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New operator for Hillside Trains



The Victorian Government has announced that Melbourne Transport
Enterprises has been awarded a 15 year franchise to operate Hillside
Trains in the eastern and northern suburbs.

MTE is a wholly owned subsidiary of CGEA Transport Asia Pacific
Holdings which in turn is owned by French based Vivendi.

MTE intends to contract with Alstom Australia for the supply and
maintenance of Hillside's rolling stock and infrastructure.

First year subsidy will be $91M declining to $25M by the end of the 15
year franchise.

MTE plans to increase patronage by 64% over the term of the agreement.

It will also invest $314M in 29 new six car trains and $75M to
refurbish the remainder of the fleet.

MTE will formally take over operation of Hillside Trains around the end
of August.

Further information in a future issue of "Transit Australia{"


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