Mainboard-listed transport company ComfortDelGro Group has been awarded a S$1.13-billion ($836.5 million) contract to operate rail services in Auckland, New Zealand, according to a press statement.
The Singapore-based group will operate the rail services through its joint venture with Australian rail operator and maintenance company UGL Rail Services, called Auckland One Rail (AOR), in which it owns a 50% stake.
With this contract, ComfortDelGro, which operates bus and taxi services in Australia and the United Kingdom, is venturing into New Zealand’s land transport market.
ComfortDelGro said that the Auckland rail network is the largest in New Zealand. It has four train lines in the network, which consists of 185km of track, 42 stations, 72 three-car electric multiple-unit trains and eight diesel multiple-unit trains, per the press release.
The network is expected to grow to 44 stations and 95 electric multiple-unit trains, and will likely result in higher ridership, with the opening of Auckland’s new City Rail Link in 2024.
ComfortDelGro operates two train lines in Singapore — the North-East Line and the Downtown Line — via its subsidiary, SBS Transit. It is also part of a consortium bidding for a contract to operate a new metro railway line under the Sydney Metro-Western Sydney Airport project.
Earlier this month, ComfortDelGro announced that it is looking to list its Australian business, ComfortDelGro Corporation Australia, on the Australian Securities Exchange in the last quarter of 2021.
For the year ended December 31, 2020, the Australian businesses chalked up revenue of S$608 million, making it the group’s best performing overseas operation, according to a statement. With a total investment of S$1.17 billion ($880 million) to date, Australia is ComfortDelGro’s single-largest overseas investment destination. It runs public scheduled buses, private coach charters, ambulances, taxis, and outdoor
In July, it partnered with Vietnamese ride-hailer beGroup to launch its beTaxi service. Vinataxi was said to be the third-largest taxi operator in the Ho Chi Minh City market, southern Vietnam.