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Australia’s SkyBus owner and operator, Kinetic, is planning a rapid expansion of its global electric bus fleet as it beds down a $4 billion-plus deal with private equity firm TPG and takes over running Stockholm’s metro train service.
After starting the SkyBus service to Tullamarine Airport in 2015 with 50 vehicles, Melbourne-based Kinetic now runs a global fleet of buses and trains that has attracted TPG Capital to get behind the wheel of a 70 per cent stake valuing the company at more than $4 billion.
The SkyBus terminal at Southern Cross Station in Melbourne.Credit: Luis Ascui
TPG bought its majority holding through its Rise Climate Fund, one of the world’s largest private markets climate platforms specialising in investing in electrification and green mobility.
In the UK, Kinetic is the largest operator of London’s iconic red double-decker buses, providing just under a third of services in the network.
Kinetic chief executive Michael Sewards says the company has a strong pipeline of electric buses on order, backed by partnerships with governments across multiple jurisdictions.Credit: Wayne Taylor
It also has operates in Oxford, Manchester, Newcastle and Brighton under the Go Ahead Group which runs about 6000 buses across the UK, Ireland, Singapore and Malmö in Sweden.
Kinetic chief executive Michael Sewards said the company was the largest electric fleet operator in Australia and plans to accelerate their e-bus rollout.
The deal with TPG marks an important step in Kinetic’s journey to decarbonise and support zero-emission transport across Australia, New Zealand, and internationally, he said.
“In Australia, New Zealand, we operate 300 [electric buses] and we have 11 electrified depots,” Sewards said, adding that the company began operating its electric sky bus service around Perth’s airport last Monday.
“We want to accelerate those plans. We want to deliver more electric buses and convert more depots. Melbourne in particular, has quite a bit coming soon,” he said.
Kinetic is set to buy another 200 electric buses in Victoria and is nearing completion in December on electrifying a depot in Preston for services in Melbourne’s northern suburbs.
It owns 51 per cent of the international Go Ahead group which on Sunday took over operating Stockholm’s metro train network under a joint venture called Connecting Stockholm, one of the largest public transport contracts in continental Europe.
“Our rail capabilities come through Go Ahead,” Sewards said. “They’re a very well-established rail operator.”
The company’s rail arm took over running London’s Elizabeth line in May and also operates the Gatwick Express, Thameslink, and Southern Rail.
TPG’s investment in Kinetic is subject to regulatory approvals. A former Kinetic investor, OPTrust, will hand its shareholding to TPG and another founding investor, Foresight Group, will reduce its stake from 49 per cent to 30 per cent under the transaction.
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Sewards said Kinetic has a strong pipeline of electric buses on order, backed by partnerships with governments across multiple jurisdictions, long-term contracts, a healthy operational performance, and an ambitious electrification agenda.
Scott Lebovitz, a managing partner at TPG Rise Climate, said Kinetic’s expansion within existing markets and into new international markets represents a strong growth opportunity.
The company recently launched a SkyBus Eastern Express service to Melbourne Airport and will fully electrify its existing SkyBus fleet over the next few years, investing $80 million. SkyBus has also secured contracts with Sydney Airport to provide ground transportation services, with a focus on electrification.
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