Yahoo Finance ComfortDelGro wins contracts worth $720 million to operate buses in Manchester
The contracts come with options to be extended for two, one-year terms.
ComfortDelGro has won contracts worth £422 million, or $720 million, to run public buses in the UK for five years.
The contracts, won by its UK unit Metroline, were given by the Greater Manchester Combined Authority (GMCA).
The contracts come with options to be extended for two, one-year terms.
Under these contracts, Metroline will operate 232 different services using 420 buses and over 1,350 employees, which adds twice as many services and a 30% increase over its London portfolio.
"We are honoured to be a partner in Greater Manchester’s transportation story and look forward to other new bus franchise opportunities in the Northwest and across the UK in the future," says managing director and group CEO Cheng Siak Kian.
"This aligns with our broader strategy to strengthen and strategically grow our core public transportation and point-to-point businesses and solidify our reputation as the multi-modal transport operator of choice," says the company's chairman Mark Greaves.
ComfortDelGro's UK unit, Metroline, is the fourth largest scheduled bus operator in London and operates about 17% of the city's scheduled bus services.
Metroline is part of ComfortDelGro C52’s wider operations in the UK, which include Argyle Satellite, Adventure Travel, CityFleet Networks, Computer Cab, KingKabs, Scottish Citylink Coaches, Megabus and Westbus Coach Services.
These companies operate in 23 different towns and cities, offering different kinds of transport services via buses, coaches, taxis, and private hire vehicles.
Post-pandemic, ComfortDelGro is steadily expanding its overseas presence.
Earlier this year, it bought UK-based CMAC Group, a leading ground transport management and accommodation network specialist.
It is active in Australia too, with the recent completion of A2B Australia.
ComfortDelGro shares closed at $1.40 on March 28, down 0.71% for the day.
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