$7.5m Whangarei public bus contract awarded

Passenger transport company NZ Bus has been awarded a $7.5 million local authority contract to run Whangarei’s public bus service for the next five years.

NZ Bus – which purchased Whangarei-based bus company Adams Travelines in January – beat two other tenderers, including current operator Whangarei Bus Services Ltd, to secure the Northland Regional Council contract.

Council Chief Executive officer Ken Paterson today (subs: Fri 04 April) paid tribute to Whangarei Bus Services, which he says has run the existing service successfully since November 2001 and which had carried its one millionth passenger last year.

However, he says the decision to award NZ Bus the contract comes after a detailed formal tender evaluation process. It will result in significant benefits to ratepayers as a result of efficiencies that NZ Bus can draw upon over the five-year life of the contract, which also includes a subsequent three-year right of renewal.

“NZ Bus is an extremely experienced operator with more than 2000 employees, which also runs bus services in the greater Auckland and Wellington region and owns and operates Fullers Ferries (Auckland).”

Owned by New Zealand based infrastructure investment company Infratil since 2005, its assets include more than 1000 buses, nine ferries and significant transport-related infrastructure.

Mr Paterson says the company will take over the Whangarei service on July 1 and will operate a fleet of 10 new low-floor, low emission buses to an extended timetable.

The new fleet would also sport a new, locally-designed look and would operate under the name ‘City Link Whangarei’.

NZ Bus Chief Executive Officer Bruce Emson (subs: crrct Emson) says Adams Travelines, the company’s local passenger service company in Whangarei, is excited about the opportunity to provide urban bus services.

“Providing public transport services is about listening to and serving people in our community. The opportunity to grow our business in Whangarei is an exciting one and we look forward to extending our services focussed on the needs of the people we serve.”

Meanwhile, Mr Paterson says the new service will offer increased value for money as the new contract calls for buses to run more frequently and for longer hours.

However, he says fares will need to be reviewed in the near future as they have not increased for seven years, despite large increases in fuel and other operating costs.

The Whangarei public bus service is currently funded by the Whangarei District Council and Land Transport NZ and administered by the Northland Regional Council.