ComfortDelGro Corp has been awarded a $1.13 billion contract to operate rail services in Auckland, marking the group’s first foray into the New Zealand land transport market.
The award of the Auckland Rail Franchise (ARF) by Auckland Transport to Auckland One Rail (AOR) was announced today after a 12-month long tender process.
AOR is a 50:50 joint venture company between ComfortDelGro and UGL Rail Services, an Australian rail operations and maintenance company under the CIMIC Group.
The contract will commence on 16 January 2022 and is for an initial term of eight years with the opportunity for further extensions.
The Auckland Rail network is the largest in New Zealand and comprises four lines representing 185 km of track, 42 stations and 72 three-car electric multiple unit (EMU) trains and eight diesel multiple unit trains. This will grow to 44 stations and 95 EMU trains from the opening of Auckland’s new City Rail Link, which is planned to occur in 2024, and is expected to result in a significant increase in rail patronage. Pre-Covid, the network had an annual ridership of 21 million.
See also: Retail REITs, retail and transport stocks poised to benefit from circuit breaker exit: DBS
“This marks a very significant milestone in our history. It not only represents our first rail operation outside of Singapore but also our maiden entry into New Zealand. We are excited to leverage our experience of operating and maintaining Singapore’s world-class MRT system and are looking forward to delivering connected, safe and reliable customer journeys for Auckland’s travelling public,” says ComfortDelGro’s managing director Yang Ban Seng.
UGL’s managing director Doug Moss says, "We recognise the challenges and opportunities facing the network as Auckland experiences unprecedented and growing demand for transport services. We look forward to working together with Auckland Transport and bringing our international rail expertise, sharing proven solutions to shape and improve the operations of the network and support the strategic objectives of Auckland.”
Under the ARF contract, AOR will assume responsibility for passenger train operations across the network including the provision of drivers and other train staff, development of timetables, station operations and maintenance, security, customer facing activities and revenue protection. It will manage the Auckland Network Access Agreement and KiwiRail interfaces. In addition, it will be responsible for the maintenance of the rolling stock from 2025.
Shares in ComfortDelGro closed 2 cents or 1.24% lower at $1.60 on August 26.
Photo: ComfortDelGro
