National Express wins EUR1bn Moroccan contract

FTSE 250 bus and rail operator National Express said on Wednesday that its Spanish and Moroccan division, ALSA, has been awarded a bus contract worth €1bn that will see it become the largest transport operator in Morocco.

The 500 bus contract will see ALSA operate buses in Rabat, Sale and Temara, Morocco. It has an initial term of 15 years with an option to extend for a further seven and is expected to carry 109 million passengers a year across 61 routes.

ALSA will operate the contract as the majority shareholder of a joint venture with CityBus, a local transport company.

Chief executive Dean Finch said: "I am delighted we have secured this major new bus contract in Morocco. We have been steadily growing our presence in Morocco as part of our strategy to expand in rapidly growing urban areas, helping to diversify our earnings.

"It is particularly pleasing that our track record for service excellence in Morocco played a significant part in this successful bid. We hope to build on this success and secure further expansion in the coming years."

Liberum said: "This a positive development, consistent with the group’s strategy of expanding its international exposure through contract wins, and we believe this is one of the larger opportunities the group has been pursuing."

At 0806 BST, the shares were up 0.9% to 400.40p.