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Highlights
- Kelsian's Singapore unit secures $65 million transport contract
- Contract includes guest and employee bus services, plus a beach shuttle
- Marks strategic expansion beyond existing operations in Singapore
Kelsian Group (ASX:KLS), a leading Australian transport operator, is expanding its presence in Asia with a substantial contract win through its Singapore subsidiary, Tower Transit Singapore. The new agreement, awarded by Singapore's Sentosa Development Corporation (SDC), is valued at up to $65 million and strengthens Kelsian's footprint in one of Southeast Asia’s busiest urban transport networks.
The contract spans an initial five-year term, worth approximately $27 million in revenue, with the option for a further five-year extension. The new arrangement will see Tower Transit Singapore operate three guest bus routes, five internal services for SDC employees, and a popular beach shuttle service catering to Sentosa Island — a vibrant resort destination just minutes from downtown Singapore.
Service operations are set to begin on 1 October 2025 for the standard bus routes, while the beach shuttle is scheduled to launch from 1 January 2026. The contract was awarded by SDC, a statutory board operating under Singapore’s Ministry of Trade and Industry.
Kelsian, previously known as SeaLink Travel Group, has steadily grown its international portfolio. Tower Transit Singapore has been managing public transport operations for Singapore’s Land Transport Authority since 2016. This new partnership marks a strategic diversification by expanding beyond government-regulated routes to cater to private and tourism-oriented services on Sentosa Island.
According to Kelsian CEO Graeme Legh, the award is a significant milestone: “This contract reflects the strong operational performance Tower Transit has demonstrated over the past decade. It also validates the trust we’ve earned in delivering reliable and high-quality transport services.”
The win not only enhances Kelsian’s revenue outlook but also strengthens its position among top ASX dividend stocks, offering investors potential exposure to consistent income through infrastructure and transit growth. Kelsian’s stable cash flows and recurring contracts make it a notable presence within the transport segment of the S&P/ASX200.
As global urban mobility shifts towards efficiency and sustainability, Kelsian’s latest move could signal further international expansion opportunities. The company's operational strength in both domestic and international markets positions it well for long-term growth, aligning with strategic demand for quality transit providers across Asia-Pacific.
With this new contract, Kelsian continues to chart a robust course, reinforcing its credentials as a key player in the ASX200 transportation space.
