June 28, 2013

ORC secures new Dunedin bus contracts

Otago Regional Council has confirmed contracts securing Dunedin bus services to take effect from 1 July.

Agreement has been reached with Invercargill Passenger Transport Limited to extend and vary their existing contracts. The revised timetable has been produced as part of ORC’s programme of developing the network as contracts expire.

The revised services are the Balaclava/Kenmure/ Helensburgh, Corstorphine / St Clair Park, and Palmerston routes, and the weekday evening, Sunday and public holiday services in Dunedin. All other routes remain the same.

The council began the renewal process in October last year for three contracts expiring in June 2013 when it authorised staff to call for tenders relating to those bus services.

The services contracted in this process had to be re-negotiated because they were not lawful under the new Land Transport Management Act 2013, which came into force on 13 June.

Staff have worked closely with NZTA and the affected operators to resolve the contractual issues this legislation presented for ORC.

ORC chief executive Peter Bodeker said the same conditions would apply to the new contracts as those attached to the contracts awarded in February.

However, the annual cost of the renegotiated contracts has increased by approximately $160,000. The additional expense would be offset by the reinstatement of the NZTA subsidy, which had previously been withheld for these services, Mr Bodeker said.

The renegotiated contracts have a combined net value of $1.45m.

A new timetable booklet is being distributed to all Dunedin households this week.
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