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WELCOME Welcome to the album rep ort 2016, a publication from passenger transp ort devoted to Britain's independent and municipal bus companies. Big ger and better than last year's inaugural publication, this year's repor t also incor porates the official Conference Workbook for the 2016 album Conference, hosted by isle of man transp ort on May 10-11. We hope you find it an interesting read and we welcome all feedback.
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B E N CO LSON
A LBU M NOTES
H IGHL I G HTS
ALBUM's chairman sees challenges and opportunities for the bus industry's SMEs
Our essential guide to ALBUM, the Association of Local Bus Company Managers
Some of the key highlights amongst the membership since the last ALBUM Conference
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I S LE O F M A N T RAN S PO RT
A L ESSO N FROM H ESSEN
Isle of Man Transport's Ian Longworth explains a very different way of working
Dirk Dannenfeld considers what the UK can learn from German bus franchising experience
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M ARTIN HIGGINSO N
VEHI C L ES
Considering the impact of franchising/contracting on crosssubsidy in the bus industry
The latest fleet developments from Alexander Dennis, Scania, Volvo Bus and Q-Straint
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T I C K E T I NG
SOF TWAR E/IT
CONSUM A B LES
INIT, Parkeon and Ticketer on the latest ticketing solutions available to the UK bus industry
Peter Crichton of Omnibus says software has some answers, but traditional skills are still needed
Michelin and Optimum Oils set up cost effective solutions for bus operators
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T H E AL BU M CO N F E R ENCE WO R KBO O K
48 WELCO M E
TH E CO NF ERENCE
TH E E XHIB I T I ON
Ian Longworth of Isle of Man Transport welcomes you to the ALBUM Conference 2016
Details of the two-day conference programme, including speaker biographies
The floor plan for the exhibition, including profiles of the 37 exhibitors
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SMELLING NEW OPPORTUNITIES album chairman ben colson sees huge challenges for SMEs in the UK bus industr y, but he also sees big oppor tunities emerging as larger players scale dow n their operations. He spoke to robert jack ever shy to voice an opinion or ‘tell it how it really is’, Ben Colson is an interviewer’s dream. And his role as chairman of ALBUM, the Association of Local Bus Company Managers, offers him a platform to talk about a subject he is passionate about – the role of SMEs in the UK bus industry. In this context, SMEs are those independent or municipally-owned bus companies that are not aligned to one of the ‘Big Five’ groups. They may be dominant in their own local markets – but grouped together they represent only a fifth of the industry. Colson spent two decades working in this corner of the bus industry. Identified by Stagecoach as a talented young manager, he rose up through the ranks – but in 2002 he left the group to pursue a different path, in the SME sector. He bought a small West Norfolk bus and coach company with just three vehicles, Norfolk Green, and over the next 18 years it expanded steadily, eventually running a fleet of over 70 buses. However, after a period of ill health in 2013, Colson and his colleagues sold the company to Stagecoach. Although he is now semiretired, Colson’s passion for buses, and for the role of SMEs in this sector, remains as strong as ever. His eyes light up when he talks about the new generation of managers who are following in his footsteps, using their local knowledge and commercial nous to build up businesses under the noses of much larger entities. And while he sees huge challenges ahead, with ever
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of the government’s forthcoming Buses Bill, and the new franchising powers it will bring, will be felt most keenly in Middle England, not the city regions. His theory is that the big groups will have to accept much lower profit margins in the city regions in order to remain in those markets as they franchise, and will therefore be forced to abandon less profitable operations elsewhere, primarily in the English Shires. The 1985 Transport Act which deregulated buses in Great Britain (except Greater London), was partly intended to eliminate crippling cross-subsidies, which saw the development of profitable core routes stunted as resources were diverted to loss-making services elsewhere that were deemed socially necessary. However, what has since emerged is a different kind of cross-subsidy, what Colson calls a “cross-subsidy that dares not speak its name”. For commercial reasons, the big groups are using profits generated in city regions to prop up operations elsewhere in the
tightening finances and the prospect of re-regulation, he also sees opportunities for smaller, nimble bus operators, more in tune with the needs of local markets. The industry’s challenges aren’t just being faced by SMEs, Colson points out. Despite its “valiant efforts” to grow passenger numbers, FirstGroup has been unable to achieve desired improvements in its lacklustre profits. And now Stagecoach, widely regarded as the most impressive of the large groups, is experiencing a weakening of its UK bus business, so long the powerhouse of its portfolio. Against that background, Colson says ALBUM members are faring relatively well. He wonders whether they are all generating sufficient profits to maintain investment, although he thinks that the faster pace of fleet renewal that occurred ahead of the deadline for DDA compliance might now allow them some breathing space. But seismic shifts in the industry could soon begin to occur. Colson believes that the impact
Service with a smile: Trentbarton's Carole Hind was named Top National Bus Driver in 2015
more rural shires. For example, Stagecoach makes a profit margin of 20-25% in Greater Manchester and Tyne & Wear, but the overall margin for its deregulated business is 14.6% – so some of its operations must therefore be making much lower margins. With Greater Manchester and Tyne & Wear at the front of the queue for employing the new franchising powers, it seems likely that the Big Five will have to bid on the basis of a much more modest 8-10% “London level” profit margin or risk losing their business to an established local rival or entrant. Win or lose, the group will no longer be able to use profits generated in these regions to sustain businesses elsewhere. Colson is fiercely opposed to franchising – “it’s not franchising, it’s contracting” – and predicts that it will not work. But, ending these inter-regional cross-subsidies “may well open up some exciting
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avenues for SMEs”. “I think we’ll see over the next year or so the Big Five start to prepare to be competitive in the city regions as they franchise, as I believe they will franchise, and you’re going to see Middle England suffering,” he predicts. “If the Big Five don’t address it, well they’re going to lose the big city networks anyway.” The result of this, he argues, is that political decisions made in the city regions may actually have much bigger impacts on areas hundreds of miles away. “I think we’ll see quite a lot of abandonment of not necessarily unprofitable, but lower profit level networks ... I know some that are in the offing anyway,” he says. As the big groups withdraw, will the independent and municipal operators be able to occupy the space they leave behind? In some places they will, says Colson, but the headwinds that the
industry faces will make it difficult. “Why is it that Middle England is, in bus terms, suffering so much?” he asks. “It’s not because demand isn’t there. It’s not because the providers are crap. It’s because, in its broadest sense, government has assaulted the finances.” He says that the impact of the 20% reduction in BSOG (Bus Service Operators Grant) in April 2012 is now starting to become apparent – and is especially acute in rural areas. Meanwhile, he says that reimbursement for concessionary travel remains inadequate. “Just look at the sheer volume of SMEs who have given up,” he says. “Now, if the big boys give up because of what is happening in the city regions, yes it’s a great opportunity for ALBUM members where they still exist in Middle England. But the big question for the politicians is what is going to happen where their policies have driven SMEs out?”
Past winners of the UK Bus Operator of the Year Reading Buses and Nottingham City Transport. Ben Colson (top) pictured in 2012, during his time at Norfolk Green
Buses, he warns, could disappear completely in some areas: “I think we could, if we are not careful, be heading towards some transport deserts.” He is frustrated by the suggestion that the community transport sector will serve the needs of these peripheral areas: “I say this as a trustee of a community transport organisation. For government to say, ‘oh, it doesn’t matter because community transport can pick it up’ is absolute sheer folly – and it shows their woeful lack of understanding of how community transport is provided vis-a-vis mainstream.” He adds: “I think government policy ... will drive the industry to a very challenging period in Middle England.” Does the extraction of large profits from the city regions by the big groups stunt the potential of bus networks in those areas? “I think that is a very fair question ... I think you may be right,” he says. However, he doubts that franchising will see these large profits converted into improved services for bus users. Instead, he believes that they will be used by the franchising authorities to fund their “super hierarchies”. Colson says that the government has been warned about the unintended consequences of franchising in the city regions, but the message hasn't sunk in. “I don’t think the chancellor who is the author of it [the Buses Bill], the author of the principle of it, actually gives a damn about it, at all, doesn’t give a damn what the consequences are,” he says. He adds: “It may well unlock massive benefits in the city regions, not because it’s franchised ... but actually because it will focus attention on those areas. But then the losers are elsewhere.” Whatever is thrown at them, the ALBUM community have proven to be a capable bunch. They punch above their weight at award ceremonies. Colson’s Norfolk Green was crowned ‘UK Bus Operator of the Year’ in 2010, and ALBUM companies have won this coveted prize in four of the five subsequent years (Thamesdown in 2011, Nottingham City Transport ➢
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in 2012 and 2014 and Reading Buses in 2015). In 2015, ALBUM companies had seven ‘Gold’ winners at the UK Bus Awards, more than the ‘Big Five’ combined. What’s their secret? “It’s very simple,” says Colson. “It’s because buses are uniquely local … needing local decisions, implemented locally and monitored locally. And what ALBUM members bring to that process ... is the higher status and experience of the person who is doing all of that.” There are, he observes, high calibre individuals who prefer to ply their trade in this part of the industry rather than working for one of the big groups. Working for a smaller business, or perhaps their own business, offers them greater freedom. They can influence every aspect of the business and they don’t have to wait for approval from head office before acting. Colson says he senses the emergence of an anti-corporate mentality in the country, fuelled by public anger at the levels of tax paid by global giants like Google, Amazon and Starbucks, which could also benefit smaller, locally focused bus businesses. He believes that SMEs and ALBUM members are potentially “a bulwark against that moving into anti-business sentiment”. However, given the challenges the industry now faces, and the increasingly precarious state of its finances, Colson believes that progress will be “patchy”. “It may be that it’s going to be the bus enthusiast businessman that has the determination to press on, rather than any business person,” he predicts. Q
CAN SMEs SURVIVE FRANCHISING? If powers in the new Buses Bill see franchising replace deregulation in England’s city regions, and perhaps beyond, what role will there be for SMEs? Colson believes franchising is the wrong route to take. He laments that bus users would no longer be the customer for bus operators, instead it would be
‘UBER CAN’ T RIVAL OUR PERSONAL SERVICE’
Stagecoach chairman Sir Brian Souter addressing last year's ALBUM Conference
back and think,” he says. He believes that the key strength of ALBUM companies is the bond they have with their local communities – and he doesn’t think that technology can replace that. “People – customers – consumers prefer to deal with real people,” he says. “I do accept that that’s changing, and I do think there will be a future generation for whom the person serving them will be of no consequence to them at all. But I think that’s a way away yet.” Colson believes that in rural areas a personal service is especially important. “It can actually trigger people to use the bus,” he says. What about driverless buses? Won’t they transform the bus business? Not necessarily, Colson responds. Where bus companies are already aloof, and put hurdles in the way of communication with customers (such as assault screens in rural areas), he suggests that the step to driverless buses might not be so great in terms of customer service. But it’s different for smaller operators, he argues, because they put customer service at the forefront of their business. “If you put a driverless bus provided by one of the Big Five, competing on your route with a bus provided by an ALBUM member, driven by a real person who is really providing good customer service, most people ... would prefer someone there, a real person,” he says.
franchising authorities. But, if franchising is pursued, he would like certain protections to be offered to smaller operators. First of all, he repeats the call he made last year for the government to compensate smaller operators who find themselves unable to make the transition to franchising. “A year later we are no further forward on that,” he reports. Colson is also calling on the government to cement a role for
SMEs into any new regulatory model. He cites analysis of the experience from the German federal state of Hessen, where franchising began to replace concessions, a rough proxy for the commercial market, in 2003/04 (see pages 16-19), and he was struck by the sharp decline in the number of SMEs that followed. “I think the decline of SMEs is an eye-opener and has allowed us to be much more emphatic about the impact on SMEs here,” he says.
told delegates. The issue is likely to be raised again at this year’s ALBUM Conference on the Isle of Man (May 10-11). Among the speakers is Leon Daniels, Transport for London’s managing director for surface transport, who warned the UK Bus Summit in London earlier this year that app-based personal mobility was the “biggest threat in the commercial bus sector”. Daniels said: “Believe me because I have it in London already, that competition from personal mobility, app-based very efficient cars, through the taxi and licensed and private hire markets, is coming down the road to the commercial bus sector in cities and in our rural areas right now.” However, Ben Colson, chairman of ALBUM, does not believe there is cause for such alarm. “It is enormously important and Leon and others are absolutely right about that. But let’s just step
Addressing last year’s ALBUM conference in Cheshire, Sir Brian Souter warned his fellow bus operators that they must embrace technology or risk being sidelined by new ‘tech stock’ entrants to the market. The Stagecoach co-founder and chairman said that Uberstyle entrepreneurs could remould the passenger transport sector in the same way that he and others did in the 1980s and 1990s, by thinking differently and responding to what the market wants. He said that bus operators could find themselves relegated to a supplier role, providing services that new entrants sell to transport users. “My intuition is telling me that we really need to get our trainers on and think about what we’re going to do about this issue,” he
Multinational group Transdev handed back unsustainable Limburg-Weilburg contracts
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TH E O RGANISATIO N
ALBUM NOTES album, the Association of Local Bus Company Managers, exists to give senior managers in the ‘non aligned’ bus companies their own voice, distinct from the major groups which dominate the industry he Association of Local Bus Company Managers, ALBUM, works together to share best practice and represent the viewpoint of managers working for ‘non-aligned’ bus companies to government and other stakeholders. Ben Colson was appointed chairman of ALBUM in 2014. He is supported by three officers, with former Ipswich Buses managing director Malcolm Robson joining John Owen, who looks after the Managing Director’s Group, and secretary Thomas Knowles, as well as an economist. Unlike previous chairmen, Colson doesn’t have a day job to distract him. However, the extra time that he has been able to devote to the role has been matched by a huge growth in the workload. For example, he says that an enormous amount of work has been done by ALBUM, the Confederation of Passenger Transport and others to help frame the government’s forthcoming Buses Bill. Robson has taken on a roving, deputy chairman-type role, providing support for Colson. He says that ALBUM is not
that normally meets four times a year preceding a meeting of the Managing Directors’ Group. There are also a number of specialist groups within ALBUM that meet at regular intervals. A highlight of the bus industry calendar each spring is the ALBUM business conference at which there is very strong support from manufacturers and suppliers involved with the bus industry. The 2016 conference will be hosted by Isle of Man Transport and will be held at Villa Marina, Douglas. The Annual General Meeting is held during the conference period. Q
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Hessen’s SMEs lost market share because large international operators came in and won the contracts, but it soon became clear that their bids were unsustainable and they subsequently exited the market. It was SMEs, albeit fewer in number, that then rescued the situation. “Can we read it across to what might happen in the UK?” asks Colson. “Yes, we can. “You can just see them piling in, you can just see them piling
Malcolm Robson, formerly of Ipswich Buses, has joined the ALBUM team
trying to compete with CPT. ALBUM is represented within CPT and many ALBUM members also take an active part in CPT. It’s simply trying to provide a voice for part of the bus sector that can otherwise be overlooked. Knowledge sharing offers support to ALBUM’s relatively small member companies. For example, Colson recently observed a lot of emails going round between ALBUM members about the best suppliers for retrofitting audio/visual equipment to buses. ALBUM was formed in
October 1984 at a time when the reorganisation and deregulation of the bus industry was looming. The membership was drawn from local authority and PTE undertakings and the membership was on a personal basis rather than company membership. Today the membership in the main comprises directors and senior staff of municipally-owned and independent bus companies. Membership is by invitation, but expressions of interest by eligible members are welcomed. The running of ALBUM is in the hands of an executive committee
Chairman : Ben Colson Secretary : Thomas Knowles, 41 Redhills, Eccleshall, Staffs ST21 6JW. Telephone 01785 859414 Treasurer : Matthew Parkes, Rossendale Transport Traffic Committee : Dave Astill, Nottingham City Transport Engineering Committee : Kenny Hawkins, Thamesdown Transport Marketing Group : Nicola Tidy, Nottingham City Transport Finance Group : organised on a rotation basis, contact Thomas Knowles (above) Managing Directors’ Group : John Owen Website : www.album-bus.co.uk
in to Tyne & Wear, Manchester ... and look what happened in Hessen - they ****ed it up big time, and then walked away. “We are naive if we don’t think that will happen here.” Hessen is of course just one example of franchising. Londonbased Tower Transit, which operates buses in London and has won a franchise in Singapore, prefers to cite the positive results achieved in Sydney, Australia. But Colson doesn’t believe that
this is a useful comparison. “Look at the starting point in Sydney,” he says. “Look at the woeful public sector-organised service provision beforehand. You’re starting on the ground and there’s only one way you can go, for franchising, a commercial network or anything, there’s only one way you can go and that’s up. “So I am sceptical about that comparison. Good luck to them, but I am sceptical.” ALBUM has called on the
Department for Transport to come up with a mechanism that preserves the role of SMEs in a post-franchising environment. He says it must be more than just “a few crumbs” thrown to smaller operators by the big groups. ALBUM has proposed that whatever proportion of a network is currently operated by SMEs is maintained after the first round of franchising. Because, as Hessen has shown, you never know when you might need them.
WHO'S W HO
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H IG HL I GHTS
Blackpool Transport staff came together to launch the operator's new Palladium-branded fleet
HIGHLIGHTS OF 2015/16 Some of the key events amongst the membership since the last album conference M AY NOTTINGHAM CITY TRANSPORT
OP E R ATOR NA M E D T H E B E ST I N E U ROP E
Council-owned bus operator Nottingham City Transport was named as the overall winner of The Award for Customer Focus at the 2014/2015 European Business Awards. To win the award, NCT beat over 24,000 entries from companies across the continent. “We are absolutely thrilled to win this award,” said Nicola
Tidy, NCT’s marketing and communications director. “We constantly strive to provide the best possible experience for our customers at NCT, so we are hugely proud to be recognised as being the best business in Europe.”
Citaro buses with a special event on Blackpool’s famous Promenade. The vehicles subsequently entered service on Blackpool’s Route 5 service between Victoria Hospital and Halfway House. The high specification vehicles feature leather seats, free Wi-Fi and mobile charging points. They have been introduced under the new premium ‘Palladium’ brand. Service delivery director of Blackpool Transport, Bob Mason, said: “This investment of over £1.7m is the start of a better future for Blackpool Transport. The
JUNE B LACKPOO L T RANSPORT
PA L L A DI UM ROL L S O U T ON T H E P ROM
Blackpool Transport launched its new fleet of Mercedes-Benz
launch is just the start of a year of exciting change for transport in Blackpool.” IPSWICH BUS ES
OP E R ATOR C U T S PRICES FOR CATCH T H E BU S W E E K
2015’s Catch the Bus Week, an annual week-long event designed to highlight the advantages of bus use, saw council-owned bus operator Ipswich Buses cut the cost of travel, with the cost of a day ticket cut to £3.50 and availability of its group tickets extended. ➢
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“Even in urban Ipswich where car ownership is low, 40% of our customers tell us they have access to a car but choose to use the bus instead,” commented Jeremy Cooper, managing director of Ipswich Buses. “This speaks volumes and is what you might expect from our year after year excellent customer satisfaction scores.” Cooper added that to celebrate Catch the Bus Week, staff from the operator were out and about in Ipswich reminding people about catching the bus and the reduced ticket prices. J U LY M CG I L L’S
Mc G I L L’ S A I M S TO D O U B L E I N SI Z E
Scottish independent operator McGill’s announced ambitious plans to double in size over the next five years. It came after the Greenockbased operator revealed that revenues for the year to December 28, 2014, increased to £35.3m with pre-tax profits of £3.2m. Company owners Sandy and James Easdale then announced their expansion plans. “It’s all about growth,” said Sandy Easdale. That’s the aim - in the next five years double everything. We are looking at expanding in Lanarkshire in the near future and we are in discussions with some smaller companies to be buying them out in the area and that will join into McGill’s.”
municipal. The route was subsequently relaunched later in the year.
Further test vehicles that entered trial service later in the year included a Wrightbus StreetDeck double decker and a bus repowered with the Vantage hybrid power system.
RE A DIN G BUSES
OP E R ATOR T R IA L S A N E W ROU T E M AST E R
AUGUST
Council-owned bus operator Reading Buses undertook a two-week trial last summer of a New Routemaster vehicle as part of a series of evaluations of new vehicles types by the firm. The trials were designed to look at new and different types of buses which will shape the company’s future vehicle purchases as well as deciding interior specification. The New Routemaster entered service on Reading’s cross-town Route 17, with a conductor taking fares. Meanwhile, Mercedes-Benz supplied two Citaro buses for trials on the Loddon Bridge park and ride route, while Optare supplied a single MetroCity midibus which was also trialled on park and ride services as well as at the operator’s Newbury depot.
LOT HIAN BUS ES
P ROF I T S SL I P AT L OT H IA N AS C O ST P R E S SU R E S B I T E
Transport for Edinburgh, the Edinburgh Trams and Lothian Buses umbrella body, revealed a 13.8% drop in profits at the bus operator for the year ending December 31, 2014. Lothian’s revenues increased 2.2% from £132.3m in 2013 to reach £135.3m last year. However, profits fell from £11.7m to £10.1m, a margin of 7.4%. The operator, which is 91%-owned by the City of Edinburgh Council, also paid a £5.5m dividend to its shareholders, a substantial 50% increase on the previous year. Lothian admitted that it had
faced “significant operating and cost pressures” throughout 2014 and that it anticipated that this would remain the case in 2015. “We will remain proactive in seeking to mitigate the impact of these cost pressures,” it added. Despite these difficulties, Lothian reported a 2.6% increase in passenger numbers to reach 118 million in 2014. READING BUS ES
‘C O OL E S T BU SE S I N WOR L D’ T R IA L L E D B Y R E A DI N G
Council-owned bus operator Reading Buses launched a trial of a radical concept that aims to inform its future thinking about vehicle interiors. The operator claimed that it resulted in ‘the coolest buses in the world’. Journeys on the operator’s Claret-branded 21A service, which operates on weekdays during term time linking the University of Reading’s Whiteknights Campus with the town centre, were
McGill's announced ambitious expansion plans (above) as EYMS brought a First World War 'Battle Bus' to its annual Big Bus Day event (right). Meanwhile, council-owned Reading Buses launched a series of interior innovations on its Claret Spritzer-branded route (below)
RE A DI NG BUS ES
R E A DI N G SNA P S U P F I R ST ’ S BU S RO U T E
Council-owned operator Reading Buses announced that it was to take on operation of First Berkshire’s route 90 between Reading and Bracknell from July 26. The announcement followed confirmation by FirstGroup that it had consulted with staff over the closure of its Bracknell operations. First operated the route with 11 vehicles and Reading said that up to 20 drivers from First were offered the opportunity to join the
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relaunched as Claret Spritzer with refurbished buses featuring the trial interiors. The look aims to provide the ultimate on-board social experience for students on the move. It saw each of the four Scania double deckers used on these journeys extensively refurbished with a new zonal concept on the upper deck. It includes a lounge area, games pod with a gaming tablet and desktop games, table seating area and a micro library with an honesty book exchange service. SE PT E M B E R
The team from Reading Buses celebrate winning the top award at the UK Bus Awards (above). Trentbarton launched new coaches on its high profile Red Arrow route (below)
EYM S
STAR AT TRACTION F OR H U L L’ S B IG BU S DAY
East Yorkshire’s annual Big Bus Day event had a star attraction for 2015 – a First World War ‘Battle Bus’ from the London Transport Museum. The fully restored vehicle was the oldest bus ever to appear at the annual event. Starting life in the capital as a civilian bus, it was commandeered by the War Department to transport troops to the front line in Europe. The vehicle took over a year to restore to its former glory, and is now one of the London Transport Museum’s most famous exhibits. Peter Shipp, chairman of EYMS Group, said he was delighted that the vehicle could appear. “It had never visited Yorkshire before, so was a great chance for people in the area to see an exhibit which they’d normally have to visit the capital for,” he added. O CTO B E R TR E NT BA RTO N
N E W C OAC H E S F OR R E D A R ROW
Trentbarton upgraded its flagship Red Arrow coach service between Derby and Nottingham with a £3m investment in a fleet of new vehicles for the route. The new Plaxton Elite coaches feature a number of enhancements and feature free Wi-Fi, USB charging points, cycle storage, leather seats and branding by Best Impressions.
Reading Buses struck quadruple gold by winning the UK Bus Operator of the Year award after qualifying as Top Shire Operator. The company was also the ‘gold winner’ in both the Marketing Excellence and Marketing Initiative contests - and bronze in the environment category. ALBUM, the knowledge-sharing group of local authority-owned and independent operators, topped the medal table with a total of 13 medals. Reading’s five medals, were added to Ensign Bus (three), Trentbarton (two), Safeguard Coaches (two) and Nottingham City Transport (one). DECE MBER STEPH E NSO N S
ST E P H E N S ON S E X PA N D S W I T H N E W BU S F L E E T
deckers to its fleet over three years from October 2016.
Passenger numbers on the route are continuing to grow, with 1.4 million trips in 2014, a 10% increase on the previous year, with the new coaches providing room for additional growth in the future.
READ ING BUS ES
R E A DI NG C ROW N E D BU S OP E R ATOR OF THE YEAR
N OV EM BER
Reading Buses was crowned Operator of the Year at November’s UK Bus Awards in London. The local authority-owned company finally took home the coveted prize after finishing runner-up in each of the three previous years. Martijn Gilbert, who took charge of Reading Buses last year, said that the award recognised the efforts of his team. “Of particular note is the judges’ comment about us that ‘despite a challenging and congested operating environment, the company achieved excellent results in the mystery travelling’.” he said. “This shows that even when times are tough out on the roads our team can deliver excellent results.”
NOTTINGHAM CITY TRANSPORT
N C T TO IN TRODU CE FIRST G AS - P OW E R E D DE C K E R S ?
Council-owned bus operator Nottingham City Transport announced plans for a three-year project in partnership with the city council which could lead to the introduction of a large fleet of greener buses in the city. The operator applied for a £6.5m grant from the Office of Low Emission Vehicles’ Low Emission Bus Scheme to complement a £19m investment being made by NCT. It could see the operator introduce 82 bio-gas double
Essex-based independent bus operator Stephensons introduced a new fleet of buses for use on a recently introduced network of services in the Braintree area. The seven new Alexander Dennis Enviro200s entered service from Stephensons’ new base in the Essex town, which was opened to support the new routes. They were taken on following their withdrawal by local competitor First Essex following a network review. The introduction of the network saw the independent recruit 12 members of staff at the Braintree base which opened last month. “Setting up the new operation all had to be done at relatively short notice, and by juggling resources from within our existing fleet,” said Stephensons managing director Bill Hiron. “However, I’m delighted that we are now able to put into service the first of our new buses. “A further identical bus will follow in February. Together these buses represent an investment of nearly £1m in our new Braintree area services, and we’re hoping will attract more customers to these popular services.” Stephensons currently operates 100 vehicles from six depots located in Essex and Suffolk. ➢
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JANUARY MCG I L L’S
M C G I L L’ S C ON D U C TOR S A I M TO B E AT C ON G E ST I ON
Greenock-based bus operator McGill’s took the unusual step of introducing conductors at peak hours on one of its routes linking Paisley with central Glasgow for a trial period. The operator said that it made the move as a result of the increasing levels of congestion on Glasgow’s roads, something Ralph Roberts, the operator’s managing director, described as “getting to unmanageable levels”. McGill’s Route 38 service between Glasgow and Paisley is operated by former London articulated vehicles and Roberts said that the trial aimed to examine whether journey times can be slashed by reducing bus stop dwell times through the use of conductors. “Additionally, we hope that the quicker journey time would be more attractive to customers,” Roberts added. “We are seeing healthy reductions in journey time and better consistency of journey times plus a very good response from our customers.” LOT H I A N BUS ES
S C OT T I SH F I R ST AS L OT H IA N P ROV I DE S L I V E U P DAT E S I N GOOGLE MAPS
Lothian Buses passengers were the first in Scotland to access real-time service information on Google Maps thanks to a partnership between Transport for Edinburgh and Google. It meant that Google Maps on desktop and mobile now feature real-time predictions to deliver more accurate directions between any two places in Edinburgh, taking into account delays and diversions, with live updates from every bus in the fleet. Google Maps has an overview of where all buses are on the network at any one time, and shows expected times of arrival together with relevant service delays. The same information is
McGill's trialled conductors (above) in a move MD Ralph Roberts (below) hoped would improve customer service. Meanwhile, Trentbarton's Ian Morgan received an OBE
years in the industry, including 30 years as a director of Wellglade Group which owns Trentbarton, Kinchbus and other bus operators. Speaking after receiving his honour, Morgan said the investiture at Buckingham Palace was “an amazing experience”. He was thrilled to discover that one of his musical heroes, Van Morrison, was being knighted at the same ceremony and got to chat with the Irish singer. “It was a magnificent occasion,” he added. “From stepping through the Palace gates to hearing your name called out to approach the Prince – it was a great experience, one I will never forget. “The Prince congratulated me and said he had heard news that day of how bus services were under pressure around the country and asked about our experience of that. He said we must talk more another time – so I’m hopeful he will be in touch.” MARC H AL BUM
fully integrated with the Transport for Edinburgh app and the Lothian Buses website. Transport data specialists ITO World and the City of Edinburgh Council have also supported the initiative. As an agency for Google’s public transit data, ITO provides data conversion and quality improvement services to help ensure public transport information in Google Maps is as consistently accurate as possible.
FEBRUARY MCGILL’S
OP E R ATOR R E N E WS 1 0 % OF F L E E T
Expansion-minded Scottish operator McGill’s introduced 40 new Alexander Dennis buses in a move that saw 10% of the operator’s fleet renewed. The new Enviro200 midibuses were introduced as part of a £4.5m deal with the Larbert-based manufacturer. Last year saw McGill’s leap 50 places to join the leading 400 companies in Scotland’s league table of top-performing businesses – and managing director Ralph Roberts anticipated further expansion.
B LACKPOO L TRANS PO RT
A N E W BU S F OR B L AC K P O OL
Council-owned bus operator Blackpool Transport announced that it had placed an order for 10 Alexander Dennis Enviro400 City double deckers that feature styling influenced by the New Routemaster. The Palladium-branded vehicles will start to enter service over the summer, making Blackpool Transport the second operator of the type after Arriva London, which introduced the first of the vehicles at the end of 2015.
TRE NTBARTO N
IA N M ORG A N R E C E I V E S OB E
Ian Morgan was presented with his OBE at Buckingham Palace by HRH Prince Charles in a move that recognised his service to public transport and the community. Morgan has spent 43
T H UM B S U P F ROM BU S PAS SE N G E R S !
Album member companies scored highly in the Autumn 2015 Bus Passenger Survey, published by Transport Focus. The highest rated Album operator was Nottingham City Transport, which took the crown from Lothian Buses, 2014’s highest rated operator. NCT scored 97% overall, just ahead of local rival Trentbarton, which scored 96%. “We continually aim to provide the best public transport service in Nottingham and are delighted that not only do we achieve that, but we also scored the highest operator score in the country,” said Mark Fowles, managing director of NCT. “After a long period of major infrastructure works in the city, it’s reassuring to see we are scoring increased customer satisfaction scores. Our drivers have done a tremendous job dealing with congestion throughout those works and these scores reflect their increased rating with general helpfulness and attitude but also helping customers in difficult conditions.” Q
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A VERY DIFFERENT WAY OF WORKING As a separate state that is not par t of the United Kingdom, life on the Isle of Man is ver y different, especially when it comes to transpor t. andrew garnet t spoke to ian l ongworth and at Ronaldsway Airport on the Isle of Man and it’s almost like being abroad. Palm trees sway in the spring breeze as arrivals gather outside the terminal building, waiting for buses and taxis. Meanwhile, the Manx flag, based around the three-legged triskelion, flutters from the roof. Of course, in a roundabout way, the Isle of Man is abroad as it is not, and never has been, part of the United Kingdom nor the European Union. The island is a self-governing British Crown Dependency (just like the Channel Islands) with its own parliament, called Tynwald, which is claimed to be the oldest continuous parliamentary body in the world. It means that the Isle of Man has its own government and its own legal system. The British government’s role is limited simply to taking on responsibility for the island’s international relations. Meanwhile, the Queen is not the Queen (if you follow); she is the Lord of Mann, the Manx head of state and represented on the island by the Lieutenant Governor. Isle of Man Transport, the island’s state-owned transport operator, has its impressive modern headquarters in Douglas, the island’s capital. Sandwiched between a modestly-sized Tesco store (prices are more expensive than a Tesco Extra in the UK but cheaper than a Tesco Express, I’m told) and the edge of the centre of Douglas, it’s clear that things are a little different too. While a handful of modern, gleaming Mercedes buses sit in the yard awaiting their next turn
L
of Snaefell. From there, on a clear day, I’m told you can see the six kingdoms – the Isle of Man, England, Ireland, Scotland, Wales and Heaven. But that’s not all Longworth is responsible for. Reporting to the Department of Infrastructure he advises the Manx government on all aspects of transport matters. By a quirk of fate that also means he’s responsible for the maintenance of 2,000 government vehicles – from ambulances to the impressively huge airport fire engines at Ronaldsway Airport. Indeed, as he takes me on a tour of the company’s headquarters, an ambulance passes by. “That’s one of mine,” Longworth notes wryly. Of course, the three railways only operate seasonally and largely for the benefit of tourists. The day-to-day public transport backbone of the island is in the hands of Bus Vannin and its 68 vehicles. “We are in a very different situation,” he says. “I hear a lot of colleagues in the UK worrying about BSOG, franchising, the Buses Bill,
on the road, there’s also a couple of ambulances. Meanwhile, I get the distinct impression I can smell steam and burning coal. The answer is of course the unique situation that Ian Longworth, the Isle of Man’s director of public transport, finds himself in. “We served 13,000 meals last year and we hope to do more this year,” he says proudly in his office. We are of course talking about the Isle of Man Steam Railway, the locomotive sheds of which are adjacent to Longworth’s office, and its unique dining car train, which aims to offer some of the best Manx food and hospitality to an ever-growing clientele. The 15.3-mile-long railway, which is 143-years old this year, falls within Longworth’s remit. As does the Manx Electric Railway, a scenic interurban tramway that links Douglas with Ramsey in the north of the Island (“Through the Manx Switzerland” according to a vintage poster) and not forgetting the Snaefell Mountain Railway, another electric railway that links the MER at Laxey with the summit
The Isle of Man's heritage railways play an important part in the island's tourism strategy
concessionary reimbursement and I can’t help but smile. We have our challenges, of course, but we, like all of the utilities on the island, are state-owned. We have a fully integrated system between Bus Vannin and the railways. We offer concessionary travel to the elderly and the disabled, and heavily subsidised travel to schoolchildren, but we don’t receive a penny in reimbursement for that, nor is our fuel duty reimbursed. Like I say, it’s a very different situation.” Where there are parallels with the UK, it’s funding. The island’s government has always run a budget surplus and the local economy was insulated from the Great Recession of almost a decade ago thanks to an economy that has moved away from financial services in recent decades in favour of the growing sectors of e-business, e-gaming, international shipping and aviation. The island also makes £5m each year exporting electricity to the UK. Unemployment remains, as it always has, very low at just 2%. However, the island is in a customs union with the UK, meaning that the Manx
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says Longworth. “We have a frequent network that connects all of the major towns at least every 30 minutes and that runs from morning to night. But one of the areas we have to carefully consider is rural transport for reasons of social inclusion.” In the UK (or ‘across’ to put it in Manx terminology), these socially necessary services would be supported by direct government funding. However, on the Isle of Man, they fall within the public transport subvention as part of the greater public need. As Longworth notes, and with that rounded view in mind, cutting these services would only lead to higher social
government historically received a proportion of VAT revenues. The onset of the recession saw the UK government revising the structure of this agreement, leading to significant spending cuts by the Manx government in a bid to keep its books balanced. Transport operations on the island have always received a significant, to UK eyes, subsidy. For the year 2010/11 this amounted to almost £10m. However, the reductions in spending have seen this fall to £8.5m in 2014/15 – a 15% reduction in support. “We are part of a government department,” says Longworth. “That means that our financial needs are always going to be sitting alongside the needs of things like health and education. It’s easier to cut the budget for transport than those sorts of things, so our answer has been to become more efficient at what we do in response to those funding cuts.” It has seen Bus Vannin’s fleet cut from 89 vehicles to 68 and the number of different types of vehicles simplified. Investment has also seen new vehicles flood into
Douglas, the Isle of Man's capital, is the centre of the Bus Vannin network (top left) and terminus of the Manx Electric Railway (top right). Bus Vannin has a modern fleet (above)
the fleet, the backbone of which is a fleet of 30 Mercedes-Benz Citaros, replacing previous second hand purchases that Longworth admits were not entirely reliable. The introduction of this simplified, new fleet of buses has also had a positive effect on maintenance costs. Meanwhile, some labour practices, which to UK eyes would seem positively archaic, have been modernised and the network tightened. However, passenger numbers are growing, with revenue up 12%. “We take a very rounded view,”
AT A GL ANCE
68 12% 13,000 Size of Bus Vannin's fleet
Increase in Bus Vannin's revenue
Number of meals served on the Isle of Man Steam Railway in 2015
care costs for other government departments. That subvention also pays for the island’s heritage railways – surely these would be an easy cut? “You could say that,” notes Longworth, “but you need to take a rounded view, once again. In 2010 the heritage railways were assessed as contributing over £11m to the GDP of the island at a time when they covered just 18% of their direct operating costs. That’s more than the government support for the entire public transport system for that year. We’re also getting more efficient there too; last year the fare box covered 47% of the costs. “Tourism played a big part in the island’s economy until people discovered the delights of the Med and package holidays in the 1950s and 60s. The heritage railways are now a big tourist draw and we’ve done a lot of things in recent years to make them an even bigger draw, like with the dining train on the Steam Railway, driver experience days, running days and that sort of thing. We’re actually at the stage now where we are restoring rolling stock that hasn’t been used for years to ensure that we can keep up with demand. It just keeps growing each year.” Of course the needs of the heritage railways lead to some interesting staffing requirements. A third of the workforce are seasonal and as Longworth and his colleagues show me around the workshops of the MER and Steam Railway respectively (there can’t be many transport operators around with a fully equipped blacksmith’s these days), we meet staff preparing these respective fleets for the busy summer season. One, who is patiently and carefully painting an MER tram, works as a driver in the summer. Another, clad in a boiler suit, works in the ticket office. For them variety is clearly the spice of life. “Like I say, we’re very different,” says Longworth. “But although there’s a lot of history here, it is a business and we do have the ups and downs of any transport operator. That said, it is a very unique organisation to be in charge of.” Q
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A LESSON FROM HESSEN What can the UK learn from the introduction of a tendering regime for local bus ser v ices in the German federal state of Hessen? dirk dannenfeld repor ts he Buses Bill will enable local authorities in England to introduce bus ‘franchising’. In Germany, the federal state of Hessen was an early adopter of this model, but it has not halted the decline in bus use. Instead it has put the cost of providing bus services up significantly. There are some clear lessons for English local authorities contemplating taking control of, and contracting, their bus local services.
T
the situation before Bus services in Germany are governed by the Personenbeförderungsgesetz (Passenger Transport Act – PBefG) which was first introduced in the early 1930s. Its principal aim was to protect the national railway operator from road competition. On its incorporation in 1920, Deutsche Reichsbahn had been saddled with much of the debts Germany had accumulated as a result of World War I. The German system was modelled on the British Road Traffic Act of 1930, with a system of road service licences to operate bus services. The state-owned railway and postal services were exempt from that requirement and therefore became the main pre-war interurban bus service operators. By comparison, municipal operators were covered by the legislation. After World War II the Allied administration was sceptical about state-run bus services so they granted the majority of licences to private operators, although many of them were
later taken over by the railways or the postal service. Deutsche Bundesbahn (DB) extended its bus operations in the 1960s and 1970s by replacing branch lines and stopping trains on main lines. A lot of that work was contracted out to private companies. In 1982 the railways also took over the yellow post buses. From the mid 1960s, Germany developed the “Verkehrsverbund” concept. The initial idea was that city operators offered their passengers a single fare and ticketing system within a set area while coordinating their services to avoid duplication and make transfers between operators easier. The revenue shortfall of integrating the fare scales and the interavailability of tickets is made up by the local authorities, now usually by means of a common ruling under EU 1370/2007. From the 1980s onwards, the Verkehrsverbund idea has also covered more rural areas. Furthermore, most new Verkehrsverbund systems were set up by the local authorities with a much wider remit to planning and financing services. The Verbund area is usually divided into zones in which a ticket holder can use whatever service he/she wants. Revenue is usually pooled and distributed in proportion to what each operator brought into the pool at the start of the Verkehrsverbund. While this has undoubtedly increased patronage system-wide, bus services, especially outside the centres tend to lose out. The main focus of the Verbund is on the main flows into and within
the centres, so pricing and service development priorities are set accordingly. As all operators are obliged only to charge centrally set Verbund fares and take part in the revenue pool, there is no incentive to develop local bus markets as operators will not see a financial reward. As the potential of longer distance markets seems to have reached saturation now, an increasing number Verkehrsverbund systems now struggle to meet revenue targets despite fares going up. Despite generous funding by federal government, electronic or mobile fare collection systems, which could overcome some of those problems, still do not play any significant role in Germany, in contrast to the UK. The PBefG requires bus services
to be self-financing (“eigenwirtschaftlich”). However, this principle has been compromised since the 1970s, when a grant was introduced to pay for discounted season tickets for schoolchildren and later for free travel for disabled people as well. At around the same time several local authorities started to pay for unprofitable services similar to the network grants provided in the UK. As a result, regional bus operators including DB started to focus on the carriage of schoolchildren plus optimising local authority funding. Other markets such as travel to work or leisure travel were left primarily to the car and later the railways. So the dependence on local, state or central government money grew to a point, where local government especially demanded
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a much greater influence over service design and provision. At the same time, the EU was about to develop the existing regulation 1191/69 into what in time became regulation 1370/2007. This was used as a reason to press for greater public governance of, and intervention in, local bus services. At the forefront of this was the federal state of Hessen, but some local authorities in the larger conurbations also wanted more engagement. Operators found themselves trapped, because the “sweet poison” of public subsidy had made them dependent on the public purse, and out of touch with passenger demand. So, for different reasons, a more commercial approach, as in the UK, was wanted by neither operators nor the authorities.
Autobus Sippel was (top) one of Germany's largest independent operators before the advent of tendering. BRH ViaBus (above) was acquired from FirstGroup by MET in 2011
the state of hessen – and its public transport policy The federal state (land) of Hessen (Hesse) occupies some 21,000 square kilometres in the centre of Germany. With a population of
However, with regulation 1370 becoming law in 2007, it was clear that the system of road service licences and network grants had to be brought in line with the new legislation.
just over six million, it is the fifth largest of the 16 federal German states. The vast majority live in the south in the metropolitan area around the economic centre of Frankfurt and the state capital, Wiesbaden. The north and east of the state are predominantly rural. The dominance of Frankfurt and its metropolitan area (population about 3.9 million) – also referred to as the “Rhein-Main-Gebiet” after the two major rivers – is also key to understanding the transport policy of the state government. One of the main drivers was – and still is – to relieve the area of traffic congestion made worse by its geographic location at the crossroads of Europe which means there is not only commuter traffic but a lot of national and international through traffic to handle as well. While most other metropolitan areas in Germany had set up rather comprehensive “Verkehrsverbund” structures from the 1960s onwards, Frankfurt’s Verkehrsverbund was a rather piecemeal affair covering only the municipal network plus DB trains and buses, but leaving out almost all regional and other municipal services in the area. Politicians and administrators instead favored a radical model with a single Verkehrsverbund, the Rhein-Main Verkehrsverbund (RMV), not run by operators but by local and state governments covering the whole catchment area far beyond the actual Rhein-MainGebiet. It eventually covered about three-quarters of the state, with a separate, smaller Verkehrsverbund set up for the rural north. The setting up of both bodies in 1994 coincided with the devolution of the responsibility for local and regional rail services from the erstwhile Deutsche Bundesbahn, which morphed into Deutsche Bahn AG, to the federal states greatly extending their powers over public transport matters. Local political desire was to extend those powers to road-based transport as well, however federal government proved reluctant to devolve powers, and above all, it did not want to compromise the principle that bus operation is primarily commercial, ➢
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with operators responsible, not government bodies. This view was supported by the European Court in its “Altmark” ruling stating that even commerciallyoperated services could receive both government subsidies and exclusive rights provided they met certain criteria. The breakthrough came in 2002 when DB, the biggest nonmunicipal bus operator in Hessen, bowed to political pressure and confirmed that their operations were actually not self-sufficient, and therefore could be taken over by the authorities and eventually tendered out. Until a tendering programme could be established, DB was to continue to operate these services for a very handsome subsidy, which later enabled the authorities to claim massive savings from its tendering exercise. In due course, Hessen passed legislation to outlaw commercial operation. However, it had to be adjusted several times, as it was found to be contrary to both European and federal legislation, so these operations became possible again. As all funds were granted to local authorities, and route packages were tailored to discourage any commercial operation, almost all services in Hessen were contracted out by 2011. The following findings are based on our study “Ausschreibungspraxis im ÖPNV – Ergebnisse aus Hessen” (Contracting experience in Public Transport – Results from Hesse) undertaken in 2009 by ANWI-Institut, Emden. The evidence has been brought up to date where necessary.
subcontractors were mainly employed by the railway-owned companies, which had up to 50% of their services operated by subcontractors, and to a lesser extent by municipal operators (probably about 15-25% of services). The first trial tenders in Hessen were run in the mid-1990s, and foreign operators like the Swedish Linjebuss and the French Cariane and CGEA showed an interest in German bus operations. This tempted most of the larger private operators to sell out to those emerging groups, some because they couldn’t run at the prices they had offered, others because they saw their economic prospects dented by the advent of competitive tendering. So
another operator. In Germany, subcontracting of services by municipal or railway operators was quite widespread from the 1960s onwards. Independent operators frequently sold their road service licence to the railways in exchange for an operating contract, others were school services integrated into railway stage carriage services. Municipal operators on the other hand usually took advantage of the lower cost base of independents through subcontracting. Subcontractors usually run buses on routes licenced to and planned by the operator that let the contract for a fixed rate with that operator receiving all revenue and possible public funds. In Hessen,
what was to become Veolia, and now Transdev, built up a major presence in Hessen. Most of the acquired businesses, however, turned out to be overpriced and underperforming, and almost all have since been closed down. SMEs were also a target for takeover by the municipal companies. Originally, state government made it clear that they did not propose any exception from competitive tendering for the 11 municipal operators, so, in order to be competitive, almost all acquired one or more SMEs as low-cost subsidiaries to take part in the tendering process. The need to do that has since been reduced as provisions were later made for local authorities to award direct
Bus contract winners in Germany 2010-2014, timetabled kms as a % 6%
11%
22% 33%
2010
2011 24%
Publicly owned
2012 49%
39% 22%
21%
SME
9% 25%
28%
DB Regio Bus
37% 20%
10%
14%
2013
18%
20 14 41%
13%
59%
Other Groups (Veolia/Transdev, Rhenus Veniro, Abellio, Transport Capital, MET, Netinera/Arriva)
winners and losers – the effect of the system change on market structures Up until the 1990s, as in most other areas of (West) Germany, there were four major groups of bus operators: Municipal companies, Deutsche Bahn-owned companies, privately-owned SMEs and local railway companies (in Hessen the latter owned by the state). These operators participated in the market either through road service licences (“Genehmigungen”) they held themselves or – mainly in the case of SMEs – as subcontractors to
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contracts to their own companies. This was taken up by all but three municipalities. The tendering process started in earnest in 2003/04. The first contracts were won by established operators, with both DB and municipal/state-owned companies faring quite well. The independents tried to cooperate and formed joint companies to be competitive and these joint ventures also did quite well. However it soon became apparent that the level of tender prices was unsustainable, and, as described above, a number of operators sold to foreign groups, the main buyer being the then newly-formed Anglo-German Abellio group. Abellio was able to win large slices of the market between 2007 and 2009, so that the market share of foreign transport groups was up from 3.7% in 2002 to 30.3% in 2009. Public sector operators enjoyed a brief heyday in the early days of tendering, when both Hamburg municipal “Hochbahn” as well as the Hanau municipal company won several tenders, all at very low prices. In the latter case it soon
were sold to newly-formed Marwyn European Transport, but this has also now been disbanded as the London-based financiers have withdrawn. Transdev (now including former Veolia) has scaled back its operations to its “traditional” operating area in and around Frankfurt. As the big international groups left the scene, the established operators were able to secure a larger share of the market. The independent sector especially recovered quite amazingly as the surviving operators learned to cope with the new system. So since 2011, more than 50% of tenders have been won by SMEs, with DB seizing only about 15% of the total.
Swiss-based Transport Capital AG has acquired the operations of Werner (below left) and VM (top). Family-owned Frölich (above) has expanded as a result of major tender gains
investors to Dutch Railways’ NedRailways subsidiary. In November 2009 they handed back 35 routes for re-tendering. Most were won by French group Transdev which took the opportunity to enter the Hessen market. However, Transdev soon also found out that they have competed on unsustainable terms and handed the routes back for retender in 2013. Abellio has since left the bus market in Hessen and sold its subsidiaries to an off-the-shelf holding company. One of its operating subsidiaries declared bankruptcy in mid-2015, the other handed back the contract to operate the Bad Homburg town services at very short notice just before Christmas 2015, and even threatened the council to stop operating immediately if the council would not waive the penalty fees for late running and cancelled routes. British operator FirstGroup entered the market in 2007 only to withdraw again in 2011 because of insufficient profits. Its operations
became apparent that the company had gambled with taxpayers’ money and accumulated losses of €30m by 2005. So the company was wound up, both at the expense of the taxpayer and the Hanau passengers, which had to endure severe service cuts as a result. Biggest losers at this point were DB (market share down from 43% to 26%) and the public sector operators (down from 32% to 23%). On the face of it, independent operator’s share stayed basically the same, but that was only half the picture: Around half of services operated by SMEs were done so as subcontractors, mainly for DB and municipals. As DB lost work, they cut subcontracted work even more. Municipals and transport groups did not employ subcontractors in any significant number. So actual mileage operated by SMEs fell dramatically. By 2009 it became clear that a lot of tenders had been won on unsustainable terms. First to pull the plug was Abellio, which had just been sold by its British
tender prices and financial arrangements With the advent of council control and competitive tendering, the responsibility for financing the services shifted from the operators to local authorities. Until then, operations were paid for by farebox receipts plus fixed subsidies, now gross-cost contracts became the norm as they allowed maximum political control. Instead of operators collecting their revenue from the passengers, they were paid a fixed rate by the authority who in turn took on the commercial risks and responsibilities. Success for operators was no longer determined by maximising passenger numbers and revenue, but by having the lowest cost base to submit the lowest tenders. To convert DB services from “self-sufficient” to “contractable” state government and DB agreed a price of €2.51 per timetabled kilometre operated on these services. This was at the time considered to be very generous and undoubtedly helped DB to agree to the government’s plans. In 2003, tenders in the RMV area were awarded for a price of €1.78 per kilometre which over the next two years fell slightly to €1.72. However it became apparent that these prices were not sustainable at the quality levels required. So, from 2006, tender prices started to increase sharply, to €2.75 per kilometre in 2009. Current experience suggests that tendered services are ➢
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around 3-7% more expensive than non-tendered operations. This increasing bill had to be footed by the local authorities. Although there are no reliable figures for the whole state, there have been quite dramatic developments at local authority level, especially in the more rural areas where public transport spending has traditionally been low. The Schwalm-Eder local authority had its revenue support bill go up twenty-fold from €70,000 in 2007 to €1.5m in 2010. The Fulda local authority had to spend €3.60 per head of population in 2011 on bus services, compared with €2.05 only four years earlier. In other areas, there have been similar rises. Usually those rises were accommodated by cutting frequencies and increasing fares - quite contrary to what was intended by taking over control of the networks - so that RMV now has the highest fare level of all similar areas in Germany. Apart from paying for the services and taking the commercial risk, the administration of the network also has to be paid for by the local authority. It is estimated that the transfer of bus service responsibilities in Hessen led to the creation of around 600 council jobs. Management of contracts and networks adds between 10% and 20% to the cost of providing the services. Initial claims by Hessen officials that a lot of money had been saved by tendering have quickly been replaced by claims that all that money is needed to provide a proper service. consequences for sme operators and drivers While SME operators as a group have remained a quite stable feature of the Hessen bus market it should not be overlooked that there have been radical changes within this group. Market concentration and the tendency to contract out groups of routes instead of single routes have made it difficult for smaller operators to compete. The subcontractor market, once the main source of employment for most SMEs has been hit very hard. So actual mileage operated by the independent sector fell from
HSB (above) is Hanau's municipal operator. It also has a direct award contract in Hanau. VM (below) was owned by Abellio until acquired by Transport Capital AG in 2013
QU E ST ION S F OR E NG L I SH L O C A L AU T HOR I T I E S
What happens to contract prices? If Hessen is typical, they will go down significantly in the first round but then move up to well above the status quo anti-typical contract prices. Has the authority sufficient funds reserved for that eventuality? Has the authority really provided sufficient funds for administrative and supervisory costs as ever more staff are employed in these roles? What is the authority’s exit strategy? It would be inconceivable that commercial operators will restart a commercial network if the authority has insufficient funds to maintain the contracted network. Has the local authority balanced all these future potential risks against the alternative option of enhanced partnership?
What benefits can authorities achieve for bus users which cannot be delivered by enhanced partnership working arrangements? What size contracts should they seek bids for? The smaller they are the greater the potential competition for them, keeping prices down but with higher administrative costs. The larger reverses this balance. What happens to displaced operators, most likely to be SMEs? Hessen shows that you will need them in the second round of tendering and particularly in the third round, but will your policies have driven them from the market – as also happened in Hessen?
38 million kilometres in 2002 to below 26 million in 2009. This caused many smaller operators to leave the market or cease trading altogether. The Hessen bus operators’ association lost 40 of their 220 members from 2001 to 2007. At least 20 operators who quit the market did so directly because of the tendering process. In the independent sector there has been considerable concentration. In 2003, 74 SMEs held licences operating on average 264,000 kilometres per annum each. While by 2009 there was similar mileage covered by SMEs, there were only 29 operators covering about 645,000 kilometres per annum each. On the whole, those 29 operators were the survivors of the original 74, there have been no significant SME market entries, not even of former subcontractors, contrary to experience in other regions. So while the independent sector as a whole may now have a larger market share than before, many of the smaller operators have fallen by the wayside. For bus drivers, the 2000s proved to be a hard time. As costs for vehicles, fuel and overheads were set and about the same for all bidders, the only difference an operator could make in its bid price was drivers’ wages. So most operators with high wages lost their routes replaced by operators paying lower rates. This was even evident after the state government introduced a law requiring operators to pay at least the rates agreed for the private sector companies. There is evidence that a lot of drivers have left the industry so now it is not uncommon for operators to source drivers from countries like Poland, Spain or Romania – many of them without proper knowledge of German language - in order to maintain services at all. Operators currently hope that some refugees can be trained as bus drivers. In order to be able to bid for contracts successfully, the main operator Deutsche Bahn is now in a process of winding up its traditional operating subsidiaries because of their high labour costs. New contracts are bid
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DIRK DANNENF EL D
for by new low-cost companies employing a different workforce. Because of transfer of employment regulations, none of the old DB drivers are being offered a post within the new organisations, not even at the lower wages. eu-directive 1370 – and its interpretation in other parts of Germany When EU-Directive 1370/2007 became law in 2009, Hessen had already transformed its bus industry broadly in line with the new directive. Within the process of implementing 1370, Hessen had actually to accommodate requirements other than tendering provided by 1370. Under 1370 it became clear that whenever public money was involved it had to be awarded in accordance with that directive. However it was decided by federal government – and since backed by the courts – that the road service licence itself was not subject to 1370. Apart from commercial tendering, the other instruments of 1370, such as direct awards to council-owned companies and for smaller batches of services as well as common rulings were actively promoted in Germany. Most were actually written into the directive at German instigation. Having seen the Hessen results, most other states, and especially federal government, concluded that this might not be the way forward in implementing 1370. So when the PBefG was modified in 2011 to take account of 1370, it still contained the preference for selfsufficient, commercial services, styled by the operators, with competitive tendering of councilplanned networks only deemed as the second-best option, much in line with the UK’s 1985 Act. The Federal Department for Transport has since actually demanded that there should be a right for operators to have a “common rule” by the local authority in order to achieve self-sufficiency. This case is being considered by the courts. While in several large conurbations there is still the preference for council control and tendering, most areas outside those are now quite happy for operators
to continue having responsibility for bus networks and taking advantage of the options 1370 gives to avoid competitive tendering. Most municipal operators have since enjoyed their services being awarded directly, although some now face unexpected competition as DB tries to recover lost territory by taking over urban operations commercially. For SME operators there seems to be a preference for the common ruling option to facilitate lower and joint “Verkehrsverbund” fares over the possibility of direct awards, although these have happened as well.
G E RM ANY
HESSEN
conclusion – and lessons for English local authorities There is no evidence that council control and competitive tendering have halted the decline of regional bus services in Germany, however there is overwhelming evidence that it has made service provision much more expensive. The main mistake was to deprive operators of their commercial responsibilities. Neither local authorities nor area-wide agencies such as a Verkehrsverbund can replace the commercial skill and revenue-induced incentive of an operator to develop what are lots of small local markets. In this respect, fare integration has been taken several steps too far in Germany, as there is no possibility to tailor fares to local needs. The pooling of revenue has led to operators not being willing or able to invest money in service improvements, as a possible increase in revenue is not allocated to the individual operator but shared along distribution agreements for the revenue pool. Very specifically, English local authorities contemplating closing the commercial market and replacing it with tendering (wrongly called franchising) need to think long and hard about the medium to longer term consequences of their actions. Q
Revenue support for bus services in Fulda:
€2.05 €3.60
per head of population in 2007
per head of population in 2011
600 It is estimated that the transfer of bus service responsibilities in Hessen led to the creation of around 600 council jobs
10to % 20%
Dirk Dannenfeld is a consultant for the German bus industry working mainly with SME independent operators, local authorities and municipal operators
Management of contracts and networks added between 10% and 20% to the cost of providing the services
-40 The Hessen bus operators association lost 40 of their 220 members from 2001 to 2007. At least 20 operators who quit the market did so for reasons directly linked to the tendering process
26m
Mileage operated by the independent sector in Hessen fell from 38 million kilometres in 2002 to below 26 million in 2009
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TH E AL BUM RE PORT 2016
CROSS SUBSIDY AND FRANCHISING/ CONTRACTING Franchising/contracting would be a leap in the dark, and pursuing this policy would force bus operators to reassess the cross-subsidies that they currently make for commercial reasons, w rites martin higginson ince deregulation 30 years ago, most local bus services have been run commercially, at operators’ own financial risk. As part of this risk, an operator may choose to use some of the profit earned from financially viable services to meet deficits on lossmaking services, a practice known as cross-subsidy. Thus, profitable bus services help fund loss-making routes, parts of routes, days of the week, times of day, seasons, etc. Within the large bus groups, highly profitable subsidiary companies cross-subsidise less profitable or even loss-making ones. There are two types of crosssubsidy. Commercial cross-subsidy is an inevitable part of running a bus service, taking place when, for example, a suburb-to-town-centre route is busy in the peak direction of travel, but lightly loaded in the opposite direction. Under optional cross-subsidy operators choose to run services that are not directly profitable. The purpose may be to maintain network coverage as an act of goodwill towards the local community (social dividend) or to protect operating territory from possible competition. Optional cross-subsidy may allow operators to provide: Q Increased frequencies; Q Longer working day/week, e.g. evening and Sunday services; Q Supplements to frequent trunk urban routes, such as lower frequency services around off-route housing areas; Q Extended services beyond
non-profitable parts of its business; Q Operator separates business into high quality commercial and ‘low cost’ sectors, the latter using older, cheaper vehicles, offering less comprehensive services (e.g. running weekday daytimes only) and employing staff on less expensive contracts (e.g. little or no evening, early morning or Sunday work); Q Operator discontinues parts of services funded by local transport authority de minimis supplements; Q Quantity of services forced down if contracting authority finds it cannot afford the level of service it had hoped to provide, e.g. if tender prices are higher or financial resources lower than expected. There is a particular conundrum for groups, with a wide range between the most profitable subsidiaries and those that earn lower profits or incur losses. Currently, earnings from highly profitable subsidiaries can be used to cross-subsidise low returns or deficits elsewhere in the group. Table 1 below, using data for 2013-4 from Bus Industry Monitor, published by The TAS Partnership, summarises the outcome for the four largest groups. Two-thirds of the companies (64%) made a pre-tax operating profit of under 10% (40% made 0-10%, and 24% lost money). Only a third of group subsidiaries (36%) made higher profits (31% made 10-20%, and 5% made over 20%). The results suggest internal crosssubsidy to have taken place within each group, which may include transfers involving other parts ➢
S
ABOVE: Martin Higginson. RIGHT: FirstGroup buses in Manchester, where franchising is on the agenda
built-up areas to outlying villages and suburbs; Q Experimental or developmental services to test potential markets, such as to new housing areas before they are fully populated; Q Expanded staff bus operations as publicly available services, which makes the journeys eligible for BSOG (Bus Service Operators Grant); Q Lower fares. losing the ability to cross-subsidise If threatened with franchising/ contracting, companies would need to adopt harsh financial policies in order to prepare themselves to bid successfully for franchises. They would be unable to continue crosssubsidising unprofitable services and would need to become strictly ‘commercial’, profit-maximising entities. This situation could evolve in several ways: Q In order to increase profit margins, operator exits from
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of the groups’ business portfolios (e.g. UK rail and overseas bus, coach and rail) as well as between UK bus undertakings. Turnover for the complete Great Britain bus industry was £5.5bn, with national rail passenger turnover much higher at some £9bn. The scale of many rail franchises is also greater than that for individual bus businesses, so a low percentage profit can earn more than a much higher percentage for a bus company. For example, Stagecoach South West Trains’ turnover in 2013-14 was £1.2bn. Pre-tax profit for the year was £23m at a pre-tax profit margin of 2.4%, compared to £13.6m pre-tax profit and a margin of 23.3% for Busways Travel Services Ltd, Stagecoach’s Tyne & Wear bus subsidiary. Such outcomes suggest that if the profitability of bus operations was forced down by the threat of contracting, multi-modal groups could continue to cross-subsidise bus services from profits earned in the rail passenger sector, an option not open to smaller bus companies. At the international level, Deutsche Bahn’s overall deficit in 2015 was reportedly reduced by profits from Arriva. the detailed picture of profitability Bus Industry Monitor presents a range of statistical information for 120 companies, covering subsidiaries of the ‘Big 4’ UK PLCs (First, Go-Ahead, National Express, Stagecoach), foreign/governmentowned businesses (Arriva, RATP Dev, Transdev, Abellio), second tier private groups (EYMS, Rotala, Wellglade, Comfort DelGro), and local authority-owned and independent undertakings. Table 2 summarises company and group and pre-tax profit margins for financial year 2013-14. A wide range of outcomes is seen. A third of companies made a pre-tax profit of over 10%, but over half (54%) made pre-tax profits of under 10%. Nineteen companies, plus six no longer trading, made losses. The dozen companies, from four different groups, making returns above 15% may have the strongest chance of competing successfully for franchises, as they are the
Stagecoach's Tyne & Wear subsidiary made a pre-tax profit margin of 23.3% in 2013/14 Table 1 : Summary: Pre-Tax Profit Margin range for the four largest groups, 2013-14 Source: Bus Industry Monitor, The TAS Partnership
Number of subsidiaries %
Total
Arriva
First
Go Ahead
Stagecoach
20%+
0
0
0
4
4
10-20%
3
4
2
14
23
0-10%
8
9
7
6
30
Deficit
5
9
3
1
18
Total no. of companies
16
22
12
25
75
Table 2 : Summary: Company Pre-Tax Profit Margin, 2013-14 Figures in blue = company no longer trading. Source: Bus Industry Monitor, The TAS Partnership
Number of companies / subsidiaries in each category Profit % 5-9.9
0-4.9
Deficit
Total no. of companies
Group
20+
15-19.9
10-14.9
Abellio
–
–
–
–
2
–
2
Arriva
–
–
3
4
4
4
15
Comfort Del
–
–
–
2
–
–
2
First
–
2
2
4
5
7+2
20+2
Go Ahead
–
–
2
5
2
3
12
Nat Express
–
1
1
1
1
–
4
RATP Dev
–
–
–
1
2
–
3
Rotala
–
–
–
1
2
–
3
Stagecoach
4
3
11
5
1
1
25
Transdev
–
–
1
2
2
–
5
Wellglade
1
1
1
2
–
–
5
Municipal
–
–
–
2
6
3
11
Independent
–
–
–
2+1
4
1+3
7+4
Total no. of companies
5
7
21
31+1
31
19+5
114+6
% of active companies
4
6
18
27
27
17
100
most able to sustain reduced profits. Arriva, First, Go-Ahead, National Express and Stagecoach had between them a total of 19 subsidiaries earning operating profits of between 10 and 15%. All the municipal and independent companies earned only moderate profits, below 10%, or incurred deficits. Among local authority-owned companies, but also at some private companies, low profit margins are attributable at least in part to concentration on social dividend to local communities (e.g. higher levels of evening and weekend service, more dense networks and lower fares) at the expense of making a higher financial return. The 19 unprofitable companies, which come from every sector of the local bus industry, would be the most susceptible to any increased pressure on their trading, whether from their financiers, from competitors or from squeezed public funds. It is easy to speculate that corporate interests at major groups might wish to divest themselves of poorly performing subsidiaries such as First Devon & Cornwall (pre-tax margin -15.7%) and Scotland East, (-15.9%) if these deficits could no longer be counter-balanced by higher returns elsewhere, such as the positive margins of 17.2% at Leicester Citybus and 15.6% at West Yorkshire in 2013-4. Three operators in the municipal sector returned deficits, but neither here nor at independent SMEs are there opportunities for crosssubsidy from other undertakings and such businesses could be at serious risk. In London, where the different financial regime reduces the risk element, only one company achieved a 10% pre-tax profit margin. Five London operations earned operating profits between 5 and 9.9%, six under 5% and two incurred deficits. Three companies operating in London, two of which are no longer trading, made deficits. The TAS Bus Industry Performance review suggests a return of around 10% to be needed. This was achieved between 1996 and 2003, but the level has since fallen and was only 7.3% in 2014.
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MARTIN H IGGINSO N
possible outcomes under franchising/contracting Networks would be affected in different ways under alternative local transport authority financial policies of constant funding or of increasing the amount of money available. Even just to prepare for franchising/contracting, operators would have to make cuts and concentrate on profitable services. Information provided by operators suggests that franchising/ contracting authorities would have to cut services by at least 4% and maybe as much as 14% without additional funding, as crosssubsidy would not be available and these services would no longer be affordable, as 4% of services make losses, while a further 10% do not cover their overheads. The cost of funding service
increases would vary according to the extent of changes made. If franchising/contracting authorities chose to reduce services on busy routes in order to fund less attractive ‘social’ service options, they would be faced with higher subsidy costs, but achieve at best a minimal increase - and a possible decline - in patronage. Such an open-ended commitment would be anathema to authority finance departments and to a national government keen to constrain local authority funding. If some local operators had already withdrawn from the market, competition for franchises could be limited, as a result of which bidding prices would be high and value for money spent by the franchising/contracting authority would be reduced. Transport authorities sometimes see corridors with lots of buses on them as examples of ‘over-bussing’, whereas in fact, these are usually the most frequent, attractive and well-used services. If franchising/ contracting authorities opted to cut back on them, some of the most regular bus users would suffer. Benefits to passengers would actually be maximised by retaining and further improving them.
Franchising/contracting authorities might, if they found themselves short of cash, decide to increase bus fares for political reasons, with little regard to the impact on the market for bus travel. If services were reduced, operators would be less able to provide comprehensive and attractive networks. They would then cut fleet replacement programmes and reduce valuable measures such as publicity, onboard Wi-Fi, modern ticketing technology and improved waiting facilities. Services would become generally less attractive, fleets older and more polluting, and the ‘spiral of decline’ would reappear. Society as a whole would suffer from increased traffic congestion as more people turned to cars - often out of desperation, because there was no adequate bus alternative, rather than because they did not want to take a bus. conclusion Franchising/contracting would be a leap in the dark, which there is already significant evidence that transport authorities are wary of taking. The ability to regulate local bus services through quality contract schemes (QCS) has been
FO EV RT ER NI Y GH T
ISSUE 114 31 JULY 2015
NEWS ROUND-UP
Cornwall steps back from bus franchising
NEWS, VIEWS AND ANALYSIS FOR A SECTOR ON THE MOVE A First bus climbing up the hill out of Perranporth, Cornwall
Council looks to partnership to improve its buses
NEWS
CMA supports greater on-rail competition
08
Cornwall’s devo-deal surprises bus industry
Authority challenges monopoly franchises
Department for Transport appears out of the loop as Department for Communities and Local Government announces historic devolution deal The bus industry was caught by surprise by this month’s announcement that Cornwall will be given control of bus services as part of a new devolution deal. The deal, the first with a rural authority in England, was announced on July 16 by the Department for Communities and Local Government. Cornwall Council has expressed ambitions to take control of the county’s bus network several times in recent years, but government support for such a move was unexpected. It is also understood to have come as a surprise to the Department for Transport. It is the latest in a string of devolution announcements with major implications for buses. Last
November, chancellor George Osborne announced a devolution deal with Greater Manchester that included support for bus franchising in the region (PT096). The Conservative Party’s election manifesto subsequently pledged powers to regulate buses for cities which accept an elected mayor. Re-regulation of local bus services is opposed by all of the major bus groups. However, with the DfT seemingly out of the loop, they are struggling to make their case to government. “It’s
“It’s not a traditional way of forming policy”
difficult to get near anyone who is close to the devolution agenda in government,” Passenger Transport was told. “They have few advisors around them. It’s not a traditional way of forming policy.” It’s unclear how Cornwall will employ its new powers over buses. The devolution deal says that the council will receive powers to franchise all bus services in Cornwall. “This will ensure that an integrated transport system is delivered within pre-allocated budgets by December 2018,” it states. “This will co-incide with the start of half hourly mainline railway services in Cornwall as part of the new rail franchise.” FURTHER COVERAGE: PAGES 04-05, 22-25, 37
ADL and BYD form electric bus alliance
17
£19m deal to supply buses to London
INNOVATION & TECHNOLOGY
The future of customer relationships
18
Should TOCs be wary of Google and Apple?
TRAVEL TEST
Will this get motorists to switch to bus?
26
Testing Stagecoach’s park and ride solution
COMMENT
‘A fair deal for buses’
33
Cornwall’s buses may lose corporate branding in favour of a standalone brand like Truro’s park and ride buses
REGULATION
Cornwall Council is moving away from adopting bus franchising powers, awarded to the county as part of its devolution deal, in favour of an integrated bus and rail network that will see the council working closely with local bus operators. Last summer’s devolution deal struck with the government gave Cornwall the option to franchise the local bus network, building on key transport ‘asks’ made as part of its Case for Cornwall document (PT114). However, since the devolution deal was agreed with ministers, the government has hinted that the forthcoming Buses Bill will not only offer a streamlined route to bus franchising, but also powers for enhanced partnerships. As a result, and following close talks with local operators, the council plans to opt for a partnership in the first instance. The council argues that at present the public transport network in Cornwall does not represent a viable alternative to car use in rural areas due to journey times, high costs and difficulty in connecting with other services or modes, particularly at the start and end of the day. “A lack of joined up public transport can lead to isolation for those who have no alternative,” Matt Sidney, Cornwall Council’s integrated transport programme manager, told councillors. “It can cut them off from services, education and employment. Since
ENVIRONMENT CRAIG GEORGE
preparing for franchising For operators to place themselves in a strong position to win contracts, it will be essential for them to respond before the new regulatory regime has been confirmed, even though passengers on loss-making and marginally profitable routes would be left with depleted services, or none at all. It will not be possible to wait to take preparatory action until an authority has stated its definite intention to opt for franchising, as commercial operators would risk being unable to make the necessary service changes to improve its financial performance at a later date. This is because it is likely that services changes would be prohibited, or involve excessively bureaucratic procedures, during a lengthy prefranchising ‘standstill’ period. Funding the re-instatement of the lost services, many of whose passengers would already have made alternative travel decisions and would not be won back, would be a task for the franchising/ contracting authorities. To fund their policies, some potential franchising authorities have already indicated that they would choose to cut back on the most popular and successful services, which they mistakenly characterise as ‘over-bussed’.
Campaign groups warn against cuts
“Cornwall Council needs powers to decentralise bus regulation” Matt Sidney
2010, 24 out of 163 bus services in Cornwall have been withdrawn, while bus passenger numbers have declined by around 10% in the last three years.” Sidney said that the new Great Western rail franchise will drive major improvements in the quality, capacity and frequency of rail services on the mainline in Cornwall by 2018. He highlighted that patronage on these services was already increasing; up by 4.4 million (or 141%) since 2000. “Cornwall Council needs powers to decentralise bus regulation to provide a sustainable future for bus services by
integrating bus with rail to create a better overall public transport system,” he added. Sidney said that, in contrast with the rail network, Cornwall’s buses had gone through a period of instability and a lack of capital investment. This has seen patronage fall by 16% since 2010/11. In response, the council was now working to deliver improvements to the bus network under the banner of ‘One Public Transport System for Cornwall’. The key objectives for this approach are based around six workstream areas: customer focus; one network; one timetable; one ticket; one standard; and one brand. He said the council wanted to work with local bus operators to deliver this vision in a move that would integrate “routes, ticketing and timetabling for bus services with local rail services and deliver this system under one brand”.
04 | 18 March 2016 PT_Issue114_p01 1
It is envisaged at this stage that passengers will enjoy the ability to switch between services easily with an affordable capped daily fare that does not ask the passenger to pay a premium for being able to use more than one operator. The improvements to bus and rail integration will be implemented to tie in with the delivery of a new timetable which provides two trains per hour on the mainline in Cornwall which starts in late 2018. The council expects to be able to deliver the integrated network within the current subsidy of circa £12m per annum. However, Sidney admitted that this may require some changes to the network provided. He also anticipated some costs in moving to the new delivery model, whether that be a partnership-based model or franchising. However, the county’s two largest bus operator, First South West and Go-Ahead-owned Plymouth Citybus, have agreed in principle to work in partnership with the council. “A memorandum of understanding for the proposed partnership working approach between the council and the bus operators is being developed,” revealed Sidney. “This is an interim position and whether the partnership approach is taken forward... will need to be determined by members.” He added that there was confidence that working towards a partnership-based approach would provide an effective solution. “Should the council be unable to deliver the aims of the key objectives using the partnership approach, it will then look to take up the franchising powers to develop a regulated bus market as in London,” Sydney warned. www.passengertransport.co.uk
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Cornwall received bus franchising powers last year, but has since decided not to use them Table 3 : Impact on different service types of removing cross-subsidy Service category
Operators' response to threat of franchising
Franchising authorities' response Enhance for 'social' reasons
Loss-making
Discontinue
Marginal/break even
Discontinue
Enhance for 'social' reasons
Low profit
Reduce to improve return
Enhance for 'social' reasons
Normal profit
Retain
Retain
High profit
Retain/enhance
Reduce to remove 'over-bussing'
around since 2000 (Transport Act 2000) and was simplified under the Local Transport Act 2008, but to no avail. Several authorities have considered the option, but none so far has commenced a scheme. The hurdles to achieve a QCS proved insuperable even for Nexus, the Tyne & Wear PTE, whose application failed in 2015. Now the government proposes something quite similar under powers expected to be contained in a 2016 Buses Bill. Despite the ‘carrot’ of offering bus regulatory powers, including franchising/ contracting, to authorities opting for an elected mayor (although Cornwall received the offer without such a condition), few authorities seem likely to bite the bullet. The Department for Transport’s list of authorities ‘considering’ the option included many that had made only very tentative indications that they would not immediately reject the idea out of hand. The greatest enthusiast seems to be Greater Manchester, but no other authority has made such a specific commitment. Several, including Cornwall, have thought through the issues and decided not to proceed. Nevertheless, bus operators would be well advised to keep a watching brief in case an authority does decide to go down the franchising/contracting route, and be prepared to take the necessary actions as outlined in this article. The uncertainties associated with franchising/contracting can be avoided now by authorities confirming that they are not proposing franchising/contracting in their areas and intend to proceed with enhanced partnerships - a development from the tried, tested and highly successful quality partnerships that are already in place in many areas. Q Dr. Martin Higginson is an internationally renowned transport economist specialising in public transport. He is retained as an adviser by ALBUM, handling its responses to government and other consultations and representing the association on inquiries and special investigations.
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ALEX ANDER DENNIS AIMS FOR THE FUTURE Bus manufacturer alexander dennis is looking to the future w ith a host of new high-tech developments in the pipeline. will manson repor ts s the UK government, national assemblies and local authorities debate the politics of future transport policy, Britain’s bus and coach manufacturers face the age-old dilemma of designing, engineering and building the vehicles of today …. while simultaneously investing millions in the technology and buses of tomorrow. Like it or not, buses remain the backbone of Britain’s every-day transport system, carrying millions of people to and from work, shops and schools in our crowded,
A
reality is, very few, all of which pays tribute to the extraordinary job bus manufacturers are doing in terms of developing and bringing to market vehicles that deliver what they promise; vehicles that are generally robust, reliable, will operate for up to 15 years, and are very often stylish (in their own, peculiar bus way) – AND MAKE MONEY, both for operators and transport authorities. Many of today’s vehicles are bristling with technology and what can be described as the UK’s “first space age buses” are already in operation in London and Bristol. These are what the manufacturer – Alexander Dennis Limited (ADL)
often congested cities, while also providing a vital lynch-pin to society for many thousands who would otherwise remain stranded in outlying communities were it not for rural bus services. Passengers in London make a remarkable 6.5 million bus journeys daily, contributing to ridership of over 4.65 billion trips in England alone every year. Making all of this possible are 36,000 buses that service routes across the UK, many of which operate 18 hours a day, seven days of the week. How many family cars would survive such a gruelling work schedule after a year or two? The
– describes as “virtual electric” buses. They run on a combination of pure electric and hybrid power, ensuring zero emissions for 7080% of their running time. Equally interesting is the fact that their switch from hybrid to pure electric, and vice-versa, is fully automated and takes place courtesy of a sophisticated satellite navigation system. Put another way, as the bus enters or leaves a high density zone it automatically changes from one form of lowemission power to another, all courtesy of a whole bunch of satellites circling mother Earth. Yes, ladies and gentlemen, we DO have the world’s first space age buses, “alive” and operating in London and Bristol. Behind all of this technology are years of research and development – and millions of pounds worth of investment. It is investment that has to be justified, capable of earning returns and meeting the long-term objectives of government, transport authorities, clean-air and climate change policy makers, and city investors. In short, there is a long list of stakeholders who, on the
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VE H ICL ES ADL
ADL is examining new technologies in partnership with BYD (far left) and Scania (left). The new generation Enviro200 (right) and an example of the 'virtual electric' Enviro400 (below right). Blackpool Transport has ordered the new Enviro400 City for its premium Palladium-branded network (below)
surface, have very diverse interests. Amazingly however, in the UK we have a system that works. It is based on a unique “co-operative” of partnerships and the sharing of ambitions and aspirations, albeit that the motivational aspects of the different parties may vary. Keith Watson, Customer Development Director at ADL – Britain’s biggest bus and coach manufacturer – will be a speaker at this year’s ALBUM conference and has been at the heart of this collaborative movement for the past decade. His aim is to work hand-in-glove with policy makers, bus operators and transport authorities, and to make things happen! Together their aim is to exceed the expectations of legislators and to seek out gems that can improve the appeal of buses to their joint “end customers”, drivers and passengers. He comments: “Looking back, we have been on a remarkable journey – and it is one that continues at tremendous pace. We have steadily driven down fuel consumption, vehicle emissions (CO2, nitrogen oxide and other pollutants), and are now on the
cusp of further huge advances. “The balance for us is to ensure that on one hand we continue to develop the best performing, low carbon certified diesel vehicles, while also investing in the technology and buses of the future. It is a precarious balancing act, ensuring that we meet the current demand for state-of-the-art diesel technology – which will remain the backbone of bus fleets in the UK and key export markets for many years – while also developing and introducing the vehicles of tomorrow …. and bringing them to market at just the right time. “To achieve this we need to know and understand the intentions of government, legislators and transport authorities, while also understanding fully the wants and needs of operators. Neither should we forget that thousands of jobs are dependent on us, collectively, getting this balancing act right. “Those who are aware of ADL know that we have a reputation second-to-none for working with operators and transport authorities to determine and develop the buses THEY want, rather than those that we might think they want.
“This approach has led to the introduction of our new-generation Enviro200 and Enviro400 ranges, both of which are the result of multi-year customer engagement programmes and, of course, both vehicles remain market leaders, as do our hybrid double decks. “By the time this article appears ADL will actually have around 1,000 hybrids running in the UK, which is something of which we are hugely proud. Our hybrid initiative typifies everything we are about, i.e., recognising demand and working with transport authorities and government to make things happen. In addition, manufacturing partnerships are fundamental to our approach and our affiliation with BAE Systems on this front has paved the way for fundamental change. “Unlike alternative technologies our ADL-BAE series hybrid system is capable of operating engine-off, ‘sound free’ which is becoming more and more significant. A number of London operators, for instance, are already examining the possibility of operating early morning and late night routes in quiet mode (with
the engine off) within a kilometre of depots that are situated in or near to high density housing, all of which enhances the case for our series hybrid system.” Keith Watson is clearly a man proud of ADL’s technology successes and is quick to point out that while 50% of ADL’s hybrid sales have been in London, the other 50% have been introduced across the country, in places such as the Thames Valley, Reading, Bracknell, Oxford, Essex, Lincoln, Birmingham, Sheffield, Yorkshire, Manchester, Hamilton, Glasgow, Renfrewshire, Lothian, Perth, Dundee and Aberdeen. Now his sights are set on the progressive development of CNG (compressed natural gas) buses, in conjunction with Scania; further virtual electric initiatives; and pure electric projects. The latter will see Europe’s first, major fleet of all-electric buses go into service in London in August this year, representing another vital step in ADL’s partnership approach (in this case with BYD) and demonstrating its commitment to remain at the forefront of the technology race. Q
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Scania Euro 6 Gas
THE COMPLETE LOW CARBON SOLUTION The new Scania E300 gas bus offers numerous operational advantages. Not only are its running costs lower, but it meets the criteria of the Office for Low Emission vehicles’ bus grant. Better still, Scania can help operators with their applications for this scheme. The future has arrived.
YOU
SCANIA
DRIVE THE FUTURE
INTRODUCING SCANIA E300 GAS BUS 0 Single Deck available now, Double Deck coming 2016 0 Engine design based on diesel platform – very few new parts 0 Gas engine produces appreciably less vibration than diesel 0 Significantly less expensive than hybrid or electric 0 Meets Euro 6 standard without SCR: substantial cost savings 0 Environmentally friendly: Green, Clean, and Safe
FOR MORE DETAILS CALL 01909 500822 OR EMAIL GAS.BUS@SCANIA.COM
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VEH ICL ES SCANIA
SCANIA LAUNCHES GASPOWERED D OUBLE DECKER Manufacturer is claiming a world first w ith the launch of new double deck chassis option here has been growing interested in gas-powered buses in recent years and that interest looks set to continue with the announcement by Scania of Great Britain that it intends to launch a new Euro 6 gas-powered double decker. Gas-powered Scania buses have been working since April 2013, when council-owned bus operator and Album member Reading Buses became the first operator to adopt them. To ensure a readily-available supply of fuel an in-house CNG filling station has been installed at the company’s premises. The filling station sources its fuel from the gas main, with every litre taken being replaced by a litre of biogas, thereby effectively making Reading’s gas buses a carbonneutral operation. However, with the new gas bus option, the manufacturer is claiming new territory by offering the market the world’s first gas-powered double deck bus. Assembly of the prototype chassis has been carried out in the UK by Lancashire-based MI Vehicle Integration Ltd in conjunction with Scania Sweden and Falkirkbased bus manufacturer Alexander Dennis, which will body the vehicle with its new generation Enviro400 body. The gas-powered double decker is based on Scania’s established N280 chassis. This features the OC09 101 nine-litre, five-cylinder, Euro 6 dedicated gas engine driving through a ZF EcoLife six-speed fully automatic gearbox incorporating ZF’s Topodyn automated gear selection program, which is fitted as standard. The OC09 101 develops 280
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The Scania gas-powered double decker's chassis (above right) was assembled in the UK and will be fitted with ADL bodywork (top). One of Reading's gas buses (above)
horsepower (206kW) at 1,900rpm and 1,350Nm torque at 1,0001,400 rpm and is capable of operating on Compressed Natural Gas (CNG) or biogas. When operated on biogas, carbon dioxide emissions are reduced by up to a substantial 90%. In order to meet Euro 6 emission levels, the engine employs a three-way catalyst, exhaust gas recirculation (EGR) and does not require selective catalytic reduction (SCR). It should be added that there’s
not much difference between a traditional diesel engine and Scania’s dedicated gas engine; indeed there are only around 40 or so parts that are different, ensuring part commonality as well as ease of maintenance. Today, Scania’s gas engines are designed to provide the same performance as a comparative diesel engine too. Power ratings for its two Euro 6 units are 280 and 340 horsepower, with torque ratings of 1,350 and 1,600Nm respectively.
Installation of the lead vehicle’s bodywork has now been completed and it is currently at Scania’s R&D facility in Sweden, undergoing final trials. It will then commence a nationwide demonstration programme that will allow operators up and down the country to familiarise themselves with the vehicle and the significant opportunities that it offers. “With its ultra-low emissions and quiet operation, this vehicle represents an extremely attractive proposition to the UK bus industry,” says Mark Oliver, UK Fleet Sales (General Manager), Bus and Coach, for Scania (Great Britain) Ltd. “As such, there is already significant interest in our demonstration programme, which will be supported by our partner Roadgas, which will provide a mobile refuelling station for the vehicle as it tours the country.” Over the course of its long history, Scania has produced gas-powered vehicles for almost 100 years, with one of the earliest recorded examples being buses adapted to run on producer gas during the First World War years. In more recent times the company has supplied in excess of 4,000 gas engines for various applications in a number of countries worldwide. Included here is the world’s first Euro 6 gas-powered truck, which entered service with a Swedish operator in June 2013. Q
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Durability and quality are vital to vehicle uptime. That’s why the Volvo and MCV collaboration is founded on a shared commitment to manufacturing excellence. The B8RLE chassis comes with the safety and performance expected of any Volvo vehicle. Coupled with a body built in state-of-the-art Egyptian production facilities, the MCV is a no compromise, economical option steeped in an impressive engineering heritage. Call Volvo Bus & Coach Centre Coventry to put it to the test. Immediately available, the Volvo B8RLE MCV is a versatile business asset that’s built to last.
VOLVO BUS Wedgnock Lane, Warwick CV34 5YA Tel: 01926 401777, www.volvobus.co.uk
Forward thinking never ages The current Wrights Group product range is our most comprehensive ever, drawing upon seventy years of bus building know how and experience. Customer-focused engineering, innovation and technology have always been the hallmarks of any Wrightbus. Our StreetVibe, StreetLite, StreetDeck and New Routemaster models are complete buses in every sense. They have been designed and built from the ground upwards to deliver class leading fuel economy, optimum capacity, lowest whole life operating costs, superior safety and comfort for passengers and drivers alike, as well as excellent serviceability and durability.
The same customer-driven philosophy is applied to our chassis and body range too, in the form of the Eclipse 3 and Gemini 3 single and double deck buses respectively. With the latest Euro 6 diesel available in conjunction with Micro hybrid, mild and full hybrid drivetrains, as well as Wrights Electrocity™ technology for zero emissions in operation, the opportunity to specify the right bus for your specific requirements has never been greater. Many things have changed in seventy years – what hasn’t and never will is our determination to look to the future with our customers at the heart of everything we do.
Wrightbus Ltd, Galgorm Industrial Estate, Fenaghy Road, Galgorm, Ballymena, Co. Antrim, N. Ireland BT42 1PY
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VEH ICL ES VOLVO
Electric Volvo Bus vehicles using opportunity charging points are on operational routes in Stockholm (pictured) and other cities
A NEW DIRECTION AHEAD FOR BUSES? phil fletcher, Fleet Sales Manager for volvo bus, looks at the potential implications for the wider bus industry should reregulation become a reality ith the rise in UK regional devolution bringing increased powers to local authorities, the government expects the proposed Buses Bill, should it come into force, will make the franchising of bus networks easier for the local transport authorities (LTAs) to manage. This could bring parts of the UK, particularly larger cities, into line with the capital and create a franchised network if the government gets its way. The government believes this will improve services and simplify fare structures, while introducing multi-operator ticketing and the latest fare technology, such as Oyster-type systems for the benefit of the passenger. But what would reregulation mean for the industry in terms of new developments from manufacturers and vehicle choice for operators? It is hard to believe it is more
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through a competitive tendering process. London has proved to be successful with bus patronage virtually doubling during the last 30 years and fare increases being lower when compared to other UK cities. However, it is important to remember that regions and smaller cities do not receive the level of funding that London has available to develop such a successful model. Now 30 years later, things might be going full circle and a reregulation of UK regional bus services is back on the agenda with a proposed new Buses Bill. Much of this is being driven by regional devolution with the new wave of combined local authorities eager to take control of their own affairs, including transport. This will enable LTAs to franchise bus services to operators and this may lead to full blown Quality Contracts being imposed. This could include directives on bus types, i.e. new versus used, chassis, diesel, hybrid
than 30 years since bus services outside of London underwent something of a revolution in terms of how they are operated. The Conservative government of the time was promoting a free market economy and part of this included the deregulation of bus services in an attempt to reduce bureaucracy, increase competition and improve services for the fare paying public. Since then, the market has evolved into what it is today, being managed by a series of operators, each of which runs its own services, while determining their own timetables and fare structures with little or no cross over with one another. The regional model is different to London, where bus services fall under the remit of Transport for London which is accountable to the Mayor of London. TfL specifies the services, routes, timetables and fares and the privatelyowned operators then bid
and body specification, as well as streamlining of services and fares for the passenger. The London model has gone a long way to driving technological advancement in that TfL has specified its requirements to the manufacturers, who in turn have provided the solutions. This has enabled the development and utilisation of alternative technologies and resulted in improving air quality for the capital. This also applies to the regional model as bus operators and manufacturers have worked in partnership to develop modern technically advanced vehicles. One argument against the Buses Bill is that it could potentially stifle the freedom currently enjoyed by private operators to work with manufacturers to meet their individual and specific needs, which varies from operator to operator, and the result could be detrimental to new innovation. There is also an additional danger that vehicle selection could end up being based on price alone rather than focusing on improving the passenger experience. Most leading manufacturers are well positioned to meet the challenges that reregulation may present. With a wide range of vehicles available to them, LTAs would have a plenty of options to meet and exceed their needs. For example, Volvo Bus is able to offer technically advanced and highly efficient diesel and parallel hybrid products today. In addition to this, electric hybrid and full electric vehicles using strategically placed opportunity charging points are on the way with test vehicles already operating in Gothenburg, Stockholm, Hamburg and soon Luxembourg on operational routes. There is a saying that ‘one size does not fit all’ and a system that works well in a big city like London may not be as successful in some smaller cities and regions. However, the debate will undoubtedly take shape in the weeks and months ahead, but there are some important considerations required before a final decision is made by the government to bring about reregulation at some point in the future. Q
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QUANTUM enables wheelchair and scooter passengers to board a bus or train, position their chair and safely secure themselves in a stable rear-facing position with the simple push of a button.
ALL IN UNDER 25 SECONDS
without requiring driver assistance
WITH QUANTUM, EVERYONE GETS GOING. LEARN MORE: QSTRAINT.COM/QUANTUM
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VE H ICL ES Q 'STRAINT
MAKE THE QUANTUM LEAP q’straint’s fully automatic wheelchair securement system officially launched and ready for sale uantum is the transportation industry’s first securement system of its kind, designed to ensure new levels of safety and independence for mobility passengers. In October 2013 Quantum, the industry’s first fully automatic rear-facing wheelchair securement station for virtually any bus was showcased at its first major international show, Busworld in Kortijk. It was very well received and won a European Coach and Bus Week innovation label Award. It has since been further enhanced with the addition of a new back rest for a complete stand-alone system. The back rest is optional and is designed to reduce head and neck injuries for wheelchair users. The revolutionary new product was developed by combining transportation insight, intelligent technology and a pioneering new approach to securement. After boarding a bus, Quantum allows wheelchair and scooter passengers to position their chair and by simply pushing a button to secure themselves in a stable and safe rear-facing position without driver assistance. The process takes under 25 seconds. In the past, drivers would take additional time to affix straps to harness the chair, potentially invading the passenger’s personal space. “In addition to ensuring the highest level of passenger safety, keeping buses on schedule and preventing tip-overs, Quantum provides a more respectful experience to the process of wheelchair securement,” said Bob Joseph, Q’Straint VP of Business Development. “Now safe securement and release is fully automated.” Quantum systems are now in place across the USA and the UK is
Q
Q’Straint’s Quantum system enables wheelchairs to be automatically self-secured, without driver assistance
following suit. In early March 2015 the Quantum was successfully fitted for the first time in real life application to a Wrightbus Gemini double decker at East Yorkshire Motor Services (EYMS). In August 2015 Q’Straint invited Helen Dolphin MBE, director of policy and campaigns for the charity Disabled Motoring UK to trial the Quantum in situ on an actual bus route. Being an occasional wheelchair user herself Dolphin was able to give an insight into the issues that wheelchair users face when using public transport as well as share her thoughts and feelings on the Quantum. Dolphin knows only too well that an extremely important issue for disabled people travelling on a bus is safety. “I have often found myself nearly tipping over in my manual wheelchair
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For over 25 years, Q’Straint has had one mission: to develop the most innovative solutions that advance the safety and effectiveness of wheelchair passenger travel. Its reputation as a global leader is the result of making safety and customer needs the highest priority. Q’Straint is committed to continued product leadership and innovation, with comprehensive research and testing. Today, its diverse global staff serve customers in more than 50 countries throughout North and South America, Europe, Australasia, Asia, the Middle East and Africa. For more information visit QStraint.com.
when a bus has taken a corner a bit sharpish,” she said. Along with representatives from Q’Straint and some members of the press, Dolphin took a journey through Hull on the EYMS double decker. The journey began with Dolphin seamlessly boarding the bus, backing in to the wheelchair space and securing herself by “pressing a large flashing green button”, within 20 seconds two arms were securely holding her wheelchair in place. Dolphin reported: “I tried my best to escape from the arms securing me but my wheelchair did not budge. This bus could have driven a slalom course and I would have remained exactly where I was locked in. I felt completely safe and secure.” Q’Straint continues to roll out the Quantum across the UK with the latest installation at Lothian Buses. The unit has been installed on a new for 2015 Volvo Wrightbus Hybrid, and will be servicing a highly dependent wheelchair user route. Q’Straint is also in discussions with many major European bus manufacturers and operators and is very excited by the reception Quantum has received. industry benefits Operators will benefit immediately and profoundly with reduced dwell time when securing passengers in mobility devices which will result in more reliable schedules. More evolved than manual tie-downs, Quantum puts an end to challenging securement manoeuvres that upset passengers and put drivers at risk of personal injury. By safely securing wheelchairs and scooters, Quantum ultimately reduces liability exposure for injuries to mobility passengers as well as to seated or standing commuters who could be injured by unsecured mobility devices. Q
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Smart Ticketing Solutions. INIT’s smart ticketing solutions include ITSO smart cards as well as account-based and open payment solutions. They assist you in optimising customer service while streamlining your distribution costs.
Cutting-edge back-office system Open architecture Multi-client capacity Powerful field devices Integrated solution
0870.8904648 | sales@init.co.uk | www.init.co.uk Passenger_Transport_2016_04.indd 1
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REGISTER NOW! 1-3 NOVEMBER 2016 NEC BIRMINGHAM, UK For further information please contact the team on: t: 01733 405735 e: info@eurobusxpo.com
The number one place to find the solutions to the challenges that you don’t yet know exist” LEON DANIELS, DIRECTOR OF SURFACE TRANSPORT, TRANSPORT FOR LONDON
www.eurobusxpo.com
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TICKETING INIT
INIT HELPS ROBIN HO OD GO SMART Ticketing specialist init helps launch new multi-operator ticketing system in Nottingham ecember 2015 saw the launch of the UK’s first fully integrated cappedfare multi-modal ITSO smart ticketing scheme with the introduction of the new Robin Hood Card in the East Midlands. The scheme brings together a number of transport operators in the Nottingham area, principally Nottingham City Transport and Trentbarton, the city’s main bus operators, and the city’s growing tram system. Other local operators are expected to join the local authority-led scheme at a later date. It is a complex scheme, principally because it is the first ITSO-based smartcard scheme to incorporate pay-as-you-go capping across multi-operators. It has been a more complex project to deliver, more so than London’s Oyster, as it accommodates the specific requirements of the deregulated environment outside London. Ticketing specialists INIT worked with partners SYSTRA, the major transport consultancy, and smart ticketing specialists Ecebs to deliver the scheme. Any single trip made using the Robin Hood Card costs the customer a flat £1.70. Thereafter unlimited trips on
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NEXT GENERATION OP T I ON S F OR T IC K E T I N G L AU N C H E D Ticketing specialist INIT will showcase two new products at this year’s ALBUM Conference on the Isle of Man. The new EVENDpc2 ticket
any one operator cost £3.15, a saving of around 10-20% on the on the cost of the operator’s own day tickets. Unlimited trips on more than one operator cost £4.00 for the day, a saving on the £4.50 cash fare for the multi-operator Kangaroo ticket within the same area. Robin Hood Cards can be topped up at over 100 on-street ticket machines within the city, travel centres and also at the Robin Hood Card website. Jens Mullak, managing director of INIT in the UK, says that the Robin Hood Card has created perhaps the most advanced Oyster-like solution for smart travel in the UK. “It has been a complex scheme to deliver because it’s not just one single cash fare for all and one day ticket,” he says. “There are cash fares, the individual day tickets of each operator to take into account
Local operators, including Nottingham City Transport, are participating in the scheme
The Robin Hood Card was launched in 2015
and then also a multi-operator, multi-modal ticket too. “We have succeeded with our partners in creating a ticket that recognises those variations and caps to give the best value to the customer. Once you have reached a threshold for a cap, you won’t pay any more.” Although complex, the finalised approach to the project’s technology taken by the partners means that it is now scalable. Indeed, Mullak suggests that weekly and monthly caps, plus student and child variants of the Robin Hood Card are theoretically possible for the future. “The next step is an account-based approach,” he adds. “That would build on the work that INIT has undertaken in Portland in the United States.” There INIT has worked with
TriMet, Portland’s transit agency, to implement an open payments and smartcard e-fare system that has seen the creation of an account-based approach to ticketing. This has some significant advantages, namely that a number of different payment models can be introduced, including contactless EMV (Europay, MasterCard, Visa) payments. “Account-based ticketing has some significant advantages,” explains Mullak. “It is more secure and it offers quicker transaction times for the customer. It also means that the back office processes all transaction information and fare calculations in real time. Security is also improved as that back office also holds the identification and payment information, rather than the card itself.” Q
machine is the company’s newest generation combined ticket printer and PC-based on-board computer. It includes enhanced computing power that allows complex applications such as driver navigation and a hybrid card reader that will support any state-of-the-art ticketing technology, including
EMV standard and accountbased systems. Besides these improvements, there is a faster processor and an improved memory. The mounting plate also now features a micro SD card, allowing for back-up storage of data produced by the machine. Meanwhile, the new PROXmobil3 passenger terminal
aims to offer passengers a convenient and intuitive way for them to manage all of their ticketing transactions, including contactless payments, checkin and check-out, barcode, EMV and NFC payments and automatic fare calculation. It can also be fitted either onvehicle or at stops.
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BE IN TOUCH WITH THE CONTACTLESS REVOLUTION Our new generation Wayfarer6 driver console provides the perfect roadmap to a contactless future, thanks to its multi-format reading capability. Multi-format reader processing EMV, ITSO and Parkeon formats Interfaces directly to RTI and Fleet Management Systems Web-based back office reporting, accessed via any browser Fast data transfer via 3G/4G or Wi-Fi Fast thermal printer High performance 32 bit processor for fast printing, smart card validation and application processing BSOG up-lift compliant, supports both ITSO and AVL requirements
To find out more, contact Parkeon today: P +44 1202 339 339 E sales_uk@parkeon.com www.parkeon.co.uk
Types of Asset Funding O
Hire/Lease Purchase
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Finance Lease
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Operating Lease
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Refinance
An Asset Alliance Group Business
T: 01425 485685 info@forestassetfinance.co.uk w w w.f o r e s t ass e t f i nan ce. co.u k
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TICKETING PARKEO N
LEADING THE WAY IN CONTACTLESS Open pay ments specialist parkeon is aiming to leverage its exper tise to allow bus operators to reap the benefits offered by contactless pay ments s government plans for smarter bus travel accelerate, Parkeon - leaders in intelligent transport solutions - is leveraging its expertise in open payment systems to help ALBUM members reap the benefits of a ‘contactless’ future. Parkeon has an extensive track record as the UK’s leading provider of automatic fare collection systems and secure back office facilities for bus operators, and is a key partner in the delivery of the industry’s commitment to offer contactless travel across the board by 2022. “The bus sector is embarking on an exciting journey towards a more customer retail-focused, integrated and contactless payment future,” says Gavin Trimnell, Parkeon’s Head of Sales and Marketing. “Currently, most operators are able to process cash and ITSO smartcard transactions, and mobile ticketing is gaining traction….but open payment systems such as contactless EMV, and mobile payments such as Apple Pay or Android Pay, are set to revolutionise the fare collection landscape over the next few years.” Parkeon is at the forefront of the contactless movement, through hardware innovations such as the
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PA R K E ON ’ S BA N K I N G PAYM E N T S C R E DE N T IA L S First cEMV parking terminals in Britain for Westminster City Council in 2009 First trial for cEMV for Chiltern Railways in 2012 Maintenance of TfL’s on-bus Parkeon terminals to PCI
Parkeon has already proven its contactless expertise in cities around the world
its Wayfarer on-bus driver consoles. The company’s latest bus ticketing console – the Wayfarer6 – is fully enabled for contactless transactions and has been specified by Transdev Blazefield for its entire fleet in Lancashire. The operator is also uprating Parkeon’s Wayfarer200 console on its popular route 36 from Ripon to Leeds to include an EMV contactless card reader. “Contactless payment systems are increasingly used in every area of life – and public transport is third in terms of popularity behind supermarkets and restaurants, so it is essential for bus operators to define their way ahead to meet the needs of customers,” says Trimnell. “This is an opportunity to enhance the customer experience by making bus travel easy and convenient, while simultaneously benefiting from much more efficient automatic fare collection.” Moving into the contactless era does present operators with challenges, but Parkeon possesses the experience and technology to ensure that the systems and back office security deliver a futureproofed return on investment. Q
new Wayfarer6 driver console, the established Wayfarer200 ETM and its industry-leading back office architecture. Indeed, Parkeon offers an open payment pathway through its new CloudFare® platform, enabling operators of every size to move easily from cash, ITSO and smartcard transaction to EMV contactless, mobile payments, account-based ticketing and smart device fare collection. Parkeon’s contactless expertise is already proven. This expertise is currently being deployed in multimodal automatic fare collection systems in Australia and Helsinki, and in London where it maintains support standards Strong involvement in the definition of ISO/IEC chip card standards Actively involved in ISO 14443 international standard development Responsible for processing €2bn bank payments and transactions in 2015 Data centre accredited with 60 acquirers worldwide
PA R K E ON – T H E SH ORT G U I DE TO OP E N PAYM E N T S What are the benefits of going contactless? Contactless, open payment systems are growing rapidly in a number of areas of daily life. Going contactless on buses will increase operator efficiency, lower costs, speed up boarding times, attract more customers and transform their experience. What is meant by open payments? Traditionally, transport operators have used closed loop systems for payment and ticket validation – in other words systems specific to their services, such as smartcards that store data and require monetary top-up. Open payments enable customers to use bank cards, ID cards and mobile devices to pay for journeys, so they don’t have to worry about carrying the right smartcard or topping up their account. Why are open payment systems more efficient? Open payment systems do away with the operator costs associated with card issuing and mean less cash handling. In addition, because the EMV standard makes it possible to use a bank card or mobile device as both a payment method and ticket, boarding times are faster and schedule adherence optimised. What is account-based ticketing? Account-based ticketing systems enable users, families or companies to create single or shared accounts, offering greater convenience for travelling consumers but also opening up marketing opportunities for operators. Account-based transactions are stored in the back office or in cloud-based systems, such as Parkeon’s CloudFare®, and reconciled through secure bank communication once the journey has taken place. How secure is an open payments system? All accredited systems, such as those provided by Parkeon, meet highly-secure and encrypted EMV and PCI standards.
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st h a n , a j a R n i In 2008 es hit c i r p l e u as f , die sel s h g i h d r reco an to be g e b s e l c vehi a m e l s. c y b d e c repla
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25/04/2016 16:43
TICKE TING TICKETER
NEW OPPORTUNITIES FOR TICKETER ticketer has a histor y of closely working w ith album members. john cl arfelt revealed some of the company’s latest developments icket machine specialist Ticketer has had a long relationship with many ALBUM members; indeed managing director John Clarfelt says that many have been strong supporters of the firm since its inception. “ALBUM members are seriously important to us,” he says. “They have helped us to grow.” That growth has seen Ticketer reach the position where in recent months it has been working with a new customer every week. There have also been some impressive contract wins, principally the capture of a contract with Transport for Greater Manchester to supply smart ticketing equipment to a number of mid-size and smaller operations in Greater Manchester. Despite this growth, Ticketer is not standing still as there are a number of new developments in the pipeline. While plans to introduce contactless EMV payments are close to fruition, with on-bus testing already in place, more practical changes have seen barcode scanning equipment introduced on both traditional and handheld equipment. “Some people think that QR codes are old technology,” says
Clarfelt. “But they have huge advantages if you think about it. Our philosophy is largely about making life easier for the bus driver and when it comes to m-tickets, introducing barcodes and QR codes goes towards that aim. The customer gets on and scans their phone. There’s no need for the driver to remember a code or what day it is. There are also huge opportunities to reduce the potential for fraud too.” Clarfelt says that Ticketer has
T IC K E T E R SU P P ORT S I SL E OF M A N ’ S SM A RT A M B I T ION
introduced in a move that reflects the unique nature of the operator’s business. Ticketer has supplied 70 ETMs that have been fitted to vehicles in the Bus Vannin fleet as well as 14 units for use at stations on the island’s railways and at the busy visitor welcome points located in Douglas and at Ronaldsway Airport. The introduction of the
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In 2014 Ticketer was announced as the winning bidder of a tender to supply new ticketing equipment to Isle of Man Transport. It has seen a unique mix of fixed and hand-held electronic ticket machines
already adapted the same barcode scanning technology for use by traditional paper tickets. By adding a barcode to a return paper ticket, for example, it can be scanned by the ticket machine on the return journey. “Suddenly you can get the sort of complete detail and data about that journey that you could only get from a smartcard previously,” he adds. “What was the unknown becomes the known.” Meanwhile, Ticketer has also worked to introduce money off
Ticketer's product range now spans conventional fixed (above) and handheld electronic ticket machines (top) that support a variety of flexible features
machines is supporting the widespread introduction of ITSO smartcards on the island where Isle of Man Transport is aiming to conduct the majority of transport transactions on a smart basis in the coming years. Meanwhile, a further deal on the island last year saw Douglas Borough Council acquire Ticketer handheld ETMs for use on the famous horse tram
coupons that can be printed at the same time as any ticket. Instead of the traditional offers printed on the back of tickets, these can be tailored to the time of day or the route. “So, for example, one route may have Coffee Shop A on it, another Coffee Shop B,” Clarfelt explains. “It would be silly to offer people on the Coffee Shop B route a voucher for the other shop, so it can be completely tailored.” Another development has been work to introduce a schedule adherence function on Ticketer equipment offered as part of the TfGM contract. Again, Clarfelt says that it’s about making life easier for the bus driver. “It’s a simple countdown on the screen that informs them of whether they are running to time,” he explains. “It’s such a simple thing, but we’ve seen real benefits in schedule adherence from it.” The company continues to expand, but the Ticketer team is conscious that the business was founded on its ability to offer flexible solutions that are tailored to the specific customer. “We live and die by our reputation,” concludes Clarfelt. “We have a terrific team and we have terrific customers. That’s a good place to be.” Q service along the promenade in Douglas. The introduction of these machines facilitated joint smart ticketing with Isle of Man Transport’s operations on the island. One special feature of this contract was that the tickets issued by the machines not only provide fare information, but also tell travellers the name of the horse that is pulling the tram!
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TH E AL BUM RE PORT 2016
NEW TECHNOLO GY AT THE HEART OF OMNIBUS omnibus has introduced its first app-based products but peter crichton says that while software solutions can prov ide some of the answers, traditional skills are still needed t has been a busy year for Omnibus, the UK’s leading supplier of timetable, scheduling and roadside display software to the passenger transport industry. While there have been contract wins at home and abroad, it has seen the company introduce a new suite of applications that build on the increasing enthusiasm for smartphone apps in the wider technological world. That culminated at last year’s Coach & Bus Live show in Birmingham with the launch of myDAS Touch, the latest development in the OmniDAS driver self-service module. This clever system links drivers directly with their employer’s depot allocation system simply by using their smart phone. A clever function of myDAS Touch is that it allows allocation staff to send out notices direct to drivers informing them of shift changes, route changes or offers of overtime. The software delivers the messages in real time and shows whether the driver has received and seen it. However, the introduction of myDAS Touch has also seen other developments at Omnibus with the decision to take on dedicated developers tasked with enhancing the suite of apps in the future. “We want to move things more mobile as the world is becoming more mobile,” says Peter Crichton, Managing Director of Omnibus. “Apps allow us to introduce
I
possible. As Crichton notes, saving a bus or two from a schedule can make a difference of thousands and thousands of pounds over the course of a year. However, software alone is not a one size fits all solution. “The software is there to assist the scheduler,” he adds. “It will not replace people. There’s a skillset needed and that requires time and training. You would not go and buy a Sage accounting package and then ask an unqualified teenager to do your year-end. It’s about manipulating the data to produce an answer and there’s a certain skill in that. Our algorithms, especially in CrewPLAN, are the most efficient in the industry, but they are tools that need to be in the right hands.”
solutions that are effectively self service. That means that drivers can sign on, arrange holidays or swap rest days using their smartphones. It’s a very exciting development.” It’s a long way away from the traditional image of many of the tasks that Omnibus now supplies solutions for. Where there was once paper, new technologies are helping to streamline processes that aim to help boost efficiency. “We’ve come a long way,” says Crichton. “What helps is that we understand and we’ve got the experience of the UK bus industry. That means we are constantly working to make improvements to our products that will actually make a real difference.” The company is well known for its timetable and scheduling software that aims to produce schedules that are as efficient as
The Omnibus team at last year's Coach & Bus Live show (right)
OM N I BU S TA I L OR S SYST E M S TO U N IQU E C I RC UM STA NC E S Software supplier tailored its systems to meet the unique requirements of Isle of Man Transport Isle of Man Transport has been using Omnibus software for many years for scheduling, and in December last year started using OmniDAS for the first time. Over the next 12 months, as the organisation expects to see the number of railway staff
myDAS Touch links drivers directly to the depot allocation system with their phone
double, the software will also be used for their pay and conditions. This will be the first time that OmniDAS has been used for railway staff. Being an independent, selfgoverning Crown dependency, the island operates differently to the mainland in many ways. It produces many excellent athletes who, while they compete as part of Team GB at events like the Olympics Games, compete for the Isle of Man in the Commonwealth Games. Its independence however does lead to a few anomalies, one of which was an interesting
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SOFTWARE/IT O MNIBUS
UPDAT E
BU S STOP DISPLAY SOFT WARE RECEIVES A N E W L O OK OmniSTOP now features template editor that aims to allow users to create their own bespoke displays
obstacle for Omnibus to overcome. The island did not have its own NaPTAN numbers, so Omnibus created a series of ‘fictional’ eight digit references. The island now has its own true reference number; which Isle of Man Transport will use when the software eventually feeds into Traveline. The operator also had to negotiate separate agreements with drivers, because the island is not part of the EU and so not governed by EU drivers’ hours rules. The software has had to accommodate these anomalies. Isle of Man Operations Manager
OmniTIMES you know that it will simply create accurate duty cards.” Isle of Man Transport has adopted Omnibus software gradually to allow its team of schedulers to adapt to each new system, and the next step is to install OmniROTA to automatically produce costeffective rotas and reduce the admin workload even further. In a few weeks’ time the organisation will also have its own bespoke duty cards, created by Omnibus taking key elements of Isle of Man Transport’s own design.
Richard Cranmer says there is no question that the software has led to improved efficiencies. He comments: “Les Cannan, Planning Manager, started using OmniTIMES and OmniSTOP to address inefficiencies a few years ago. We then took a big step forward when we started using OmniBASE.” Duty cards used to be prepared on individual Excel spreadsheets, which involved a lot of manual cross-checking. Cranmer admits that it wasn’t foolproof: “We have saved many man hours and eliminated mistakes by using OmniBASE. Once the data is in
OmniSTOP, Omnibus’s software for creating instant and eyecatching bus stop displays, has had a radical make-over. In fact, it is now a whole new program, written by Omnibus developers to replace the current OmniSTOP. The system is currently still being developed, but it is in trial use with ALBUM member Blackpool Transport, prior to a wider roll-out. Amongst the many advances over the current version is a built-in template editor. This allows users to create their own styles and custom paper sizes, with full control over what fonts, font sizes and graphics they want to use in the various elements of the display. There is also now a built-in PDF creator. Many of the options that required manual intervention in the previous incarnation of OmniSTOP are now automatic processes, particularly with regard to generating route diagrams. “It’s become a true publishing system,” says Peter Crichton, managing director of Omnibus. “Instead of us creating templates there’s now huge flexibility that allows the look and feel of the display to be tailored to the specific needs of the operator.”
The new OmniSTOP includes a template editor to create bespoke bus stop displays
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MBS Effityre advert 186mm wide x 134.indd 1
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25/04/2016 16:47
CONSUMABLES MICH EL IN
WHY CHO OSE EFFITIRES™? kevin lawton, Michelin solutions’ Sales Manager for Bus and Coach, explains why operators should maximise their f leet’s safety and efficiency w ith the effitires™ ty re management programme afety is of paramount concern to public transport operators, and tyre husbandry is a key aspect of that focus. That’s why EFFITIRES™ was developed – Michelin solutions’ comprehensive tyre management programme, which allows fleets to benefit from Michelin solutions’ technical, management and legislative expertise. Here are my ‘top five’ reasons to sign up.
S
1. predictable budgets Signing up to the EFFITIRES™ solution results in the development of a predictable, pence-permile tyre budget linked to fleet activity, which can be re-issued or customised as a company’s fleet expands. As part of the programme, Michelin solutions will provide regular reports highlighting important information in a precise, clear fashion – not simply a page crammed with complex data, but key figures and a clear overview of actions and results.
2. expert support After signing up to the programme, Michelin solutions will provide operators with the services of a dedicated team of business support personnel, auditors and technicians, who ensure the company’s tyres are serviced to the highest possible standards. This expert team will also carry out fleet‐wide tyre safety inspections, and develop a shared action plan to ensure harmonised operations – cutting complexity
and red tape while ensuring safety and regulatory compliance. 3. top tyre technology As part of the programme, operators enjoy access to the latest in premium rubber, especially suited to the demands of public transport; fitments such as Michelin X InCity tyres – dedicated urban tyres which offer year-round versatility and reinforced sidewalls to protect against kerbing. Plus, by fitting
The EFFITIRES™ tyre management solution lets operators focus on their core business
A TOWER OF STRENGTH FOR BL ACKPO OL TRANSPORT Tourists can ‘pier’ at seaside sights in comfort from Blackpool Transport’s buses thanks to EFFITIRES™ by Michelin solutions, after the operator agreed a five-year renewal of the comprehensive tyre management programme. The pence-per-mile deal covers Blackpool Transport’s 38 midibuses, 24 full-size singledeck buses and 73 doubledeckers, all of which operate from the company’s central depot
Transport’s ‘heritage fleet’. Bob Mason, Blackpool Transport’s director of delivery, says: “We’ve enjoyed a close working relationship with Michelin for many years, and appreciate the value for money the premium fitments provide. The company works closely with us to ensure we get maximum longevity, safety and durability from our Michelin rubber, which also helps keep tyre-related downtime consistently low across the fleet. “The team at Michelin solutions knows our business inside out, and are committed to helping us keep the town’s
The pence-per-mile deal covers the fleet
in Rigby Road. A 10-vehicle ‘reserve fleet’ is also covered under the EFFITIRES™ contract, as are the venerable Leyland Olympian open-topped and Leyland Atlantean AN68 buses maintained as part of Blackpool
Michelin, operators can be sure their fleet is rolling on the best in premium tyres, for maximum safety, durability and on-road performance. 4. reduced downtime Once the Michelin solutions team is ‘embedded’ within an operator and regular fleet inspections highlight any issues proactively, tyre-related downtime will fall. Such an approach to maintenance and upkeep also results in fewer wheel interventions – and maximum safety and wheel security for busy fleets. 5. peace of mind By outsourcing the burden of fleet tyre management with the comprehensive EFFITIRES™ solution, operators can focus on their core business – providing excellent customer service. However, should the need arise to review the collated programme data, everything a fleet manager needs is available through the programme’s regular reports, or with a single phone call to the Michelin solutions support team. Q tourists and commuters alike happy, safe and – crucially – on time.” Blackpool Transport will also fit Michelin Remix tyres under the contract – retreaded fitments that provide almost the same performance as new Michelin tyres, whilst protecting the environment as fewer new tyres are manufactured and fewer raw materials are consumed. Mason adds: “Michelin solutions handles everything from a tyre perspective, so the EFFITIRES™ programme promotes peace of mind, as well as cutting down on bureaucratic red tape.”
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Please come and see us at Album 2016 or get in touch for more information
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25/04/2016 16:52
CONSUMABLES O PTIMUM O ILS
OPTIMUM OILS: TO EURO VI AND BEYOND optimum oils launches Q8 Formula Truck 8600 10W40 at album 2016 – An advancement allow ing product rationalisation for the mixed f leet operator covering Euro VI and beyond s vehicle engine technology has progressed, engine oil specification and OEM requirements have changed dramatically. A mixed fleet operator following OEM requirements for Euro VI Engine Oils could potentially require more than one engine oil product, until now. Q8 Formula Truck 8600 10W40 is a synthetic, ultra-high performance heavy duty diesel engine oil designed for the latest Euro VI engines. This marketleading lubricant not only offers operators the opportunity to rationalise their lubricant range to one engine oil across the fleet but also extends vehicle life by providing advanced protection against wear and oxidation, and offers prolonged oil drain intervals, thereby cutting maintenance costs. As well as Euro VI engines, Q8 Formula Truck 8600 10W40 can be also used for Euro IV and V engines that are equipped with a diesel particulate filter or catalytic after treatment system, such as SCR, and operate on low sulphur diesel fuel of 50 ppm or less, and in severe heavy duty conditions. It also has best in-class compatibility with bio fuel, which gives it excellent starting properties in the coldest weather. Q8 Formula Truck 8600 10W40 has specifically been developed for ACEA E4/E6/E7/E9 and API CJ-4 covering a wide range of OEM specifications for heavy duty fleets, with full OEM approvals including but not limited to; Q Cummins CES20081 Q MAN M3477/M327-1 Q Mercedes Benz MB228.51 Q Scania LA Q Volvo VDS-3 / VDS-4
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Q8 Formula Truck 8600 10W40 is designed for use in the latest Euro VI engines
The addition of Q8 Formula Truck 8600 10W40 to the Optimum Oils product portfolio is a further examples of Optimum’s commitment to providing innovative and high quality product solutions that meet and frequently exceed our customer’s needs.
fluid that provides maintenancefree protection against freezing and boiling but also against corrosion. CalPlus offers many benefits to operators including: Q Long life protection; synergistic effect by a combination of organic inhibitors Q Uniform & homogenous protective layer; engineered inhibitor package Q No gel formation or drop out; performant silicate stabiliser Q Environmentally friendly; free of borate, nitrite, amines and phosphates Q Aluminium protection; highperformance additives CalPlus is compatible with most other coolants based on ethylene glycol. Exclusive use is however recommended for optimum corrosion protection and inhibitor stability. CalPlus is available exclusively from Optimum Oils in either 100 percent neat or 50/50 premix with demineralised water.
antifreeze & summer coolant Optimum can further supplement its offer to the Euro VI mixed fleet operator with the inclusion of CalPlus high performance antifreeze and coolant. Designed for mixed fleet applications including Euro VI, and meeting the requirements of all major OEM’s CalPlus is the very latest in ‘low-brid’ coolant technology developed to meet specific demands of Euro VI and particular OEMs by combining organic and silicate technology. CalPlus is an ethylene glycolbased fluid that provides based
adblue® As the demand for AdBlue® increases, Optimum’s strategic partnership with Top!Blue continues to thrive. With seven blending sites throughout the UK, Top!Blue has more blending location than any other supplier in the UK. With such close proximity to customers Top!Blue is proud to offer one of the most cost-efficient supply set-ups in the market. Through well-established know-how and international expertise, Top!Blue aims to bring innovative solutions for AdBlue® to the market, giving customers a differentiated service and improved efficiency. Top!Blue’s all-inclusive service comprises AdBlue®, its deliveries, the dispensing equipment and servicing and finance of that equipment, plus automated stock control all at highly competitive pricing. Optimum Oils prides itself on the highest level of service backed up by a best-in-class product offer from its chosen strategic supply partnerships. With unrivalled technical knowledge and expertise Optimum can assure customers of a solution that best suits their individually assessed needs. In addition to the products mentioned above Optimum offers a comprehensive range of OEM approved transmission, final drive and grease products. Q For further information on Formula Truck 8600 10W40, CalPlus, AdBlue® or any other requirements please contact Optimum as below; Tel: 01242 253333 Email: info@optimumoils.com Web: www.optimumoils.com
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Ads.indd 30
25/04/2016 16:01
brought to you by
BRITAIN'S MUNICIPALLY-OWNED AND INDEPENDENT BUS SECTOR
in association with
THE AL BU M CO NFERENCE WOR KBOOK 2016
organised by
47_ALBUM2016_ConfCover1.indd 3
main sponsors
25/04/2016 16:59
THE A LBUM CO NF E RENCE WO RKBO O K 2016
WELCOME TO THE ISLE OF MAN FOR THE ALBUM CONFERENCE 2016 hank you for making the journey across the Irish Sea, a strip of water that has enabled the island to enjoy 1,000 years of independent rule. You will discover that you have now left the constraints of the European Union. Perhaps it may give you a taste of what is to come. To get around the island we have a modern bus network with regular frequencies from early morning to late evening on our key routes. We also provide rural services for visitors and for social inclusion - we work with our colleagues in the Isle of Man Government to try to keep people in their homes rather than having
T
I know at this time many of you will face a challenge in legislation with the forthcoming Buses Bill. While on the island you can enjoy the benefits of a totally integrated provision running off a simple subvention from the Isle of Man Government. Whatever the outcome, your market will be changing. Our three key speakers will highlight other alternative legal frameworks that the independent operator can successfully train in. Finally, remember the importance of the social side of the programme where you can get to see the island’s many scenic and heritage attractions, taste the finest fresh Manx cuisine, which of course, the Hairy Bikers will
to move to sheltered housing through lack of public transport. We also encourage younger passengers by providing daytime frequencies until mid-evening. Ours is a modern fleet boasting free Wi-Fi, disabled access and next stop announcements. All this contrasts with our extensive heritage railways all dating from the Victorian period. We now operate a lengthy season, delivering a unified network of trams and trains linked to our bus timetable. You can travel seamlessly across the Isle of Man on all modes of transport using the Go smartcard provided by Ticketer. Your card has been loaded with seven days’ unlimited travel on all our bus and rail services.
demonstrate at the gala dinner. Enjoy the conference and we look forward to welcoming you again. Above all, I wish you a safe journey – cair vie. Ian Longworth Director of Public Transport
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TH E CO NF E RENCE PRO GRAMME
TUES 1OTH MAY
Villa Marina, Douglas
2:3 0 pm
4:20pm
6 :3 0 pm
Ashley Brooks, OEM Account Manager, Allison Transmission
Speaker to be announced, Mercedes-Benz
Trip on the Steam Railway from Douglas to Port Erin
•
4:5 0pm
8:0 0 pm
•
3 :00pm
Refreshments and a chance to visit our exhibitors
Questions (conference closes 5pm)
1 : 50 pm
Dinner at Bradda Glen Restaurant & Tea Rooms
1 : 4 5pm
Welcome to the ALBUM Conference 2016 Mark Savelli, Business Advisor, KMB
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Various locations
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•
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10 : 0 0 pm
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4:00pm
6 :10pm
& 11:0 0 pm
2 : 20pm
Julie Williams, Chief Executive Officer, Traveline
Buses pick-up delegates from hotels
Shuttle bus service from Port Erin to Douglas
Questions
WEDS 11TH MAY
Villa Marina, Douglas
1 1 :1 5am
1:30pm
4:0 0 pm
David Martin, Arriva
Keith Watson, Director for Customer Development, Alexander Dennis
Mark Oliver, Bus & Coach General Manager - Fleet Sales, Scania Johanna Lind, Key Account Manager, Scania
9 : 0 0 am
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Exhibition opens
1 1 :45 am
•
9 : 4 5 am
Leon Daniels, Managing Director - Surface Transport, Transport for London •
10:15 am
Questions - roving microphone with Dave Guest •
Questions - roving microphone with Dave Guest
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•
2:00pm
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Ian Downie, Managing Director Sales & Customcare, Wrightbus
4: 3 0pm
AGM for ALBUM members in the Broadway Cinema
1 1 :55am
•
Nicola Moir, Project Manager Contactless Transit Project, UK Cards Association
2:30pm
•
Refreshments and a chance to visit our exhibitors
6 : 4 5pm
•
•
Drinks receptions, please see the invitation in your welcome pack
1 2:1 5pm
3:30 pm
•
A chance to visit our exhibitors
Exhibition closes Phil Fletcher, Fleet Sales Manager South, Volvo Bus
7:3 0 pm
10: 25 am
•
Refreshments and a chance to visit our exhibitors
1 2:3 0pm
Lunch
Gala Dinner in the Royal Hall with entertainment from The Bombshell Belles and The Hairy Bikers
The Steam Railway (left). The Gala Dinner sees entertainment from The Hairy Bikers (top) and The Bombshell Belles (above).
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THE A LBUM CONF ERENCE WORKBO OK 2016
YOUR LINE-UP OF SPEAKERS Our speakers w ill prov ide food for thought over two days, offering perspectives on vehicles, pay ment, strateg y and more. Read the biographies below to familiarise yourself w ith this exper t line-up a variety of roles, progressing to workshop management in later years. He joined Volvo Bus 14 years ago and spent nine years as Coach Product Manager, where he was responsible for product planning, sales engineering, external bodybuilder and sales technical support. In his current role, Phil is responsible for all bus, coach and transport solutions sales into the major groups, as well as municipals and large independent bus and coach operators in the south of England and Wales. •
M A RK SAVE L L I
Business Advisor, KMB
YO U R H OST
DAV E GU EST
Dave has been a regular face at Album since 2007. But when he isn’t hosting the nation’s premier bus industry event, he’s reporting for BBC News. His role as Chief Reporter for BBC Northwest Tonight means he’s involved in some of the biggest stories to break in the North West region, covering them for both regional and network outlets. Dave’s career spans more than 30 years during which he’s picked up a number of awards - including O2 TV Journalist of the year, and Royal Television Society Best Regional Reporter. When he isn’t chasing the news, or hosting conferences, Dave enjoys reading, classical music - and entertaining his two young grand daughters.
A former elected Chair of CPT Scotland with nearly 10 years of service at Managing Director/ Regional Director level at FirstGroup in the UK, Mark is also a 15-year veteran of the Hong Kong bus industry having held directorate roles with all three of the largest resident bus companies (Citybus, New World First Bus and KMB). Mark has a 1st Class honours degree in Transport and Logistics (Huddersfield), is a Fellow of the Chartered Institute of Logistics and Transport (FCILT) and is accredited as a Chartered Director (CDir) by the Institute of Directors (IoD). In 2009, Mark was recognised as ‘Public Transport Professional of the Year’’ (PTMA Awards -UK). •
DAVID MARTIN
Former Chief Executive, Arriva David qualified as an accountant in 1977 after graduating in Business Studies. He held a variety of general management positions before joining the bus industry in 1986. After leading a management buy-out of an East Midlands based bus company he was involved in the acquisition of National Express and subsequent management buy-outs leading to the creation of British Bus Group Limited. David joined Arriva in 1996 on the acquisition of British Bus, becoming a member of the Board in February 1998 with specific responsibility for the Group’s international operations and development. In March 2005 he was appointed Group Managing Director – Operations and Deputy Chief Executive with responsibility for all
PHIL FLETCH E R
Fleet Sales Manager South, Volvo Bus Phil has been Fleet Sales Manager - South with Volvo Bus for the last five years. He started his career as an apprentice LGV technician with Crossroads Truck & Bus, an independent Volvo Truck & Bus dealer, and over the 20 years he was with the company he held
Group operations. He took over as Chief Executive in April 2006 and retired earlier this year. •
JOH A N N A L I N D
Key Account Manager, Scania Johanna joined Scania in 2011 as a Management Trainee after graduating with a Masters degree in international economics, specialising in French and management, at Linköping University in Sweden. After completing the course, she spent three years as a Business Analyst supporting Scania’s Key Account Managers before being appointed as Key Account Manager – Buses & Coaches in March 2015. •
AS H L EY B ROOKS
OEM Account Manager, Allison Transmission Ashley has worked within the commercial vehicle industry for 15 years. For the past seven years, he has held application engineer and account manager roles at Allison Transmission, the world’s largest manufacturer of commercialduty automatic transmissions and hybrid propulsion systems. Previously, Ashley was an application engineer at IVECO
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THE CO NF E RENCE SPE AKE R PRO F IL ES
with responsibility for trucks between 7.5T and 44T and technical manager at Irisbus, overseeing the entire UK bus product range and engineering activities. A defining theme of Ashley’s Allison career has been a focus on developing fully automatic transmission products that improve fuel economy within the UK’s fuel sensitive bus market. Allison Transmission has been a sponsor of ALBUM since 2004. •
where he was responsible for sales of rigid and articulated dump trucks before moving into the role of Product Management for the Construction Division. Keith has been with Alexander Dennis for the last 9 years. •
private sector bus company in London prior to the privatisation of London buses. He sold the company to FirstGroup in 1998. He oversees TfL’s responsibilities for the safe and efficient running of London’s buses, taxis, river services, the road network, congestion charging and the Santander Cycles cycle hire scheme. •
NICO L A MO IR
Project Manager – Contactless Transit Project, UK Cards Association
KEITH WATSON
I A N D OWN IE
Managing Director – Sales & Customcare, Wrightbus Ian joined Ballymena-based Wrightbus in 2014 and he leads the Sales and Customcare team. He started his career as an apprentice with Leyland Bus, following which he joined Volvo where he gained knowledge of all areas of the business including sales administration, finance and dealer management. Ian held director roles within Volvo for 18 years, including Aftermarket Director and Product & Coach Director, being responsible for the launch of the hybrid and all Euro 6 product ranges, to name but a few. •
Director for Customer Development, Alexander Dennis
Nicola has a variety of change management experience; she has worked within the financial services industry for the past four years and prior to that, several years within the public sector. Before the Contactless Transit Project, Nicola worked on the Paym programme, an industrywide mobile payments service that offers customers from the 16 participating banks to pay someone knowing only their mobile number. Nicola is currently the Project Manager for Contactless Transit Programme, the focus for 2016 is developing a solution for the use of contactless cards as authority to travel for pre-purchased fares such as long distance journeys or season tickets.
Keith’s role is Director for Customer Development at Alexander Dennis Limited. He spends most of his time working with bus operators and their passengers to understand their evolving needs and how Alexander Dennis can provide a product which meets or exceeds these expectations. Keith started working life as an Apprentice with Cummins Engine Company at Shotts in 1979 and his career path has seen him running Cummins on-highway Service Support and European on-highway Truck Account Management teams. After his time at Cummins Keith moved to Terex Construction and Mining
LEO N DA NIELS
Managing Director, Surface Transport, Transport for London Leon joined Transport for London in April 2011 from FirstGroup, where he had been a director of the UK Bus Board since 2000. For several years Leon owned and ran his own bus company, which grew to be the largest
Mark Savelli of KMB is a 15-year veteran of the Hong Kong bus industry
JU L IE W I L L I A MS
Chief Executive, Traveline Julie Williams is Chief Executive of Traveline Information Ltd, the organisation that brings together transport companies, local authorities and passenger groups. Her remit is to manage the delivery of all Traveline-branded services and TIL Open Data transport products for the UK and to drive change in the organisation. Julie has worked in the transport information sector for 15 years and has experience in telecoms, fares and real time projects across public and private sector organisations and with multiple suppliers. She was also responsible for the concept, trial and eventual publication as Open Data of a national dataset for bus dataset for the UK. •
M ARK OL I V ER
UK Bus & Coach General Manager – Fleet Sales, Scania Mark joined Scania in 1995 and he was appointed as General Manager – Fleet Sales for the Swedish manufacturer’s bus and coach operations in the UK in 2012. During his career with Scania, Mark has gained extensive experience with the company’s UK’s bus and coach customer base, working together with a broad spectrum of operators in his capacity as Technical Services Manager. He has also been responsible for developing Scania’s range of bus and coach technical training courses, another role which has involved extensive liaison with operators. Q
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THE A LBUM CO NF ERENCE WO RKBO O K 2016
PROMENADE SUITE
BAR REFRESHMENTS
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Lazzerini Timespace Technology Transport Benevolent Fund Read Commercials Navaho Technologies Icomera UK Corethree PSV Glass UK Bus Awards Visit Blackpool Scan Coin McKenna Brothers Base 21st Century Technology Issringhausen TEK Seating First Corporate Clothing MiX Telematics Europe Ticketer Ashtree Vision & Safety Optimum Oils Autosound RouteONE INIT Innovations In Transportation Invertec Interiors Backhouse Jones
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IOM Isle of Man Transport – Gifts & Information C.01 Allison Transmission Europe C.02 Wrightbus C.03 Volvo Bus UK C.04 Voith Turbo C.05 Alexander Dennis Ltd C.06 Parkeon Transit C.07 Omnibus C.08 Camira Fabrics C.09 Scania (Great Britain) C.10 E P Morris & Company C.11 Groeneveld Ltd
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The Leading Transmission Around The Corner
And Around The World
2016 ALBUM CONFERENCE Sponsor
From Beijing to Buenos Aires and New York to London, fleets, cities and passengers rely on Allison Automatics to safely and reliably keep their buses on the road. Our proven reliability has made us the global leader in bus transmission technology. Allison fully automatic transmissions deliver smooth operation, lower cost of ownership and thanks to FuelSense® technology, improved fuel economy. We’re proud to sponsor the 2016 ALBUM Conference. The world depends on Allison. Shouldn’t you? allisontransmission.com
© 2016 ALLISON TRANSMISSION INC.
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THE EXH IBITIO N E XH IBITO R PRO F IL ES
OUR EXHIBITORS A whole host of companies and organisations are exhibiting this year. Learn more about them here manufacturer, employing around 2,000 people at facilities around the world. The fastest growing bus and coach builder in Western Europe, ADL encompasses three famous and successful marques – Alexander, Dennis and Plaxton. ADL produces a wide range of innovative and fuel efficient low floor single and double deck buses, plus a full portfolio of coaches, welfare and mini vehicles. Q Alexander Dennis, 9 Central Boulevard, Central Park, Larbert FK5 4RU 01324 621672 www.alexander-dennis.com •
STAND C.01 A L L I SON T RA N S M I SSION
STAND C.03
EURO P E
VOLVO BUS UK
Allison Transmission is the world’s largest manufacturer of commercialduty automatic transmissions and hybrid propulsion systems. Our products are specified by more than 300 of the world’s leading vehicle manufacturers and are used in a range of market sectors— from bus, refuse and emergency to construction, distribution and defence. Q Allison Transmission Europe, Doolittle Mill, 12 Froghall Road, Ampthill, Bedfordshire MK45 2ND 01525 305120 www.allisontransmission.com •
As one of the world’s biggest manufacturers of large buses and coaches, Volvo Buses has a responsibility in society. We want to be part of shaping the future, based on our core values of Quality, Safety and Environmental Care. We do it by driving our industry and society forward through innovative solutions that improve everyday life for people and entire cities, today and tomorrow. Q Volvo Bus, Wedgnock Lane, Warwick CV34 5YA 01926 401777 www.volvobus.co.uk •
STAND C.02
VOITH TURBO
STA ND C.06 PARKEO N TRA NSPO RTATIO N
Parkeon’s systems are supporting mass transit schemes which are multi-modal, easy to use and in tune with the needs of 21st century living. Parkeon is helping operators optimise efficiency through automatic fare collection platforms, fleet management systems, hosted back offices and real time information technology. Bringing these transportation solutions together provides transit authorities and transport operators with a future-proof pathway to optimal performance, ensuring that technology always keeps pace with the need of customers. Q Parkeon, 10 Willis Way, Fleets Industrial Estate, Poole, Dorset BH15 3SS 01202 339339 www.parkeon.co.uk •
STAND C.04 WR I G H T BUS
Wrightbus designs and manufactures buses for the European market, including the United Kingdom and Republic of Ireland. Our product range covers all segments of the market from small and midi-sized buses to full-size single deckers, double deckers and articulated buses and Bus Rapid Transit. We are capable of producing all of our vehicles with either Euro 6 diesel or alternative drivelines, including hybridelectric, plug-in electric and induction power transfer. Q Wrightbus, Galgorm Industrial Estate, Fenaghy Road, Galgorm, Ballymena, Co. Antrim, Northern Ireland BT42 1PY 028 2564 1212 www.wrightsgroup.com
The Voith DIWA bus transmission is supplied to transport operators and OEMs throughout the world. It has proven itself in large city applications and is perfectly matched for all Euro 6 engine applications. We match the driveline components to optimise drivability and maximise fuel consumption. Q Voith Turbo, 6 Beddington Farm Road, Croydon, Surrey CRO 4XB 020 8667 0333 www.uk.voithturbo.com •
STAND C.05
STA ND C.07
ALEX AN DER DE NNIS
O MNIBUS
Alexander Dennis Limited (ADL) is the UK’s leading bus and coach
Omnibus is the UK’s leading supplier of timetable, scheduling
and roadside display software to the passenger transport industry. We provide modules for constructing timetables, schedules, rotas and bus stop displays to a wide range of public transport operators and local authorities, with our programs installed at over 150 sites in the U.K. and overseas. Our systems are proven in use, with more than 18 years’ experience providing public transport operators and local authorities with systems that meet their needs. We are continually improving our products, consulting with our customers, responding to and anticipating the changes in the passenger transport industry. Q Omnibus, Hollinwood Business Centre, Albert Street, Hollinwood, Oldham OL8 3QL 0161 683 3100 www.omnibus.uk.com •
STA N D C.0 8 CAMIRA FA B R I CS
We design and manufacture fabrics for a wide range of passenger transport interiors where heavy duty contact and technical performance is an absolute must. We provide fabric solutions for buses, coaches and mini-buses; for trains, tramways, metro and underground systems; and for cruise ships and ferries. You can specify the entire suite of textiles for passenger vehicle interiors, including upholstery, piping, headrests, wall side and ceiling finishes, and curtaining. Q Camira Fabrics, The Watermill, Wheatley Park, Mirfield, West Yorkshire WF14 8HE 01924 490591 www.camirafabrics.com ➢
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THE AL BUM CO NF E RENCE WO RKBO O K 2016
STAND C.09 SCAN IA GRE AT BRITA IN
With a history stretching back to 1891, Scania is one of the largest and most successful bus and coach manufacturers, marketing its products and a wide range of associated services in more than 100 countries worldwide. Scania recently celebrated 50 years of operation in the UK. With models for every operations, Scania buses and coaches have been designed with safety, comfort, economy and efficiency and the environment firmly in mind. Q Scania, Delaware Drive, Tongwell, Milton Keynes MK15 8HB 01909 210210 www.scania.co.uk •
STAND C. 10 E P M O R R I S & COM PA N Y
Here at E P Morris, we work with bus operators and local authorities to analyse, optimise and streamline your business processes, make savings and maximise profitability. We offer a hands-on, complete service, helping transport organisations to implement industry best practice and manage their networks. We specialise in BSOG certification, operational audits, concessionary travel and operations management software. Q E P Morris & Company, 20 Harris Business Park, Hanbury Road, Bromsgrove B60 4DJ 01527 556940 www.epmorris.co.uk •
STAND C. 1 1 G RO E NEV ELD
Groeneveld has offered solutions in bus maintenance for over 40 years. With systems that, among
other things, control the oil level and lubricate the various greasing points, you can control the condition of your fleet in a simple and environmentally-friendly way. There is maximum output with minimum effort. Q Groeneveld, The Greentec Centre, Gelders Hall Road, Shepshed, Loughborough, Leicestershire LE12 9NH 01509 600033 www.groeneveld-group.com •
STA ND P.03 TRANSPO RT BENEVO L ENT F UND
Not-for-profit membership charity with almost 48,500 members, providing help and support to public transport employees in need. Just £1 per week covers the member and immediate family. A wide range of financial, health and welfare benefits is available, helping to improve members’ work-life balance and reduce staff turnover for the employer. Benefits awarded at discretion of Trustees, the majority of whom work in the industry. Q Transport Benevolent Fund CIO, New Loom House, 101 Backchurch Lane, London, E1 1LU 0300 333 2000 www.tbf.org.uk •
STAND P.01 LAZZER INI
Lazzerini is a national and international reference point for the design, development and production of seats for buses, school buses, trains, ships, cars and specialist automotive sectors. Committed to the most stringent and recognised qualifications, Lazzerini is qualified to ISO 9001, ISO TS 16949 automotive standard and also the environmental qualification ISO 14001. Q Lazzerini Srl, Viale G.Pieralisi 21, 60030 Monsano (AN), Italy +39 0731 60681 www.lazzerini.it •
STA ND P.04 RE AD CO MMERCIALS
At Read Commercials we have over 50 years’ experience in the bus and coach vehicle industry and we pride ourselves on being a friendly family-run business. Our hands-on intricate knowledge ensures that your vehicles are in the best possible place. We specialise in refurbishment and accident repairs and we pride ourselves on the good quality work that we produce. Q Read Commercials, Unit 3A, West End Business Park, Blackburn Road, Oswaldtwistle, Accrington BB5 4WE 01254 239624 •
STAND P.02 TIM ES PACE TECH NO LO GY
Timespace Technology is the market leader in design, development and manufacture of mobile and covert digital video recorders for transport vehicles. Timespace Technology has been designing and manufacturing digital video recorders since 1998. Working closely with our customers Timespace has built long standing relationships and continues to develop DVR solutions that exceed expectations. Q Timespace Technology, Lakeview Court, Ermine Business Park, Huntingdon PE29 6UA 01480 414147 www.tspace.co.uk
STA ND P.05 NAVAH O TECH NO LO GIES
Navaho Technologies is a UK firm with over 17 years’ experience in developing media and network
appliances for the digital signage, internet filtering and network security markets. The Navaho MediaCAT Digital Signage player is used for a number of different digital signage applications within the public transport sector, including Real Time Passenger Information displays; fare information and advertising in passenger terminals; next stop information; and infotainment on vehicles and in waiting areas. Q Navaho Technologies, 8 Hayters Court, Grigg Lane, Brockenhurst, Hampshire SO42 7PG 023 8000 0010 www.navaho.co.uk • STAN D P.0 6 ICOM ERA
Icomera is the world’s leading provider of open internet connectivity and application platforms for passenger transport and public safety. Its awardwinning products are deployed on rail, road and sea, serving millions of Wi-Fi users every week across the globe and providing highspeed access for fleet tracking and mission-critical onboard systems. Q Icomera UK, Victory House, Quayside, Chatham Maritime, Chatham, Kent ME4 4QU 0870 446 0461 www.icomera.com • STAN D P.07 COR E T H R E E
Corethree is a UK market leader in mobile ticketing, taking advantage of the single biggest opportunity to create direct communication to the customer: the intersection of mobile and data. We specialise in integrating, analysing and monetising content, products, data and services for mobile and enterprise, bridging the gaps between operator and passenger. Q Corethree, Croxley Green Business Park, Hatters Lane, Watford, Hertfordshire WD18 8YG 0845 557 0475 www.corethree.net
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THE EXH IBITIO N E XH IBITO R PRO F IL ES
STAND P.08 PSV G L ASS
Established in 1988 and remaining independently owned and operated by the original management team, we are a specialist supplier of replacement safety glass to the bus and coach industries. Having witnessed the emergence of five pan-UK major bus groups in the years following national bus deregulation in 1986 and with rail privatisation in 1994, we structured our business in such a way that enabled us to deliver a truly next day, nationwide coverage for glass, day in - day out. Q PSV Glass, Hillbottom Road, High Wycombe, Buckinghamshire HP12 4HJ 01494 533131 www.psvglass.com •
STAND P.09 U K BUS AWARDS
The UK Bus Awards was founded in 1996 and is run by an independent, special purpose, not-for-dividend company. This year’s presentation ceremony will take place on November 23, 2016 at The Ballroom on London’s South Bank. The other key date for this year is June 10, when entries for this year’s competition close. Entry forms are now available at www.ukbusawards.org.uk. Q UK Bus Awards, Melbrae, 3 Main Road, Settle BD24 0LH 0330 010 3450 www.ukbusawards.org.uk •
STAND P. 10 V I S I T B LAC KPOOL
Blackpool has been welcoming groups since the early days of mass travel and is on-hand to help and advise, whether you are visiting for just a day or making the most of the resort by staying longer. Our team can assist in building and developing the perfect package for
Q McKenna Brothers, McKenna House, Jubilee Road, Middleton, Manchester M24 2LX 0161 655 3244 www. mckennabrothers.co.uk •
your group or tour. Whether you are planning a short break, tour programme or visiting for a day, you will find a wealth of exciting events, thrilling attractions and lots of activities to keep your group occupied – day or night. Q Visit Blackpool, 2nd Floor, Number One, Bickerstaffe Square, Talbot Road, Blackpool FY1 3AH 01253 478222 www.visitblackpool.com •
STA ND P. 13 BAS E
Our team of researchers, strategists, designers and developers partner with clients to create successful digital experiences. Since 2008 we’ve helped a raft of client teams by blending the principles of design thinking with modern engineering and big data analytics to create value for them and their customers. We believe that being an active part of our community, with projects like our open device lab and re:develop conference, help us to learn faster and lead the change. Q Base, 65 Seamoor Road, Westbourne, Bournemouth BH4 9AE 01202 766666 www.wearebase.com •
STAND P. 11 SCA N COIN
With over 40 years’ experience as a provider for cash processing solutions the company has acquired invaluable insight on every cash handling segment. The combination of Scan Coin’s advanced technology and industry knowledge ensures that its solutions make cash handling easy and economically viable. Cash remains a popular and enduring payment medium, the continuing challenge is to find new solutions to enhance cost-effective cash handling. Cash is here to stay. Scan Coin is here to help you stay one step ahead. Q Scan Coin, Dutch House, 110 Broadway, Salford Quays, Salford M50 2UW 0161 873 0505 www.scancoin.co.uk •
STAN D P.15 ISSRIN G HAUSEN
Isringhausen is part of the worldwide Aunde group also incorporating the Esteban and Fehrer brands. Comprising of 109 plants in 27 countries the group manufactures complete seating systems including passenger and driver seating as well as in-house textiles. We supply the automotive, truck, bus, van, taxi, construction and office seating markets. Isringhausen GB is based in Wrexham employing 102 people with an ongoing commitment to job creation and new investment. Q Isringhausen, Second Avenue, Redwither Business Park, Wrexham LL13 9XQ 01978 666300 www.isri.es •
STAN D P.16 TE K SEAT I N G
STA ND P. 14 21ST CENTURY TECH NO LO GY
21st Century Technology is the specialist provider of tailored solutions to the transport community, solving complex operational requirements both on and off the vehicle. Fleet systems include video surveillance to improve passenger and driver safety, vehicle and driver performance monitoring, and automatic passenger counting both as standalone and integrated solutions. Passenger systems include the necessary hardware and software for real time passenger information, off-vehicle smart ticketing and way-finding. Q 21st Century Technology plc, Units 3-4, ZK Park, 23 Commerce Way, Croydon CR0 4ZS 0844 871 7990 www.21stplc.com
STAND P. 12 M CKENNA B ROTHERS
McKenna Brothers was established in April 1978, with the aim of providing the passenger transport industry with quality destination displays that were second to none. Today, McKenna Brothers is the only UK company to offer all forms of onboard destination displays ranging from the traditional printed blind right through to state of the art onboard TFT screens. McKenna Brothers is based in Middleton, Manchester, employing over 30 staff.
TEK Seating offers a wide choice of quality bus and coach driver seats, for a range of applications and budgets, from all the leading seat manufacturers including KAB, FISA, Isringhausen, Grammer and Be-Ge. On the stand will be the Grammer pneumatic MSG 90.3 seat and the high spec ISRI NTS driver seat. Other seats include FISA’s top-of-the-range FA416 seat, KAB’s GSX 3000 suspension seat, the economical KAB 714B and Grammer’s Kingman for long distance driving. We also supply parts and spares and offer a superior trim service from our Midlands-based factory. Established 45 years ago, TEK is the UK’s largest independent OEM and aftermarket vehicle seating company. Q TEK Seating Ltd, 14 Decimus Park, Kingstanding Way, Tunbridge Wells, Kent TN2 3GP 01892 515028 www.tekseating.co.uk ➢
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TH E AL BUM RE PO RT 2016
STAND P. 17 F IRST CO R P O RAT E CLOTHIN G
First Corporate are experienced suppliers to the passenger transport industry. Our managed service provides the complete solution from a free design service, sampling, employee sizing and applying your logo to the delivery of competitively priced quality products in individual personal packs. We also offer online ordering and database management. Q First Corporate, Units 2 & 4, Llewellyns Quay, The Docks, Port Talbot SA13 1RF 01639 899008 www.firstcorporateuk.com •
STAND P. 1 8 M I X T E LE M ATICS
MiX Telematics is a leading global provider of fleet management, driver safety and vehicle tracking solutions. Our products and services, designed for commercial fleet operators, enable customers to actively manage their mobile assets. At any given moment, our customers are either enhancing their safety, reducing their risk, becoming more profitable or lessening their impact on the environment. Q MiX Telematics, 6180 Knights Court, Solihull Parkway, Birmingham Business Park, Birmingham B37 7YB 0800 200 6800 www.mixtelematics.co.uk •
STAND P. 19 T I C K E T ER
Ticketer is a recent and innovative entrant to the bus and multimodal transport ticketing market. Ticketer has a single focus – to revolutionise bus ticketing and put ticketing control back in the hands of the operator, no matter the size of fleet. The Ticketer system is the
industry’s most innovative and cost-effective ticketing solution. It improves the bottom line by delivering advanced features that allow managers to run their business with maximum flexibility but without the need for expensive support. Q Ticketer, Chilton House, Charnham Lane, Hungerford, Berkshire RG17 0EY 020 3195 8800 www.ticketer.co.uk •
STA ND P. 2 2 AUTOSOUND
Autosound has been helping clients for over 50 years and we guarantee a helpful service from an expert team. Our services include audio/PA systems; CCTV systems; GPS triggered commentary systems; single or multiple language systems; video on demand systems; and on-vehicle Wi-Fi. Q Autosound Ltd, 4 Lister Street, Bradford, West Yorkshire BD4 9PQ 01274 688990 www.autosound.co.uk •
STAND P. 20 AS HTREE V IS IO N & SA F E T Y
Ashtree is firmly established as one of Europe’s premier designers and manufacturers of mirrors, mirror arms and mounting brackets. Still family owned and managed, Ashtree has a desire and passion to increase visibility and create solutions for blind spots on all types of vehicle and machine. Designing internally, or working with consultants when required, enables us to manufacture the products that we feel offer the best solution to a visibility issue. Q Ashtree Vision & Safety, Ashtree Works, Brownroyd Street, Bradford BD8 9AF 01274 546732 www.avsuk.co •
helped make public transportation more attractive, faster and more efficient. In more than 400 successfully realised projects, INIT has gained a unique knowledge with regard to the needs of public transport. This has resulted in a fully integrated range of solutions for all key tasks of a transportation company. Q INIT Innovations in Transportation, Price House, 37 Stoney Street, The Lace Market, Nottingham NG1 1LS 0870 890 4648 www.init.co.uk • STAN D P.25 INVERTEC I N T ER I ORS
STA ND P. 23 ROUTEONE
The UK’s commercial PCV market delivers five billion travel connections every year and plays a vital part in the wider economy. routeONE recognises the value of these services and more importantly the people that make them happen each and every day. As such routeONE’s approach to news is different to other trade publications; our trained editorial team is acutely aware of the time constraints on today’s operators. Therefore the news and wider editorial coverage we choose to offer to our readers is credible and of value to our readers… we always want to make a difference. That’s different, that’s routeONE. Q routeONE magazine, Diversified Business, Communications UK, Unit 4 - Minerva Business Park, Lynch Wood, Peterborough PE2 6FT 01733 405730 www.route-one.net •
STAND P. 2 1 OPTIM U M O ILS
Optimum Oils is an innovative service provider to the bus and coach industries. Major partnerships with lubricant, antifreeze and AdBlue OEM manufacturers give us the supply solutions for operators requiring Euro6 engine oils, fuelefficient gear oils and synthetic transmission fluids. Antifreeze and AdBlue complement our offer. Q Optimum Oils, 1 Ullenwood Court, Cheltenham, Gloucestershire GL53 9QS 01242 253333 www.optimumoils.com
STA ND P. 24 INIT INNOVATIONS IN TRANSPO RTATIO N
INIT is the worldwide leading supplier of Intelligent Transportation Systems and Electronic Ticketing Systems for public transportation. For more than 30 years it has
Invertec Interiors is Europe’s leading designer and manufacturer of vehicle interior systems, bringing together our experience in lighting and panelling to offer a complete service to the bus and coach industry. With manufacturing facilities in the UK and Malaysia, Invertec Interiors is positioned to be able to supply and support vehicle manufacturers worldwide. Q Invertec Interiors, Trimdon Grange Industrial Estate, Trimdon Grange, County Durham TS29 6PE 01429 882210 www.invertec.co.uk •
STAN D P.26 BACKH O USE J O N ES
Backhouse Jones is the leading firm of transport solicitors which has built an unrivalled reputation in representing the bus and coach industry. By concentrating its expertise within just the road transport industry, Backhouse Jones provides an identifiably bespoke service and already has a thousand firsthand experiences of your requirements. Q Backhouse Jones Solicitors, The Printworks, Hey Road, Clitheroe, Lancashire BB7 9WD 01254 828300 www.backhousejones.co.uk Q
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8th–10 th May 2017
The Hilton Hotel
BLACKPOOL! Monday 8th Golfing at St Annes Old Links
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Tuesday 9th – Wednesday 10th Conference and Exhibition
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Spa Treatment AT
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STAY INFORMED AND SAVE MONEY FO E RTVE NI RY GH T
NEWS ROUND-UP
PLC bus groups ‘must accept lower profits ’
margin of 4.8% in 2013/14. Around a fifth of the UK bus industry is made up of municipallyowned and independent bus operators, and they generally make much lower profits than the PLCs. Nethertheless, Peddle says that the destinies of these ALBUM member companies are tied FINANCES to Peddle’s comments appear their PLC counterparts. The UK bus industry’s PLC to Go-Ahead Group, which support. “Whilst ALBUM groups must accept lower members generated around half of may profits its “The PLCs need to accept have significant influence from their local bus operations £83.5m UK bus profits outside locally, or lower profits if they are not nationally they are drowned risk losing the freedom offered to of London (£41.9m) in 2013/14 in the to kill the golden goose,” said anti-PLC rant,” he said. them by deregulation, according Peddle. - a margin of 11.9%. The group to “A margin of 7% is perfectly “The bus industry in the a long standing bus entrepreneur. has a target for UK bus profits shape adequate for this low risk, to of the Big Five has caused stable Julian Peddle has worked reach £100m by 2015/16. its own in industry.” problems ... It did not effectively the bus industry since the A 10% operating profit margin early Peddle said this margin would campaign against the inadequate 1980s and has owned or would reduce profits across partbe after depreciation and these funding for concessionary owned numerous bus companies. might three groups by around £60m. fares, therefore translate to an and it has milked profit from operating He is currently a shareholder However, FirstGroup would profit margin of about 10%. buses to expand other areas in independent bus operators need to increase its profits of the Stagecoach’s bus business PLC empires.” Centrebus, D&G Bus, High substantially. Its UK bus Peak is the most profitable of business Peddle argues that the bus the Buses and Midland Classic. achieved an operating profit ‘Big Five’ PLC groups. Its industry has also failed to regional “The excellent work done in operations (outside of London’s highlight the “fundamental certain areas such as Brighton, A Stagecoach bus regulated market) generated incompetence and financial Reading and Nottingham in Newcastle operating profits of £147m profligacy of most PTEs”. is masked by the less than in 2013/14 - a margin of 14.6%. “If [bus] franchises go ahead, spectacular delivery and in excessive National Express is the next 10 years’ time we may look profits made in other areas,” back he most profitable group. It to the 2000s as the Golden told Passenger Transport last made Age Council-owned operator week. a £34m operating profit of the deregulated bus network. sets from “If you look at the profit stimulate new innovations out a demanding specification that aims to made its bus operations in the Costs under regulation will from manufacturers and West in those areas which are evolve vehicle design accepted Midlands and Dundee in skyrocket. as excellent, they are in the 2013/14 2% a margin of 12.1%. Council“If we cannot persuade the the best, and by manufacturers to 8% range, which suggests been known over the years owned bus a The third most profitable who tolerate high levels powers that be that a deregulated of higher level of reinvestment is for pioneering a number operator warranty rework in the field of in the network is best then we as a technologies, including the network. The excessive areas Reading deserve cost of doing business”. of widespread introduction to go the way of the dinosaurs.” Buses has profit such as Newcastle, of gas More simply he says that Andrew Garnett bus vehicle technology. “Our UK BUS OPERATING PROFITS revealed how ALBUM chairman Ben operators pay Ferrari money volumes Deputy Editor West Yorkshire and Kent (2013/2014): THE ‘BIG while aren’t in a league suggest it intends to FIVE’ of the major Source: Group annual reports manufacturers build in Ferrari Colson has called for smaller challenge the bus manufacturing a level of monopoly profit.” PLCs but we provide a highly bus volumes - but don’t make community over the next use of companies to be compensated visible showcase for the A reversal of deregulation wider bus Ferrari materials to reduce in three years with a specification weight. industry in the if they find themselves unable UK and beyond,” Newcastle is already being Instead, a glazed body is REVENUE built on document that outlines actively OPERATOR PROFIT adds Bickerton. MARGIN to work under its wish a third party frame and presented pursued, and West Yorkshire a regulated list for future vehicle purchases. (£m) It has led him and his team (£m) has Arriva* for sale as an integrated product (%) system (PT108). Produced by John Bickerton, long expressed interest in Peddle thinks to draw up a new yardstick 942.5 the idea. FirstGroup “like the carrozzeria of the by 91.3 9.7 that a buyout scheme Reading’s chief engineer, 1960s”. which future vehicle The North East Combined he for small purchases 930.2 He adds that the car market 44.4 notes that while the passenger Go-Ahead Group will be made - a detailed 4.8 operators is “a nice Authority is seeking to vehicle has moved on over the last idea”, but 800.5 car industry has moved on 20 83.5 specification that will see - Deregulated (outside London) over 10.4 he cannot see how years and the integration, each re-regulate buses in Tyne it could be the last 25 years, the bus testing, 350.8 element measured against & Wear industry 41.9 refinement and technology Regulated four 11.9 (London) justified politically. has not. “The Kia Pride of through Quality Contracts. ‘drivers for change’ (see panel). 449.7 was an many of the features available The 41.6 It National Express 9.3 entry level car and was panned in “What we really need to is these elements where authority has said that this by 281.0 Reading the average £25k car are would 34.0 informing illustrates how contemporary reviews as Stagecoach 12.1 make people understand out of it is seeking simple wing enable a portion Reading’s thinking about 1,257.7 is how mirrors. A more simple offix the existing date,” says Bickerton. “Since future 171.3 technology to create quick - Deregulated (outside London) then 13.6 a Conservative government vehicle purchases. wins. calls for profits destination madeequipment even base-model cars have 1,012.8 by operators to For the 2016 vehicle intake, 147.4 gained - Regulated (London) “If manufacturers cannot 14.6 is pushing for nationalisation to be linked spec, refinement, reliability, to ticket machine be reinvested some of these new features 244.9 in an respond to these demands 23.9 equipment, allowing a live improved All ‘Big Five’ F performance and efficiency. 9.8 without compensation, our include sensing equipment list bus service, an argument ” he said. 4,211.9 products won’t compete in the of ‘via’ points to be displayed which 424.5 with “However, since the low * Converted from Euros upper deck tree protector 10.1 “Even Clement Attlee and floor other modes, we will lose that depending on vehicle location. bus was launched in the market will detect impacts from same year, share to Uber, Barbara Castle did not try trees or | There PRT and the other 10 5 are June the list is less impressive. also 2015 simple that.” fixes such foliage, log the location and Buses emerging
A long standing bus entrepren deregulation could be swept eur has warned Britain’s major groups that away if they continue to take ‘excessive’ profits
ISSUE 127 5 FEBRUAR Y 2016
Minister tells industry : ‘We believe in buses ’
NEWS, VIEWS AND ANALYSI S FOR A SECTOR ON
Buses minister Andrew Jones the forthcoming Buses Bill, has sought to reassure the industry about claiming that objective is ‘a healthier industry’
INNOVATION & TECHNO LOGY
Will Swain
Reading seeks greater bus design innovatio n
are now heavier, less efficient and more complex. Reliability is more subjective but the net effect of more systems without rigorous applications engineering cannot be positive. If a £250,000 car rattled as much after three years as most modern buses do then it’d be unsaleable. It wouldn’t be tolerated in a £10k car.” Bickerton says that the bus manufacturing industry should not be defensive about these issues. Instead he argues that this is an industry-wide issue as a result of “the avarice indifference of operators who accept less than 14 | 15 April 2016 PT_Issue132_p14-15
threats and very quickly they will take our business,” Reading’s chief engineer warns. “And if we don’t demand these measures we’re letting them.” The municipal operator has
John Bickerton
then as larger litter bins (“meaning transmit the information back to vehicles are cleaner in service”) the operator in order to PT_Issue110_p10-11 produce and larger luggage pens.10Bickerton a hotspot map of locations with a says that few manufacturers high incidence of tree strikes. have really tackled the need to hold Another innovation seeks to shopping conveniently and take step lighting required where by bags are firmly secured they’re law a stage further. “There is often difficult to load or remove potential to extend the operator’s from the rack, particularly ownership beyond the step for edge elderly or infirm customers. by projecting a welcome message Continuing the idea of onto the pavement outside the projecting Reading’s brand, vehicle, improving safety for the specification also calls boarding and alighting passengers for vehicles that are personalised as well as boosting that ‘customer for the operator, including logos wow’ factor,” says Bickerton, on panels, on wheel trims and adding that luxury cars such printed as onto floor surfaces. the Range Rover Evoque can More high tech ideas include project customised logos from the contactless charging points for
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03/06/2015 17:38
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13/04/2016 17:10
Andrew Jones (right) at last month’s launch of Transdev Blazefield’s revamped Route 36
Addressing an audience of bus operators in London last week, buses minister Andrew Jones sought to reassure them that the objective of the forthcomi ng Buses Bill is “a healthier industry” with a secure long term future. Jones, who said he would outline details of the bill at next week’s UK Bus Summit, told the annual CPT dinner: “This government believes in buses.” Earlier, CPT president John Birtwistle had told the event that the industry remains “extremel y concerned” about plans to include franchising powers in the bill.
FULL STORY: PAGE 03
Perry demands rail tick et Rail minister says continue d use of magnetic strip
Transport minister Clare Perry has stepped up pressure on the rail industry to deliver new digital ticketing systems and remove paper tickets in a speech entitled ‘Death of the Tangerine Ticket’ . At last week’s Transport Ticketing & Passenger Information Global conference in London, Perry said all future franchise competitio ns would demand that the new operator offers a ticketing system which enables customers to choose exactly how they want to pay for
“The choice should be the customer’s”
Claire Perry MP
revolution
tickets is ‘a missed opportu nity’
their journey and hold their ticket. She also described the industry’s continued use of magnetic stripe tickets as a “missed opportunit y to link ticketing across travel modes, deliver much more customer convenience, and drive great
customer relationship manageme nt”. “I am often asked what sort of smart ticketing the governmen t wants to see. And my answer is this. The government is agnostic. The choice should be the customer’s ,” Perry said. “If the customer wants to load their tickets onto the bank card they used to buy their tickets online, or onto their phone, a watch, or a bracelet, or, if like one Moscow Metro user they want to insert a chip under their skin, the choice ought to be theirs. CONTINUED ON PAGE 20
THE MOVE
NEWS
High Street woes hit First’s bus business
06
Patronage lower than expected in Q4, 2015
TRAVEL TEST
‘Southeastern witch-hunt is unnecessary’
22
Alex Warner defends under-fire TOC
INSIDE TRACK
Satisfaction rises, but it’s still patchy
26
Latest National Rail Passenger Survey
NEWS ROUND-UP
INSIDE TRACK MARKET MONITOR
Poor final quarter s dismal year for busend es
New statistics from the Departme nt for Transport reveal a end to a disappointing year disappointing for bus demand, with patronage down by 2.9%
30
Christian Wolmar on confidential reportin g
SPECIAL REPORT
Hendy outlines NR challenges
36
Cardiff Bus to transfer services to sister firm
Bus demand in Great Britain YEAR-ON-YEAR CHANGE declined by almost 3% in IN BUS PATRONAGE IN GREAT BRITAIN the Source: Department for Transport ‘autumn’ quarter of 2015, ending December 31, according to statistics published by the +4.9 Department for Transport. +3.7 +3.6 This represents a dismal end to a year which saw bus demand decline in every quarter. It was the sixth consecutive quarter to +0.4 record a year-on-year fall. +0.0 +0.4 Again, the decline was universal, with London, previously -0.7 immune -0.7 from the decay seen in other -1.3 parts of the country, experiencing a -2.1 3.6% decline. 2006 2007 2008 2009 The DfT’s provisional 2010 2011 2012 2013 2014 2015 seasonally adjusted estimates retail prices index over the put total demand over the same three PT_Issue131_p08-09 8 12-month period. The GB BUS USAGE WEATHE months at 1,254 million passenger largest R MAP increase was in the metropolitan journeys, 2.9% down on the same QUARTER-ON-QUARTER areas (3.3%), followed by period of the previous year. CHANGE YEAR-ON-YEAR London GROWTH October-December 2015 (2.7%) and the Shires (2.3%). The biggest drop was again Year ended December 31, 2015 vs October-December 2014 The increase in local bus in Wales (-4.0%), followed vs Year ended December fares by 31, 2014 was even higher in Scotland London (-3.6%), England’s (3.2), but lower in Wales (1.1%). GB metropolitan areas (-3.5%), GB OVERALL Scotland (-1.9%) and England’s OVERALL Comment ‘Shires’ (-1.5%). It’s official, 2015 was the Looking back at the total worst year for bus patronage in impact of the economic recent crisis on SCOTLAND times, with a 2.1% decline bus demand, patronage in SCOTLAND the -1.9% across Great Britain - contrast autumn quarter is now 4.9% -2.5% lower this with the relentless growth across Great Britain than in in the METS demand for rail travel. equivalent quarter of 2008. METS -3.5% The overall picture has been The sharpest decline over -2.6% this made more gloomy because seven-year period has been in the malaise Wales, where almost one has now spread to in three WALES London, which accounts journeys have been lost (-29.9%). SHIRES WALES for -4.0% SHIRES more than half of England’s -4.8% -1.5% The next largest decline bus was -1.1% journeys. The capital’s buses in Scotland (-17.6%), England’s LONDON are LONDON shedding passengers because metropolitan areas (-15.3%) -3.6% they and -2.2% are stuck in heavy traffic, England’s ‘Shires’ (-5.1%). partly a In sign of the city’s economic contrast, bus use in London success. has Source: Quarterly Bus Statistics, Elsewhere the situation grown by 2.8%. Department for Transport is fragile, and governments must avoid making things worse. 20 | 1 April 2016
-2.9%
COMMENT
Bus industry should roll out CIRAS
that VBL is likely to recruit staff on different terms and conditions from those applying to Cardiff Bus staff. VBL has been registered with Companies House for some years but lain dormant. It has the same directors and non-executive directors as Cardiff Bus. It has now received authorisation from the Traffic Commissioner to operate 20 vehicles from the Cardiff Bus depot in Sloper Road. Councillor Ben Thomas, chairman of Cardiff Bus, was unable to say how the terms and conditions and pension arrangements for VBL staff would differ from those of Cardiff Bus. He said the decision to activate VBL was a response to Cardiff Rolling year figures Bus losing passengers for a variety The provisional figures for of reasons, including the the closure of the city’s bus station, increased One of Cardiff Bus’s year ended December 31, 2015, older vehicles. competition and bad weather. show total demand for bus A candidate for He said that some of Cardiff the VBL fleet? Bus’ services in Great Britain old vehicles would be transferred at to VBL instead of being 5,080 million journeys, 2.1% sold or lower used for spares, and would than the same period in be 2014 deployed on routes with low with 108 million fewer journeys. passenger footfall. The graph opposite shows The industry source said In thethat there face of increased competition was a strike at Cardiff Bus this is the biggest decline on core routes, local authority-ow last Cardiff in bus Bus is setting up a new low-cost ned year. “If you look at their terms use in recent times, even operation. Rhodri Clark larger reports and conditions, they’re pretty than the 1.3% declineCOMPETITION restricted. They don’t give in 2009. change its predatory conduct in on the bus. There were year-on-year 2004 and service linking Cardiff Bus is preparing to the city centre 2005 when it operated no-frills “It sounds as if they [Cardiff some of its services and Newport Road to the patronage declines intransfer services on the same routes eastern areas Bus] are trying to put a lowertoall a sister as company which will suburbs. Cardiff Bus has of Great Britain. Wales new competitor 2Travel, also seen cost operation out on the havesaw which lower operating costs. The significant competition in road to subsequently became insolvent. the compete against NAT, but the sharpest decline, vehicles northern suburbs, through don’t a dropofofVale Busline Ltd Competition in the Welsh which forget that Cardiff got stung (VBL) will carry a different 4.8%, followed by England’s Stagecoach services pass by livery capital intensified last May, as they the Competition Commission from the Cardiff Bus fleet when travel in from the outlying but metropolitan areas (-2.6%), local independent New Adventure valleys. for the way they will operate from the same responded to VBL will initially focus on depot Travel launched a high-frequency, Scotland (-2.5%), London 2Travel. They should tread south west of the city centre. cutting the operating costs really (-2.2%) cross-city service. NAT of carefully. They would have recently One industry source said and England’s ‘Shires’ (-1.1%). its loss-making suburban taken began a second commercial routes. extreme legal advice about Cardiff Bus and its owner, Passenger Transport understands this Cardiff and not done it lightly. council, would not be embarking Fares “In order to compete on on this course without taking a likefor-like basis and not be Bus fares in England “extreme legal accused advice”. The in December of using their might and was severely censured by weight to 2015 were up 2.7% onoperator the smash the opposition, setting same authorities the competition up for month of the previous year, a low-cost company would well be one way they could potentially ahead of the 1.2% increase 08 | 1 April 2016 do it. in the
PT_Issue131_p20-21
“It sounds as if they are trying a lower-cost operation out on to put the road to compete against NAT”
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30/03/2016 18:28
-2.1%
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30/03/2016 17:17
‘We’ve concealed a success story’
PT_Issue127_p01 1
03/02/2016 20:11
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