Aarhus Letbane Takes Over Light Rail: Keolis Contract Ends 2026

AARHUS, DENMARK – Aarhus Letbane, the public administrator of the Aarhus light rail network, will terminate its operating contract with Keolis Letbaner and assume direct control of operations from December 2026. The decision brings the network fully under public ownership, a move intended to reduce operational complexity and generate financial efficiencies by eliminating duplicate functions.

Operational & Technical Details

The insourcing decision transfers all vehicle operation and traffic control responsibilities directly to Aarhus Letbane. According to CEO Michael Borre, the primary goal is to create a more direct link between all network activities and clarify responsibilities. All Keolis Letbaner staff are expected to be transferred to the new public operator under their existing terms. The transfer is governed by Denmark’s Act on the Status of Employees in the Event of Transfer of Undertakings. A transition plan will be developed this year while Keolis continues to manage daily services.

Market Impact Analysis

The move by Aarhus Letbane marks a significant shift from private outsourcing to public-sector operation in the Danish transport market. For Keolis, the loss of the contract is a notable setback. Keolis Letbaner CEO Thomas Friis Brændstrup expressed regret that the task was not put out to a competitive tender, arguing it would “ensure the best quality at the lowest cost.” The decision by the network’s public owners, Midtjylland Region and Aarhus City Council, signals a strategic preference for direct control to achieve economic efficiencies, a trend of ‘remunicipalisation’ seen in other European cities.

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