Melbourne Tram Refranchising

Under Procurement
Melbourne Tram Refranchising

The Melbourne Tram Franchise operates Melbourne's metropolian tram system, which includes 250-kilometres of double track, 521 trams across nine classes, and eight depots.

The successful franchisee will be responsible for the maintenance of the network’s track, the operations of all tram fleets and maintenance of all fleets except the G Class – maintained under a separate contract. 

The contract is expected to include an initial nine-year term, with options for three and six-year extensions.

Key Dates

Apr 2023 EOIs Open
May 2023 EOIs Close
Jun 2023 Preferred Bidder Selection
Jun 2023 Shortlist Announced
Jun 2024 Expected Contract Award
Jan 2025 Operations/Service Commencement


Procuring Agency: Victorian Department of Transport and Planning
Shortlist: Three consortia, including Keolis Downer; Transdev and John Holland; and Go-Ahead, comprising Go-Ahead, Kinetic, Globalvia and ACCIONA.
Related contracts:
Commercial and Financial Advisor
Successful Tenderer - Ernst & Young

Customer Advisor
Successful Tenderer - Deloitte

Legal Advisor
Successful Tenderer - Clayton Utz

Operations Advisor
Successful Tenderer - Arup

Probity Advisor
Successful Tenderer - O'Connor Marsden & Associates

Technical Advisor
Successful Tenderer - Aurecon

Transaction Advisor
Successful Tenderer - Infrastructure Advisory Group


1999 State undertakes it's first competitive tender process to implement franchise arrangements with private sector organisations for the operation and maintenance of Melbourne's metropolitan tram train and tram networks (known as MR1).
2002 State creates a single train franchise and a single tram franchise.
2004 The second franchise agreement commences, known as MR2, coveringoperations until 2009.
2009 The third franchise agreement commences, known as MR3. MR3 was awarded to Keolis Downer for an initial term of seven years.
Nov 2017 Having met the required performance metrics, the train and tram franchisees were entitled to enter into exclusive negotiations for a contract extension term. Following the conclusion of exclusive negotiations in 2017, both franchises were extended to 2024 with a further option to extend the contracts to 2027. These extended franchise arrangements are known as MR4.
Apr 2023 The Victorian Government called for Expressions of Interest for the Tram Operations and Maintenance contract, closing on 12 May.
Jun 2023 The Victorian Government announced shortlisted bidders for the project.
Procurement approach
Traditional Procurement | Service Contract |
Victoria |
Media releases
2023/06/13 - ACCIONA
Tender notices
2023/04/24 - EOIs