The City of St. John's is contracting the transportation services it provides for disabled people to a U.S. company.
M.V. Transportation Incorporated has won the contract to provide the services in St. John's and Mount Pearl from 2012 to 2016.
It will replace Wheelway Transportation Ltd., which currently provides the para-transit service.
Speaking at Monday evening's city council meeting, St. John's Coun. Tom Hann said the new company is expected to improve the para-transit system.
"They will put in place a new fleet of 18 buses. So, that's a brand new modern fleet with all of the things that are necessary to accommodate riders," he said.
Hann says the upgrade was necessary because user numbers have been climbing steadily.
He said para-transit provides almost 90,000 trips every year.