WALL, N.J., Dec. 18, 2012 (GLOBE NEWSWIRE) -- Student Transportation Inc . (STI) (TSX:STB) (Nasdaq:STB), and its subsidiary Student Transportation of America, Inc. (STA) today announced that the company has secured the largest transportation agreement in its history to serve the Omaha and Millard Public Schools in Nebraska. Under the contract with the Metropolitan Omaha Education Consortium (MOEC) Interlocal Transportation Association, the company will provide approximately 530 vehicles including over 400 new fuel-efficient propane-powered vehicles, making it the nation's largest propane-powered school bus fleet.
The contract, which begins in August 2013, is the first major contract win for the company's 2014 fiscal year and will add revenues of approximately $25 million a year for the potential six-year agreement. The company will open at least three facilities in the Greater Omaha area to service the contract and expects options to renew the revenue contract for future years after the initial six-year term. The company plans to offer all current employees opportunities to continue with STA.
Blue Bird Corporation will manufacture the over 400 environmentally friendly buses equipped with ROUSH CleanTech liquid propane autogas fuel system technology. IC Bus, a division of Navistar, will supply additional vehicles to fulfill the contract.STI Chairman and CEO Denis J. Gallagher said the company has been working closely with the nation's leading manufacturers and suppliers to develop ways to increase alternative fuels into its fleet. "Domestically-produced, clean-burning propane autogas is a perfect fit for school fleets with up to 30% less greenhouse emissions," he said. "By running propane-powered buses, Omaha Public Schools can reduce their carbon dioxide emissions by 2,310,469 lbs. per year, significantly lowering the school district's carbon footprint, which was its goal for the coming year." Propane sales currently contribute more than $122 million to Nebraska's economy alone.
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