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Melbourne tram reorganisation

The State Government of Victoria and Yarra Trams have agreed a new five year partnership to operate Melbourne's entire tram network. Under the agreement - which will commence on the 18th April 2004 - Yarra Trams will run, maintain and renew the entire tram system, taking over the responsibility for the operations of the existing Swanston Trams franchise (M>Tram). Yarra Trams will receive a fixed 40% share of the total pool of fare box revenue from the metropolitan public transport system. All the infrastructure assets will be leased from the State Government with Yarra Trams responsible for maintenance, upgrade and renewal but not major construction and network extension projects which will remain the responsibility of the State Government. Yarra Trams will work with the receivers and managers of M>Tram in the interim to enable the seamless creation of one tram company.

As part of the same agreement Connex will become the sole operators of the metropolitan train system for the next five years. The Government will pay Connex AUD345 million and Yarra AUD112 million each year of the five year contract.

19 February 2004

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