Monday, 19 February 2018

Announcement

MKTUPDTE: IFT: NZ Bus successfully concludes Wellington contracts

25 Jan 2018 09:45NZX
NZ Bus successfully concludes Wellington contract negotiations

Further to the announcement of the 25th October 2017 on the finalisation of
its Auckland contract position, NZ Bus has now also successfully concluded
its negotiations to secure long-term scale and stability for its Wellington
bus operations.

With 5 long term contracts in Wellington secured, NZ Bus will continue its
long-standing partnership with Greater Wellington Regional Council. The
result of the Wellington directly appointed unit negotiations is consistent
with Infratil''s market messaging on the expected future scale of the NZ Bus
business and earnings guidance.

"The Wellington contracts secured have an average term of 10.8 years, and a
total value of approximately $323 million providing our customers, people and
stakeholders with long term stability and giving us the certainty we need to
innovate and invest. Growth prospects are positive and are highlighted by a
forecast $31 million of new investment in fleet, including an additional 17
double decker buses.

"Our business in Wellington will continue to be of a scale that will enable
us to maximise the efficiencies of our services. Contracts in Wellington will
commence in the second half of 2018" said Mr Fulljames.

NZ Bus has now completed all directly appointed unit contract negotiations
with Auckland Transport and the Greater Wellington Regional Council. The
contracts, with combined revenues of over $1.3 billion over terms of 6, 9 and
12 years, position NZ Bus well to play an important and ongoing role in the
provision of quality public transport services in Auckland and Wellington,
and to be part of the future growth of public transport in New Zealand.

Zane Fulljames, CEO of NZ Bus, said that by successfully concluding the
contract negotiations, NZ Bus will remain NZ''s largest and most experienced
metropolitan public transport business servicing the high growth areas of
Auckland and Wellington, employing over 1,300 people, and with a fleet of
approximately 650 modern buses operating from eleven depots.

"Electric vehicles are the future of public transport and will be a key focus
now the contracting process in Auckland and Wellington has concluded. We are
extremely well positioned for future market and technology challenges and
have a solid platform to continue our journey towards cleaner and greener
transport solutions" said Mr Fulljames.

For further information contact: Kevin Baker - Infratil Limited
End CA:00313429 For:IFT    Type:MKTUPDTE   Time:2018-01-25 09:45:48
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