Kelsian Group Limited (ASX:KLS) Announces Renewal and Expansion of Houston Bus Services
Contract Renewal with The Woodlands Township
Kelsian Group’s subsidiary, First Class Transportation, has been awarded a new five-year contract to operate The Woodlands Express bus service in Texas. The contract secures approximately US$29 million in revenue, with options to renew for up to five additional one-year terms. The service includes regular routes to Downtown Houston, the Texas Medical Center, Greenway Plaza, and the Energy Corridor.
New Contract with City of Conroe
Additionally, First Class Transportation has secured a five-year contract with the City of Conroe, commencing in April 2025. This contract, valued at US$2.25 million, involves utilizing two buses per day. The buses will be provided by First Class Transportation for the first year before transitioning to city-owned compressed natural gas (CNG) vehicles in the second year.
Executive Comments
Chief Executive Officer Graeme Legh stated, “Our First Class Transportation team delivers 99.7% reliability for The Woodlands Township, and we look forward to continuing our partnership. We are delighted to also be working with the City of Conroe and transitioning their fleet to CNG. A key attribute of our AAAHI business is that the majority of its revenue is contracted with strong government and corporate counterparties delivering services in seven states in the USA.”
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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