Transitioning from Diesel to ZEB: Implications for Operators

In May 2021, the Victorian Minister for Public Transport announced a policy that all new buses purchased for government contract work (route, school, and long-distance coach services) are to be zero emission buses from 2025. Contemporaneously, Minister announced the State Government would conduct a series of trials between 2021 and 2025, and taking lessons learned from the trials, inform the state-wide implementation of the zero-emission bus policy. These announcements have implications for significant change for the entire bus eco- system in order to eventually comply with the policy. This paper discusses the implications for operators in transitioning from diesel to zero emission buses, which include: operational; supply chain; contractual; and financial. This paper will also suggest the most appropriate method of procurement State Government’s should use to contract for the deployment of zero emission buses, that being negotiation. This paper also discusses the role of the state-based voluntary professional association in stewarding operators through the transitioning process and assisting them, and government, realise it’s zero emission bus policy objective. A discussion on a version of Agency theory, which provides a theoretical base for the role of the association in delivering on both the State Government’s and operators’ objectives will ensue.