Budapest bus contracts strengthen Arriva’s Hungarian presence

Hungarian bus operator VT Transman, a joint venture between Arriva and Videoton Holding, has won two eight-year bus contracts operating across Budapest, Hungary’s capital city.

The contracts are the first to be awarded on a new tender basis by Budapesti Közlekedési Központ. They will begin to operate from 1 May 2013 and include the potential to extend for a further two years. The services will operate in the North Pest area of the city. Revenue from the contracts will be €29 million a year.

The contracts add to VT Transman’s presence in Hungary where it provides regional, urban and contracted bus operations, currently with 225 buses and 450 employees.

Passengers will benefit from an investment in excess of €40 million in 150 new Mercedes Citaro buses for the contracts, consisting of 12 metre and articulated vehicles. All vehicles will feature passenger information systems, air conditioning and infotainment.

Combined, the contracts will see Arriva and Videoton operate an additional 11.5 million kilometres a year and employ an additional 500 people. The contracts will operate from the existing depot and a new depot in Budapest.

Dominic Palleschi, director – Eastern Europe, at Arriva, said: “These are the first contracts of their kind in Budapest. They allow the transport authority to provide an upgraded, modern fleet for its passengers, significantly improving the travel experience.

“The Hungarian transport market is opening to competitive tender and we are well positioned to work closely with the client body and to advise as they establish the best solutions for their local transport needs.”

The contracts will begin on 1 May 2013 in a phased introduction over a three-month period.

Arriva entered the Hungarian bus market in 2008 where VT Transman is the country’s largest private sector bus operator. It has been operating sub-contracted services in Budapest since 1999.

The contract wins strengthen Arriva’s presence in mainland Europe where it operates a range of passenger transport services in 11 countries in addition to the UK.