Editing Trams in Melbourne (section)

===Privatisation===
[[Image:M-Tram.jpg|thumb|right|B2.2078 class tram in [[M-Tram|M>Tram]] livery in 2001]]
On 1 July 1997, in preparation for privatisation of the [[Public Transport Corporation]], Melbourne's tram network was split into two businesses: Met Tram 1 (later renamed Swanston Trams) and Met Tram 2 (later renamed Yarra Trams).<ref name="History of Yarra Trams">{{cite web |archive-url=https://web.archive.org/web/20110220100753/http://www.yarratrams.com.au/desktopdefault.aspx/tabid-60/38_read-103/ |archive-date=20 February 2011 |url=http://www.yarratrams.com.au/desktopdefault.aspx/tabid-60/38_read-103/ |work=[[Yarra Trams]] |title=History of Yarra Trams |access-date=26 January 2012}}</ref> [[VicTrack]], a new statutory authority within the Victorian Government, was created in 1997 to hold the ownership of land and assets relating to Victoria's tram and rail systems.<ref>{{cite web |url=https://www.victrack.com.au/en/we-are-victrack/about-victrack |work=[[VicTrack]] |title=About VicTrack |access-date=24 October 2011 |archive-date=3 November 2011 |archive-url=https://web.archive.org/web/20111103130436/https://www.victrack.com.au/en/we-are-victrack/about-victrack |url-status=live }}</ref> In addition, a statutory office was established—the [[Director of Public Transport]]—to procure rail and tram services and to enter into and manage contracts with transport operators.<ref>{{cite web |url=http://www.parliament.vic.gov.au/images/stories/documents/council/Select_Committees/Trains/Submissions/SCTS_18_Att_3.pdf |archive-url=https://ghostarchive.org/archive/20221010/http://www.parliament.vic.gov.au/images/stories/documents/council/Select_Committees/Trains/Submissions/SCTS_18_Att_3.pdf |archive-date=2022-10-10 |url-status=live |author=Paul Mees |date=July 2005 |publisher=[[Parliament of Victoria]] |title=Privatization of Rail and Tram Services in Melbourne: What Went Wrong? |access-date=9 July 2012}}</ref>

After a tendering process the businesses were awarded as 12-year franchises, with Swanston Trams won by [[National Express]], and the Yarra Trams business by [[TransdevTSL]].<ref name="YT-Trams in Melbourne"/><ref>{{cite press release |title=Transfield Services/Transedv Partnership with the State Government of Victoria to Operate the Entire Melbourne Tram Network |url=http://www.asx.com.au/asxpdf/20040219/pdf/3kpf73m37my2b.pdf |archive-url=https://ghostarchive.org/archive/20221010/http://www.asx.com.au/asxpdf/20040219/pdf/3kpf73m37my2b.pdf |archive-date=2022-10-10 |url-status=live |author=[[Transfield Services]] |publisher=[[Australian Securities Exchange|ASX]] |date=19 February 2004 |access-date=9 August 2012}}</ref> Following a transitional period, the right to operate the two tram businesses was officially transferred from the government to the private sector under franchise agreements on 29 August 1999.<ref name="YT-Trams in Melbourne"/>

National Express renamed Swanston Trams as [[M-Tram|M>Tram]], similarly along with its [[M-Train|M>Train]] suburban train business, on 1 October 2001.<ref name="YT-Trams in Melbourne"/> After several years of failing to make a profit, more than a year of negotiations over revised financing arrangements with the government, and grave concern over its future viability, National Express Group announced on 16 December 2002, its decision to walk away from all of their Victorian contracts and hand control back to the state government, with funding for its operations to stop on 23 December 2002.<ref>{{cite web |url=http://www.iii.co.uk/investment/detail/?display=news&code=cotn:NEX.L&action=article&articleid=4537089 |work=Interactive Investor |title=National Express – Pre Close statement |access-date=24 October 2011}}</ref><ref>{{cite news |title=National Express walks out of Australian rail service |author=Alistair Osborne |url=https://www.telegraph.co.uk/finance/2836793/National-Express-walks-out-of-Australian-rail-service.html |newspaper=[[The Daily Telegraph]] |date=17 December 2002 |access-date=24 October 2011 |archive-date=12 January 2018 |archive-url=https://web.archive.org/web/20180112160218/http://www.telegraph.co.uk/finance/2836793/National-Express-walks-out-of-Australian-rail-service.html |url-status=live }}</ref> The government ran M>Tram until negotiations were completed with Yarra Trams for it to take-over responsibility of the whole tram network from 18 April 2004.<ref name="YT-Trams in Melbourne"/><ref name="History of Yarra Trams"/>

On 25 June 2009, it was announced that [[Keolis Downer]], a joint venture between [[Keolis]] and [[Downer Group|Downer EDI]], would be the operator of the Melbourne tram network from 30 November 2009. The contract was for eight years, with an option for a further seven years.<ref>{{cite web |url=http://www.yarratrams.com.au/about-us/who-we-are/ |work=[[Yarra Trams]] |title=Who we are |access-date=26 January 2012 |archive-url=https://web.archive.org/web/20120203152028/http://yarratrams.com.au/about-us/who-we-are/ |archive-date=3 February 2012 |url-status=dead }}</ref>