Metro and Yarra Trams have been awarded a new $7 billion contract to run Melbourne’s public transport network.

The state government says the new contract includes higher performance targets and tough penalties if those targets are not met.

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A train network shutdown – like that seen in July – would attract a $700,000 penalty.

Public Transport Minister Jacinta Allan says for the first time, passenger experience will be measured with spot audits and mystery travellers checking performance.

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A crackdown on advertising will stop wrap around ads on trams.

There’s also more money for maintenance and infrastructure improvements.

Under the previous contract, the government says it was required to enter exclusive negotiations with the two companies.

The contract will begin on November 30 and will expire in 2024.