Department of Infrastructure, State Government of Victoria, Australia.

Public transport partnership agreements

The State Government entered into partnership agreements for the operation of Melbourne's train and tram services in April 2004. This page provides a summary of the current agreements and how they are benefiting the community.

Information on this page


The partnership agreements
The partnership agreements are in place between the Government and Connex and Yarra Trams to operate Melbourne's suburban train and tram networks respectively. Under the agreements, which replace the former franchise agreements, there is a single train operator and a single tram operator. This results in a better system with better value for money. The five-year agreements started on 18 April 2004. Please note: On 21 August 2007, the Minister for Public Transport announced that these agreements would be extended for a further 12 months until November 2009 to allow for a worldwide tender process for the operation of Melbourne's train and tram networks. More details are available from the Metropolitan train and tram franchising project page.

In developing the existing agreements, the Government retained the benefits of the original contracts, including requirements for fewer late-running or cancelled services, greater growth in patronage, delivery of capital works on time and budget and workforce stability.

To ensure a world-class public transport system for Melbourne, the agreements achieved:
  • an integrated system with one train and one tram company, and with Metlink as a one-stop-shop for customer information
  • a sustainable system that is properly funded for the long term
  • high quality services with more front-line staff, greater incentives for punctuality and reliability, and new trains and trams.
The agreements continue to include performance standards that will be closely monitored and reported on through the quarterly Track Record bulletin.

Payments
As part of the agreements, payments to the operators will cost an extra $1 billion over five years. The funding is in addition to that already agreed within the former franchise agreements. Therefore, the total funding to the operators (combining former funding and new funding) is as follows:
  • Yarra Trams: an average of $112 million per annum over five years
  • Connex: an average of $345 million per annum over five years.
Responsibilities
The partnerships clearly outline the roles and responsibilities of the operators, the State Government and the supporting organisation, Metlink:

Operators
  • Day-to-day operation of trains and trams to Government performance standards
  • Responsibility for customer service, including tickets sales, passenger security and station staff
  • Employment and management of staff
  • Maintenance and cleaning of vehicles, tracks and stations.
State Government
  • Safety regulation
  • Sustainable funding
  • Coordination of timetables between trains, trams and buses
  • Long-term network and strategic planning
  • Development of a new ticketing system.
Metlink
  • Representation of tram, train and bus operators across Melbourne
  • Marketing of public transport across Melbourne
  • Management of day-to-day operation of the ticketing system through a contract with OneLink
  • Provision of service information to passengers through a web-site and call centre
  • Collection of data on patronage
  • Allocation of revenue from ticket sales between public transport operators.
Report
A comprehensive report Passenger rail franchising in Victoria - An Overview (PDF, 772 KB, 126 pp.) into the refranchising of Victoria's public transport system is also available.
Cover of An Overview of Passenger Rail Franchising in Victoria
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Overview of current train and tram contracts

ServiceContracted operatorContract expiry date
Metropolitan trainsConnex30 Nov 2009
Metropolitan tramsYarra Trams30 Nov 2009
Regional trains and coachesV/Line Passenger Pty Ltd31 Dec 2009
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