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 | Shortlist Announced |
| Jun 2024 | Contract Award |
| Dec 2024 | Operations/Service Commencement |
| Dec 2033 | Operations/Service Completion |
Procurement
| 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. |
| Successful Tenderer: | Yarra Journey Makers, a joint venture between Transdev and John Holland. |
| Related contracts: |
PROJECT HISTORY
| 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. |
| Jun 2024 | The Victorian Government announced that Yarra Journey Makers, a joint venture between Transdev and John Holland had been awarded the $6.8 billion contract. |
| Dec 2024 | Yarra Journey Makers, a joint venture between Transdev and John Holland commenced operations of the tram network for a nine year period. |
Estimated Total Cost
(2023)
Sector
Rail
Procurement approach
Traditional Procurement |
Service Contract |
Location
Victoria |
Resources
