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Veolia, New Orleans RTA reach agreement

Posted on July 7, 2009

Veolia Transportation agreed on agreed on terms for a 10-year contract (five-year initial term with a five-year renewal based upon performance goals) with the New Orleans Regional Transit Authority (RTA).

Veolia Transportation, North America subsidiary of Veolia Transport, has been operating public transportation in New Orleans under a traditional management contract with the New Orleans RTA since October of 2008. This new contract substantially expands the company's scope of responsibilities and commences on September 1, 2009.

Under the new delegated management contract, Veolia Transportation will be responsible for all aspects of the performance of public transportation in New Orleans, including operations, safety, maintenance, customer care, routes and schedules, capital planning and grant administration. Veolia will be compensated at approximately $56.3 million per year by the RTA and will be responsible to pay all salaries, benefits and operating expenses. RTA employees will also become employees of the company.

The RTA's Board of Commissioners will retain its policy-making authority for fares, service and operations, as well as approval of each year's annual transportation development plan, including major initiatives, capital purchases and operating budget.

 

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