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Concerns raised over the background of companies showing an interest in Adelaide’s bus and train services

Companies with backgrounds in prisons, driverless trains, limousines and allegations of illegal kickbacks and political donations have shown an interest in the Adelaide tram system.

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Dozens of international and interstate companies have shown an interest in taking over Adelaide’s bus and tram services, including several that have been embroiled in controversy.

Companies from Germany, Spain, Singapore, Italy, Sweden, France and the UK have downloaded tender documents for the lucrative public transport contract.

A number of the companies have been entangled in controversy overseas, including one which has faced accusations of illegal kickbacks and political donations.

One is a limousine company, another is most famous for running private prisons, one is big on driverless trains and another was forced into a major restructure following its failed UK rail and US franchise ventures.

Opposition transport spokesman Tom Koutsantonis has raised concerns about the global companies “circling like sharks” around the contract.

Treasurer Rob Lucas, acting for Transport Minister Stephan Knoll, described Mr Koutsantonis’s assertion as “nonsense”, arguing many of the same companies had previously shown interest in Labor government contracts.

In April, the State Government announced it would put out tenders for operators to run bus and light-rail services in Adelaide, arguing South Australia was the only jurisdiction in the country that did not outsource the operation of its tram services.

Bus services have been outsourced in metropolitan Adelaide since 2011.

Companies from around the world have expressed interest in taking over Adelaide’s tram services.
Companies from around the world have expressed interest in taking over Adelaide’s tram services.

Mr Koutsantonis said South Australians should be concerned that privatisation would result in “higher fares and a poorer service for commuters”.

“Many are huge multinationals with one end in mind – maximising profits for their shareholders instead of providing the cheapest, most efficient public transport for South Australians,” he said.

But Mr Lucas said: “Downloading documents is a long way to go from becoming a successful tenderer.”

Tender documents show a representative from SNC-Lavalin Rail & Transit was one of the first people to request a full suite of documents about the contract from the Planning Department.

Its parent company, the Canadian SNC-Lavalin Group, has been caught up in a number of scandals in Canada, India and Libya, including allegations of illegal kickbacks and political donations.

In April, the British Government disqualified the Stagecoach Group, which had also sought documents, from three rail franchise competitions because its bids “breached established rules”, particularly in regard to pensions.

Serco, which operates onshore immigration detention centres in Australia and recently secured the $115 million contract to run Adelaide Remand Centre, has also shown an interest in Adelaide’s buses and trams.

Alstom Transport Australia, which is part of a giant French multinational that has had money troubles in Europe, has rolled out fully-automated driverless trains in Sydney.

Trackless Australia, owner of Royale Limousines, has also shown an interest in the tender. The limousine company is reported to be the largest privately owned luxury fleet company in Australia.

Original URL: https://www.adelaidenow.com.au/news/south-australia/concerns-raised-over-the-background-of-companies-showing-an-interest-in-adelaides-bus-and-train-services/news-story/6d38849e4a07ffdb8de48fb64fd17095