A NORTH-EAST bus operator is driving into Singapore after securing a £230m deal.

The Go-Ahead Group has been awarded a five-year contract to run services in the Asian country.

Bosses at the firm, which runs Go North East and has a base in Newcastle, say the agreement will start in September 2016 and could be extended by another two years.

They added the tie-up, for the Loyang district in the east of Singapore, will cover 26 routes, employ about 900 people and deliver £230m in revenue.

David Brown, group chief executive, said the deal is a major coup, predicting the company’s existing position as London’s largest bus operator will leave it handily placed to deliver in Singapore.

He said: “As a well-established and the largest operator of bus services on behalf of Transport for London, we have a strong track record of providing passenger transport in busy urban areas.

“We will combine our skills, experience and people-focused approach with best practice in Singapore to provide a service customers value and our team is proud to deliver.”

Go North East operates nearly 700 buses across the region and employs more than 2,100 staff.

Its services include the Prince Bishops route, which takes passengers between Durham City, Sunderland and South Shields, the Tyne Tees Xpress, which operates between Newcastle and Middlesbrough, and the X66, which ferries shoppers to and from the MetroCentre.

The company’s Singapore announcement comes just days after it revealed its rail division will enter Germany.

The firm has been awarded parts of the Baden-Wurttemberg network, in the south of the country.

The contracts will start in 2019 and run until 2032, and are expected to generate revenues of more than £1bn.

Mr Brown said it will operate the Go-Ahead Verkehrsgesellschaft Deutschland company to oversee the deal.

He added: “We have 18 years' experience providing passenger rail services in UK rail operating on busy and complex networks and are pleased to be able to bring our expertise in the German rail market.”

Go-Ahead’s UK rail business operates the GTR, Southeastern and London Midland franchises through subsidiary Govia.