Zurich operator VBZ to issue a new €150 million e-bus tender, opting not to use existing framework contracts

Zurich’s public transport operator VBZ is preparing a new tender for electric buses worth CHF 140 million (around €150 million), citing persistent reliability issues with its current fleet.

The planned procurement, expected to be launched next month, represents one of the largest fleet investments by Verkehrsbetriebe Zürich (VBZ) in recent years. According to reporting by local outlet nau.ch (that takes up a story originally addressed by CH Media), the Zurich-based public transport company intends to source a new generation of battery-electric buses through an open tender, despite having the option to place direct follow-up orders with its existing suppliers.

VBZ opts for new tender

VBZ currently holds framework agreements and remaining purchase options with MAN and with Swiss manufacturer Hess, that was awarded a 330 million euros contract in late 2022. Under these arrangements, the operator could have ordered additional vehicles without initiating a new tender procedure.

However, as reported by nau.ch—a Swiss digital news platform covering national, regional and economic affairs— VBZ has chosen not to exercise these options. Instead, the operator is reopening the procurement process, effectively putting its future bus purchases out to the broader European market.

The decision is reportedly rooted in ongoing technical and operational problems affecting the existing electric bus fleet.

Nau.ch writes that “Media spokesperson Judith Setz explains that Hess buses are being delivered with months of delay. Moreover, the buses are prone to malfunctions in operation – for example, with the heating and ventilation”.

MAN vehicles have also allegedly fallen short of expectations. VBZ points to issues with chassis components and door systems, alongside similar heating-related problems.

VBZ states that both manufacturers were given extended time to address the issues. The operator adopted a cooperative approach, allowing months for corrective measures and postponing decisions on remaining purchase options from earlier contracts.

Despite these efforts, VBZ concluded that the measures taken did not lead to a sustainable improvement. From the operator’s perspective, neither a short-term nor a long-term stabilization of the situation appears achievable with the current suppliers, prompting the search for alternatives.

VBZ is not satisfied with local-made Hess buses…

The move is particularly significant for Hess, based in the canton of Solothurn. Over the past 20 years, VBZ has purchased around 110 buses from the company, making it one of Hess’s key customers.

Nau.ch reports that “Hess told CH Media that the problems are known. However, a modern electric bus is part of a complex system. This necessitates ‘extremely finely tuned cooperation between the individual partners,” both for the various components and for “the connection via control systems and software’. Measures are being taken to further optimize performance, it is said. For VBZ, this is likely too late”.