ComfortDelGro Corporation (CDG), through its indirect subsidiary CDC NSW, announced that it has been awarded three metropolitan bus contracts in Sydney, New South Wales, totalling some A$1.7 billion ($1.54 billion).
The contracts are Greater Sydney Bus Contracts for Region 4 and Region 14, which the group currently operates, and for Region 12, which is currently being run by another operator and will be consolidated into Contract Region 14. The new Region 4 contract will commence in April 2023 and run for eight years while the new Region 14 contract will commence in May 2023 and run for seven years.
Together, the contracts make up a significant part of Sydney’s public transport network, covering the city’s northern and north-west suburbs and the northern beaches. These regions are home to over 700 buses, which transport 18 million passengers every year.
With a total investment of $1.17 billion to-date, Australia is now the group’s single largest overseas investment destination with a fleet of over 2,600 buses. It is one of the largest public scheduled bus operators in Australia, and also provides non-scheduled bus services, such as school and corporate charters. In the last FY2021 ended December 2021, the Australian businesses chalked up a revenue of $701 million.
CDG’s group deputy CEO Cheng Siak Kian says: “We have been operating in Australia for 17 years now and have strived to improve out service offerings and delivery y-o-y. Australia is, and continues to be, a significant part of our business and we will continue to look at opportunities to expand even further.”
Shares in CDG last traded at $1.32 on Nov 4.
