ComfortDelGro plans to bid for Melbourne’s rail line in 2026, joining JR East and UGL in a new consortium aiming to win the contract as MTR’s current deal nears its end. This is reported by the railway transport news portal Railway Supply.

ComfortDelGro plans to bid for Melbourne’s rail line in 2026, joining JR East and UGL in a new consortium aiming to win the contract as MTR’s current deal nears its end
ComfortDelGro’s CEO Cheng Siak Kian speaking at the company’s half-year earnings briefing for 2023 on August 14, 2023 in Singapore.

The Melbourne One Rail Consortium blends Singaporean and Japanese rail expertise with UGL’s strong local operations. Japanese investment giant Marubeni backs the bid.

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Melbourne’s rail line spans 402 kilometers, covers 17 lines and 222 stations, and generates $1.54 billion annually. ComfortDelGro’s share depends on the partnership terms, but CEO Cheng expects major revenue growth.

In Q1 2025, ComfortDelGro reported $903 million in revenue, with $156 million from Australia. More than half of total revenue came from international markets.

If successful, the Melbourne bid will mark ComfortDelGro’s second takeover from Hong Kong’s MTR, following its 2024 Stockholm metro win. Tokyo Metro also edged out MTR in London recently.

Cheng credits the company’s success to timing and growing expertise. He noted that a decade ago ComfortDelGro lacked the experience to compete for such major contracts.

Expanding to Operate Melbourne’s Rail Line and Beyond

ComfortDelGro specializes in running highly reliable driverless metro lines. Its Northeast and Downtown lines lead in Mean Kilometers Between Failures across Singapore’s network.

Singapore’s demanding customers push the company to constantly improve. Unlike rivals, it doesn’t earn from real estate, instead relying on fixed fees linked to performance and service quality.

Melbourne’s Rail Line Supports Global Transport Model

Globally, ComfortDelGro operates rail, bus, and taxi services across Australia, the UK, China, and soon Paris. Cheng wants to replicate its Singapore model wherever viable.

He plans to expand in familiar or adjacent markets but stays open to new cities. Understanding local regulations and revenue models remains crucial to future growth.

With a successful bid, ComfortDelGro would operate all three key transport modes in Australia, reinforcing its integrated public transport approach.

Source: fortune.com

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