Article: Tenders to bring city bus shake-up

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From the Melbourne Age click here!

Tenders to bring city bus shake-up

Tenders to bring city bus shake-up
Reid Sexton
November 5, 2011

CONTRACTS for more than 50 Melbourne bus routes worth $150 million annually will be put out to public tender in a move that is set to shake up the city's public transport network.

The move will end years of behind-the-scenes deal-making that industry sources say has led to ''cosy'' arrangements between state governments and existing operators.

The Public Transport Users Association says putting busses out on public tender should improve services.

CONTRACTS for more than 50 Melbourne bus routes worth $150 million annually will be put out to public tender in a move that is set to shake up the city's public transport network.

The move will end years of behind-the-scenes deal-making that industry sources say has led to ''cosy'' arrangements between state governments and existing operators.

The Public Transport Users Association is backing the plan, and say the public process should lead to improved services and deliver better value for money for taxpayers.
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The 56 commercial bus routes to go out for tender include National Bus Company routes running in Melbourne's east and the CBD, and Melbourne Bus Link routes in the west and south-east.

The Age reported in August that state Treasurer Kim Wells had intervened in plans for an open tender process.

Since the National Bus Company and Melbourne Bus Link routes were privatised in the mid-1990s there has been no public tender process, with the Bus Association helping its members negotiate deals with the government.

A public tender would open the routes to interstate or overseas applicants. But Public Transport Users Association president Daniel Bowen warned that without the financial penalties and performance incentives that are in place for train and tram operators there must be much tighter monitoring of bus services in the contract clauses.

Contracts should also include provisions to ensure bus timetables were linked with trains and trams, he said.

A spokeswoman for Mr Wells said a public tender process had been chosen because it was the best value.

Read more: http://www.theage.com.au/victoria/tenders-to-bring-city-bus-shakeup-20111104-1n04n.html