The Allan Labor Government has awarded Victoria’s first zero emission bus contracts – as the state pushes towards a cleaner and more sustainable bus fleet.

Covering a third of Melbourne’s bus network, the new Metropolitan Zero Emission Bus Franchises will fast track the replacement of existing diesel buses with 600 new zero emission battery electric buses by 2035.

The new contracts represent the Labor Government’s largest investment in electric buses, and supports our ambitious climate targets, as Victoria works towards net zero emissions by 2045.

The contracts, covering 131 public routes and more than 230 school services across Melbourne – will deliver Victorians quieter, smoother and cleaner rides.

The new bus contracts have been awarded to Victorian-based bus operators Dysons, CDC and Kinetic following a thorough competitive tender process.

All three operators have extensive experience in running bus services in Victoria, with Kinetic currently operating the Melbourne Bus Franchise, which covers another third of the metropolitan bus network. While CDC and Dysons also operate large town centre and regional bus contracts.

The new franchises will support local manufacturing and create Victorian jobs through increased local content requirements.

New social procurement targets have also been applied to these contracts, meaning the investment will help to benefit Indigenous businesses, priority job seekers and boosting the number of women across the workforce.

Once delivered in 2035, the 600 new zero emission buses will travel more than 35 million kilometres and save an estimated 45,000 tonnes of carbon emissions every year.

The Metropolitan Zero Emission Bus Franchises will commence operation once the current contracts expire on Sunday, 30 June 2025 – with all existing routes and timetables being maintained.

Quotes attributable to Minister for Public and Active Transport Gabrielle Williams

“We’re introducing more zero emission buses across the state which will deliver smoother and quieter journeys for passengers and locals.”

“We’re ensuring more Victorians benefit from our investment with higher local content and social procurement targets.”

Quote attributable to Minister for Climate Action Lily D’Ambrosio

“These new metropolitan bus contracts will significantly lower emissions across Victoria’s bus industry which is critical to Victoria meeting our commitment of net zero emissions by 2045.”