Melbourne bus routes sell for $22 million

ComfortDelGro Cabcharge (CDC) will pay about $22 million for five Melbourne bus routes

Melbourne bus routes sell for $22 million
Melbourne bus routes to sell for $22 million
May 21, 2013

Joint venture ComfortDelGro Cabcharge (CDC) will pay family-owned business Driver Group (DG) about $22 million for five metropolitan bus routes and 42 buses in Melbourne.

The DG bus routes in Melbourne’s eastern suburbs will increase the CDC fleet 2.6 percent and grow CDC’s metropolitan fleet from 378 buses to 420 buses.

CDC is a joint venture between Cabcharge Australia and Singapore-based ComfortDelGro Corporation.

Cabcharge Australia announced the acquisition to the Australian Securities Exchange (ASX) on Monday.

Cabcharge Australia Chairman Reg Kermode says CDC has a history of expansion.

"We will work closely with the route drivers and staff of the Driver Group to ensure the transition to our Oakleigh depots runs smoothly for both staff and passengers," Kermode says in a statement to the ASX.

CDC is one of Australia’s largest private bus operators, with 2,548 employees and 1,641 buses.

DG will continue to operate its school bus, charter bus, tour bus and travel services.

Owned by the Driver family, DG was established in 1931 and currently operates a fleet of 120 buses and coaches for school services, route services, charters, and tours.

The group operates under four trading names: Driver Bus Lines, Driver Coastal, Gray Line and Great Sights.

The group owns Gray Line licences for Australia’s entire mainland and has a 75 percent Gray Line interest in Tasmania.

DG also holds a one-third interest in Best of Australia retail tourism outlets.

Of these businesses, only the route business will be bought.

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