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The New Orleans Regional Transit Authority (RTA) earlier this month awarded a three-year transit service operation and fleet maintenance contract to Transdev Services Inc.
Transdev was selected to operate and maintain transit service for RTA’s streetcar, bus, ferry and paratransit services for about $79 million annually.
The new contract, which went into effective Sept. 1, shifts control of the transit system from private to public control, RTA officials said in a press release.
The RTA will now have direct administrative and management oversight of the authority, while continuing to contract out the system's day-to-day maintenance and operations functions system to Transdev.
The contract calls for Transdev to increase RTA’s on-time performance from about 75 percent to 90 percent in six months, then to 95 percent by the contract's third year. Transdev will pay a financial penalty if on-time performance lapses.
Transdev has operated and managed RTA transit services under contract to the RTA's board since 2009, Transdev officials said.