victoria, a subsidiary of ComfortDelGro Corporation Australia, currently operates across Melbourne’s west, south-west, and inner south-east, and will now expand its footprint to operate additional bus services across the west and north-west regions, expanding its operations to employ over 1,100 people.
CDC’s new franchise areas will require over 360 buses, all of which will need to be electric by the end of the contract period.
“With Australia’s largest fleet of hybrid buses and seven electric buses in our Victorian fleet already, our commitment to the reduction of our environmental footprint is crucial to sustainability and reflects our commitment at a local and national level to build a better future for transport,” said Nicholas Yap, ComfortDelGro Australia CEO.
The contract awarded to Dysons combines two northern metropolitan franchises into a single operation, providing fully electrified bus services for 95 regular timetabled and school routes out of its Bundoora depot.
Dysons will purchase 168 locally built electric buses over the ten-year contract term and, backed by CBA, will upgrade its flagship Bundoora depot over the next 20 months with electric charging infrastructure for 180 buses, including the installation of 81 dual chargers supported by an 11.4 mVA grid connection.
“The electric bus contract places Dysons at the forefront of Victoria’s transition to a decarbonised and digitised economy whilst providing greater job security for its employees,” said Andrew Jakab, managing director and CEO of Dysons.
“For passengers, Zero Emissions Buses provide a safe, economical and environmentally friendly transport solution with a quiet ride experience incorporating the use of world class technology.”
Joshua S. Hill is a Melbourne-based journalist who has been writing about climate change, clean technology, and electric vehicles for over 15 years. He has been reporting on electric vehicles and clean technologies for Renew Economy and The Driven since 2012. His preferred mode of transport is his feet.