The Victorian Government is seeking to appoint a new operator for Melbourne’s commuter rail services, as the current contract held by Metro Trains Melbourne is set to expire in late 2027.
The government is inviting “the most experienced transport operators from around the world” to bid for the upcoming contract to operate Melbourne’s suburban rail network, commencing in late 2027.
Known as the Melbourne Train Refranchising (MR5), the new franchisee will be responsible for operating and maintaining the city’s metropolitan rail network. This includes delivering more than 2,000 daily services across over 1,000 kilometres of track, spanning 16 lines. With a growing fleet, seven train maintenance depots, over 220 stations, and a workforce of nearly 7,000 employees, the successful operator will be expected to provide a world-class customer experience. This includes ensuring seamless integration with the world’s largest tram network, regional rail services, bus routes, and future airport links.
The MR5 refranchising programme represents a major opportunity to set a new benchmark in urban rail delivery, focusing on improved service reliability, enhanced customer experience, greater accessibility, and expanded use of real-time data. The government also expects the future operator to demonstrate the flexibility to adapt and innovate in response to evolving passenger needs and technological advancements.
The competitive tender process is designed to identify an operator capable of delivering the best long-term outcomes for Victorians, ensuring the network continues to meet the demands of a growing population while improving sustainability and efficiency.
Metro Trains Melbourne (MTM) – a joint venture between Hong Kong’s MTR Corporation (60%), John Holland (20%) and UGL (20%) – has operated Melbourne’s metropolitan train services since 2009. The current franchise, awarded in 2017, included extension options and has since been extended to 2027.
The new franchisee will also be expected to support the Victorian Government’s broader objectives around sustainability, safety, and inclusion—ensuring public transport remains accessible and environmentally responsible for generations to come.
This refranchising process comes at a time of major investment in the network, including the completion of the Metro Tunnel and future infrastructure upgrades that will reshape how Melburnians move across the city.
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