TORONTO — Student Transportation of America Ltd. (STA) has been awarded new contracts with the Danbury and Guilford school districts in Connecticut, plus a new five-year contract in Milton, Vt.
The two five-year Connecticut contracts, commencing this July, will generate approximately $7 million in revenue per year and include provisions for the school districts to provide 100 percent of the fuel required. The Vermont contract includes a fuel cap.
In addition to the two Connecticut contracts, STA announced in March it had been awarded a five-year contract totaling $8.4 million over the term by the Kearsarge Regional School District in New Hampshire, which also included a provision for the school district to provide 100 percent of the fuel beginning this July.
STA Chairman and CEO Denis Gallagher said that all the new contracts eliminate the uncertainty of fuel costs, which has been a strategic objective for the company.
Gallagher also said approximately 97 percent of STA’s existing contracts up for renewal this year have been renewed so far, and that the company is renegotiating existing fuel protection agreements as well as obtaining additional rate increases to offset higher fuel costs in some contracts without such clauses.