In a win for the Victorian and wider Australian bus industry, the state government has confirmed funding of up to $50 million, translating to around 96 additional vehicles, in bus orders.
Ever since the beginning of the year, when the Victorian government announced its deferral of bus replacement and upgrade orders for smaller regional and school bus operators, the Bus Industry Confederation (BIC) has been working with the government to secure a multi-million-dollar safety net to support the local bus industry.
This has been achieved, with the 96 additional buses secured to primarily comprise school buses.
However, orders will need to signalled by today – Monday June 30.
“With the order placement, operators need to contact their regional Department of Transport and Planning (DTP) Manager prior to 30 June 2025 to signal their order intent,” BIC Council vice chair Steve Heanes says.
“BIC encourages vehicle suppliers to contact their customers to ensure they secure their intent to order as soon as possible.”
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Heanes says these vehicles will include around six low-entry route buses, 23 mid-size seatbelted school buses and 67 large seatbelted school buses. The intention behind this is to phase out any existing school buses without seatbelts in a safety boost for the state.
The vehicles will also have modern safety features and the latest European Euro 6 emissions technology.
BIC says it supports the additional volume as part of the state government’s transition to zero-emissions buses despite the tight timeline, and increase to safety on school buses.
“The funding deal means securing additional safety for school buses by providing seatbelts and that each order of Euro 6 technology buses will actually reduce pollution by up to 90 per cent against the Euro 3 model buses they will replace,” BIC executive director Varenya Mohan-Ram says.
This will neatly dovetail in with the government’s plans to convert the public bus fleet to quieter, more comfortable and lower-emission vehicles on the way to achieving its net-zero targets.
“This is an exceptional outcome for industry and operators which will guarantee longer-term work for businesses and buses for Victorian operators alike.”
The Victorian government says it has listened to industry and incorporated a phased approach to replacing diesel buses with zero-emissions options ahead of next week’s mandate on July 1, 2025 that all orders for new public transport buses must be zero-emissions unless an allowance has been made.
“The Victorian government released the Zero Emission Bus Transition Plan in November 2024, which sets out the government’s pathway to transitioning our bus fleet to zero emission vehicles,” a Department of Transport and Planning spokesperson told ABC.
“This means from July 1, 2025, all orders for new public transport buses must be zero emission, unless an allowance has been made in the plan.”
The plan will see metropolitan and larger regional operators transition first, with the existing diesel bus replacement program to follow that will see another 250 low-floor buses expected to be replaced by ZEBs over the next four years.
The spokesperson says operator feedback has seen the requirement to replace diesel buses has been extended by up to five years for smaller regional school bus operators courtesy of life extensions of existing diesel buses. Replacement of existing diesel buses with ZEBs as they fall due for retirement is expected to commence from 2030
Since 2013 the Victorian government has also advised operators that all new replacement vehicles provided under the School Bus Program, (which is open to students at government and non-government schools in regional and rural communities), must be fitted with seat belts. A number of buses were also retrofitted.
The state government says this program has lifted seatbelt fitment rates on these regional school routes from 43 per cent to the current figure of almost 93 per cent.
To ensure the number of school bus fitted with seatbelts continues towards 100 per cent, the spokesperson says DTP has worked with regional operators, since the plan released in November 2024, to ensure orders of these replacement vehicles are made prior to July 1.
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