French-based public transport operator Transdev is making its first move in the New Zealand bus industry through the acquisition of two major public services.
The company will run more than 200 buses after purchasing Auckland’s Howick and Eastern Buses and Wellington’s Mana Coach Services from UK private equity firm Souter Investments.
Transdev currently operates train services in Auckland on behalf of Auckland Transport and in Wellington on behalf of the Greater Wellington Regional Council.
Transdev Australasia chief executive Luke Agati says the acquisition provides a great opportunity to strengthen public transport connections in the two cities.
“We aim to offer commuters the best possible transport solutions, and these new acquisitions will mean that we are in a good position to support our clients to improve connections between bus and train services in both Auckland and Wellington,” Agati says.
With its fleet of 145 buses Howick and Eastern Buses currently operates 23 urban routes on behalf of Auckland Transport.
Mana Coach Services has a fleet of 66 buses which operates on behalf of the Greater Wellington Regional Council. Both businesses also provide school and general charter services.
Agati says there are no plans to change the management structure or operations of either business.
“We have a long history of engaging and partnering with clients and communities in New Zealand, and our goal for the long term is to build on the good work that is being done and grow the networks in both Auckland and Wellington over time,” he says.
The acquisition is Transdev Australasia’s first extension into the New Zealand bus industry, and joins bus services in Sydney, Melbourne, Perth and Brisbane.
Greater Wellington sustainable transport committee chair Barbara Donaldson says it’s positive news for her region.
“Transdev know the unique challenges of operating in our region, the topography, the growth and what customers expect in terms of services,” she says.
Donaldson also thanked the current owners of Mana Coach Services for their service and commitment to customers over the years.
“The team at Mana have been a genuine asset to Wellingtonians and an integral part of the new network.”
Bill Rae, outgoing chairman of Howick and Eastern Buses and Mana Coach Services, says both “are recognised as industry leading urban bus operators, with first-class operational capabilities and strong long-term relationships with key stakeholders”.
Souter Investments acquired Mana Coach Services in 2007 and added Howick and Eastern Buses to its stable a year later. During Souter’s ownership, the businesses have fulfilled more than 95 million customer journeys and invested more than $63 million in new vehicles.
“Following significant capital investment and under the leadership of Sheryll Otway and Craig Chin, both Howick and Eastern Buses and Mana Coach Services are well placed to continue playing a central role in the growth of sustainable, environmentally friendly public transport in Auckland and Wellington, New Zealand’s two largest public transport markets,” Rae says.
Souter Investments investment director John Berthinussen says the equity firm has a long history of operating and investing in New Zealand as it’s “an attractive and easy place to do business”.
It provides “supportive environmental, demographic and economic conditions for growth in sustainable public transport,” he says.
Souter Investments retains ownership of Fullers360, which provides ferry and tourism services on Auckland Harbour and the Hauraki Gulf.
