Preferred bidder selected for privatization of Adelaide's passenger rail network

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Preferred bidder selected for privatization of Adelaide's passenger rail network

The government of South Australia has selected the JV by French group Keolis and the Australian company Downer for the privatization of Adelaide's passenger rail network.

Keolis Downer JV will be responsible for operation, maintenance, and expansion of the existing passenger rail network for 8 years. The JV will take over rolling stock maintenance from Bombardier Transportation, which contract expires in the next two years. 

The current fleet of 70 DMUs and 22 EMUs is set to grow, with a further 12 three-car EMUs on order for delivery in 2021. The estimated investment value for the project is AUD 2.1 billion (US$ 1.50 billion). 

Keolis Downer already operates trams and bus services in Melbourne, the Gold Coast, and Newcastle. The handover of Adelaide's rail operations is part of a larger privatization program, in which, over the past two decades, some South Australian bus services have been transferred to private contractors. For example, in March, a joint venture between SeaLink Travel Group's bus subsidiary, Transit Systems, John Holland, and UGL was awarded a contract to operate Adelaide's tramway network.

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