Awarded to Victorian-based bus operators Dysons, CDC and Kinetic, the new Metropolitan Zero Emission Bus Franchises will fast track the replacement of existing diesel buses with 600 new zero emission battery electric buses by 2035.
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Covering a third of Melbourne’s bus network, the new contracts represent the government’s largest investment in electric buses as Victoria works towards net zero emissions by 2045.
“These new metropolitan bus contracts will significantly lower emissions across Victoria’s bus industry which is critical to Victoria meeting our commitment of net zero emissions by 2045,” climate action minister Lily D’Ambrosio says.
All three operators have extensive experience in running bus services in Victoria, with Kinetic currently operating the Melbourne Bus Franchise, which covers another third of the metropolitan bus network. While CDC and Dysons also operate large town centre and regional bus contracts.
The contracts cover 131 public routes and more than 230 school services across Melbourne.
Dysons CEO Andrew Jakab says this is a big win for employees and their families.
“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,” he says.
“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.”
Kinetic Group CEO Michael Sewards says he was proud to expand Kinetic’s partnership enhancing Melbourne’s bus experience with the Victorian Government.
“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,’ Sewards says.
The new franchises will support local manufacturing and create Victorian jobs through increased local content requirements. New social procurement targets have also been applied to these contracts, meaning the investment will help to benefit Indigenous businesses, priority job seekers and boosting the number of women across the workforce.
“Linking people, places and communities is what we do, and these contracts will enable us to continue to connect people and contribute to social cohesion across Metropolitan Melbourne, while providing long-term employment opportunities for local people,” CDC Victoria CEO Jeff Wilson says.
Once delivered in 2035, the 600 new zero emission buses will travel more than 35 million kilometres and save an estimated 45,000 tonnes of carbon emissions every year.
“We’re introducing more zero emission buses across the state which will deliver smoother and quieter journeys for passengers and locals,” public and active transport minister Gabrielle Williams says.
“We’re ensuring more Victorians benefit from our investment with higher local content and social procurement targets.”
The Metropolitan Zero Emission Bus Franchises will commence operation once the current contracts expire on Sunday June 30 2025 – with all existing routes and timetables being maintained.
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