Melbourne Commuter Rail Refranchising: 2027 Bids & Sustainability

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Introduction

The Victorian Government is initiating a refranchising process for Melbourne’s commuter rail services, with the current contract held by Metro Trains Melbourne (MTM) expiring in late 2027. The government is seeking bids from experienced transport operators to operate the suburban rail network, which encompasses over 1,000 kilometers of track and 16 lines, beginning in late 2027.

The Refranchising Program

The Melbourne Train Refranchising (MR5) program will assign a new franchisee to operate and maintain Melbourne’s metropolitan rail network. This involves managing over 2,000 daily services, a growing fleet of trains, seven train maintenance depots, and over 220 stations. The successful operator will oversee a workforce of nearly 7,000 employees.

Key Requirements and Expectations

The new franchisee will be responsible for providing a world-class customer experience. This includes integrating with the city’s tram network, regional rail services, bus routes, and future airport links. The government emphasizes improved service reliability, enhanced customer experience, and greater accessibility. The operator must demonstrate adaptability to evolving passenger needs and technological advancements.

Tender Process and Objectives

The competitive tender process aims to identify an operator capable of delivering long-term outcomes for Victorians. The objective is to ensure the network meets the demands of a growing population while improving sustainability and efficiency. The new franchisee will also support the Victorian Government’s objectives around sustainability, safety, and inclusion.

Current and Future Context

Metro Trains Melbourne (MTM), a joint venture, has operated Melbourne’s metropolitan train services since 2009. The current franchise, awarded in 2017, has been extended to 2027. This refranchising process coincides with major network investments, including the completion of the Metro Tunnel and future infrastructure upgrades.

Conclusion

The Victorian Government is seeking a new operator for Melbourne’s commuter rail services, with the current contract expiring in late 2027. The new franchisee will be responsible for operating and maintaining the city’s metropolitan rail network, focusing on improved service, customer experience, and sustainability.

Company Summary

Metro Trains Melbourne (MTM): A joint venture between Hong Kong’s MTR Corporation (60%), John Holland (20%) and UGL (20%), has operated Melbourne’s metropolitan train services since 2009.

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