Department of State GrowthTransport

Project 2018

Public Transport Bus Services Procurement




General access services

Student only services

Information for Operators


Overview

Existing contracts for public transport bus services (including student only bus services) begin expiring in early 2018. 

Under section 49(2)(a) of the Passenger Transport Services Act 2011 contracts can run for a maximum of ten years, which places a legislative impediment to these contracts simply being renewed or extended. A detailed review of all current services and service optimisation is underway to ensure that the most efficient and  cost effective network of services is procured and opportunities for efficiencies identified.

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The review (referred to as 'Project 2018') will ensure the changes Tasmania has been experiencing over the last decade are captured and lays a strong foundation for growth in the decade to come. It will deliver the Government's policy objective to provide a further 5 year + 5 year contract for incumbent    operators, providing key performance conditions are met and there is an ongoing need for a particular service in a particular area. It will also provide a consistent measure of performance across all bus contracts, greater incentives for operators to perform and importantly, better long-term service    delivery for Tasmanian bus passengers  

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Background

The Secretary of the Department of State Growth is responsible for contracting the purchase of public transport bus services for Tasmania.  This covers all publicly available student only bus services and general passenger services (e.g. Metro Tasmania, Redline, Tassie Link, Mersey Link, O'Driscolls  etc.) but excludes dedicated tourist and private bus services as these are not contracted by the Government.

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There are currently 158 individual bus operators (as of August 2014) who collectively hold 468 contracts for public transport bus services in the State, with all of these bus contracts reaching their ten year expiry between February 2018 and November 2019. The majority of rural student only bus services expire between February and August 2018. The majority of other bus services expire between October 2018 and June 2019.  

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Contracts by expiry date
Updated on 22 January 2016

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The current annual expenditure on contracted bus services is approximately $92 million per annum with 43 per cent of these costs being for the metropolitan bus services (Hobart, Launceston and Burnie and Devonport), 41 per cent being for dedicated student services and 16 per cent  for general access services outside the main metropolitan networks (See detailed breakdown below).

Metro's contract is included in these amounts and accounts for most of the 43 per cent of metropolitan bus services.

Contract Type

Service Operators

Service Contracts

Cost 2014 $

Special Needs        

7        

16        

1,338,017        

Rural School Bus (free to user)        

125        

265        

19,226,885        

Rural Fare Paying        

13        

14        

1,225,224        

Town (student-only)        

17        

17        

839,798        

Long Distance Student-only        

4        

4        

688,403        

Urban Fringe Student-only        

44        

101        

12,669,460        

Urban (student-only)        

9        

22        

1,803,974        

Long Distance General Access        

5        

11        

4,559,230        

Urban Fringe General Access        

9        

16        

9,851,113        

Metropolitan General Access        

2        

2        

39,500,000        

Total        

 

468        

91,702,103        

(As of August 2014)