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Local Victorian bus operators react to final government runs

Local Victorian operators have had to say goodbye to long-standing runs as the MZF contracts begin operating this week

Essendon Station was alive with music on Monday night as a Footscray brass band joined community members and families to mark the final runs of Ryan Bros Bus Service, with the operator wanting to go out “with a bang”.

More than 240 people boarded the final runs of routes 465, 467, and 468, greeted by a triumphant musical display as the buses pulled up.

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Local coffee shop Benny & Me stayed open well past 10pm to offer attendees free hot food and drink, while Ryans’ employees and family members swapped stories of the operator’s history and impact.

While the musical choices attempted to liven the attendees’ spirits, there was a darker cloud looming over the ordeal, with Ryan Bros Bus Service general manager Daniel Zampatti describing it as a “terrible day”.

A brass band welcomed the buses

The cessation of the Ryan Bros Bus Service routes comes as the Metropolitan Zero Emission Bus Franchises (MZF) contracts started yesterday. Effectively redrawing the map of Melbourne’s bus industry, the new contracts have forced several long-standing local operators to cease operations and have accelerated a wave of industry consolidation.

Ryans’ routes have been absorbed by CDC Victoria, while operator Panorama Coaches has had its routes 343, 578, 579, 580 and 582 taken over by Dysons. Both operators will maintain private school runs and charters, but are in the process of selling their route service fleets.

Sensing the trend towards industry consolidation, some smaller operators moved early, selling routes and businesses to larger companies even before the new contracts were formally awarded. Moonee Valley Coaches’ routes 503 and 506 have transitioned to Dysons, while Moreland Bus Lines’ routes 510 and 512 have gone to Kinetic.

It’s also understood CDC Victoria has entered into a joint venture arrangement with Kastoria Bus Lines/Broadmeadows Bus Service in Melbourne’s north, and some inner north and eastern routes previously operated by Dysons will transfer to Kinetic.

While the announcement of the MZF contracts had long been teased, Zampatti told ABC that Ryans’ was not made aware how its routes would be affected until a media release was made public.

The new routes will be operated by CDC branded buses, with the Ryans’ public route buses now in the process of being sold.

“If you have a problem with your customers, we can go to them and fix it. They have a problem with us, we can fix it. But you can’t fix it with the government,” Zampatti says.

“Without people, this doesn’t happen. People have forgotten what it means to be part of something, and without that, Melbourne is just gone. It’s just all gone.”

Under the MZF contracts, the bulk of Melbourne’s bus services will now be operated by Kinetic, Dysons, and CDC Victoria. Each is tasked with progressively shifting their fleets to zero-emission vehicles, helping Victoria meet its target of net zero emissions by 2045.

It’s not only the operators who are changing, but also how routes are organised.

The 465, 467, and 468 routes will now be operated by CDC Victoria

The trend of this change is resulting in the cluster of contract packages by geographic regions, rather than maintaining service areas based on historic family-run operations, as has largely been the tradition until now.

Following the announcement of the MZF tenders, a Department of Transport and Planning (DTP) spokesperson told ABC the Request for Proposal (RFP) was open to all registered bus operators, including Ryans.

They say Ryans elected back in 2023 not to participate in the MZF recontracting process and, by not participating, would have automatically been made directly aware at that time they would have no contract renewal from July 1, 2025 when their existing contracts expired.

To manage the transition, CDC Victoria was awarded the contract for routes 465, 467 and 468, with the Department saying the operator has been in regular communication with Ryans to agree terms for staff transition, asset sale and operations.

“We thank Ryans for the work in supporting the delivery of public transport services on our bus network over the years,” the spokesperson says.

According to the DTP spokesperson, the review of all proposals followed the same requirements overseen by an independent probity advisor and probity plan, and all were assessed on their individual merits without any influence.

They say they will continue to engage with Ryans to successfully close-out the previous bus contract.

A Victorian government spokesperson told ABC it has engaged with impacted operators and unions to ensure all affected staff that wish to continue employment were transitioned to new operators in time for the new contracts commencing.

“The zero emission bus contracts are part of Victoria’s push towards a greener and more sustainable bus fleet and is our largest investment in electric buses to date,” the spokesperson says.

“The contracts covering 132 public routes and more than 237 school services across Melbourne will deliver Victorians quieter, smoother and cleaner rides.”

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