December 13, 2011 - Assignment

SL awards Arriva contracts for public transport in Stockholm

The Stockholm Public Transport Authority (Sw. Stockholms Lokaltrafik, “SL”) has  awarded the international transport group Arriva two contracts valued at approximately SEK 16 billion over the full contract term. The contracts cover the operation of train, bus and light rail services (“multi-modal public transport networks”) in the Stockholm region, as well as comprehensive maintenance of related infrastructure and vehicles. One of the contracts awarded is the largest integrated multi-modal public transport tender in Sweden to date.

The contracts are scheduled to run for a period between eight and twelve years. Unique for a tender of this size in Sweden was the application of a new business model, where the compensation to the operator is based on the actual number of travellers, rather than the amount of vehicles/routes in operation. This approach was adopted as a means to incentivize the operator to contribute to an increase in the number of people using public transportation. Handling the contract will involve Arriva taking on an additional 1,400 employees and operating 550 buses and approximately 90 trains/light rail trains.

SL was advised by Mannheimer Swartling on the outsourcing/procurement. The firm’s team was led by Martin Pekkari (corporate commercial practice group), primarily assisted by Ulrika Geissler, Cecilia Malmberg and Mikael Moreira. Johan Carle, advised on public procurement issues, primarily assisted by Tomas Kjellgren and Sven Vaxenbäck.