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National Express' ALSA Unit Wins €1 Bln Bus Contract In Casablanca, Morocco

Public transport operator National Express Group Plc. (NEX.L) announced Wednesday that its Spanish and Moroccan division, ALSA, has received a major bus contract in Casablanca, for up to 15 years.

The contract in Casablanca, which is Morocco's largest city and economic capital, is expected to secure more than 1 billion euros in revenue over its term.

The Casablanca contract is for an initial 10-year term, with an optional 5 years depending on well-established performance criteria.

The contract will start in November 2019 with an initial 400 buses in operation. This will increase to 700 buses next year, carrying 100 million passengers annually.

From next year, National Express said it will operate more buses in Morocco than the UK.

In addition to bus services operation, the contract includes responsibilities to introduce new payment and scheduling systems, alongside a network re-design.

The company further noted that as the contract starts late this year, and with start-up costs, Casablanca contract would make only a small contribution to this year's and next year's earnings. After that, the company expects the contract to build to around typical ALSA margins.

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