Kelsian Group's Ace Express Coaches, LLC awarded Colorado transit contract

Kelsian Group Limited (ASX:KLS) has announced that its wholly owned USA subsidiary, Ace Express Coaches, LLC, has secured a new one-year binding contract with the State of Colorado's Department of Transportation. The contract, effective from 1 November 2024, is for the operation of the statewide Bustang and Pegasus motorcoach transit networks and is expected to generate up to US$26.5 million in revenue in the first year. The contract also includes four one-year extension options and signifies a significant expansion opportunity for Ace Express.

Executive Commentary on Colorado motorcoach transit contract

ACE Express's Chief Executive Officer, Graeme Legh, expressed his delight at being awarded the contract, highlighting its significance as a top 10 contract for the company. He emphasized the capital light nature of the contract, with assets provided by the State of Colorado, and the focus on positioning the company to capitalize on expansion opportunities.

Summary of Kelsian Group's Colorado transit contract announcement

Kelsian Group's subsidiary, Ace Express Coaches, LLC, has secured a significant one-year contract to operate the Bustang and Pegasus motorcoach transit networks in Colorado. The contract, with the potential to generate up to US$26.5 million in revenue in the first year, demonstrates the company's successful track record in contract retention. With expansion opportunities throughout the contract term and the possibility to more than double the existing services, Kelsian is well-positioned to capitalize on the contract's potential. This announcement aligns with Kelsian's commitment to providing safe and sustainable transport solutions, furthering its position as a leader in the integrated multi-modal transport and tourism sector.