Kelsian Group (ASX:KLS) has been awarded a new contract to operate bus services in a newly formed Region 2 area in Sydney.

Kelsian Group says the new contract secures more than $500M of contracted revenue over the contract term to June 2031 and extends its track record of successful organic growth.

The company describes itself as Australia’s largest integrated multi-modal transport provider and tourism operator and is a leader in sustainable public transport, operating the country's largest zero emission bus fleet.

Kelsian Group's share price is up 3.4% this afternoon.