Public transport giant Go-Ahead drives into US

Nov 4 2009 by Karen Dent, The Journal

NORTH public transport giant Go-Ahead is grabbing a foothold in the lucrative US school bus market.

The group has formed a joint venture company with US company Cook-Illinois Corp to look for contracts to supply the iconic yellow school buses in America.

Chicago-based Cook-Illinois runs school buses in its local area and it has linked up with the Newcastle group to search for business in other parts of the US.

Go-Ahead chief executive Keith Ludeman, said: "It represents an excellent, low risk and financially disciplined way for us to gradually build an operation in this strategically attractive market.

"The North American yellow school bus market shares many of the same characteristics as our UK bus operations and we are delighted to be working with Cook-Illinois, one of the largest school bus fleet operators in the United States."

Cook-Illinois, which has been running yellow buses for more than half a century, said the link-up with Go-Ahead would focus on winning new business and operating greener school transport.

Its chief operating officer, John Benish, said: "This joint venture will help to provide efficient, environmentally friendly transportation solutions to our customers while expanding into new markets."

Go-Ahead, which is the biggest bus operator in London and runs services in North East, Oxford, the South East and Southern England plus three UK rail franchises and an airport ground handling business, said it was committed to the UK transport market.

But the company, which employs more than 27,000 people, said it would not rule out more "value-adding overseas opportunities".

Where as Go-Ahead has been mainly UK-based, Sunderland rival public transport group Arriva runs bus companies in 12 European countries plus the UK.