LAND transport operator ComfortDelGro’s (CDG) Australian unit has bagged contracts to operate three bus franchises worth around A$1.6 billion (S$1.4 billion) in Victoria, Australia.
Through its subsidiary CDC Victoria, ComfortDelGro Corporation Australia (CDG Australia) was awarded the contracts within the Victorian Department of Transport and Planning’s Metropolitan Zero Emission Bus (ZEB) Franchises tender process.
On Wednesday (Sep 4), CDG said the latest win represents a 30 per cent growth to its Victoria public bus business, which serves 20 per cent of Melbourne’s metropolitan network.
It will see CDG Australia acquire an additional 86 buses, bringing its total fleet number for its Melbourne metropolitan contracts to 369.
The contracts are for a 10-year term and will commence in July 2025. They collectively comprise 250 public bus and school routes serviced by more than 360 buses.
Buses and depots under the new franchises will be funded as part of the contracts. They will transition to full ZEB operations prior to the end of the contract term.
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CDG said the transfer of ownership of existing bus depots will give rise to a one-off profit on sale.
Assuming the new contracts had taken effect on Dec 31, 2023, this would have brought the group’s net asset value per share as at end-2023 to S$1.21, up from S$1.20.
Had it been effected on Jan 1, 2023, earnings per share for FY2023 would have been S$0.0899 versus S$0.0833.
CDG chairman Mark Greaves said the new zero-emission bus tenders underscore the group’s commitment to electrifying its fleet and reducing its environmental footprint.
To date, the group manages more than 2,800 public buses and coaches across six states and territories within Australia. It also operates the country’s largest taxi network.
“We are proud to support governments in building safe, reliable, and sustainable transportation systems for the communities they serve,” said Greaves.
Shares of CDG ended Tuesday flat at S$1.41.
