National Express breaks new ground with Bahrain contract win
National Express Group PLC ("National Express" or "the Group") is a leading international public transport group with bus, coach and rail services in the UK, Continental Europe, North Africa and North America.
National Express is delighted to announce that 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 15 February 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 £170 million of revenue to the joint venture over the 10 years.
The contract win is significant as it opens 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."
This follows the award of preferred bidder status for the contract notified in National Express' Half Year Results release on 30 July 2014.
This contract will serve around 77% of Bahrain's population of c1.4million. 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 £3.3 million). National Express will satisfy this contribution from its existing financial resources. Bahrain Public Transport Company is newly incorporated with no trading history, and on establishment had gross assets of 250,000 Bahraini Dinars (approximately £409,000).
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