Melbourne tram operator dumped for rival $6.8b bid

The consortium, known as Yarra Journey Makers, will operate the network of 500 trams, 1600 stops and 24 routes from December 1 for the next nine years, taking over from Keolis Downer.

Keolis Downer has operated Yarra Trams since 2009 and was awarded a seven-year contract extension in 2017 for an undisclosed sum.

Transdev transports 12 million people on average each day across 19 countries, while John Holland has a 20 per cent stake in Melbourne's Metro Trains and is one of the builders of the Metro Tunnel project.

The new contract features strict benchmarks and more monitoring points across day and night services to hold the operator to account.

"Melbourne is home to the largest tram network in the world and this new contract will make sure our trams continue to move Victorians around safely, quickly and easily," Ms Williams said.

More accessible trams will be rolled out to replace high-floor fleets during the contract term, along with new technology to provide passengers with more consistent real-time information. 

Extra training will be provided to network staff to better support commuters with particular needs and those from culturally and linguistically diverse backgrounds.

Transdev Australia and New Zealand chief executive Brian Brennan said the consortium would focus on performance and customer experience.

"Our partnership will support the state's vision of more integrated, sustainable transport for Victoria and the delivery of Melbourne's tram plan," he said.

John Holland's executive general manager of rail and transport Steve Butcher said it would deliver state-of-the-art depot infrastructure to house the next generation of tram fleet.

"We're committed to continuous improvement of the tram network," he said.

The consortium suggested it had a detailed plan for the handover from Keolis Downer that prioritised customers and Yarra Trams' existing workforce.

AAP has contacted Keolis Downer for a response.