Cabinet to consider £3.25m sale of Newport bus depot to TfW

Newport Transport could sell its bus depot to Transport for Wales for £3.25 million, excluding VAT, under a proposal going before Newport City Council’s Cabinet on 15 September. The bus company would lease back the site at 160 Corporation Road so it can continue operating from the depot.

The report, dated 9 September, says the transaction would not itself change bus routes, fares, timetables, service levels, staffing arrangements or customer access. TfW is seeking strategic depot sites ahead of planned changes to how bus services are organised.

A rent-free year, then £303,204 annually

The agreed terms awaiting approval include the first 12 months rent-free. Annual rent would then be £303,204, increasing each year by between 1% and 3%. Newport Transport would also have a pre-emption right to repurchase the depot if franchising does not proceed.

The depot belongs to Newport Transport Limited, which is wholly owned by the council. Cabinet is being asked to give consent as the company’s sole shareholder because the depot is a significant company asset. The sale proceeds would go to Newport Transport, not into council income.

Approval comes before completion

The parties want to complete the transaction on or before 18 September. That depends on shareholder approval and final checks by the council’s finance and legal heads. The report also proposes separate changes to the company’s board; those changes are not a condition of the depot sale.

Under franchising, operators would run services under contracts within a network specified and managed through Welsh Government and TfW arrangements. The report says South-East Wales is currently expected to move to that model in 2029, but the final timetable remains unconfirmed.