KeolisDownerEDI (KDR) and TransdevTSL were selected by the Government from a field of three companies to continue with the tender process.

Public Transport Minister Lynne Kosky said that she was pleased the refranchising process had reached the next stage.

“We want the best possible public transport operators for the people of Melbourne and the tender process allows us to access the best expertise in the world,” Ms Kosky said.

Three companies expressed interest in running the tram network but only two parties will submit tenders.

“One company failed to meet the stringent criteria we established for the tender and following the evaluation process and subsequent clarification of their submission, they decided not to continue to the next stage,” Ms Kosky said.

Ms Kosky said the two companies demonstrated they had the skills and expertise to run the tram system and address current and future transport challenges.

 “They also had to demonstrate a commitment to Melbourne and this process, the ability to partner with the Government and provide value for money for Victorians,” Ms Kosky said.

“Following the evaluation process, we have elected to invite KDR and TransdevTSL to submit a tender because they are both world class operators and their bids showed us real potential to deliver a valuable combination of these factors.”

The Department of Transport is managing the refranchising processes for both the tram and train networks. A total of six companies have expressed interest in operating and/or maintaining the train franchise, with a shortlist to be released later this month.

The tender process is expected to be complete by mid-2009 with successful train and tram operators in place by December 2009.