SA Government announces private operator Keolis Downer will take over train network
The State Government has announced the company that will take over the operation of Adelaide’s train system from the end of January, promising better, safer and more frequent services. But the Opposition and the train union say it is a bad day for commuters.
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Keolis Downer will operate Adelaide’s train network from the end of January 2021, the State Government has announced.
The Government says passengers can expect better, safer and more frequent services as a result of privatising the operation of Adelaide Metro’s rail services.
However the Opposition says Keolis, Keolis Downer’s parent company, has a “poor track record” of running public transport.
And the Public Service Association said more than 900 of its members will be “negatively impacted” by the deal.
The Government last year announced it would move to privatise the operation of the tram and train networks, but stressed infrastructure and ticket pricing would remain under its control.
Transport Minister Corey Wingard on Friday said Keolis Downer would operate the train system for an initial eight-year period under a performance-based $2.14 billion contract.
Under the contract, the company is, among other things, expected to deliver faster and more services upon completion of the electrification of the Gawler line; create more than 2200 new services per year to the new Flinders line; and extend a security trial on platforms.
“We’re all about getting people from A to B faster so they can spend more time with their families and doing what they love,” Mr Wingard said.
“Keolis Downer has an exceptional track record of running successful public transport systems across Australia and around the world.
“From Melbourne to the Gold Coast and Newcastle, Keolis Downer is heavily focused on customer service and ensuring the journey for rail users is simple, easy and efficient.”
Mr Wingard said the company had a “good reputation in South Australia with the former Labor Government outsourcing bus services in 2005 and 2011 to private providers including Keolis Downer”.
He said no one will lose their job as a result of the privatisation.
“There are roughly 200 train drivers in the system, 12 are non-operational…so Keolis Downer will be taking forward 174 train drivers,” he said.
“Let me make this really, really clear…we’ve made the commitment that everyone will have a job at the end of this process.
“We’ll transfer these train drivers across to Keolis Downer. Those that don’t go over still have the option of working within the government and they’ll be worked through the redeployment program into other positions.”
Keolis Downer chief executive officer David Franks welcomed the deal.
“Under this new contract with (the transport department), there will be a strong focus on customer service, for example by providing more channels to access real-time information,” he said.
“Customer Service staff will receive new tools to better engage with customers, share real-time information, gather feedback and advise passengers of any disruptions and alternative options when needed.”
Mr Franks said Keolis Downer had a strong “zero harm” culture and would introduce initiatives to improve safety on the network.
“As a local public transport operator in South Australia for the past 20 years, we are excited to continue our partnership with (the transport department) to deliver better train services in Adelaide,” he said.
“We are committed to partnering with local stakeholders and organisations to create value in South Australia and deliver the Government’s vision of a sustainable, revitalised train service for the people of Adelaide.”
However, Opposition Leader Peter Malinauskas described it as a “bad day for Adelaide’s public transport commuters”.
“We know what will happen next – privatisation always means cuts, poorer services and higher fares,” he said.
Mr Malinauskas said when Keolis took over Newcastle’s bus network in 2018, on-time services dropped from 95 per cent to 75 per cent; in Wales, Keolis Amey were fined 2.3 million pounds for poor performance of its train services; and the company was also caught out providing fabricated quotes to the Government to help it convince the public that privatisation was a good idea.
He said he understood the company won the contract because its bid was significantly cheaper than others due to it promising to cost-cut and outsource train maintenance to a third party.
Mr Malinauskas reiterated a previous pledge that Labor would, if elected, put the train and tram network back in public hands.
Keolis Downer disputed these claims, saying the fake quotes were sent by an employee of the Downer Group, not Keolis Downer, and that the performance figures quoted by Labor were out-of-date.
A spokesman also said patronage in Newcastle had improved by 23 per cent year-on-year since Keolis Downer introduced light rail.
Public Service Association general secretary Nev Kitchin said about 930 of its members will be “negatively impacted” under the new arrangement.
“There will be significant job losses and diminished conditions for workers who remain as a result of this privatisation – any claims to the contrary by government are absolute nonsense,” he said.
“The state government claims that it will retain control of ticket prices, but this should give no comfort to commuters (as) similar claims have been made interstate and overseas only for private operators to successfully lobby governments to increase fares soon after taking control.
“The government has also maintained that they will retain ownership of rail infrastructure. Effectively this means taxpayers will take on the liability while Keolis Downer pockets the profits.”
The Rail, Tram and Bus Union SA/NT has also slammed the contract announcement.
“Steven Marshall was elected as Premier on the promise that he did not have a ‘privatisation agenda’,” RTBU SA/NT secretary Darren Phillips said.
“Today he is exposed as a cheap hustler who says one thing, but does the opposite.”
Mr Phillips said privatisation was “reckless in good times, but in a global pandemic it is downright dangerous”.
“Outsourcing rail operations will put safety at risk, and inevitably lead to job losses – right in the middle of the first recession for 30 years,” he said.
“This is a sad day for South Australia, but we will not give up fighting to protect jobs and protect services.”
Infrastructure Partnerships Australia said “outsourcing Adelaide’s rails services will allow the SA Government to apply a high service standard on Keolis Downer while retaining ownership of the underlying rail assets.”
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