Bus deal begins Victorian show promise

Victoria has struck a $ 2.3 billion deal to have more than a third of Melbourne’s metro bus network use low- or zero-emission vehicles.

Kinetic, which operates SkyBus and operates local bus routes across Australia and New Zealand, has won the contract to supply 341 buses between January next year and June 2031.

The company will introduce 36 fully electric grid buses by mid-2025, including five by next June, to re-ignite the Andrews government’s commitment to ensure that all new public transport buses are zero-emission from 2025.

This means that more than half of the city’s metropolitan fleet of 537 franchise vehicles will be replaced.

Transport Minister Ben Carroll said the new environmentally friendly electric and hybrid buses will be manufactured at the Volgren plant in Dandenong South.

A minimum fleet target of 60% local content will apply and Kinetic will also meet a 90% local content target for operations such as fuel and uniforms.

“We are launching our campaign for a zero emission fleet of buses in Victoria to benefit the environment and we are helping to develop our engineering, design and manufacturing expertise in these emerging technologies,” said Mr. Carroll.

“The deployment of 36 electric buses at the start of this partnership will accelerate our commitment to ensure that all new buses from 2025 are zero emissions and… will contribute to the learnings of the three year zero emission bus project.”

Victoria’s Head of Transportation Services Nick Foa said the bidding process for the contract was undertaken over 12 months.


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