NZ Bus secures future in Auckland

Infratil Limited 5 Market Lane, PO Box 320, Wellington, New Zealand Tel +64-4-473 3663 Fax +64-4-473 2388 www.infratil.com




25 October 2017

NZ Bus secures future in Auckland
NZ Bus confirms it has successfully concluded negotiations to secure long-term scale and stability for its
Auckland bus operations. With 20 long-term contracts in Western, Central and Northern regions of
Auckland secured, NZ Bus will continue its long-standing partnership with Auckland Transport. The result
of the Auckland directly appointed negotiation process is consistent with Infratil’s recent market
messaging on the expected future scale of the NZ Bus business and earnings guidance.
Zane Fulljames, CEO of NZ Bus, said that NZ Bus’ Auckland public transport business remains large and
sustainable, servicing high growth areas, employing over 1,000 people, and with a fleet of approximately
480 modern buses operating from six depots.
“The contracts have an average term of nine years, and a total contract value of around $1bn providing
our customers, people and shareholders with long term stability and giving NZ Bus the certainty it needs
to continue to innovate and invest” said Mr Fulljames. Growth prospects in the Auckland region are very
positive with population growth and public transport initiatives to reduce congestion expected to provide
momentum for increased requirements for services and capacity. As part of the Auckland contract
renewals, NZ Bus expects to invest around $47 million in new fleet, including an additional 75 double
decker buses, to support its existing fleet and infrastructure investment.
NZ Bus’ future Auckland scale will be similar in size to its existing combined activities in West, Central and
North Auckland prior to concluding the PTOM contracts and that scale will enable NZ Bus to maximise the
efficiencies of its services. Contracts in West Auckland started in June this year, with the remainder
commencing in the second half of 2018.
As a major transport operator, NZ Bus is committed to continuing to deliver high quality, reliable services
in Auckland and to be part of the future of public transport in New Zealand.
Mr Fulljames said “Electric vehicles are the future of public transport and will be a key focus now the
contracting process for NZ Bus in Auckland has concluded. We are extremely well positioned for future
market and technology challenges and have a solid platform to continue our journey towards cleaner and
greener transport solutions”.
Negotiations for five direct appointed Wellington contracts with Greater Wellington Regional Council are
ongoing. The services associated with these contracts are expected to start in the middle of 2018. As
notified recently by GWRC, NZ Bus’ trolley fleet will progressively be decommissioned over the next few
weeks. NZ Bus continues to work towards deployment of the trolley fleet with alternative power train
technologies.


For further information contact: Kevin Baker – Infratil Limited