National Express secures Bahrain contract worth £170m
BIRMINGHAM-based transport group, National Express, has strengthened its presence in the Middle Eastern market with a new contract win in Bahrain worth £170m over the next decade.
Its joint venture, Bahrain Public Transport Company, has been awarded a 10-year contract to operate bus services by the Bahraini Ministry of Transportation.
The contract, which commences on February 15, 2015, will initially see 141 new vehicles serve the capital Manama and inter-urban routes across the entire Kingdom of Bahrain. The contract is expected to deliver in excess of £170m of revenue to the joint venture over the 10 years.
The group said the contract win was significant as it opened a new regional market for National Express, providing a springboard for further opportunities currently emerging across the Middle East.
National Express, through its subsidiary, NX Bahrain Bus Company, has entered into a 50/50 joint venture with the Bahraini conglomerate Ahmed Mansoor Al A’Ali (AMA) to form Bahrain Public Transport Company which will hold the concession.
Dean Finch, National Express Group Chief Executive, said: “We are delighted to win this new contract for bus services in Bahrain alongside our partners, AMA. Building on our recent German rail success, we are delighted that our reputation for operational excellence is opening up further exciting, new markets. We expect this win to provide a platform for further expansion in the region and our team are already working on other opportunities.”
The contract comes after the JV was awarded preferred bidder status earlier this year.
The contract will serve around 77% of Bahrain’s population of c1.4m. It is a significant expansion on the existing 32 vehicle bus service and the Ministry of Transportation expect further expansion in the coming years.
Under the joint venture terms, NX Bahrain Bus Company and AMA will each contribute equity funding of approximately 2 million Bahraini Dinars funding (approximately £3.3m). National Express will satisfy this contribution from its existing financial resources.
