Auckland Transport has appointed a new operator for the city’s rail services with a contract worth around $130 million a year.
The successful operator is Auckland One Rail (AOR) which is a 50:50 joint venture between ComfortDelGro Transit (CDGT) and UGL Rail. The contract has an eight-year initial term.
The existing Auckland passenger rail contract, operated by French-owned Transdev, has been in place since 2004 and, following several extensions, expires in March 2022.
AT will continue its relationship with Transdev which is also the operator of Howick and Eastern Buses.
The unsuccessful tenderer was Aka Tangata – a consortium comprising Transdev NZ, John Holland NZ and CAF NZ.
CDGT’s parent, CDG, is a Singapore-owned company and one of the world’s largest multi-modal passenger transport providers.
It has a footprint in seven countries, more than 24,000 employees and annual turnover in 2020 of NZ$3.4 billion. CDG, through its subsidiary SBS Transit, is the operator and maintainer of two Singapore mass rapid transit lines and a light rail system.
UGL Rail’s parent, UGL, is Australia’s largest supplier of outsourced rail asset management and rolling stock maintenance services, with a fleet of more than 2000 rail vehicles across its Australian rolling stock maintenance contracts.
UGL is also consortium partner in Metro Trains Melbourne, Metro Trains Sydney, Canberra light rail and the operator of the Adelaide light rail system.
AT chair Adrienne Young -Cooper says the review of the current way of delivering rail services provided an opportunity to change the delivery model.
It includes $7 billion of investment that is being made in rail with the construction of the City Rail Link opening in 2024, electrification of the rail line between Papakura and Pukekohe, and the purchase of additional electric trains over the next few years.
As a result, the new contract will see AOR having responsibility for not only train operations but also electric train maintenance, station operations and maintenance, safety, and security, she says.
“The prime driver for moving to a more vertically integrated model is to reduce organisational interfaces and to improve customer and safety outcomes.
“While cost savings were not the primary outcome sought, the pricing received through this very competitive procurement process has resulted in savings over current costs,” Young -Cooper says.
The transaction has been structured so the incoming operator takes over the existing Transdev Auckland operating company and all of its staff who remain on their existing terms and conditions of employment.
At this stage AT will continue to employ transport officers to manage fare evasion.
AOR will also establish an additional rolling stock maintenance facility for train overhauls in South Auckland with targeted employment of Māori and Pasifika into trades and engineering apprenticeships. This complements the existing facility at Wiri.
The city’s rail services have seen rapid growth in the last few years from just over two million passenger boardings per annum in 2000 to over 22 million by 2020.
Auckland mayor Phil Goff says Aucklanders are demanding frequent and reliable public transport to travel around the city.
“Ensuring we have a world class and experienced rail franchise operator is an important part of providing an outstanding rail service that Aucklanders will want to use and can rely on,” he says.
Union seeks new agreements
Rail and Maritime Transport Union general secretary Wayne Butson says workers will be watching the approach of the new operators closely.
He says after some major industrial disputes, a good working relationship had been established with current operator Transdev and there was concern about the future.
“More uncertainty at a time when we already face disruption from maintenance issues and COVID is not a good situation.”
Butson says the unity and strong collective will of rail workers in Auckland has meant retaining decent terms and conditions of employment, and this approach would continue regardless of the employer.
He says the collective employment agreements with Transdev and CAF will expire shortly and bargaining will soon commence for a new multi-employer agreement.
“It is of concern to our members that no effort has been made by the successful bidder to meet with the union during the tender process.”
Butson says the bottom line is that no employer would be boosting profits at the cost of wages and working conditions.
