Sydney metropolitan bus service contracts
Contracts are issued by the Government of New South Wales to metropolitan bus operators in Sydney, Australia, to operate its public bus route network. Since 2005, the government has moved from individual contracts with operators to larger contract regions, leading to the consolidation of bus operators.
History
In February 2004, the Unsworth Review of Bus Services conducted by former transport minister and former premier Barrie Unsworth, reported its findings to the Carr government, recommending that the number of contract areas that existed in Sydney be reduced from 87 to 15 with a lead entity identified for each region to negotiate a contract. This was adopted with the first seven-year performance based contract signed in January 2005. By June 2005, eight had been signed. In some cases the existing operators formed joint venture companies to have a single contract with the government while in other regions there were some takeovers.The contracts resulted in some consolidation of operators. Harris Park Transport and Moores Tours decided to cease operating at short notice in December 2004. Some of Baxter's Bus Lines routes passed to Connex and Transit First in January 2005. Further consolidation took place after the contracts commenced with Baxter's selling its remaining routes to Westbus in September 2006, Transit First selling out to Connex in February 2007. Veolia, who operated in regions 10 and 13, took over region 11 operators Crowthers in January 2009 and Caringbah Bus Service in October 2011. The two takeovers resulted in the merger of regions 10 and 11 to form an expanded region 10, reducing the total number of regions to fourteen.
With the contracts coming up for renewal and following a change in government, the O'Farrell Government decided to put the provision of the services out to competitive tender. Transdev NSW was able to negotiate a direct award for regions 10 and 13 after agreeing to provide access to its bus and depot assets at the end of the contracts. The regions operated by State Transit were not included at this stage, however region 6 was tendered out from July 2018.
Under the 2005 contracts, all new buses were purchased by the government and leased to the operators. As a result, when regions have changed hands, all of the post 2005 built buses have remained with the region, with the older buses retained by the outgoing operators.
2020–2023 tenders
With the exception of region 6, the government announced in October 2019 that the contracts for the other thirteen regions will be put out to competitive tender by 2022. These contracts were originally due to expire in 2021 and 2022.The first three regions to be put out to tender were the three remaining State Transit regions 7 to 9. Tenders for Region 8 opened in June 2020 and closed on 30 September 2020, with Keolis Downer announced as the successful tenderer in May 2021. Tenders for Region 7 opened in August 2020 and closed on 18 December 2020, with Busways announced as the successful tenderer in July 2021. Tenders for Region 9 opened in November 2020, with a joint venture of Transdev and John Holland announced as the successful tenderer in November 2021. The three regions were transitioned to the new operators on these following dates:
- Region 7 in January 2022
- Region 8 in October 2021
- Region 9 in April 2022
- Tranche 1: Regions 4, 12 and 14. Contracts for Regions 12 and 14 can be consolidated in a single bid. Tenders opened in January 2022 and closed on 14 April 2022. In November 2022, CDC NSW, the incumbent operator for Regions 4 and 14, was awarded the contracts for the three regions, with region 12 to be consolidated into Region 14.
- Tranche 2: Regions 3, 5, 10 and 13. Any combination of the four contracts can be consolidated in a single bid. Tenders opened between March and May 2022. In December 2022, Transit Systems NSW, the incumbent operator for Region 3, was awarded the contracts for Regions 3 and 13, with region 13 to be consolidated into Region 3. The contracts for Regions 5 and 10, with region 5 consolidated into region 10, were awarded to U-Go Mobility, a new joint venture between UGL and Go-Ahead Group.
- Tranche 3: Regions 1, 2 and 15. Tenders opened between June and August 2022. In February 2023, Busways, the incumbent operator for Region 1, was awarded the contract for the region, while Transit Systems was awarded the contracts for Regions 2 and 15, with Region 15 to be consolidated into Region 2.
Livery
A requirement of the contracts is that operators adopt a white and two blues livery as prescribed by Transport for NSW, this was implemented from 2010. Forest Coach Lines' 2005 contract did not require their buses to be repainted blue, hence the livery applied to their buses saw the blue replaced with green. This loophole was closed when the region was tendered in 2012.Current contracts
Since October 2023, there are 10 contract regions in Sydney, each of which is tied to a geographical area. Current contracts commenced prior to 2018 operate for five years, with an option to extend for a further three years. Contracts commenced and awarded since 2018 are for an eight-year period. All of these contracts were awarded via open tender.| Region | Service area | Current operators | Start date of current contract | End date of current contract |
| 1 | Blacktown LGA, Penrith LGA | Busways | 10 December 2023 | 28 June 2031 |
| 2 | Campbelltown LGA, Liverpool LGA, Camden LGA | Transit Systems | 8 October 2023 | 28 June 2031 |
| 3 | Liverpool LGA, Fairfield LGA, Cumberland LGA, Canterbury-Bankstown LGA | Transit Systems | 6 August 2023 | 30 November 2030 |
| 4 | Hills District | CDC NSW | April 2023 | 28 June 2031 |
| 6 | Inner West | Transit Systems | 1 July 2018 | 30 June 2026 |
| 7 | Northern Suburbs | Busways | 9 January 2022 | 9 January 2030 |
| 8 | Northern Beaches | Keolis Downer Northern Beaches | 31 October 2021 | 31 October 2029 |
| 9 | Eastern Suburbs | Transdev John Holland | 3 April 2022 | 2 April 2030 |
| 10 | Sutherland Shire, Georges River LGA, Canterbury-Bankstown LGA | U-Go Mobility Maianbar Bundeena Bus Service | 1 July 2023 | 30 November 2030 |
| 14 | Ku-ring-gai LGA, Northern Beaches | CDC NSW | 21 May 2023 | 29 June 2030 |
Region details
Region 1
Region 1 covers the outer western suburbs between Blacktown, Penrith, Windsor and Richmond. It also operated route 740 services via the M2 Hills Motorway to Macquarie Centre, which ceased in May 2019.When the region was established in 2005, services were operated by the Area 1 Management Company consortium of incumbent operators Busways, Hawkesbury Valley Buses and Westbus. Following a competitive tendering process, on 6 October 2013 Busways took over all services in the region in its own right. In February 2023, following another competitive tendering process, Busways successfully retained and was awarded a seven-year contract for Region 1. The contract will commence in December 2023.
Region 2
Region 2 initially covered the south western suburbs between Liverpool, Ingleburn and Hoxton Park. Other principal suburbs are Bringelly and Glenfield.When the region was established in 2005, services were operated by the Area 2 Management Company consortium of incumbent operators Busabout and Interline. Following a competitive tendering process, on 1 June 2014 Interline took over all services in the region in its own right.
Nine years later, in February 2023, following another competitive tendering process, Transit Systems was awarded a new contract for the region. The region also consolidated region 15 and expanded to cover Camden, Narellan and Macarthur, as well as services to Wollongong. The new contract commenced on 8 October 2023, with Transit Systems taking over Region 2 services from Interline and Region 15 services from Busabout.
Region 3
Region 3 initially covered the south western suburbs between Parramatta, Liverpool and Bonnyrigg. Other principal suburbs are Cabramatta, Fairfield and Wetherill Park.When the region was established in 2005, services were operated by the Area 3 Management Company consortium of incumbent operators Baxter's Bus Lines, Busabout, Hopkinsons, Metro-link and Westbus which operated all routes except Liverpool–Parramatta T-way route T80 which was operated by Western Sydney Buses. Baxter's sold its routes to Westbus in September 2006.
Following a competitive tendering process, on 13 October 2013, Transit Systems took over the operation of the region. Nine years later, in December 2022, following another competitive tender process, Transit Systems retained and was awarded a seven-year contract for the region. The region also consolidated region 13 and expanded to cover Lidcombe, Granville, Bankstown and Burwood. The new contract commenced on 6 August 2023, with Transit Systems taking over Region 13 services from Transdev NSW.
Region 4
Region 4 covers The Hills district including Parramatta, Pennant Hills, Castle Hill and Rouse Hill. Other principal suburbs are Dural, Blacktown and Baulkham Hills. It also operates services via the M2 Hills Motorway to Macquarie Centre, Chatswood, Milsons Point and the Sydney CBD.When the region was established in 2005, services were operated by incumbent operator Hillsbus. Hillsbus successfully bid to retain the region with a new contract commencing on 1 August 2014.
Following the short notice cessation of operations by Harris Park Transport, its routes in the Hills District were taken over by Hillsbus on 20 December 2004, then transferred to Sydney Buses as part of region 7 on 28 January 2005, with six routes returning to Region 4 on 25 September 2005.
Following a tendering process, CDC NSW retained and was awarded an eight-year contract for Region 4 in November 2022. The new contract commenced in April 2023. The Hillsbus brand was phased out in favour of the CDC NSW brand.