The SeaLink Travel Group Ltd (ASX: SLK) share price is on the move on Thursday morning.
At the time of writing, the travel and transport company's shares are up 4% to $9.24.
Why is the SeaLink share price rising?
The SeaLink share price is rising today after investors responded positively to the announcement of a new joint venture in the UK with RATP Dev UK.
According to the release, the company has formed a strategic joint venture, to be called RATP Dev London Transit, that will combine SeaLink's Tower Transit Westbourne Park public bus operations in London with RATP Dev UK's London United and London Sovereign operations.
The release explains that the joint venture is expected to employ over 4,000 staff and operate 1,250 buses on 115 routes from 10 garages in Western London. This is expected to lead to more than 260 million passengers annually, delivering anticipated turnover in the region of 275 million pounds per annum
SeaLink will have a 12.5% interest in the new joint venture. It will operate on a standalone basis and SeaLink will have no obligations to make further capital contribution.
Management notes that the arrangement provides increased scale efficiencies for both current operators in a challenging London public bus transport market.
It also facilitates a pooling of their significant operational experience including the transition to new technology. The company notes that by 2022, 24% of the RATP Dev UK London fleet will be electric with the electrification of six of its garages operating 13 electric routes.
The SeaLink share price has been a very strong performer in 2021. Since the start of the year, the company's shares have risen an impressive 37%. This is more than tripled the return of the ASX 200 index over the same period.
