Formed in July 1998 as Swanston Trams, a business unit of the Public Transport Corporation, it was privatised in August 1999 becoming a subsidiary of National Express.

[3][4] National Express successfully bid to take over the Swanston Trams services from 29 August 1999.

[10][11] After an attempted sale of the franchise to Yarra Trams failed,[12][13] National Express handed back the franchise in December 2002, having been unable to renegotiate financial terms with the State Government.

[14][15] KPMG were appointed to operate the business on behalf of the State Government.

[21] National Express inherited 30 W, 94 Z1, 12 Z2, 84 Z3 and 55 B2 class trams and took over the operation of four depots; Brunswick, Essendon, Glenhuntly and Malvern.