Private operators of Adelaide’s tram network announced, new bus contract revealed

The first private operators of Adelaide’s tram network have been announced – with the Minister admitting there will be staff “changeover”.

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SA commuters have been promised better, faster and more frequent bus and tram services under new multibillion-dollar contracts signed by the State Government on Tuesday.

Transport Minister Stephan Knoll has announced three companies would join forces to become the first private operators to run Adelaide’s tram network.

A joint venture between Torrens Transit, UGL Rail Services and John Holland, known as Torrens Connect, will take over the operation of the light rail system.

New bus contracts have also been signed.

Busways South Australia will come on board as the new operator of the Outer South services while Torrens Transit will continue to operate the Outer North East, East West and Outer North services and Keolis will maintain operation of the Hills services.

The new bus and tram contracts take effect from July 1, for a period of eight years.

Mr Knoll promised the contracts would deliver improved services.

“These new bus (and tram) service contracts are going to deliver better, faster and more frequent services for South Australians,” he said.

“In the coming weeks, we will be releasing details about the bus (and tram) service improvements that will benefit South Australians ahead of a consultation period we will undertake.”

Mr Knoll acknowledged there would be “some changeover of staff between companies” as a result of the new contracts.

“That is something that we are working through right at the moment to make sure that there is as little disruption to those workers as possible but also (so there’s) as little disruption as possible for commuters (so) we have a seamless transition,” he said.

SeaLink Travel Group, which operates locally as Torrens Transit, says the company is “excited to bring (its) world-class innovations to the local market”.

“We passionately believe that if we make public transport more reliable and convenient, we will attract more passengers on board, which is why we seek to improve connectivity, performance and patronage in all of our contract areas,” group chief executive officer Clint Feuerherdt said.

The State Government has announced the joint-private tender winner to operate Adelaide’s tram network.

“Between high-frequency services, and integrated bus and tram outcomes, we will open up new destinations on the public transport network for customers.”

UGL managing director Jason Spears said the company has a “strong reputation for operations and management of heavy and light rail across Australia” and it looked forward to “providing a safe and quality operation for the people of Adelaide”.

John Holland chief executive officer Joe Barr said the deal was the company’s first multi-modal contract in its 70-year history, describing it as an “exciting new chapter for South Australia”.

“We have a proud history of delivering world-class public transport services across Australia and are committed to improving services for Adelaide commuters,” he said.

The Government controversy announced in July last year that it planned to outsource Adelaide’s train and tram services to a private operator, leading to a campaign by the Rail, Tram and Bus Union SA and stop-work meetings.

The union slammed the development, calling it a “complete stinker”.

“The people of South Australia know a dud deal when they see it,” RTBU SA/NT secretary Darren Phillips said.

“We know from the experience interstate and overseas that private operators seek to maximise their profits by reducing costs wherever they can. Inevitably that means cuts to services and safety.”

Mr Phillips said it was “extraordinary that the State Government could enter into a long-term contract for the private operation of a public service without even presenting a business case to justify the decision”.

“These days you can’t even get a loan to set up a fish and chip shop without doing a thorough business case,” he said.

“It is clear that the Marshall Government cannot be trusted to manage public assets and services.”

Opposition Leader Peter Malinauskas called on the Government to release the details of the contracts.

New bus contracts have also been announced.

“We know that … in the long run commuters are always better off with a publicly-run network operating in the interests of people rather than a privately-run network operating in the interests of profit,” he said.

Mr Malinauskas reaffirmed Labor’s pledge to return trains and trams to public hands if the party wins the 2022 State Election.

The Government released a tender to find a new bus operator in February last year, asking interested parties how they could improve the network.

It said at the time the new operators would be expected to axe underperforming services, deliver better services for less money and adapt to emerging transport options.

The operation of Adelaide Metro’s bus services has been outsourced since 2000.

In September last year, the Government also announced Scania Australia had won a 10-year contract to supply replacement buses for Adelaide’s metropolitan fleet.

Under the deal, at least 29 buses must be made locally each year.

Mr Knoll said at the time that the contract would allow for changes to be made to the type of buses used, including possible electric and driverless options.

About 340 buses are expected to be produced over the decade.

The Government manages 990 buses across the Adelaide Metro system.