Volvo wins state government bus contract

Volvo Group Australia has won a state government contract worth up to $400 million to upgrade the public transport bus fleet, replacing Mercedes at the completion of its contract.

Volvo Group will supply a minimum of 65 buses a year for five years with a five year option.

Volvo will provide the chassis and Volgren Australia will manufacture the bus bodies at their plant in Malaga.

"Deliveries to the Public Transport Authority start in July 2011, immediately following the expiration of the previous contract which the previous Coalition Government set in place in 1999," said Transport Minister Simon O'Brien.

Beyond 2014, Transperth will be considering a new compressed natural gas bus platform incorporating new engine technology in the Volvo chassis.

Volgren, which already makes bus bodies under the expiring contract with Mercedes, employs more than 100 staff at Malaga.

The plant uses more than 60 local suppliers and has local, national and international customers.

Truck Centre WA, the Volvo bus servicing centre, is a long-standing Volvo partner and employs more than 230 people across its network.

See statement from Transport Minister below:

The State Government is upgrading the public transport bus fleet with the signing of a contract potentially worth up to $400million.

The contract - for the supply of a minimum 65 buses a year for five years with a five-year option - was awarded to Volvo Group Australia.

Announcing the deal today, Transport Minister Simon O'Brien said Volvo would provide the chassis and Volgren Australia would manufacture the bus bodies at their plant in Malaga.

"Deliveries to the Public Transport Authority start in July 2011, immediately following the expiration of the previous contract which the previous Coalition Government set in place in 1999," Mr O'Brien said.

"Currently, more than three-quarters of the Transperth bus fleet is low-floor accessible and air conditioned.

"The new contract enables a seamless continuation of the program to update and modernise the fleet with new, low-floor gas and diesel-powered buses.

"Today's news also means Transperth will stay at the forefront of the industry in terms of disability access and environmental friendliness. Volvo, a world leader in emissions technology, will be using EEV (enhanced environmental-friendly vehicle) diesel technology, the cleanest bus technology commercially available today."

Initially, the contract will supply diesel vehicles, which will maintain the fleet mix at half diesel and half CNG (compressed natural gas) buses.

Beyond 2014, Transperth will be considering a new CNG bus platform incorporating new engine technology in the Volvo chassis.

Volgren, which already makes bus bodies under the expiring contract with Mercedes, employs more than 100 staff at Malaga. The plant uses more than 60 local suppliers and has local, national and international customers.

Truck Centre WA, the Volvo bus servicing centre, is a long-standing Volvo partner and employs more than 230 people across its network.