Victorian Department of Transport advised on $1.85bn trams procurement

05 July 2022 By Jess Feyder

International law firm Herbert Smith Freehills (HSF) has advised the Victorian Department of Transport on its $1.85 billion Next Generation Trams procurement.

Firm: HSF (Victorian Department of Transport)

Value: $1.85 billion

Deal: HSF has advised the Victorian Department of Transport on the Next Generation Trams procurement.

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Area: Government

Key players: The HSF team was led by projects partner Jim Theodore and supported by a multidisciplinary projects team across commercial law, property, planning and heritage, and safety. 

Deal significance: This is the Victorian government’s biggest single investment in the tram fleet and network in decades.

The project comprised an investment in 100 Next Generation Trams to be rolled out from 2025. The project aims to provide more modern, accessible, and energy-efficient tram services to the network, along with a new state-of-the-art tram maintenance and stabling facility in Melbourne’s west. 

The Victorian government signed a contract with Bombardier Transportation Australia to design, build and maintain the trams for 15 years, following a competitive tender and evaluation process.

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This is a significant project for the delivery of the state’s policy objectives of supporting and scaling up Victoria’s manufacturing industry whilst encouraging local supplier participation. It will also help to secure supply chain certainty and Victorian industry resilience.

Mr Theodore said: “It has been great to have been a part of this significant transaction that will not only improve public transport, but will support the growth of Victoria’s manufacturing industry and improve its strength in the face of external risks such as the pandemic.

“We look forward to seeing this project progress and working with the Victorian Department of Transport throughout the process.”

The team supporting Mr Theodore included partners Erin Wyeth and Juan-Jose Zentner, senior associates Marianna Schneider, Joseph Varghese and Ella Darroch, and solicitors Annabelle Davis, Jeremy Soh and Jade Tam. Their specialist advisers included Heidi Asten, Steve Bell, Emily Peverill, Rachel Foo and Rachel Zagami.

Other advisers included: Allens (advising on the tram franchise aspects of the project), PwC (commercial and financial adviser), and Minters (advising the successful bidder). This is one of several significant deals HSF has advised on for transport infrastructure.

Victorian Department of Transport advised on $1.85bn trams procurement
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