Work has begun on plans to offer fare-free buses for students living in Welcome Bay as a one-year trial for 2019.

The Bay of Plenty Regional Council's public transport committee received a progress update on the trial at a meeting in Tauranga last week.

There are around 730 students registered as living in the Welcome Bay area, with 34 per cent using SchoolHopper services in the morning and 43 per cent in the afternoon.

The council anticipates these numbers will increase when the services become fare-free.

Working on the basis of a 20 per cent increase, this will require about 10 or 11 buses. There are eight buses contracted through NZ Bus as part of the new contract. A further three vehicles have been requested from NZ Bus to meet the anticipated increase in demand.

In the event that NZ Bus is unable to meet this request, a separate one-year contract may be offered to the three existing operators in a closed tender process.

Until this process is complete, the council is unsure how much the trial will cost. However, in May this year public transport committee chair Lyall Thurston said the cost of foregone fare revenue would be about $1.2 million a year.

The council agreed to look into a Tauranga city-wide school student bus fare free initiative following submissions received to its Regional Land Transport Plan and Long Term Plan earlier this year.

A draft terms of reference has yet to be discussed with Tauranga City Council and the New Zealand Transport Agency, and any investigation may be delayed until the Welcome Bay trial is under way so there is data to draw on.

Current Tauranga student single bus fares are $2 cash and $1.60 with a smartcard.