Metropolitan train and tram franchising project

The State Government has undertaken a worldwide competitive tender for the operation of Melbourne's train and tram networks. This webpage provides an overview of the tender process and its progress.

Information on this page

Latest news
Timelines
Objectives
Background
Publications
Latest news

The State Government has entered into new contracts for the Melbourne metropolitan train and tram franchises.

Metro Trains Melbourne (MTM) will be the operators of the metropolitan train network, which will be known as 'Metro'.

Keolis Downer EDI (KDR) will operate the tram network which will continue to be branded 'Yarra Trams'.

The new franchises will commence on 30 November 2009. These new contracts are for an initial term of eight years, with a possible seven-year extension.

Timelines

Nov 2007 to Mar 2008	Registration of Interest phase
Apr 2008 to Jun 2009	Procurement phase including: Expressions of interest Request for tenders Tender evaluation Negotiation and awarding of contracts
Jul to Nov 2009	Transition to new franchise agreements

Objectives

The Metropolitan Rail (Train and Tram) Franchising Project aims to provide a value-for-money outcome for the State by designing, procuring and implementing franchise arrangements that promote:

productive long-term relationships between the State, franchisees, employees and other public transport stakeholders
services which are safe, reliable, punctual, clean and convenient as part of an integrated multimodal transport network
financial and operational sustainability
cost efficiency in service delivery
major project delivery within the constraints and requirements of an operating transport network
effective and efficient maintenance of rolling stock and infrastructure
patronage growth and customer satisfaction.

top

Background

29 Aug 1999	Melbourne's tram and suburban train system is privatised along with Victoria's regional rail service: National Express Group Australia takes over Bayside Trains, Swanston Trams and V/Line Passenger Melbourne Transport Enterprises (Connex) takes over Hillside Trains Metrolink takes over Yarra Trams
Jul 2000	Melbourne Transport Enterprises replaces the Hillside Trains brand with Connex.
Oct 2001	National Express replaces the Bayside Trains brand with M>Train and the Swanston Trams brand with M>Tram.
Dec 2002	The State Government assumes responsibility for operating the M>Train, M>Tram and V/Line Passenger businesses following National Express Group's withdrawal from Victoria.
May 2003	The State Government announces the establishment of TrainCo and TramCo which would respectively be responsible for the operation of Melbourne's complete suburban rail and tram networks. Negotiation with Connex and Yarra Trams in relation to operating these entities commence.
Feb 2004	The State Government enters into new partnership agreements with Connex and Yarra Trams for the operation of Melbourne's tram and train services.
18 Apr 2004	The new partnership agreements with Connex and Yarra Trams commence.
Sept 2005	The Auditor-General undertakes an audit to determine whether existing franchise agreements provide value for money. More details are available from the Auditor-General's website.
21 Aug 2007	The State Government announces it will run a worldwide tender for the operation of Melbourne's train and tram networks and extends the current contracts with Yarra Trams and Connex trains by 12 months until November 2009.
April 2008	The State Government calls for expressions of interest.
August 2008	Shortlists are announced. Two companies, KeolisDownerEDI (KDR) and TransdevTSL, are invited to bid for the tram tender and three companies, Metro Trains Melbourne (MTM), Veolia Transport and KeolisDownerEDI (KDR), are invited to bid for the tender to operate the train network.
April 2009	Bids close in the competitive tender process for Melbourne’s train and tram franchises.
June 2009	Keolis Downer EDI (KDR) is announced as Preferred Tenderer for the franchise to run Melbourne's trams and Metro Trains Melbourne (MTM) as the Preferred Tenderer for the operation of metropolitan trains.
August 2009	Contracts are signed with KDR to operate Melbourne's tram network, and with MTM to operate the metropolitan train network.

top

Publications

Expression of Interest Expression of Interest Brief (PDF, 1.1MB, 68 pp.) Expression of Interest Brief: Appendix A and B (PDF, 2.2 MB, 108 pp.)
Invitation To Tender - Melbourne Metropolitan Train Franchise Train - Volume 1 - Tendering Information and Evaluation Criteria (PDF, 902 KB, 38 pp.) and Train - Volume 2 - Franchise Overview (PDF, 1902 KB, 128 pp.)
Invitation To Tender - Melbourne Metropolitan Tram Franchise Tram - Volume 1 - Tendering Information and Evaluation Criteria (PDF, 704 KB, 38 pp.) and Tram - Volume 2 - Franchise Overview (PDF, 1758 KB, 124 pp.)

Media releases

Please visit the Premier's website for media releases.