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KNOXVILLE (WATE) - The University of Tennessee is replacing Knox Area Transit (KAT) as its contractor for campus-area bus services.
The university selected Ohio-based First Transit for an five-year, $18 million contract.
UT said the company already operates more than 20 campus transit systems.
The transition is set for June of 2013.
In a news release, UT said First Transit will bring 20 new buses and will offer real-time bus tracking for riders with smartphones.
That feature was noted as a "need" in a survey of campus shuttle riders.
KAT says it is too early to know how many of its drivers will be affected by the move.
A spokesperson said the UT contract is less than 10% of its budget and any losses will be offset by a reduction in costs.