Kelsian Group (ASX:KLS) said its wholly-owned USA subsidiary, Ace Express Coaches, has secured a new contract with the State of Colorado's Department of Transportation.
The contract, valued at up to US$26.5 million ($38.9 million), covers the 'Bustang' and 'Pegasus' state-wide motorcoach transit operations from Nov. 1.
ACE Express has been operating the services since its inception in 2015.
The new one-year contract continues under substantially the same terms and rates as before, with four one-year extension options.
The agreement includes the maintenance and operation of approximately 49 motorcoaches and 16 vans, employing around 125 staff. "This contract ranks as a top 10 contract for AAAHI," said AAAHI CEO Graeme Legh.
"As a capital light contract with assets supplied by the State of Colorado, the focus is now on ensuring we are well positioned to capitalise on the expansion opportunities," Legh added.
The contract outlines the potential to double the existing services with additional vehicles supplied by the State of Colorado.
The expansion opportunity demonstrates AAAHI's long-standing track record of successful contract retention.
Kelsian Group is an integrated multi-modal transport provider and tourism operator. The company's segments include marine and tourism, Australian bus and international bus.