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Hong Kong-based MTR wins $2.4 billion deal to operate Stockholm's subway - Printable Version

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Hong Kong-based MTR wins $2.4 billion deal to operate Stockholm's subway - cyrano - 01-29-2009 08:30 AM

Associated Press

STOCKHOLM, Sweden - Stockholm's public transport owner SL AB said Tuesday that Hong Kong-based railway operator MTR Corp. has won a 19.7 billion kronor ($2.4 billion) deal to run the subway in the Swedish capital.

SL said MTR will operate the subway for eight years, starting Nov. 2. The contract also holds the possibility for a six-year extension.

MTR was favored over five other companies that had been bidding for the deal, including current operator Veolia of France, S-Bahn Berlin GmbH and Sweden's Tagkompaniet AB.

"MTR submitted the best bid from a quality standpoint," said SL's managing director, Ingemar Ziegler. "We expect a substantial improvement in quality at about the same cost."

The agreement covers traffic operation of the subway as well as vehicle maintenance, customer service, cleaning and snow clearance.

Ziegler also said it calls for increased staff presence and improved customer service, together with requirements for increased punctuality, fewer canceled departures and improved cleaning.

The 3,000 employees that are currently employed in the subway will be transferred to MTR.

The Stockholm subway has three lines and carries around 700,000 passengers a day.