PORTUGAL
Arriva has announced the sale of its business in Portugal, Transportes Sul do Tejo, as part of Arriva Group’s forward-looking strategy to ensure it remains competitive. All Arriva employees will be transferred over to purchaser Dan Group at completion of the sale, which is expected to be in late August.
Arriva Group CEO, Mike Cooper said: “A decision to sell our bus business in Portugal is part of our forward-looking strategy to manage a tighter portfolio and ensure we maintain a strong and competitive business for the long-term.
“The agreement for Dan Group – Israel’s second-largest transport company – to acquire the bus business in Portugal is good news for our colleagues, passengers and clients alike. The sale would include the purchase of Transportes Sul do Tejo (TST) which provides bus services in Lisbon, with colleagues transferring over on completion.
“TST has been part of the Arriva Group for around 20 years, and we have a long track record of providing high quality sustainable transport services in the City of Lisbon. Dan Group – with its long and strong history of partnering with local transport bodies and building its capability and footprint in Israel – is well-positioned to develop the business in Portugal and further its market presence. The transaction is expected to complete in late August and so our priority now is to support our colleagues in Portugal through the transition as they maintain their focus on delivering the very best services for passengers and client bodies.”
The completion of the sale will be subject to conditions, including, among others, approval by the Supervisory Board of Arriva’s parent company Deutsche Bahn and the German Federal Ministry for Digital and Transport.
TST is the largest operator of public passenger transport on the south side of the Tagus in Lisbon, where it has been operating for over 40 years. It recently tendered and won a seven-year contract to provide services in the municipalities of Almada, Seixal and Sesimbra, including connections to Lisbon, Setúbal, Barreiro and Moita which will start on 1 July using a fleet of 339 buses, including 290 new ones, and more than 800 employees, mostly drivers. TST will operate under the umbrella brand Carris Metropolitana owned by the Transport Authority TML (Transportes Metropolitanos de Lisboa). TST also maintains a small bus hire business, under its own brand, with regular specialised and occasional services in its area of operation.
Purchaser Dan Group is Israel’s second-largest transport company and serves 150 million passengers each year. It operates in the country’s south, centre and north through 20 local authorities and employs around 4,500 employees, the majority of whom are drivers. The company is in the process of converting a large portion of its fleet to electric buses, and has said that all new buses will be electric.
It operates about 2,300 buses, including a flexible transport service and smart public transport. It is also part of a consortium which recently won the tender for operating the green line of the Tel Aviv light rail network.
