NO 314 JUNE 29 2007 HIGH COURT BACKS ARRIVA IN CHESTER BUS CASE SEE PAGE 7 News and analysis for the passenger transport business inside 9 news 14 feature 11 interview 10 Opinion Edinburgh tram Trolleybus plans Tube boss Tim 17 Business comment plans given the offer life after O’Toole speaks out 18 Business monitor green light, but Supertram about his battle 21 Business back-up EARL must wait for Leeds with Metronet 28 People East Midlands defeat piles the pressure on National Express

BY ROBERT JACK contract where it was the incumbent is not good news.” NATIONAL EXPRESS Group is Failure to bounce back with a A scene from one of the TV ads reeling after discovering that its victory in either the Cross Country must-win bid for the new East or East Coast competitions will see Midlands franchise has failed. NEG’s turnover fall sharply. This Stagecoach The Department for Transport could leave the group vulnerable to announced last week that a takeover bid from a rival group. to advertise Stagecoach would be awarded the Industry speculation suggests seven-year contract, which will that Arriva will shortly be named buses onTV combine the Midland Mainline as winner of Cross Country. But intercity operation and the eastern even if NEG is the victor, Brewer STAGECOACH HAS hired the section of Central Trains - both believes it would open a “Pandora’s agency behind the famous Irn-Bru currently operated by NEG. box” of competition issues relating

soft drinks adverts to develop a TV The defeat came in the same k to its express coach network. u . o consumer advertising campaign week that the DfT announced that c This leaves the hotly-contested . s e

“to encourage Britain to get on it will terminate NEG’s Gatwick g East Coast competition, where a m board the bus”. Express franchise on November 11 i NEG is bidding against First, Arriva, l i a r

A series of three 40-second and hand the operation to Govia’s . and Virgin/Stagecoach. The w adverts, created by the Edinburgh- Southern subsidiary. w winners of this franchise will be based Leith Agency, have been The loss of these franchises w announced in late summer. aired in the Anglia West TV region further contributes to the dramatic NEG will surrender Midland Mainline to Stagecoach on November 11 NEG’s defeat was announced in since last week. The £350,000, dismantling of what was once the same week that the winners of 12-week pilot campaign is being Britain’s largest train operator. After c2c and its struggling One (Greater forward to the DfT explaining the the West Midlands franchise and targeted at consumers in the areas acquiring Prism Rail in 2001, NEG’s Anglia) operation. reasons for their decision.” Transport for London’s London around Cambridge and UK trains division held a total nine The East Midlands result is a Bowker will focus his attention Overground contract were named. Peterborough, where Stagecoach’s UK rail franchises. This has since major setback for former Strategic on the group’s bids for the new NEG was the incumbent operator buses are achieving strong growth. been reduced to six, but will drop Rail Authority chairman Richard Cross Country and Intercity East for both franchises, but failed to Plans are also being drawn up to further on November 11 this year Bowker, who was appointed as Coast franchises. The City believes reach the final stages of either roll the campaign out to further when the group will hand over NEG’s new chief executive last year that success in one of these competition. Govia has won the key locations around the UK if the Midland Mainline, Central Trains, in an effort to revive the group’s competitions is essential for NEG. West Midlands contract while the Anglia West pilot is a success. Silverlink and Gatwick Express fortunes in franchise competitons. Damian Brewer, transport analyst joint bid by Laing Rail and Hong “This is a completely fresh way Express to new owners. All of these Commenting on the East at JP Morgan, said: “We think that Kong’s MTR Corporation captured to market public transport and a operations have been run by NEG Midlands decision, Bowker said: to satisfy investors’ appetite for the London contract. first for the UK,” said Stagecoach since the mid-1990s. The group’s “We are very disappointed with National Express to grow [profits] Franchise news page2-3 chief executive Brian Souter. two remaining franchises will be [the] announcement. We look it ‘has to win’ one bid, and losing a Business comment page17 “Stagecoach has attracted rising numbers of passengers for the past five years in a row,” he continued. “We believe that with Tube boss defiant as Metronet begins Brown hands increasing congestion and more environmental awareness, there is Kelly transport huge potential to get even more proceedings to recover additional costs post in reshuffle people on board buses.” Actor Tom Baker recorded the METRONET HAS given notice to the infrastructure company. Ruth Kelly was appointed secretary of state voiceover for the adverts, which London Underground of its “Their [Metronet’s] behaviour fortransportinthisweek’scabinetreshuffle were directed by Damien intention to invite PPP arbiter Chris and their claims are typical of a bynewprimeministerGordonBrown.Kelly, O’Donnell, who is well known for Bolt to conduct an extraordinary contractor who is trying to put who was previously communities and local his comedy such as in the feature review. The Tube infraco claims the forward a great big hairy claim in government secretary, replaces Douglas length film East is East and TV review is necessary for it to recover the guise of this PPP adjustment,” Alexander, who has moved to international commercials for energy drink the “significant” additional costs it he said. “They are forgetting the development. Irn-Bru 32. The ads feature three claims to have incurred. extremely generous - some would Kelly, 39, began her career as an humorous characters: WAG Tanya Metronet claims that during the say outrageous - equity returns they economics reporter for the Guardian and Brown, academic Professor Harold first four years of its PPP contract to were guaranteed in return for later worked for the Bank of England. Hooterson and “green” enthusiast renew the LU’s Bakerloo, Central, management expertise to deliver After becoming MP for BoltonWest in 1997, Gayle Windybottom. Victoria, and Waterloo & City lines, these upgrades - which they priced she was made a parliamentary aide to Commenting on the use of costs have been higher than - efficiently and effectively.” NickBrown, formerministerforagriculture, humour, Leith Agency partner Ed anticipated. The extraordinary O’Toole believes that the root of fisheries and food. After the 2001 election Brooke said: “This kind of approach review is the process created to the consortium’s problems is its she become a minister for the first time, is novel in transport advertising, enable the recovery of these costs. unworkable structure, which gives joining Gordon Brown’s team as economic but our view is that if people feel Metronet and LU are currently it no control over its contractors. secretary to the Treasury. In 2004, Kelly was warm towards a transport brand consulting on the form and He fears that the extraordinary appointedasaministerintheCabinetOffice. then they’re more likely to use it.” conduct of the review. However, in review, which could take up to a Following David Blunkett’s departure she Stagecoach results page4 an interview in this edition of year, may delay vital rebuilding was promoted to education secretary. Business comment page17 O’Toole fears the extraordinary Transit , LU managing director Tim work on the Tube network. Opinion page10 review could delay renewal work O’Toole expressed no sympathy for Tim O’Toole interview page11 2 franchise news Highlights of Stagecoach and Corby winners East Midlands franchise in East Midlands franchise deal G A new hourly service between Kettering and London, increasing the BY ROBERT JACK number of off peak services on the Midland Main Line to five trains per CORBY MOVED a step closer to hour. It has also been agreed in being reconnected to the national principle to extend this service to a rail network last week when the new station at Corby from December Department for Transport named 2008. This removes the need to split and join trains at Leicester. Stagecoach as winner of the new G East Midlands franchise. A 9% increase in peak capacity into and out of London St Pancras by 2010. Trains have not served the G Northamptonshire town since More carriages on the busiest trains between Nottingham and Liverpool. 1966 and it is currently said to be G the largest in Europe without a The new station at East Midlands station. However, Stagecoach’s Parkway will be served by two trains an hour from December 200. winning bid for East Midlands G franchise contains an option to Daily direct service between Lincoln and London to be introduced. provide rail services to a potential G new rail station in the town. Journey times between Sheffield, In May this year Network Rail Derby and London reduced, saving up announced that it would fund a to 12 minutes on an average journey between London and Sheffield. £1.2m scheme to reopen the G station, saying that pending Improved performance, with a government approval the station forecast 90.4% of trains on time by the end of the franchise. could be open by December 2008. G The East Midlands franchise deal An artist’s impression of the new Corby station, which could be served by Stagecoach from December 2008 The Community Rail service contains a provisional agreement between Matlock and Derby will be to operate an hourly train service The new franchise will last for grow the market by delivering a pleased that this new franchise will increased to every hour and extended directly to Nottingham. linking Corby with London’s seven years and four months, and high-quality service that meets the deliver so many benefits to G St Pancras station, via Kettering, by Stagecoach has agreed to pay the diverse needs of short and long passengers in the East Midlands.” Investment of more than £5m on the end of next year. Department for Transport a distance commuters, business and The government will continue improvements to stations, including Perth-based Stagecoach is premium of £133m over this leisure travellers,” he said. to limit annual rises of regulated refurbishment of waiting rooms, already familiar with Corby period. The DfT can terminate the To accommodate this growth a fares in line with national policy, shelters, booking halls and toilets, having operated the town’s bus franchise after six years if the 9% increase in peak capacity will which is currently RPI+1%. internal lighting, seating, new cycle racks and repairs to forecourts. network for many years. operator is failing to meet agreed be provided into St Pancras by Stagecoach is expected to increase G Corby Borough Council said it performance targets. 2010. The new East Midlands unregulated fares by an average of Provision of an additional 750 car was “absolutely delighted” by the The group surprised the Parkway station will be served by 3.4% above inflation each year. parking spaces, in addition to 500 franchise announcement. “This is industry by submitting a solo bid two trains an hour from December A single compensation policy spaces at East Midlands Parkway funded by Network Rail and the DfT. great news for all those involved for East Midlands, which includes 2008 and a daily direct service for all passengers will meanwhile G in the Corby rail campaign,” said the Midland Mainline intercity between Lincoln and London will be introduced during the East Introduction of smart card a council statement. “The borough operation, rather than bidding begin. Market Harborough, which Midlands franchise term. technology by 2010,followed by a council will continue to work with long term partner Virgin. had been expected to see a Discounts in renewal for season flexible ticketing trial to attract passengers to the shoulder peak closely with all our partners to Apart from South West Trains and decrease in the number of trains, tickets valid between one month G ensure that the new station will be the tiny Island Line, Stagecoach will continue to receive a two-train and one year in compensation for Promotion of internet purchasing, including megatrain.com fares. built and operational for had never previously succeeded in per hour service all day. poor punctuality and reliability G December 2008. a bid for a UK rail franchise. Rail minister Tom Harris said: will be replaced by a system based Around 70 new self-service ticket vending machines Stagecoach will take over the Commenting on his group’s “This agreement will increase on delays to individual journeys, G East Midlands franchise on new operation, Stagecoach chief value for money, improve known as Delay/Repay. Introduction of automatic gates at November 11, inheriting Midland executive Brian Souter said he performance and accommodate Under the new system, all four stations to improve security and Mainline and the eastern section believed there was significant future growth in demand. From passengers will be entitled to reduce ticketless travel, resulting in of Central Trains from National growth potential. “We plan to win new and faster services to claim compensation for all delays, nearly 90% of passenger journeys Express Group. back customers from the car and increased security at stations, I am whatever their cause. being gated at least at one end Highlights of MTR breaks into UK rail with London contract London Rail HONG KONG metro operator strategy,” said Dr Francis Lung, approach to safety, quality and London’s railway network so that Concession MTR Corporation has finally won China and international business project management to the UK rail it will provide passengers with G its long battle to break into the UK director of MTR Corporation. industry. the levels of staffing, safety and Safer stations, with staff at all rail market. The company and its “Going forward, we will continue On November 11 this year MTR security and customer service that stations during hours of operation, joint venture partner Laing was to look for suitable opportunities and its 50/50 partner Laing, the they deserve. and improved CCTV. G last week named as the winner of to invest in both the UK and other operator of Chiltern Railways, will “By joining together the North Oyster smartcard readers at all the London Rail Concession. parts of Europe.” take over the operation of Silverink and East London Railways ahead stations, with better revenue After investing millions in a The company said it planned to Metro services from National of the 2012 Games, we will create protection to reduce fare evasion. G number of fruitless bids, MTR now bring its integrated and systematic Express Group. The new ‘London a new rail artery around the city A fleet of new trains between becomes that first new entrant to Overground’ network will be run serving 20 London Boroughs, Gospel Oak and Barking from 2009, win a UK passenger rail franchise under a contract closely managed including some of the poorest.” in addition to the 44 new London since Serco-NedRailways won the by Transport for London. London TravelWatch chairman Overground electric units already Merseyrail franchise four years ago. London mayor Ken Livingstone Brian Cooke praised TfL’s choice of ordered by Transport for London at a MTR operates a world class, was known to be impressed with operator. “Chiltern [currently cost of £223m. high volume commuter railway in MTR’s record in Hong Kong. operated by Laing] is one of the G The refurbishment of all stations. G Hong Kong, with punctuality of Commenting on the award of the best run services in the country, A commitment by the operator over 99%. It runs over 3,000 new contract last week, he said: and often tops satisfaction polls in that, by 2012, 94% of trains will arrive services a day, carrying 2.4 million “This contract paves the way for London and the south-east,” he on time G passengers, but has never before the radical revitalisation of said. “Additionally, MTR operates Increased levels of passenger run services outside of China. London’s rail services, which have one of the best metros in the satisfaction. G “Winning this franchise is an suffered from years of neglect and world, so we hope they can bring Improved track and signalling, important first step in the under-investment. With London those skills and experience to meaning less disruption and more development in the MTR An artist’s impression of the Overground we are investing over running London Overground - a reliable journeys. Corporation’s European growth new London Overground service £1.4bn to transform this part of vital rail route around the capital.”

TRANSIT | 29 JUNE 2007 franchise news 3 Southern to take over Gatwick Express in June 2008 after deal with the DfT GOVIA HAS has reached an is expected to generate annual government as the current non-stop service between Gatwick changes to their south London agreement with the Department revenue of around £66m at the arrangements. Airport and London Victoria. timetable in December 2009, for Transport over merging the outset. As part of the negotiations The new agreement also However, at the busiest times of which will accommodate the East Gatwick Express airport link with between Southern and the DfT, secures extra peak capacity day the service will extend to London Line extension. its Southern franchise. agreement has been reached on into London and a new hourly Brighton. This will double the Southern managing director The DfT has now given 12 future subsidy payments to direct service between Brighton number of express trains between Chris Burchill said the deal months notice to National Express Southern which reflect the fact and Southampton, which Brighton and London Victoria in offered clarity for his company, Group, operators of the existing that Gatwick Express pays a Southern will introduce in the high peak. with the prospect of exciting times Gatwick Express franchise. The premium. Southern will continue December 2007. The combined Southern ahead. operation will be handed over to to be a subsidised railway under The changes will include a franchise will now end three National Express Group has Southern on June 22, 2008, as part the new arrangements. Rail new-style Gatwick Express service months earlier, in September 2009. operated the Gatwick Express of the department’s plans to minister Tom Harris said the DfT to begin operation in December This is to ensure the winner of the franchise since April 1996. increase capacity. had secured a financial agreement 2008. The service will retain the franchise competition is in place It’s contract was due to run The Gatwick Express franchise that is at least as favourable to the current frequency, branding and before implementing major until 2011.

Highlights of Rapid growth goal set by Govia’s West Midlands franchise London Midland train company G The delivery of 217 new carriages by July 2010 for use across the BY ROBERT JACK the operator meeting performance targets. franchise - 37 four-car Siemens Govia’s Managing director-rail development, Desiros, 12 two-car and 15 three-car GOVIA MUST achieve growth in passenger Tom Smith, promised real improvements to Bombardier Turbostars. volumes of 5-6% every year to make a profit passengers. “We have exciting plans for new G Existing coaches freed to increase out of its new West Midlands franchise. trains to replace some of the older parts of the capacity in other parts of the country. Combining Silverlink County services with fleet,” he said. “The new fleet will completely G Fitment of automatic loading Central Trains local and regional services, the transform passengers’ travelling experience and equipment to help ensure that trains new ‘London Midland’ operation will begin play a key part in enabling us to meet our are deployed where needed. with annual turnover of nearly £400m, split targets for continuous improvement in G A new London-Crewe semi-fast roughly 50/50 between subsidy and passenger punctuality and reliability. service calling at Trent Valley stations. revenue. But by the final year of the seven-year Ludeman said he felt that the capture of the G More frequent trains, two per hour contract, passenger revenue is expected to have West Midlands contract had vindicated Govia’s for most of the day, between risen to £300m, while subsidy will have fallen strategy of bidding for East Midlands, but not Birmingham and Liverpool and to £155m. the more attractive West Midlands or Cross Birmingham and Northampton. With increases in regulated fares restructured Country franchises which were tendered at the G An increase in services on the to RPI+1%, this extra revenue will have to come same time. He is meanwhile relieved to discover London to Northampton route after from attracting new people to the railway. that Govia beat rival bidder Serco-NedRailways midday on Sunday. Govia has indicated that it may wish to raise by a narrow margin. “It’s what you want to G £5m invested in refurbishing unregulated fares annually by about 3% above Keith Ludeman: ‘population growth is the key’ hear,” he said. existing Class 153 and Class 170 trains. inflation on the London-Northampton route. Taking on West Midlands and Gatwick G Improved performance, with a Average rises on all other routes are expected you’ve ever had the misfortune of using the M1 Express will see Govia’s share of the UK rail forecast of 90.7% of trains on time by to be no higher than 1% above inflation. [motorway] recently you’ll know what a good market expand from 14.3% to 16.2%. Its share the end of the franchise. It’s an ambitious task for Govia, the Go alternative the railway is.” of London commuter traffic will meanwhile G Investment of £11.5m to improve to Ahead/Keolis joint venture, but Go Ahead chief After bus company London General and increase to 46%. station facilities and security, including executive Keith Ludeman is confident that it train company Southern, London Midland is However, Ludeman is not ready to relax. new CCTV systems at 29 stations. can be achieved, and he believes the growth the third historic name to have been revived He is already turning his attention to the next G New ticket gatelines at five stations around Milton Keynes is the key. by Ludeman. The company will be based in challenge. “We don’t have these franchises in Birmingham by 2009. “If you look at the population projections Birmingham. forever,” he said. “One lobe of my brain has G 1,033 extra car parking spaces. for this area there is lot of extra housing and The new franchise will begin on November already started thinking of a strategy for G The introduction of smart card not a lot of extra jobs,” he told Transit . “These 11, 2007, and will run for seven years and 10 retaining Southern [which expires in September technology by 2010 and development people have got to work somewhere and if months, with the last two years dependent on 2009].” of internet sales. Stourbridge lightweight rail service Reprieve forWalsall to made permanent by new franchise Wolverhampton trains

GOVIA HAS committed to operate facilities at Tyseley. industry,” said Parry People THE DEPARTMENT for Transport dwindled because of the poor a lightweight rail service in The lightweight rail service is Movers chairman, John Parry. has just confirmed that it will fund quality of the service. They say Stourbridge on a permanent basis planned for introduction before “Experimental operation last year the Walsall to Wolverhampton rail investment is needed before the as part of its new West Midlands the end of 2008, once the two new proved that our technology is right service until December 2008. The true level of demand is known. rail franchise. railcars have been built and tested for passengers - they told us it was one-year extension will give more Bidders for the new West An experimental service was for public service use. as quiet and attractive as electric time for decisions to be made Midlands franchise were asked to operated on the short branch line “This will bring clean, green and light rail systems.” about the service’s long term include cost estimates for the between Stourbridge Junction and quiet transport to the national rail Last year’s trial in Stourbridge future and funding. retention of the threatened service Stourbridge Town last year using a saw more than 4,000 trips Centro-PTA has been lobbying in their forecasts. Funding for the prototype lightweight railcar operated, with reliability and to keep the trains running since service was due to end on developed by Black Country-based punctuality at 99%. It was July 2005, when the former December 8, 2007, but Govia’s Parry People Movers. Its promoters calculated that carbon dioxide Strategic Rail Authority recom - new London Midland operation claim that it offers a cheaper and emissions were cut by 80% mended that hourly Central will now run the service for at least more energy efficient alternative compared to the conventional Trains-operated service should a year after it takes over from to heavy rail. type of train that currently cease in April 2006 and be replaced Central Trains in November. Two new railcars will now be operates the branch. by an ‘express’ coach service. The “We welcome the confirmation built to cover the operation, Centro-PTA, which helped to SRA’s Route Utilisation Strategy for that this essential service is replacing the heavy diesel trains fund the pilot service, was keen to the West Midlands revealed that continued until the end of next that currently provide the service. keep the service running. The an average of just six people were year,” said Centro PTA chairman They will be based at a new depot authority urged bidders for the using each of the 31 daily trips Gary Clarke. “We will continue to on the branch line, eliminating West Midlands franchise to between the two stations. vigorously pursue a long term the need for empty trains to run A prototype lightweight railcar include the lightweight railcar Local politicians have argued agreement and funding to secure to and from the maintenance operated in Stourbridge last year service in their plans. that the number of passengers has the future of the route.”

29 JUNE 2007 | TRANSIT 4 news in brief Stagecoach to trial cross-Forth Armitt scoops rail innovations award Network Rail’s chief executive John Armitt won the accolade of overall hovercraft service next month winner of the year award this week, at the rail industry innovaton awards BY ROBERT JACK 2007, hosted by the Railway Forum. Armitt, who will be retiring in July, STAGECOACH HAS confirmed after heading up Network Rail for the plans to begin a full passenger trial last five years, was presented the of a cross-Forth hovercraft link award by rail minister Tom Harris. The next month. overall winner of the year award will The Perth-based group will test be known as the John Armitt award for a 130-passenger craft on a route innovation for the next five years. between Kirkcaldy and Portobello Meanwhile, Southern rail scooped for two weeks from July 16 to 28. two awards: the innovation award for A total of 22 services a day - 11 safety, for their safety in maintenance in each direction - will operate on depots, and the award for engineering the route, with integrated bus links and information technology, with to accommodate commuters HSBC, for their Train Automatic looking to avoid congestion on Performance Analysis System. the Forth Road Bridge. The £300,000 trial will cover Virgin wins best rail part of the period of the Forth Bridge closure, giving commuters operator award a public transport alternative to Virgin Trains have won the award for existing bus and train services. best rail operator for groups under the Passengers will be able to travel on category of‘how you get there - the hovercraft for the same price transport’ at the 11th Group Travel as existing bus fares, with return Stagecoach will run 22 hovercraft services a day between Kirkcaldy and Portobello during the two-week trial awards 2007 in London last week. tickets from £4.50. South West Trains were the runner up, “The Forth estuary is an at the Kirkcaldy departure point at 470,000 passengers a year - would well with the time and effort of and Eurostar, GNER and Midland underused resource and we are the west end of the Esplanade. On use the service. But while the driving into the city - and doesn’t Mainline were shortlisted as finalists. looking forward to giving people the other side of the Forth, link service would require initial public include the added hassle of The awards dinner hosted by Group a chance to see the benefits this buses will run from the Portobello investment, Stagecoach believes searching for parking. Travel Organiser attracted around 400 technology could bring to the landing point at rear of the that within a few years passenger “If the trial proves a success, the professionals from the travel trade. region’s communities, economy Lothian Buses depot on the volumes could grow to make it service could offer an additional and public transport system,” Promenade to both Leith and commercially sustainable. travel option to commuters East Coast rail route commented Stagecoach chief Edinburgh city centre. Shuttle The hovercraft trial has received between Fife and Edinburgh that strategy published executive Brian Souter. buses will also run from Edinburgh financial support from the Scottish is fast, cheap and reliable.” Network Rail published the draft “It is crucial we have a wide city centre and Leith to the Executive, SEStran (the South Phil Wheeler, executive East Coast Route Utilisation Strategy range of public transport options Portobello departure point. East of Scotland Transport member for transport, City of this week, the 10-year strategic to cope with the increasing flow of The first service will leave Partnership), and Fife and City of Edinburgh Council, said: “Millions blueprint for the East Coast Main Line people between Fife and the Kirkcaldy at 7.10am, with the last Edinburgh councils. of people around the world start between London and Scotland. The Edinburgh area.” service to Portobello departing at “This trial hovercraft service is their working day on a hovercraft report is out for consultation for 12 A 28-metre, BHT130 hovercraft, 6pm. Services from Portobello will an example of the sort of creative or ferry. Providing commuters weeks and outlines options on on how manufactured by Isle of operate between 8am and 6.30pm. thinking needed to provide South with innovative and attractive best to manage available track Wight-based Hoverwork, will be No services will operate on July 22 East Scotland with a 21st century public transport options is critical capacity, cater for the needs of used for the trial. The crossing time - the only Sunday during the transport system. That’s why we to ensuring journeys are quick and different operators on the route, and will be around 20 minutes and the two-week trial period. are backing it with £92,000 of stress-free, congestion is eased and increase services to meet the predicted craft, with normal operating Stagecoach estimates that funding,” explained SEStran chair pollution is cut. rise in passenger numbers. speeds of approximately 35 knots, running a two-craft operation Russell Imrie. “This has the potential to be a GNER’s chief executive Jonathan will be able to run in waves of up would cost around £2m a year. The “A journey time of 20 minutes, popular alternative to car journeys Metcalfe said:“Today’s publication is a to two metres. group believes that around 9,000 followed by a short bus journey to and ease growing pressures on the significant step in the right direction... Stagecoach bus services will stop passengers a week - and up to the centre of Edinburgh, compares Forth Road Bridge.” For the first time, the RUS will decide what this railway is for and how the sometimes differing requirements of different operators and users can Strong passenger growth sees UK Souter best be met.” bus profit margin leap to 13.6% interested in Supertramlink Greyhound STAGECOACH’S UK bus division profit margin leap to 13.6%, up of £2.0m on turnover of £82.4m bus service has seen its profit margin increase from 11.8% in 2005/06. This is the over the 12-month period. STAGECOACH CHIEF executive to its highest level for six years as best margin achieved by the bus Across the group, Stagecoach Brian Souter has expressed interest launched in a result of continued high growth division since 2000, when a 15.3% generated turnover, excluding in bidding for US express coach SouthYorkshire in passenger volumes. margin was achieved. discontinued operations, of operator Greyhound if First Group Financial results published by The Glenvale and Traction £1,504.6m (2006: £1,305.4m). decides to sell the operation. A BRAND NEW bus service called Stagecoach this week show that Group businesses, acquired in Operating profits were £180.9m, First is set to acquire Greyhound Supertramlink which provides a passenger numbers grew by 6.6% 2005, returned an operating profit up from £112.5m. as part of its £1.9bn takeover of US direct connection between over the year to April 30, 2007. The Stagecoach’s UK rail operations, bus giant Laidlaw International. Stocksbridge to the Supertram at group estimates that 2.4% is South West Trains and Sheffield The Aberdeen-based group is Middlewood in South Yorkshire, underlying full fare passenger Supertram, returned an operating primarily interested in Laidlaw’s was launched last week growth, with the rest coming from profit of £58.8m over period yellow school bus operations. It is by Stagecoach. concessionary travel schemes. (2006: £58.9m) on turnover of currently conducting a review into Supertramlink comprises a fleet This growth helped the group £571.5m (2006: £506.7m). The Greyhound to decide whether to of five, new 27-seater, low-floor to increase its UK bus revenue, group said that this included some retain the 1,500-vehicle company Solo Optare buses. The vehicles are excluding 2005/06 acquisitions recovery from the impact of the or dispose of it. branded in the Supertram livery, and discontinued operations, by July 2005 terrorist bombings. Rail If First sells Greyhound, Souter and run every 10 minutes between 10% to £608.0m. The equivalent bid costs of £13.0m were incurred has told analysts that Stagecoach, Monday and Saturday. operating profit was £82.5m, up (2006: £11.7m). its long standing rival, would be Stagecoach are offering weekly or from £65.0m the previous year. Stagecoach’s 49% share in interested. Stagecoach already day tickets which provide After modest increases in its UK Virgin Rail Group returned an competes with Greyhound on integrated and unlimited use on bus margin in the previous two Stagecoach’s UK bus division saw operating profit of £12.4m routes into Chicago through its both the bus and tram. years, this year saw the operating a 6.6% rise in passenger numbers (2006: £5.3m). fledgling Megabus operation.

TRANSIT | 29 JUNE 2007 news 5 Watchdog says it may be time to end GreatWestern franchise in brief LONDON TRAVELWATCH , the performance of FGW trains in the information given to passengers “We believe now is possibly the watchdog for transport users for in London and the Thames Valley have been appalling,” said London time for the government to Denmark-Sweden rail and around London, will write to section shows that the percentage TravelWatch chairman Brian consider firm action on the future the government asking them to arriving on time has fallen to just Cooke. “This franchise is only 15 of the franchise, or the decline will win for First and DSB consider whether the First Great 68.4%. Meanwhile, the spring months old, but First was running continue. We believe they should A joint bid by First Group and DSB, the Western franchise should 2007 National Passenger Survey the service before that, so there is examine all areas of the franchise Danish state railway, has won the be terminated. showed that satisfaction with the no excuse for the abysmal service agreement and look at contract to operate train services The watchdog held a public service from FGW passengers in FGW are giving their passengers. potential breaches.” across the Öresund bridge linking meeting this week which was London and the Thames Valley, “Since before the franchise FGW managing director Denmark and Sweden. The services are addressed by FGW managing had dropped to only 53%. began, we have had numerous Alison Forster responded: “We are currently run by DSB and SJ, the director Alison Forster and Robbie “Passengers have been telling us meetings with FGW and First aware that our performance has Swedish state railway. Burns, the relevant route director just how bad FGW’s recent Group, but the situation has just been poor and we have already First will have a stake of around 30% for Network Rail. performance has been, and that got worse, and there is no sign of apologised for this. We are working in the two companies, one Danish and The most recent peak time the standards of customer care and stabilising the decline. hard to improve our service.” one Swedish, which will be set up to run the services. The contract will see First/DSB take over the operation of the rail service between Malmö and Copenhagen as well as domestic services in both Sweden and Denmark. Aggressive or transparent? First It also contains an option to extend the Öresund service north to Gothenburg. To win the contract First/DSB saw off competition from SJ, as well as defends its accounting practices Arriva and Germany’s Deutsche Bahn. First made its foray into Europe this year when it acquired a 130-vehicle BY ROBERT JACK companies to adopt industry-wide reporting German bus operator ( Transit June 15). standards. FIRST GROUP has been forced to defend itself Responding to the criticism, a statement Capital Connect hits against the accusation that its “aggressive” issued by First said: “Our accounts are prepared punctuality record accounting practices have seen its annual in line with international accounting standards, profits overstated by millions of pounds. they have been audited, they are consistent The performance of First Capital The Aberdeen-based group has come under with previous years and with generally accepted Connect train services has reached its fire for reporting regular business expenses such accounting principles, and they represent best ever level since the franchise as train refurbishment and rail bid costs as appropriate and completely transparent began in April 2006. Between June 3 exceptional or “non recurring” items. disclosure to our shareholders and other users and 9, 93.7% of its trains were on Published last month, First’s accounts for the of the accounts.” time, exceeding its targets. On the year to March 31, 2007, include UK rail bid Chris Cheek, a director of public transport company’s Great Northern route 94.5% costs of £14.5m among “non-recurring bid consultancy TAS, said any suggestion that First’s of trains were on time, compared to costs and other non recurring items”. accounts were misleading is wrong. Cheek is 93.1% on its Thameslink route This section of the accounts also included editor of the Bus Industry Monitor and Rail “UK rail transition costs” of £21.3m. These costs Industry Monitor reports, which analyse the Warning over bus “were incurred in mobilising the First Capital finances of the UK’s public transport operators. disruption in Scotland Connect and First Great Western franchises While he regards some of the items reported as First has apologised to bus users in East including subsequent obligations to refurbish An exceptional job? Costs incurred refurbishing expectional by First to be “a normal part of Scotland after widespread disruption trains on both franchises”. First Great Western trains are treated as a being in the UK rail market”, he said that the to services led Scottish traffic While there is no suggestion of wrongdoing, non-recurring items in First’s latest accounts group was actually being more transparent commissioner, Joan Aitken, to issue a no other UK train operator currently treats than any other UK train operator. warning. Unannounced cancellations these costs as exceptional. Nick Hood, a partner at Begbies Traynor, the “All the figures are set out quite clearly in the or delays to numerous routes across the In the bus industry, the group has previously accountant, told The Times that “while, clearly, group’s annual report, and therefore enable area have been reported after an listed the millions of pounds incurred on the no laws have been broken ... this is highly shareholders, analysts and other interested unknown number of buses were taken finance element of bus leasing costs as an aggressive accounting”. parties to make up their own minds about the off the road. exceptional item. John Pugh, a member of the Commons results,” said Cheek. “That is what transparent A spokesperson for the group said Over the past seven years First has reported public accounts committee, meanwhile said accounting is about, and First Group should be the buses had been removed following costs totalling £191.7m as exceptional or that the practice “brought no credit to them or praised, not blamed, for being so open about an“engineering review” to improve non-recurring. the industry”. He called on train operating their results.” vehicle availability and refuted claims the vehicles were unfit for service. Aberdeen gives go ahead to‘green’ global headquarters Consultation Members of Aberdeen City Council’s JayneMaclennan,directorofpropertyat planning committee have granted First First said:“Our HQ will be one of the most on Glasgow’s Group planning approval to develop a new environmentally friendly developments of global headquarters and bus depot at its its type in the UK. Much of the energy use existing King Street site in Aberdeen. onthenewsitewillderivefromrenewable bus network Thegroupclaimsthatthenewbuildings sources and there are features which are FIRST IS consulting on plans to willincorporatesomeofthelatestadvances designed to reduce energy consumption improve bus services across the insustainabledesignandrenewableenergy andwastewhichwilllimitthesite’simpact Greater Glasgow network. sources which are set to be among the on the local and global environment.” The company’s Route “greenest” of their kind in the UK. Construction will start in September Development Plan looks Key features of the development 2007andisexpectedtobecompleteinearly at bus network changes in the include: 2009. Approximately 160 people will be context of wider developments in GA proportion of the energy for the new located at the new headquarters and Greater Glasgow, taking into site will be derived through renewable around500peoplebasedatthebusdepot. account new housing schemes, sources including ground source heat Firsthasalsoannouncedplanstoprovide work, leisure and shopping pumps and solar panels, and energy will each member of staff with a‘Green Travel facilities. New routes will include be saved through innovations such as Plan’. Employees will be provided with an a new direct bus service from movement responsive lighting. individual guide detailing walking/cycling Partick Interchange to the growing G Water consumption will be reduced distances,routesandpublictransportlinks Glasgow International Airport. through rainwater harvesting and full directly tailored to link their home address First plans to communicate recirculation of water in the bus wash to the King Street headquarters. The with the public on many of the process. schemeisdesignedtoencourageFirststaff proposals with a brightly coloured G Retention of the historic 1862 listed to consider an alternative to the car. To “Listening Bus” called First Point - building as the focal point of the new furtherpromotetheuseofpublictransport, a travelling mobile surgery where development. First employees throughout the company passengers can get advice and G New First Group world training centre. An artist’s impression of First Group’s redeveloped King Street site are also issued with free travel passes. information about First’s buses.

29 JUNE 2007 | TRANSIT 6 bus news in brief Bell ‘keeping an extremely close eye’ on Preston competition NORTH WEST traffic response Preston Bus has since actual journey time is less than she will not hesitate to act. It is the commissioner Beverly Bell has registered two new services in the one minute. responsibility of the highways Blazefield orders for warned Stagecoach and employee- heart of Stagecoach’s territory, with He added that he is of the view authority, in this case Lancashire Burnley & Pendle owned Preston Bus that she will a new route linking the city centre that Stagecoach’s services could County Council, to report any Transdev-owned Blazefield Group has intervene if competition between with nearby Penwortham and also use that time to either leave the concerns to the commissioner and placed an order with Optare for 19 of the two operators gets out of hand. an interurban route between bus station late or sit on that first therefore the ball is very much in its new Versa single deck model for use It follows Stagecoach registering Preston and Southport. stop for up to three minutes, its court at the moment,” he at its East Lancashire bus operations. competing services on two of Preston Bus managing director leading to the possibility of added. The Leeds-based manufacturer says Preston Bus’ city routes; route 11 Peter Bell has already said that congestion. ( Transit June 1). Lancashire County Council the order is significant as it is the between the city centre and Stagecoach’s registered timetables A spokesman for Bell’s office meanwhile, has confirmed that it second order from a major group for Gamull Lane, and route 16 to mean its competing services will said the traffic commissioner will monitor congestion levels in the new bus, following on from Farringdon Park. Operation of the have a four minute window for its would be keeping an “extremely the city centre and has admitted Stagecoach’s launch order last year. services began this week using the vehicles to travel between the bus close eye” on the conduct of both that it has concerns that the war Blazefield will put the new Perth-based group’s Citi brand. In station and the first stop, when the operators. “If there are problems, will indeed lead to congestion. 11-metre long vehicles into service at its Burnley & Pendle subsidiary, with the balance of the order scheduled to be in service by the end of the year. Commenting on the surprise order, Western Greyhound takes 50km Blazefield operations director Dave Alexander said: “The Versa has real style, it looks completely different from any other vehicle. Passengers benefit from increased space and leg room.” campaign to the House of Lords Funding continues for BY ANDREW GARNETT “If a county council in England were to certify a sparsely populated area as being served Huddersfield free bus THE CONTENTIOUS issue of the European by a rural bus service, could it not be covered West Yorkshire PTE Metro have agreed Union’s recently introduced “50km rule” was by that derogation, already won by the Finns, to continue funding for Metro's back in the spotlight last week with the being and a list of such services be furnished to the Huddersfield FreeTownBus service debated in the House of Lords and also making [European] Commission?” he asked. jointly with Kirklees Council, until an appearance on the BBC’s Politics Show . In response Labour peer Lord Bassam said October 2011. They are in the process of At Westminster, Liberal Democrat transport that officials from the Department for seeking private sector partners to help spokesman Lord Bradshaw raised the issue Transport were willing to meet with rural bus fund the service. during a debate on the Community Drivers’ operators to discuss the issues in more detail. Newly elected chairman of Metro Hours and Recording Equipment Regulations “We are genuinely sympathetic to his Councillor Ryk Downes commented: 2007, where he tabled an amendment to scrap [Bradshaw’s] concerns,” he added and noted “Our research has shown that the approval for the regulations in view of the “cost that DfT officials are also investigating if the service has proved particularly useful implications for rural bus services and the social Finnish derogation could apply in the UK. for people with mobility problems exclusion that will result”. Meanwhile, the issue featured on the South and parents with young children and The new rules mean that all buses used on West regional edition of last Sunday morning’s that it has already encouraged an services over 50km in length must be fitted Politics Show , where Mark Howarth said he was additional 22,000 shopping trips to with a digital tachograph and has drawn facing a barrage of criticism from bus users, with Huddersfield centre.” criticism due to the high cost of installation patronage now falling on some of his routes and maintenance of the equipment, Brussels willing to examine rural derogation since the changes had been introduced. “This Centro gives free particularly from smaller operators in rural is very frustrating as we have put a lot of effort travel to job seekers areas. As a result many have had little option has also pointed to the poor facilities available trying to provide a good service which is now West Midlands PTE Centro-PTA’s but to slash their routes into separate services to his passengers at these interchange points. being ruined because we have to comply with WorkWise initiative, which gives free below the limit. Speaking to the Lords, Bradshaw read a letter this legislation,” he told the programme. “They travel passes to unemployed people Bradshaw highlighted the case of award recently sent to Howarth from an 80-year-old think we’ve gone mad.” starting new jobs or travelling to inter - winning independent operator Western cancer patient who was now forced to make six The programme also heard a statement from views in North Solihull, is to continue Greyhound that has been forced to sever all but changes of bus to attend hospital appointments the DfT which reiterated that it was seeking for another three years until March two of its 50km-plus routes, forcing passengers in Truro. He also questioned why Finland had talks with rural bus operators and also revealed 2010. Launched in June 2003, the to change once or more during the journey for campaigned to be awarded a derogation from that the European Commission was willing to scheme, has secured £264,860 of journeys that previously had a direct the rules for rural bus services, whereas the UK examine any reasonable justification for further funding, including £113,000 from connection. Managing director Mark Howarth had not. exemptions to be introduced. Advantage West Midlands. Workwise aims to provide unemployed people with a further 675 monthly travel passes, and has helped people into Tendered Network Zones mooted Bus operators more than 1,400 jobs across the area. as alternative to Quality Contracts give views on Strength of policy paper THE ASSOCIATION of Transport cherry-picking that undermines fully integrated. London economy Co-ordinating Officers has whole network benefits and ATCO has also called for bus CONSULTANCY FIRM Steer responded to the parliamentary integration with other transport operators to submit service Davies Gleave has produced a sees Livingstone transport committee’s current modes. The registration of registrations with local authorities report on the views held by bus cut bus fares inquiry into the draft Local commercially operated bus 14 days before being lodged with operators of the Putting Passengers transport Bill with a submission services would be encouraged as the traffic commissioner in order First policy paper published last LONDON MAYOR Ken that suggests alternatives to long as they support the Tendered to give authorities time to review year by the government. Livingstone has announced that Quality Contracts. Network Zone’s aims and were registrations for accuracy and also The operators largely welcomed from the end of September, bus ATCO chairman, Bob Saxby, to assess how well the service will the policy paper, but one key fares in the capital using Oyster says that while the association integrate with other forms of criticism was that patronage Pay as You Go will be reduced welcomes the aim to give local transport. In addition it has called growth will largely continue to be from £1 to 90p, with the weekly authorities greater influence in the for bus operators and local affected by the level of bus pass price also reduced. provision of bus services, the authorities to work in partnership co-operation between them and Explaining the move, proposals are too focussed on the to improve service reliability with local authorities. Livingstone said that the strength metropolitan conurbations. ATCO traffic commissioners working in Another worry was the of London’s economy as well as has proposed Tendered Network a mediator role. proposals risk unhelpful economies realised by Transport Zones that would be introduced in “The lack of influence on the intervention and the operators for London meant that bus fares areas where the majority of key issues of frequencies, time and called for more government could now be reduced. “This services are not commercially fares has made the development support in improving the image economic strength and operating provided. of partnership schemes a of the bus. They also called for efficiency creates benefits that He adds that the concept would non-starter in many authorities,” local authorities to be forced to should be returned to Londoners,” deliver the best possible services for Bob Saxby: zones would enhance says Saxby. “Give us the tools and introduce a traffic demand he added. the local community and avoid integration of transport modes we will get on with the job.” management strategy.

TRANSIT | 29 JUNE 2007 bus news 7 Trolleybuses Arriva wins Chester case and given go-ahead WEST YORKSHIRE PTE Metro, received the go-ahead for a showcase bus rapid transit scheme resumes its plans for competition in Leeds by the Department for Transport, with funding from the BY ANDREW GARNETT Yorkshire and Humber Regional Transport Board. CHESTER CITY Council has Metro submitted their business announced that it intends to case to the DfT in this April to appeal against the decision of the replace the Leeds Supertram which High Court to dismiss the council’s the department withdrew in case against Arriva North West. It November 2005 in favour of a has also denounced plans by the “showcase bus system that could group to go ahead with its lead the way for other cities.” competitive strike against its Following a meeting with the ChesterBus operation. DfT at which it endorsed Metro’s The case was called following overall business case, the Yorkshire the decision by Arriva to register a and Humber RTB has agreed to network of services competing committing £150m of the with ChesterBus, just weeks after Regional Funding Allocation, the business was put up for sale. approximately £300m overall, to However, in his written verdict the the first phase. The trolleybus- Honourable Mr Justice Rimer based scheme will serve three noted that Arriva felt the council routes connecting central Leeds. was simply using the court case to Feature page 14 shield the ChesterBus business from “what is no more than healthy competition” amid fears for the financial future of Arriva will compete with ChesterBus’ two busiest routes, with extra services due to start later in the year in brief the operator. Arriva’s defence was that the insolvency and this was the reason ahead with its competing network. is in exclusive talks with First, case was against the public interest the group decided to register its From next week it will compete on which itself has a small network of OFT put Arriva bus in that it would offer new vehicles network of services in Chester. two city routes that are services in the city, to acquire the takeover on hold and a more frequent service, to Justice Rimer wrote that he did ChesterBus’ most profitable, with ChesterBus business. The Office of Fair Trading has which Justice Rimer wrote: not accept this explanation. “It is an initial fleet of 12 new low floor Meanwhile, the news of Arriva’s announced that it is inviting comment “Competition law, is, Arriva says, uncorroborated by any other single deck vehicles. It will charge competitive assault inflamed the on the expected acquisition of about protecting consumers’ witness or by any documentary a £1 single flat fare in addition to council, which has warned the Stagecoach’s Darlington operations by interests and offering them evidence; and... it is inconsistent a £2 day ticket, and a further 10 city’s bus station cannot cope with local competitor Arriva. The benefits. Yet the claim is directed with all the documentary evidence vehicles will be introduced on the additional vehicle movements, Sunderland-based group bought the at denying those benefits to the in the case. He had not seen any additional services later this year. and it has urged local residents to business for an undisclosed sum in consumers of Chester... Even the accounts for [ChesterBus] since its “It has always been Arriva’s contact the traffic commissioner if early May but the deal was conditional claimants’ expert acknowledges 2005 accounts and he had no intention to offer a better service they experience any problems on the OFT deciding whether to refer that traffic on the routes would be detailed knowledge of its then on better buses in Chester and this with traffic congestion caused by the transaction to the Competition likely to increase by 14% as the current trading position, which investment shows we are true to the additional buses. Commission within a 40-day period. result of the better quality service was in fact positive.” our word. We are also confident Robert Short, city council The OFT have said it may consider that Arriva can offer as compared.” However, the judge ruled in we can make further improve - member for resources said: whether the acquisition will result in a The court heard that Arriva had favour of Arriva and awarded costs ments in the future,” added Hind. “Accommodating a further 18 lessening of competition that would held discussions with the council largely as he felt that Chester City However, in a separate services an hour is unrealistic, require an investigation by the with a view to buying ChesterBus Council had not sufficiently statement, the city council said it particularly as a number of them Competition Commission. since at least early 2002. However, proved that the Sunderland-based was now investigating whether to are scheduled to depart at the same Arriva North West managing group is dominant in the Chester proceed with an appeal against the time as services to the same CCTV prevents £5000 director Bob Hind said in court bus market. The council is now left decision and reiterated its destinations. Arriva’s attempts to that by September last year he had with a legal bill of around £2m. commitment to protecting the reintroduce the bus wars seen in a insurance claim formed the view that ChesterBus Following the verdict, Arriva interests of the business. number of cities during the 1980s CCTV evidence has enabled Arriva to would soon cease trading due to announced that it is pressing The council also revealed that it are a disgrace.” combat a false insurance claim made against them, saving them just under £5,000 in claims. The claim was made by a taxi driver with a history Rotala buys in West Midlands and SouthWest of making personal injury claims, Trent Barton who alleged that an Arriva bus had AIM-LISTED transport investment third of its revenues from the signed a deal to acquire Bristol- collided with him while his vehicle hit byTempo group Rotala made a series of deals operation of tendered bus services based South Gloucestershire Bus was stationary and produced two last week that will significantly on behalf of local PTE Centro-PTA, and Coach in stages for a total of eye witnesses. problems expand its bus operations in the and has an established driver £1.86m with completion expected In light of the CCTV footage which TRENT BARTON has been forced West Midlands and South West. training business. Rotala says it by the end of March next year. The clearly showed that the collision was to issue an apology to customers The group, which currently has expects immediate cost savings pace of the acquisition is largely the fault of the taxi driver, he elected on its X38 and Black Cat services bus and coach operations in through reduced maintenance, being dictated by the need for to discontinue his claim before the after the recently delivered Optare Surrey, Birmingham and Bristol, accounting and administration Bristol City Council and South start of the trial. Tempo vehicles used on the routes has purchased Erdington-based costs and notes that the firm is Gloucestershire County Council had to be withdrawn for remedial North Birmingham Busways and “one of Birmingham’s most well to approve the transfer of South Welsh Assembly looks work on their fuel tanks. Ludlows of Halesowen in the West known and respected small bus Gloucestershire’s tendered to improve behaviour The award winning operator Midlands. It has also signed a deal operators”. contracts. In total it will acquire 68 The Welsh Assembly Government has says that availability of the latest to acquire South Gloucestershire In addition it announced a buses that will enhance Rotala’s published a draft school transport batch of six Tempos has been a Bus and Coach in stages over the further deal last week to acquire recent WessexConnect operation, strategy that aims to eliminate major issue since their delivery in next nine months. Halesowen-based Ludlows for that shares premises with South anti-social behaviour on school buses. April. In total the vehicles have Rotala has paid £860,000 in £850,000 in cash. The firm Gloucestershire. The measures include a code of been off the road for 28 days with cash to acquire North Birmingham operates 21 buses on a mixture of Rotala has raised £2.5m to fund conduct for pupils and also provision maintenance problems and Trent Busways which was subject to commercial and tendered bus the acquisitions through a for local authorities to stagger school Barton also says the delivery rumours 18 months ago when Go services in the West Midlands. conditional placing with start and finish times to enable more schedule for the buses has been Ahead is believed to have been Rotala says that the deal will institutional and other investors. efficiency of their school bus services. problematic, with a failure on close to finalising a deal to buy the improve the ability of the enlarged Commenting on the deals, Rotala “The proposals in this draft measure more than one occasion to meet operator. NBB operates a largely group to tender for subsidised chairman John Gunn said the will not only help create a safer travel the specified delivery schedule. elderly fleet on a network of services in Warwickshire and group is now ahead of budget and environment but will also contribute to “We are disappointed,” Melvyn commercial services linking the Worcestershire and provide a base on track to meet its planned a sustainable transport system,” said Hopwood, Trent Barton’s head of eastern suburbs with Birmingham for expansion in these areas. financial targets. WAG economy and transport minister communications, told Transit . city centre, but it also derives a Meanwhile Rotala has also Business comment page 17 Dr Brian Gibbons.

29 JUNE 2007 | TRANSIT

rail news 9 High-speed rail 2 is‘next step for Britain’ says Greengauge21 in brief A NEW HIGH-SPEED rail link join” High Speed One - the G the line would deliver “step “If capacity is the challenge, between London, Heathrow, Channel Tunnel Rail Link - from change in passengers’ experience high-speed rail is the answer”, says Birmingham and the north west St Pancras International which of rail travel”, with “high-quality, Greengauge 21 director, Jim Steer. One railway leases has been proposed by pressure opens on November 14. In total, ultra reliable trains” and journey “This is not simply another rail two extra Class 321s group Greengauge21, in a report the combined route length would times reduced by 30 minutes scheme”, said Steer, “but a means National Express Group is providing an published last week. They argue it be 150 miles. The line is costed at between London, Birmingham, to support the development of the extra 6000 seats a week for passengers will address the challenge of £11bn at today’s prices and the north west and Scotland; British economy in the decades on One Railways peak Metro services capacity, boost the economy, help including optimum bias. G connections to Heathrow ahead in a way that meets the between Shenfield and London the environment and provide not The report argues that: airport, and St Pancras and wider sustainability challenge. Liverpool street. only longer distance high speed G the north west corridor is the Stratford International, the report “Building a new line capable of One railway has leased two extra rail but regional express services. “next logical step for High says, will create a cross-London 300 km/h operation will ensure Class 321 trains from sister company The report, sponsored by the Speed Two”; regional express network and the maximum switch from car Silverlink for the next six months, Railway Forum, says High Speed G Capacity would be freed up on extend Eurostar services to and air, optimising the while National Express are Two would “complement and the West Coast Main Line; Birmingham and Manchester. business case.” continuing to upgrade their fleet of trains on the One network. Each train has 275 standard seats and 28 first-class seats. Other locations along the line including Brentwood, Romford, Edinburgh tram gets thumbs-up Ilford and Stratford will also benefit. GNER’s new contract means greener HSTs but EARL will undergo review GNER has signed a multi-million pound maintenance agreement with German supplier MTU, covering the new diesel BY MEERA RAMBISSOON overwhelming support from businesses, engines currently being installed in its retailers, educational institutions, major diesel High Speed Trains. GNER is SCOTTISH PARLIAMENT has given the employers, charities and the voluntary sector. replacing all of the engines in its diesel go-ahead to the Edinburgh tram scheme and It remains vital to the economy and HST fleet with new MTU diesel engines, authorised the review of the Edinburgh Airport sustainability of the capital that the tram to deliver a more reliable, safer and Rail Link in the last few days, after a period of scheme is delivered as soon as possible. greener service. uncertainty since the SNP, who pledged to scrap “We have been campaigning for a tram both projects, was elected to form a minority system for Edinburgh for the best part of a Metrolink upgrades government in Scotland. decade and it is very heartening that this should line to Trafford The decision follows a review from Audit now become a reality. We also welcome the Metrolink passengers will have the Scotland, which was requested by decision to review EARL. We argued from the choice of using either trains or buses Scottish finance secretary John Swinney. start that EARL had been badly-specified by the when work starts in early July to Swinney presented the findings of the review to previous Scottish Executive. replace worn out track.Greater the Scottish Executive on the day that go ahead Howden added: “The current EARL scheme Manchester PTA is replacing nearly 20 was given. is a particularly poor project because it would miles of track on the Bury and The review hinted that the delivery of the have led to slower journey times on the Altrincham lines as part of a £100m Edinburgh tram was more viable and certain mainline Scottish railway. We hope the project to improve the Metrolink than that of Edinburgh Airport Rail, and that Scottish Executive will now look at the network. Trams will continue to run Phase 1a of the tram would be operational by Edinburgh tram finally given the go-ahead alternative options that we promoted when the between Old Trafford and Manchester early 2011. Conversely, the review states that Parliamentary Bill was being promoted by the until the end of July before the whole the EARL project is unlikely to hit the target City of Edinburgh Council a further £45m. A previous executive.” of the line from Altrincham to date of the end of 2011 and that “lack of total of £79m has already been spent on the Willie Gallagher, executive chairman of Tie, Cornbrook closes for most of August. agreement over governance arrangements and tram project up to the end of May 2007, £17m the consortium which will be taking the procurement strategy is inhibiting progress”. of which went towards taking it through the Edinburgh tram forward where Transdev is the Metro learns from Funding arrangements have also yet parliamentary process. The EARL project is operator, also welcomed the go ahead of the to be settled. expected in the range of £550-£650m, with tram, stating: “I am pleased that the Audit German tram-trains The review states that the current estimated £20m has been spent on EARL so far, £4m of Scotland report played such a key role in today’s Transport officials from West Yorkshire final cost of Phase 1 of the Edinburgh tram is which has gone on parliamentary processes. debate. I also welcome the Cabinet Secretary’s PTE Metro, and the City of York have £593.8m in total where the Scottish Executive Director of Transform Scotland, Colin commitment to resolve the governance issues visited the German city of Karlsruhe has committed to provide up to £500m and Howden commented: “The tram scheme has on the Edinburgh Airport Rail Link. this week to see how successful tram-trains could be used to help fight congestion in the Leeds city region. Tram-trains are one aspect of Metro’s Commuters £4.5bn, 25-year transport vision drawn ORR says partnership is key to an up by Metro for the area. should buy season tickets ‘efficient and developing’ railway Metronet new OFFICE OF R ail Regulation should all be concerned that they within a strategic planning and RAIL WATCHDOG Passenger chairman Chris Bolt has stressed do not feel they are getting this. funding framework set tube train trials Focus has warned rail commuters that partnership is vital for a “A safe, high performing, by government. that they could be missing out on safe, high-performing efficient efficient and developing railway “Key players in the industry onVictoria line big savings if they don’t buy a and developing railway in requires effective partnership must be clear about their roles and prove a success season ticket, even those not Great Britain. between Network Rail and train focus relentlessly on delivery, travelling daily. Addressing the Institute of operators to meet the needs of working together and exchanging INFRACO METRONET has said Their research, published this Economic Affairs’ conference on passengers and freight users, hard truths to deliver what users that trials of a new tube train set week, shows that only 5% of The Future of Rail in London - in of the railway expect. They must to enter service on the Victoria line commuters were aware of the the run up to the government also work together in planning from 2009 have been successful. main advantages of annual season unveiling their High Level Output and delivering the improved and After an initial run from Seven tickets. Just under a fifth of Statement and 30-year strategy in expanded services and improved Sisters to Walthamstow Central commuters travelling without one July - Bolt said: “It is good news for value for money, which will allow the eight-carriage pre-production said they would be very likely to the railways that demand is the railway to develop and grow train has progressed from five to buy one if they had the option to growing year on year. But at the and overcome the challenges 65 kilometres per hour. There will - interest-free, over a 12 months. same time, expectations are it faces.” be nine more months of tests Some operators, such as GNER increasing. Passengers rightly Bolt said that the ORR will overnight to check the essential and c2c, allow passengers to pay expect a safe and reliable service. continue its monitoring and performance characteristics. The by interest-free instalments. But they also want a more reporting role “and enforce trains are being introduced as part Passengers’ reasons for not buying accessible railway, with reduced delivery where it is needed - as we of a £750m-plus upgrade of the annual season tickets included not crowding, better information on are doing following Network Rail’s Victoria line to help increase rush seeing them as value for money services and fares and an improved Bolt: key players in industry failure to deliver the resignalling hour frequency by 17% and cut and irregular travel habits. overall journey experience. We should be clear about their roles scheme at Portsmouth.” journey times by 16%.

29 JUNE 2007 | TRANSIT 10 opinion letters

15-year Quality Contracts would increased to a maximum of 15 years, allow greater investment rather than 10 years. As long as 29 JUNE 20 07 ISSUE 314 sufficient scrutiny is enabled, a longer I write regarding comments attributed contract gives greater stability for both to Roger French of Go Ahead Group on operators and transport authorities the likely effectiveness of quality bus and, in turn, allows for greater A new driver contracts, as set out in the draft Local investment. In my evidence I made Transport Bill ( Transit June 15). reference to Merseyrail Electrics’ Mr French’s comments were made to 25-year contract, which is managed by as public transport just gained a valuable new ally at the Transport Select Committee, and in Merseytravel, and this experience is as turn purported to reference comments valid for bus services as it is for rail. Number 10? Apparently Gordon Brown doesn’t that I had made earlier in the same The longer the contract, the more have a driving licence. Perhaps our new Prime session in my capacity as lead director effectively it can be managed and the H general on buses for PTEG. Reading the more qualitative improvements can be Minister will be more in tune with the needs of those who article as printed in your publication, made for the benefit of the public. depend on the country’s bus and rail services. and referring back to his comments Certainty, over a long period of time, Ruth Kelly, who was named as Brown’s transport secretary made in the session, it would appear facilitates investment because returns this week, may find that she is asked to do a little bit more that Mr French has accidentally can be made. misinterpreted PTEG’s comments on Despite Mr French’s comments, I am than simply keep transport off the the front pages, the quality bus contracts and I feel it is sure that our friends and colleagues in primary mission in recent years. What changes can we important to put this on record. the bus industry fully understand our expect to see under Brown’s administration? Contrary to Mr French’s comments, position on quality contracts, but I am we did not say that “it would take 15 very happy to reiterate it here. They As Mike Katz of political lobbyists Waterfront points out, years for a quality contract to really can deliver benefits, most importantly government structures may be rejigged to show that Brown prove its worth” and we do not believe for passengers, but also ultimately for is taking firm action on climate change, perhaps including this to be the case. As readers will transport authorities and bus operators. the creation of a new Department for Sustainability. know, we welcome the proposals We look forward to working with the contained in the draft Local Transport bus industry, the select committee and “Transport will be expected to play its role here,” says Katz. Bill and are fully supportive of quality the Department for Transport in “So the mantra that has recently been heard that ‘rail can't contracts where they are necessary. refining and implementing this afford to be complacent on its green credentials’ will have In our view they can deliver tangible important piece of proposed legislation benefits for customers and we would as soon as possible. to be shown to be more than just a mantra.” like to see them introduced as soon as Neil Scales, is practicable, where they are necessary. Road user charging is another area that springs to Katz’s Chief Executive and Director General, PTEG’s, and my own, view is that we mind, and certainly one capable of putting transport back Merseytravel, Liverpool would like to see quality contracts on the front pages. Whilst the draft transport bill is progressing the policy agenda amongst those in the know, he suggests that there is a wider question about selling the What do the consumers think of public transport ‘Superbrands’? policy to the public, which was exposed by the e-petition I notice that you missed out ‘B2B’ in investment organisations and it is fairly debacle a few months ago. How will Brown and Kelly the headline ‘Bus and rail firms among well established in marketing that what engage the public on this issue? Kelly’s marginal Bolton Superbrands’ ( Transit June 1). Those pleases these clients may not please the who are unfamiliar with branding end consumers. West seat lies within the Greater Manchester PTA region, terminology might not have I wonder where First Group or, for which is leading the way on piloting road charging. appreciated that the accolade only that matter, any of the other operators Otherwise, Katz says that having Alistair Darling, a former refers to the opinions of ‘business to referred to, would appear in a ‘business business’ customers and not to the to consumer’ listing. transport secretary working as chancellor to the former opinions of the poor souls who actually Peter Wiltshire, chancellor himself won’t necessarily give the sector an use these transport services. B2B Great Missenden, Buckinghamshire advantage in the spending rounds. Remember, it was customers might be contracting or Darling who turned down a number of light rail schemes on the basis of rising costs. Given the pressure on the Transit welcomes letters for publication on any matter relating to passenger transport business management. Write to: The Editor, Transit, 250 Kennington Lane, London SE11 5RD. public purse, he will be very clear that the government will Fax: 0845 270 7961 Email: [email protected] demand measurable outputs for its spending - and fast. While transport policy won’t be rocketing up the political agenda, it seems likely that it will nudge forward. in passing

Transit provides business news information, analysis and comment on the UK public transport scene every fortnight for bus, light Kazakh tram best in world! Newt point and heavy rail managers. The scrap between Scottish politicians Ken Livingstone is not a man to mince Publisher & editorial director OFFICE CONTACT DETAILS Transit is only available on subscription. over the future of the Edinburgh tram and his words. We know that the London Peter Stonham Landor Publishing, Quadrant House, Subscriptions rates per year: UK £78 airport rail link schemes is now over it mayor likes buses, Hugo Chavez and, Managing editor 250 Kennington Lane, London (despatch by first class post); would seem. However, things were of course, newts. And we all know Robert Jack SE11 5RD, UK Europe/Eire £121;Worldwide (airmail) looking decidedly dodgy in the last few that he doesn’t like Metronet, one of Assistant editor Editorial £153 Andrew Garnett Tel: 0845 270 7954 weeks after the ruling Nationalists the two consortium handed PPP Reporter Fax: 0845 270 7961 The editor welcomes written threatened to cull the projects. contracts to renew the London Meera Rambissoon Email: [email protected] contributions and photographs, which Friends of the Earth Edinburgh came up Underground’s infrastructure. Business analyst should be sent to the above address. All with a campaign that brought a few home Indeed, Livingstone recently remarked Chris Cheek Advertising Tel: 0845 270 7968 rights reserved. No part of this truths to Auld Reekie. “Almost every other that if there was a gold medal for Contributing editor publication may be reproduced in James Dark Fax: 0845 270 7960 country in Europe has trams, even managerial incompetence, Metronet Email: [email protected] whole or in part without the publisher’s Kazakhstan,” said a spokesman. “Borat would be winning it. Contributing writer written permission. Chris Randall Subscriptions could go faster in his horse-pulled car than But it seems that Livingstone shares Head of sales Managed by HPC Publishing Printed by Hastings Printing Company most Edinburgh commuters.” a common interest with his adversary. Sabrina Ayadassen Tel: 0845 270 7900 Ltd, Drury Lane, St Leonards-on-Sea, Cut to a photo opportunity of a Borat Metronet’s website contains a picture Advertising sales executive Fax: 0845 270 7920 East Sussex,TN38 9BJ look-a-like, wearing a skimpy lime green a great crested newt alongside the Florence Branchu Email: [email protected] thong and Alex Salmond mask outside story that the company has enhanced Production Accounts © LocalTransportToday Ltd 2007. the Scottish parliament. Transit noted habitats for the amphibians at the Natalie Clarke Tel: 0845 270 7854 approval for the scheme came just 24 Accounts Fax: 0845 270 7960 western end of the Metropolitan line. ISSN 1358-4766 Irina Cocks Email: [email protected] hours later. As Borat would perhaps say: Could this be a cynical ploy to get on Managing director “Edinburgh also nice place now”. the mayor’s good side? Rod Fletcher LANDOR PUBLISHING

TRANSIT | 29 JUNE 2007 interview 11

Tim O’Toole had no experience of running metros when he took charge of London Underground four years ago. But he is a fast learner, as Chris Randall found out when he caught up with the London Underground boss London Underground’s not-so quietAmerican

he American boss of London Underground, the publicly- owned operator of the world’s oldest metro, strides purposively into the room and introduces Thimself with a firm handshake. Dapper in a sharp navy suit, neatly folded breast pocket handkerchief, and an expensive-looking silk tie, Tim O’Toole could easily pass for a commercial attorney, the job he did for most of the 1980s. Only a pair of distinctive London Underground cufflinks gives the game away. O’Toole, 52, was appointed to run the creaking Tube network in 2003 by London mayor Ken Livingstone. The second American to be selected to fill a high-profile role in Livingstone’s burgeoning transport empire (Bob Kiley was transport commissioner for five years before resigning in 2006), he claims to have had few problems adapting to life this side of the pond. “The transition wasn’t too difficult’” he says in a notable American drawl, undiluted by four years domiciled in London. “And as for an American running the Tube, historians of the network will know that many Americans have played a prominent role down the years.” ‘Metronet are haemorrhaging money and not managing O’Toole’s last job before buying an open-ended ticket to the UK was chief the situation. To allow that to continue increases the risk. executive of the Pittsburgh-based rail freight Burying our head in the sand is of no use’ operator Consolidated Rail. Compared to the can of worms he has taken on here, it was a gentle stroll in the park. Livingstone tasked him with nothing less than overspend by more than £1bn by 2010 has deficient, slows down as a result of this, it “rehabilitating the Tube” against the done nothing to endear it to an already will certainly be something we would backdrop of the government’s highly hostile Transport for London, London highlight. We would have to explore controversial part-privatisation of the Underground’s parent. But what has really whether the contract gave us the ability to network. The mayor predicted it wouldn’t added insult to injury is the do something about that.” be easy - and he was right. consortium’s attempt to lay the blame at the The implication is that Metronet is Top of O’Toole’s agenda, as it has been door of London Underground, which it facing the sack, a move Livingstone has almost from day one, is the fractured accuses of demanding extra work that was demanded on several occasions? “Would relationship with Metronet, one of two not in the original contract. that the options in the PPP were that consortia awarded 30-year public private The beleaguered consortium has now straightforward,” replies O’Toole with a partnership (PPP) contracts to repair and called on the Tube regulator, Chris Bolt, to wry smile. upgrade the Tube. Whilst the other act as referee and decide who should pick “It is bad news that we have a contractor consortium, Tube Lines, has proved up the tab. Bolt’s review of Metronet’s that is failing,” he adds. “But we need to get relatively efficient, Metronet’s alarming performance could take up to a year to the facts on the table. We must get the under-performance in overhauling nine of complete and will cost the warring parties situation resolved and get some confidence London Underground’s 12 lines has £10m. O’Toole is concerned that this could in our future. attracted a barrage of bad headlines and result in a hiatus in rebuilding the network. “These people [Metronet] are handed plenty of ammunition to “That’s why we keep saying the work haemorrhaging money and not managing opponents of the PPP, most notably must continue,” he says forcefully. “This the situation. To allow that to continue Livingstone. must be acted out separately and off-stage. increases the risk. Burying our head in the Metronet’s admission that it is likely to If Metronet’s rate of work, which is already sand is of no use.” ®

29 JUNE 2007 | TRANSIT 12 interview

At times, the damaging bust-up has Is Metronet on the threatened to descend into farce. Just last way out? London month Metronet complained that London mayor Ken Livingstone Underground had asked it to paint one has called for the Tube station three times in different shades of infraco to be sacked grey. At another station, it alleges, it was told but Tube boss Tim to completely replace tiles even though the O’Toole concedes that contract only required them to be repaired, PPP isn’t as straight - adding an astonishing £700,000 to the forward as that budget. The consortium’s embattled chief executive, Andrew Lezala accused Tube bosses of seeing the PPP as an opportunity to have a world class railway, but wanting someone else paying for it. O’Toole snorts in derision at the claim. “Their behaviour and their claims are typical of a contractor who is trying to put forward a great big hairy claim in the guise of this PPP adjustment. They are forgetting the extremely generous - some would say outrageous - equity returns they were guaranteed in return for management expertise to deliver these upgrades - which they priced - efficiently and effectively.” Instead of whingeing, O’Toole says Metronet would do better to follow the example of Tube Lines, which is upgrading the Jubilee, Northern and Piccadilly lines with some success. “Tube Lines is knowing they are going to get paid, it that mood. demonstrating that a price quoted can be a ‘One of doesn’t work that way.” “The people in London Underground and price honoured. And that real change can the great He says Andrew Lezala is a “nice fellow” Metronet recognise that when you are in the be delivered. but warns the consortium needs someone public sphere, problems are often discussed “I defy anyone to get on that seventh burdens with an iron fist that can make things this way. Privately we try to keep things [extra] car on the Jubilee line or walk happen. “It just doesn’t exist within that working. We often tell our people that the through Wembley Park station or any of the for LU structure. Instead they are assuming an theatre of the public world can’t be brought many stations Tube Lines has already is that internal contract of shared pain and gain into the private world. We have got to do completed, and say that real change can’t would magically make everyone perform.” everything we can to make Metronet be delivered on time and on budget. That’s there is Will the belated move to competitive successful, because we need them to get the what Metronet has been unable to do. They tendering make a difference? O’Toole adopts work done. I think we are able to separate have consistently failed to deliver station so little in the air of an exasperated parent who has just the two worlds.” upgrades. And in failing to deliver them, been given another promise of better With Metronet’s bankers reportedly they are looking for someone else to blame.” the PPP’ behaviour from an errant offspring. “We will getting twitchy and refusing access to a Ouch! Such an uncompromising tone have to see if that change is real and £1.6bn loan facility, the possibility of the shows that O’Toole has no intention of effective. Obviously, it will be months before consortium pulling out of the PPP contract, being a quiet American. Nevertheless, he we find out because these projects take time or even going bust, is looking very real. insists that working relations with to see through.” Livingstone has said Tube Lines doesn’t have Metronet have remained “very professional” Such outspoken criticism will be music to the capacity to cope with the extra work and throughout the increasingly bitter dispute. the ears of O’Toole’s boss, Ken Livingstone, that the contracts would be mopped up by “This isn’t about calling people names who fought a rearguard and ultimately O’Toole’s London Underground. and it’s not about pounding the table. For unsuccessful battle with the government to “It’s nice that the Mayor expresses us it’s about getting the work done.” have the PPP strangled at birth. “Ken is a confidence in me,’ says O’Toole with a So what is the problem at Metronet? Why larger than life personality,” says O’Toole of half-rueful smile. “I don’t want to get ahead has it gone so spectacularly off the rails? “It’s the newt-loving mayor. “Privately I have of the story but I want to assure everyone the structure,” says O’Toole without never met anyone with a better sense of that we are doing our duty. We are prepared hesitation. “We have been saying this to humour. He’s the guy you would want to be to deal with whatever future Metronet them repeatedly. Metronet heads a standing next to at a party. He is extremely presents us with. I think there are a lot of consortium that it is simply unable to well read - I mean it’s almost frightening different ways this could play out.” manage. They have to change the structure how well-read this guy is. And he has a great O’Toole moved to London Underground if they are going to give us delivery and curiosity. But he respects professionals who without any previous experience of running if they are going to protect themselves he hires to do things. His attitude is ‘that’s metros. Promising to make safety a priority, from overruns.” why I brought you here’.” he quickly learned to put aside any Until recently, Metronet’s five But aren’t there moments when O’Toole preconceptions. “I started in the shadow of shareholders, Atkins, Balfour Beatty, wishes Livingstone would just shut up? the Chancery Lane derailment. At Bombardier Transportation, EDF and Or at least be a little more diplomatic. Consolidated Rail, financial results had Thames Water, were also its only Take this recent quote from the mayor about been transformed by driving safety contractors. O’Toole says the consortium’s Metronet: “If there was a gold medal for improvements through. I had this decision not to put contracts out to managerial incompetence they would be simplistic view that I was going to take that competitive tender - something it is now winning it.” It’s great copy for journalists, management experience and visit it on this doing - was a critical mistake. “Metronet but will it help deliver a better place. What I found was a safety regime that appears to have largely been disconnected Underground? was sophisticated and well developed. In from control of the work and had no power “I never have a problem with the mayor fact, it had a fantastic safety record that I just to penalise any of those contractors. They because I think he is articulating the had to continue.” assumed this mutual cooperation would frustrations of Londoners,” says O’Toole. The PPP contracts were no less incentivise the contractors to do the right “London has to have the Tube and it’s got to complicated than he had expected, even for thing. But the fact is they didn’t have any have the Tube rebuilt. a trained lawyer. “The mayor asked me to incentive to deliver efficiently. “He knows that in order for London to make it work. And we have achieved a lot, “When you are dealing with a lot of maintain its pre-eminent position as a world mostly with Tube Lines, but even Metronet sub-contractors who are only too happy to city, the Tube rebuilding has to come has refurbished the D stock [District Line show up in the middle of the night, find out forward on time. When he says the things trains].” they can’t do the work and go home, he says, he is accurately capturing In fact, the reservations he has about the

TRANSIT | 29 JUNE 2007 interview 13

long as it could be expected to wait for this not; in fact, he views it as an opportunity work to be done. If anything, we need to to put extra pressure on recalcitrant speed things up. contractors charged with rebuilding the “That’s what is so threatening about Tube. “It puts a stake in the ground and Metronet; they represent delay. It isn’t about makes the contractors get the work done, name calling. The question is when this because they will not want to be the guys work is going to get done.” who are on the national news for letting With London’s population forecast to rise down the Olympics. by more than one million over the next 20 “To meet our commitments to the years, the pressure on its Victorian metro Olympics, we need to deliver the PPP will intensify. Nearly three million journeys improvements to schedule. Almost all of our a day are already made on the Tube and that stations will have been refurbished by then, figure is set to rise significantly. Can the so we will present a very different face. I system cope? “The PPP will deliver a think the Underground will acquit itself capacity increase of 28%,” says O’Toole. very well. The Olympics helps me make sure “But I actually believe people’s experience things get done on time. As I always say, you will be greater than that percentage only really clean your house when you are improvement. You will have automated going to throw a party.” trains, so headways will be uniform and One group that could spoil the party - and throughput will be dramatically better than not just when the Olympics come to town it is now. At that level of increase we should - is the rail unions. Threats of strike action just about stay level with increase in from Aslef and more particularly the RMT demand. have punctuated O’Toole’s four years in ‘For true growth, of course, we have to charge at London Underground. Upbeat have Crossrail. Crossrail represents throughout most of the interview, the expansion of the Tube network, even question of union militancy has him though it’s not a Tube line. We need slumping in his seat. “The management- Crossrail to be built because we immediately union relations are a continuing struggle,” part-privatisation of the Tube go beyond then have to turn to the north-south he sighs. “I come from an environment worries about its complexity. “One of the corridor, where we need Crossrail 2 or ‘The where the monopoly of the trade unions great burdens for London Underground is Thameslink. We desperately need more Olympics and management is controlled by a that there is so little in the PPP,” he says capacity north-south.” government structure that compels the surprisingly. “It’s just the bare bones with a O’Toole can’t hide his frustration at the helps parties to learn to live together. In the lot of necessary pieces of work left out. For arcane planning regime and the endless private sector of course, the market place example, they [Metronet and Tube Lines] battles for funding that combine to leave me make operates because if they don’t find a way to are going to give me a journey time major projects stranded in the sidings. sure live together, they go out of business and improvement, with more trains and faster Casting an eye over the Channel he says: “I everybody loses. trains. But I have to supply the power. There am extremely envious of Paris and the way things “In the public sector, a structure that is nothing in the PPP about the essential they just move on to their next project, their compels people getting together has worked work that has to be done to pull all this off. next line. London has to get into a cycle like get done elsewhere. But it doesn’t exist here. That has “It does give us important work on our that. We need to move things forward faster. slowed progress. stations, but it doesn’t give us the We need to rebuild the Underground. But on time’ “We have got to find ways of working congestion relief we need to really open up from a longer historical perspective, we need together if we are going to pull off this the network and exploit increasing demand. to talk about the continued growth in transformation. Change is going to come so For example, unless we completely capacity of public transport generally if we fast that we can’t have constant delay.” transform Victoria station, we won’t be able are going to put all these stories together in Are the unions too quick to play the strike to exploit the Victoria line upgrade. There a sensible way.” card? “It bothers me when threats are are huge pieces of work that aren’t even part Waiting just over the horizon is the 2012 thrown about. In fact, there has only been of the PPP that I have to bring forward at Olympics, which will undoubtedly provide one day of strike action since I’ve been here, the same time to make it successful.” a stern test for London’s hard-pressed but because of these constant threats it The reason the contracts are spread over transport network. Is O’Toole fearful about would be easy for people to think there is 30 years, he contends, is to make them the prospect of having to deal with a huge disruption all the time. affordable. “London is waiting just about as influx of visitors to the capital? Apparently “It doesn’t do any good for the trust we are trying to earn. We are trying to make sure that we are living up to our responsibilities to the unions. We have got Tube bombers weren’t rewarded with chaos to get better at communicating as well. We are an island of public service and if we want Rows with the unions and Metronet are put The accessibility of the Tube is what makes to keep it this way, we have got to find a way sharply into context, however, when O’Toole it so vulnerable to attack, as O’Toole to work together.” reflects on the horror visited on the Tube by acknowledges. “We can’t be run like an airport. With this increasing demand, O’Toole the murderous bomb attacks of 7 July 2005, But our greatest defence and the thing that knows just how critical it is to find a way of the darkest day in the network’s history. At the will make us a less likely target for suicide making the PPP work. “Given that more and time he described suicide bombers as a bombers going forward is the speed with more people are using the system, that’s “phenomenon that no one in the world knows which we brought the system back. We did not why this rebuilding effort has got to be exactly how to deal with”. As the second reward these people with chaos. If we had completed. And that’s why the Metronet anniversary of the atrocities approaches, is he maybe we would have been a favoured target. story mustn’t distract anyone, funders, any more optimistic now? We just kept going. politicians, any of us. “Statistically it is an infinitesimal threat. It “We are no less vigilant. We spend a lot of Using the network everyday to travel to gets our attention and it is terrifying. But being time constantly planning. We are always work, O’Toole is able to see for himself the struck by lightning presents more of a risk. We running drills. But when an incident happens, results of decades of under-investment. have to be sure that we run society and our fear dominates everyone’s thinking. Very, very “Plainly it has been neglected for a very lives based on risk and not on fear. You have to quickly, people switch back into a more rational long time and it has far too many asset reassure people that they are going to be fine. state and start making decisions based on risk. failures. And London has to put up with That’s why a lot of what we do, is projecting And the ones who do that first are commuters. too much.” security. We have visible police, visible station That’s what happened to us. It’s the occasional He adds: “We’ve got to keep our eye on staff, CCTV everywhere, to let people know that traveller who is a little slower to come back. the prize and that’s the rebuilding of the this is an environment that is as controlled as But it hasn’t been that slow when you consider system.” Millions of commuters who it can be, given that it is an open what happened to our patronage. And tourist squeeze sardine-like onto the Tube would environment.” numbers in London are so vibrant right now.” undoubtedly say here-here to that. I

29 JUNE 2007 | TRANSIT 14 feature

The axing of the Leeds Supertram by the Department for Transport two years ago, in favour of a bus-based alternative, was a galling blow for West Yorkshire PTE Metro. But things are now looking up as the DfT has accepted its initial business case for bus rapid transit, and ‘next generation’ trolleybuses are in the offing. Meera Rambissoon reports Trolleybuses offer Leeds life after Supertram

here were sighs of relief in Leeds last work a stone’s throw away and not work in The highest quality and core option is week when the Department for one of the biggest, fastest growing cities in electrically powered, top of the range tram Transport gave Metro, the West the UK. And that beggars belief and again bus, (referred to colloquially as trolleybus) Yorkshire PTE, the green light to it’s hard to move on certainly for me to which has the visual appearance of a tram Tdevelop plans for a network of trolleybuses something that is going to be second best.” and is steered by overhead wires. This option in the city. It’s not what they wanted, of However, Preston and Metro have now costs approximately £700,000 per vehicle, course; the bus-based proposals have been recovered from the aftermath of the and £273m overall. The next best option is developed after the government withdrew Supertram decision, and come to terms with a hybrid diesel-electric, costing £550,000 per funding for Metro’s Leeds Supertram project, the BRT alternative which the then vehicle, and £200m overall. The last, lowest sparking fury in West Yorkshire. For Leeds transport secretary, Alistair Darling, directed range option is a diesel-powered bus such as it appears to be a case of you can’t always them to develop. “I think we moved on as the ftr, approaching £400,000 per vehicle get what you want, but if you try sometimes an organisation to say if we can take the and approximately £190m overall. you can get what you need. challenge that the department has given us The scheme will be funded largely from The lobbying is not over, however. Metro’s to actually look at an alternative that can do the Regional Funding Allocation, which the business case for BRT, which forms part of much of what the tram did at much less Yorkshire and Humber Regional Transport its 25-year Transport Vision for Leeds cost, then can we actually turn that into a Board administer, plus a 10% local City Region contains three options. At one big advantage,” he says. “And if we can contribution. end of the spectrum there is basic, enhanced make it a showcase in Leeds, maybe we can The scheme’s network is approximately bus scheme, at the other an all singing, all dancing state-of-the-art trolleybus system. Metro director general Kieran Preston now has the task of persuading the government ‘What we’re really trying to do now is get a really high end not to go for the cheaper option. Preston admits that he has struggled to trolley bus type system... People can see it and know it’s not come to terms with life after Supertram. “It’s hugely disappointing. I must admit I going to be taken away at the drop of a hat.’ found it hard to move on,” he says. “We had to challenge the decision not because of sour grapes but we’ve got a whole community. help demonstrate to other cities: there is life 20km long and the routes remain the same A whole business community and the after the tram.” regardless of the vehicle options. The south public at large couldn’t understand why this Dave Haskins, assistant director of Metro’s line largely follows the original tram route thing that we were so keen on, with a really rapid transit team, explains that the BRT and terminates at Stourton park and ride positive cost benefit, that did all this scheme originates from a feasibility study site. The north route from Leeds city centre regeneration and created all these jobs, was produced by Atkins and commissioned by through Headingley links two universities, turned down.” DfT on the next best alternative to the a park and ride site, and a hospital. It has Preston says he believes cost escalation Supertram, as a required part of the also been extended beyond the Supertram was used as a scapegoat for turning down proposal. “In some ways that was an audit route to the residential area of Holt Park. the scheme. “Although it underwent of the work we did and what that came out Haskins says that this major commuting revisions the cost benefit was always within with saying was that, effectively they route has “massive congestion, massive the agreed parameters given inflation and believed a high quality bus-based scheme journey times and reliability issues. It’s also present net value”. He also points out that could deliver about 90% of the benefits of very limited in terms of scope for getting Metro had offered to make up cost tram at about 50% of the cost. That’s where segregation in.” differences with Leeds County Council, of the DfT sat up and said ‘that sounds quite “The centrepiece of this route is the which “little was made”. attractive to us’,” Haskins comments. bypass for public transport around the back “The other big thing that rankled with our The DfT then directed Metro to develop and the route stands all fours on that.” The business people, was that similar schemes a top of the range high quality bus-based bypass has gone through public inquiry but such as in Nottingham were going ahead, system. Submitted in partnership with Leeds will need to do so again. Haskins explains with a similar cost benefit, not quite as good, City Council, Metro’s initial business case that without such approval the route will be not going to bring as much regeneration, in proposes three main corridors to the north, hard to justify since the bypass provides the a city not as big,” says Preston. south and east of Leeds, (including areas of main source of benefit. “No sour grapes at all for Nottingham, Leeds beyond those covered by the The east route differs most from the great for Nottingham but a street running Supertram proposals) and, most crucially, original Supertram plans. Since then, East tram, very similar to these - how could that three different options of bus. and South East Leeds Regeneration Area

TRANSIT | 29 JUNE 2007 feature 15

Metro recently visited Lyon’s trolleybus network to ‘sell to people what they’ve not already got’, and as one of the systems they are looking at for their preferred option of BRT in Leeds

(EASEL) initiative has been developed generate competition and interest. If we can funding for their preferred tram bus option. seeking to regenerate one of the poorest get TWA, we can specify the system He says: “When we’ve asked the DfT where areas in the country. “Effectively it’s and route.” is this money, they’ve said it’s in regional large-scale housing renewals and there’s a Preston concedes: “We may well need funding. In the Yorkshire and Humber big opportunity to get a high quality public Quality Contract type rules but it’s how you region there’s something like £1.2bn transport route with it at the same time,” manage bus operations alongside it. Longer allocated to transport projects. Of the says Haskins. “So we’ve looked at options to term opportunities are there for the £1.2bn all but about just under £300m has serve the EASEL area, rather than using the operator to manage it.” Haskins adds that not been allocated now - we call that head - previous route and it’s offering some good he wouldn’t rule out going into a Statutory room and that does fluctuate. Of the money journey times.” Quality Partnership with First. “We’ve ‘If we can that has been allocated, so far just over 20% The first tram-style bus option with the consulted a number of bus operators, not has gone to Leeds city region so we believe sense of permanence created by its overhead just First for their feedback. They will look showcase we’ve not got our share - part of the reason wires is what Preston really wants, believing into whether there is an early role for them it’s so low, is because Supertram should have that this will offer the best chance of modal and the most efficient way of restructuring BRT in got the large share.” shift out of the car. “Guideways help,” he the bus network.” Leeds then The process of getting approval and argues, “but guideways are intermittent The third, ftr-style option is clearly Metro’s funding for the option Metro wants is no because of the nature of the city centre and least preferred option. “People won’t make we can straightforward process. They have made it some of the corridors you have to use, you life-changing decisions, move house or through the first two main hurdles. The DfT can’t have continuous guideways. school on the basis of the third option,” help show accepted their initial business case when “What we’re really trying to do now is get Preston comments. Giving his personal view other cities they met on June 13, then a few days later, a really high end trolley bus type system on the ftr, Haskins says: “It’s a good product. the Yorkshire and Humber Regional where you’ve got a bus that is very tram-like I see it as the next generation of buses as there is Transport Board granted £150m of the both of terms of capacity and how it looks. what users of buses at the moment, would regional funding allocation for the first I suppose particularly for me, having that look for and expect just like if you had a car, life after phase of the Leeds network on June 15. feel and that presence so that people can see next version of your car would have as the Whilst this is a success so far for Metro, a system, that’s why the overhead wires are standard a CD player - that to me is the next the tram’ neither form of assent means that their so important. People can see it, they know step up on buses. I don’t see it as the step Kieran Preston favoured trolleybus option is guaranteed. where it goes, they can get excited about it change - as the tram is a step change. We’ve “DfT said they will endorse the work Metro in inverted commas, they know it’s not got [ftrs] in Leeds and we spent time and are doing and the evolving work to reach a going to be taken away at the drop of a hat.” money with First putting them in in Leeds. high quality solution,” Haskins explains. “You also get that kind of system in Milan We’ve invested our money in that because Metro are now expecting a letter from DfT or Geneva or wherever - when you pull we have belief in that but what we’re saying at the end of June in which will set out the away, and you’ve got overhead power. It’s is on these routes that something else key issues and how they think the scheme smooth, you’re not crunching through is required. should be worked up. “They will note the gears, you take off faster, so you can have “There’s not a lot of difference between need to ‘optimise the package’, how we the same number of stops as a tube and ftr and hybrids - you’re not putting up phase it, the order we do things in, and the speed up journey times or have more stops overhead wires and have largely the same level of quality on each corridor. We expect and achieve similar journey times. And then infrastructure,” comments Haskins. “There the letter will give enough comfort. there are the environmental aspects, it’s is quite a difference between mid range and “The DfT are still keeping all the options nice, it’s clean and ultimately, the way top range costs. I don’t think our appraisal in the game. They do know we are trying to energy is going, it might be a more efficient has adequately captured the benefits of what reach a high quality solution but have not way of doing it.” Trolleybuses are also much people perceive. If you drive a car into Leeds explicitly endorsed the top level option. It’s quieter, have faster acceleration than diesel at the moment, are you going to jump out as positive as we could hope to expect.” buses, and are less likely to fall prey to of your car to get into this option or that? Having now got a commitment on congestion, since, Preston says, 50 to 60% We know instinctively, intuitively, it will be funding, Metro will work up the details of of the proposed route would be on the top of the range one, and that will be its proposal before submitting a full business dedicated lanes. the basis of house-moving decisions on that case to the DfT later this year. Conditional There’s another reason too. Preston level of quality.” approval is expected in 2009 following the explains that the ‘tram bus’ option involves However, Metro are under no illusions. outcome of public inquiry with a view to getting a Transport and Works Act, which “The temptation for the DfT will to be go starting construction in 2010. Metro will he sees as a distinct advantage. “TWA means for the cheapest option,” says Preston. appoint advisors by the end of July to we can get into the market place with a Unsurprisingly, Metro’s greatest barrier, develop the business case, including data proper offer and franchise opportunity, and Haskins explains, is getting the guarantee of collection and public consultation. ®

29 JUNE 2007 | TRANSIT 16 feature

The next hurdle, Haskins says is “keeping something which is that. the end game, others a stepping stone for the public on board especially through “You’ve got the issue of the spacing of bus ‘What is something else,” says Haskins. “It would be electoral cycles. If the BRT is built in 2011, stops, which we’ve got to resolve - should BRT this foolhardy to release some of the land parcels the cost will be £274m but every year this they be tram spacing or bus spacing?” and then say you can’t do it.” goes up by over £10m,” referring to the Haskins adds. “On average, buses are 400 decade Preston comments: “In planning the BRT trolleybus option. metres part, trams 800 metres - current route as part of the 25-year vision, what will Haskins explains there is a further thinking is that we might go for 500 or 600 might be happen is that corridors will get busier and complication, that of segregation. “If we metres.” Metro’s business case explains that: a tram more capacity will be needed. We need to take those three routes and we take the “The stops generally remain separate from see BRT in a ‘new generation transport’ trolleybus, the best level of segregation we’re other bus services to ensure that bus-on-bus next’ approach: what is BRT this decade might be getting is about 45%,” says Haskins. “When delay does not occur for BRT and in order a tram next. We want to capture the long, we put our proposals to our project board that a distinct system image is created.” Kieran Preston not short term.” of local politicians, headed by Preston, they Haskins continues: “The stops themselves It may take a bit longer, but perhaps liked it, but want higher levels of segrega - - we’re looking for tram like quality of stops. Preston and Metro will eventually get what tion, 45% isn’t cutting it for us.” This is We’d need high quality shelters, real time they want. I something that Metro will need to resolve. information, ticket machines, lighting, So, what are Metro’s chances of getting CCTV, you could have raised platforms of DfT to approve the option they want? “In certain lengths, and we’d have to make sure Expert warns that true BRT is many ways the DfT have moved their there are clear ways and place around the position in how they are putting the onus stops. We’d want there to be guaranteed more than a new flash vehicle on the regions, they’ll do the technical journey times basically.” scrutiny but they’ll leave the decision to the “A concern I would have with DfT is if we regions. They’ll tell us whether we’re right or started looking at all the individual wrong in certain areas but ultimately they’ll elements, and say we don’t really need your say if it’s affordable then go for it - that’s my stops to be that fancy, because we’re looking gut feeling.” for a level of quality overall. There’s a phrase After committing extensive time and I heard at a conference ‘death by value money on the Supertram proposals, Metro engineering’, which I did like, which are very much ‘once bitten and twice shy’. basically says, you’ve got a scheme which It is of no surprise that Metro have opted to you think is the right scheme and you know produce an initial business case - “effectively people are going to be attracted to it and you a statement of intent”.“If we tried to go to start thinking do you really need to have programme entry, it would be our money CCTV at stops - we’ll take out a few on the line entirely at risk with a yes or no £100,000 there, do you need to have raised from DfT whereas we were looking for a curbs and you take out a few £100,000 there, more pragmatic approach with DfT. The and you keep doing that and your cost other thing it doesn’t do that a full benefit ratio keeps going up a little bit, but programme of entry would, is go out and your overall benefit to the passenger goes consult the public.” down to the point where you’re left with a “It would be quite dangerous in many very piecemeal scheme. We’re looking for ways to go out to the public and say ‘yeah, the whole system, that’s quite a key this tram was cancelled but look we’ve come message.” up with this new option - what do you think So what systems outside the UK do Metro First claims its ‘ftr’ service in York is not a bus, but is it BRT? of it’ without having the depth of the aspire to and want emulate ideally? Irisbus’ technical analysis behind it and the answers Crystalis trolleybuses, like those in Lyon As a public transport planner who believes in quality public transport as we’re comfortable with and that the DfT are comes close to their ideal, although they will an antidote to petrol driven obsession, Colin Braider is enthusiastic about comfortable with.” Metro visited the BRT need a right hand drive. Preston comments, the growing interest in Bus Rapid Transit in the UK. But, is this the BRT system in Lyon with BBC Yorkshire, in the however: “You can go to any city in Europe that transformed Bogotá, revolutionised Curitiba and gave Brisbane a run-up to meeting the department and the and be impressed - Madrid, Lyon, Helsinki, bus-based system that has a passenger carrying capacity in excess of regional transport board, and broadcast clips Geneva, Milan, Amsterdam. You expect it light rail? Braider thinks not. that same week, with the aim of showing there. I admire Europe’s ability to offer trans - “BRT involves religious devotion,” explains Braider, a director of the public what they are proposing for port that makes sense to people, with one consultancy Integrated Transport Planning who has helped to develop BRT Leeds. “The challenge is selling to people ticket, not the sticking tape approach we schemes in Lagos and Accra as well as high quality bus schemes in Europe what they’ve not already got,” says Haskins. have now. In every major city in Europe, and Australia. He says that a BRT system, must deliver fast, comfortable, So what quality elements will the tram people expect it and make use of it. If you and cost-effective urban mobility with exclusive right-of-way lanes and bus offer the public? “There are issues we’ve organise an event in Leeds people ask can excellence in customer service. “Is this what we mean when we speak had to make assumptions on - like the type you organise a bus service, you haven’t got of BRT in the UK?” he asks. of bus stops, Haskins says. “There are a the money or the powers.” “BRT can be a cost effective form of fixed transit with flexibility, at a whole range of opinions of what it should Would Metro consider taking the fraction of the cost of light rail,” Braider says, “but unless the aspirations be - you speak to different people they’ll tell opportunity of a change in prime minister of light rail are upheld; near 100% segregation, quality infrastructure, you the bus stop is the most important and potential reshuffle to have a second payment systems and information, it becomes more ‘B’ than BRT and the thing in a BRT scheme. If you speak to attempt at proposing the tram scheme? often made comparison with light rail begins to fade. people in Canada they will say, they call Preston is clear that he would only do so if “It’s interesting to note that British BRT emphasises the quality of the them ‘stations’, that’s the most important government proposed and backed the vehicle and glosses over the failure to provide segregation where thing. If you speak to someone else, the scheme “with 100% commitment”. constraint makes it physically, financially or politically difficult,” he vehicle’s the most important thing. “I still believe that the tram is the right continues. “It is not the quality of the vehicle that achieved a 40% growth “We’re going to have to really hone in on solution, not just in cost benefit but in in bus patronage in the first six months of operation in Brisbane and a the elements. We want it to be a system, not economic activity and regeneration. If we modal shift of 375,000 car trips in Pittsburgh. In both these examples just a nice fancy bus or just a nice fancy bit go back down that route, we would need the the buses are fit for purpose, but ordinary. Segregation was key as was of segregated busway, it’s got to be the whole department to say ‘let’s do a tram’. One of treatment of the bus as part of a system that addresses all journey system,” Haskins says. He went to Caen in the real reasons in giving up the tram is that elements.” the north west of France, a few years ago we’re coming to the end of our powers. We Braider believes that in the British context what we really mean by where a BRT system similar to their top would have to repeat the whole business BRT is ‘it’s not a bus’. In Britain he says that the poor image of buses range proposal exists. “It’s got what you and procurement case again on the same means that BRT is sold to the public as something they will like. “Where want, very clear information. When you kind of timescale, we wouldn’t embark ‘traditional’ BRT talks of a system approach based upon the stalwarts of approach the stop, what you need to do to on that.” reliability, security, affordability and efficiency we British are developing buy your tickets, security, local maps, However, Metro isn’t ruling out the future a different form of BRT that seeks to compete with the car in the most everything is there. You get on the vehicle, potential of BRT to evolve to a tram, and obvious way - visually,” says Braider. “This ignores a fundamental such there’s information on the vehicle - it’s a want their scheme to be upgradeable to as comprehensive segregation. Therefore, I am afraid, I don’t think we whole experience and we’re looking for tram. “Some people see BRT as the end goal, are serious about developing BRT in the UK.”

TRANSIT | 29 JUNE 2007 analysis 23 business comment Can Bowker halt the retreat Stagecoach’s improving bus profit margins offer hope of recovery to the entire industry of NEG’s trains division? YOU have to go back some years to find £350,000 TV advertising campaign. If the when Stagecoach’s UK bus division last initial pilot in the West Anglia region is a achieved a profit margin better than 13.6% success, it will be rolled out elsewhere too. ational Express Group needs to Scotland, winning ScotRail meant selling in its latest full year results, published this This is not a business that is in decline, rediscover the winning formula coach operator Scottish Citylink in 1998 week. It’s a strong sign that things are but one with ambitious plans to move N- and fast. Richard Bowker, the to satisfy the competition authorities. It getting better for the bus business. forward. It wasn’t so long ago that the kind former chairman of the Strategy Rail was a decision that Bowker’s predecessor, In recent years Stagecoach’s bus business of passenger growth that Stagecoach is Authority, was appointed chief executive Phil White, later regretted. has appeared re-energised. The product is currently achieving year-on-year was of the group last year with a mission to East Coast is perhaps Bowker’s best generally good and the group hasn’t been considered a far away dream. Passengers stop the unrelenting retreat of the group’s chance to redeem himself. Competition shy about selling it to the public. Telesales bring profits, and profits can in turn be rail business. The failure of the group’s is fierce, with heavyweights First, Arriva and other marketing techniques, combined used to bring passengers. must-win bid for the new East Midlands and Virgin/Stagecoach all in the ring. But with increasing concern about the The success that Stagecoach is now franchise, which will combine NEG’s would the Department for Transport environment, are persuading people to try enjoying is being seen elsewhere in the Midland Mainline with parts of Central really want to give First, already Britain’s out Stagecoach’s services. The latest results industry. The goal must now be to keep Trains, is a major blow. biggest train operator, another franchise show UK bus passenger volumes up 6.6% this momentum going. Will other Once the country’s largest passenger - especially when it is making such a mess on the previous year. operators match the faith shown by rail operator, NEG’s UK trains division is of First Great Western. And would the All this has persuaded Stagecoach to step Stagecoach in its product and try out TV now disappearing fast. Last year saw NEG DfT really to give Virgin/Stagecoach a up its efforts and invest money in a new advertising? I hand over Wessex Trains and Great monopoly on Anglo-Scottish rail services. Northern to First Group, the year before What would the competition authorities it was ScotRail that was surrendered. And have to say about this? If Arriva really has Rotala’s quiet approach could provide a firm it will get worse on November 11 this year won Cross Country the DfT won’t give it basis for future growth in niche markets when the group will give up four fran - another franchise, so could NEG sneak chises that has fought and failed to retain in. TO paraphrase an old metaphor: you wait subsequently rebranded as Midland - Silverlink, Central Trains, Gatwick Bowker has been here before. He raised for ages for one deal to come along then Connect, late last year, he said putting a Express and Midland Mainline. Only c2c his profile in the rail industry by spear - three do at once. Rotala, the AIM-listed flag in the local market ensured that if and One will remain. heading Virgin’s audacious but transport investment group pulled off a reregulation happened, the group would Of course, Bowker still has two more unsuccessful bid for East Coast. If he can series of deals reminiscent of the late 1980s have a sound base to bid for Quality rolls of the dice in the form of NEG’s bids win the flagship operation for NEG it will last week that will add around 120 vehicles Contracts. Until then, there is plenty of for the Cross Country and Intercity East put the group back on track. If he cannot to its operations. tendered bus work to bid for that offers a Midlands franchises. Victory in one of the future is much less certain. As a The group quietly began almost two dependable revenue stream. these competitions is essential in order to smaller group NEG could become an years ago when it purchased the non- Meanwhile, it has also moved into restore confidence in the group. We inviting target for a takeover bid, from London bus and coach operations of Bristol with the capture of two of the city’s should know the winner of the Cross one of its UK peers, an overseas rival or Central Parking System, the US-based three park and ride routes from First, and Country franchise very soon, and perhaps even a private equity company. parking giant that found itself in a spot of disposed of some of its more marginal rumours have swept the industry that First Group has long been linked as a financial hot water. Since then it has been Surrey operations to Wiltax, now part of Arriva could be crowned as the winner. potential suitor for NEG. Having taken silently expanding with the acquisition of Tellings Golden Miller. Cross Country could be more trouble NEG’s place as Britain’s biggest train oper - marginal businesses that have slipped With the group now getting some than it is worth for NEG anyway. The ator, First launched the massive £1.9bn under the radar of the major groups. serious economies of scale, dependable Competition Commission would takeover of Laidlaw in the US. If Bowker Chairman John Gunn sees congested revenues and meeting its financial targets, undoubtedly conduct a lengthy probe can’t turn around NEG’s bidding record, connurbations as a place for his niche perhaps Rotala is a horse we should be into any potential conflict of interest could his company be swallowed up by group to grow. Indeed when Rotala bought backing for future growth in those with NEG’s express coach operations. In its larger rival? I Birmingham-based bus operator Zaks, profitable niche markets? I stock watch Rail franchise woes see National Express drop back But West Midlands franchise deal brings good news for Newcastle-based Go Ahead series of rail franchise SHARE MOVEMENTS: Period from 13.06.07 to 26.06.07 announcements from the Broker recommendations ADepartment for Transport saw good 52 WEEK TWO WEEK CLOSING PRICE CHANGE % CHANGE news for both Go Ahead and its Perth- G Go Ahead : The Newcastle-based group’s based competitor Stagecoach, but mixed capture of the West Midlands rail COMPANY HIGH LOW HIGH LOW 26.06.07 fortunes for the losers. franchise was welcomed by the City’s BUS/RAIL OPERATORS Go Ahead’s deal to operate the West analyst community. Panmure Gordon Midlands franchise, or London Midland maintained its ‘hold’ rating with the target Arriva 803.5 643 803.5 643 651 -28 -4.12% as it will be called, excited the city with price set at 2,600p following the news, First 713 570 713 570 650.5 -7 -1.06% the analysts largely positive. Its shares while JP Morgan speculated the deal could climbed 41p on the day of the be worth as much as 60p per share. The Go Ahead 2,711 2,296 2,711 2,296 2,502 +46 +1.87% announcement and closed the fortnight up latter analyst added the deal was good NEG 1,327 1,053 1,327 1,053 1,072 -41 -3.68% 1.87% at 2,502p. news for Go Ahead and maintains his Stagecoach had a tougher time, perhaps ‘underweight’ rating. Stagecoach 299.44 165 299.44 165 171.5 -0.75 -0.44% due to its growth estimates for the East G Stagecoach : Like Go Ahead, Midlands franchise. The announcement Stagecoach’s winning bid for the East didn’t see a stellar performance for its Midland’s franchise saw a rash of analyst AIM shares; indeed they climbed by just 3p, and notes. Panmure Gordon maintains its Rotala 3.5 2.5 3.5 2.5 2.88 -0.12 -4% despite a robust set of preliminary results, ‘hold’ rating with the target price set to it closed the period down 0.44% at 171.5p. 175p. JP Morgan broadly welcomed the TGM 28 18 28 18 27.37 +0.87 +3.28% Elsewhere National Express fell back deal, but has concerns about the group’s 3.68% to close at 1,072p with those worries growth estimates for the franchise. about the future of its rail business really Following Stagecoach’s preliminary OTHERS starting to bite. Arriva’s losing bid for East results announcement, Deutsche Bank Eurotunnel 109 19.5 41.25 24 24.25 -17 -41.21% Midlands meanwhile saw it’s shares slide produced a note that maintains its ‘buy’ 4.12% to close at 651p. First had a better rating with the target price raised from BA 572 413 572 413 419.75 -11.25 -2.61% time with a drop of just 1.06% to close 193.5p to 219p, thanks to the Perth-based EasyJet 741.5 505 741.5 505 536.5 +1 +0.19% at 650.5p. group’s robust operational performance.

29 JUNE 2007 | TRANSIT 18 analysis KEY INDICATORS LOTHIAN BUSES PLC business monitor Profit & Loss Account changes Turnover: +18.3% Operating Profit: +27.8% Lothian wins battle against cost increases Pre-tax Profit: +72.3% Margins Operating Profit: 5.6% with passenger and revenue growth Pre-Tax Profit: 8.2% Return on Capital: 22.0% LOTHIAN Buses, one of largest of the UK’s Wages and salaries cost 11.8% more at leasing charges and administrative costs fell. diminishing band of municipal bus £45.0m, with social security costs moving Other costs - including fuel and materials - Balance sheet highlights operators, recorded a strong increase in slightly ahead. Pension contributions were 19.5% higher following the fuel price Company net worth: £33.3m operating and pre-tax profits during the year virtually doubled to £6.7m. Employee hike and other price increases. Fixed asset value £66.7m to December 31 2006, according to its numbers rose by 5.9% during the year, Core bus and coach revenue was 18.3% Capital investment £16.7m annual accounts. averaging 2,103. Unit labour cost was up at £89.5m, but interest earnings fell. The company operates a fleet of 630 therefore 11.3% higher at £26,156 (unit Pension fund income was sharply higher, vehicles on local bus services in and around wage costs only rose by 5.5%). though, at just over £2.3m. This helped to the city of Edinburgh. It is 91% owned by Depreciation and finance costs were reduce the company’s pension liabilities Comment City of Edinburgh Council, with the balance higher following recent investment, whilst from £19.8m to £11.9m. of shares held by the other councils which constituted the old Lothian region. OPERATING PROFIT MARGIN (%)*, LOTHIAN BUSES PLC This was clearly a challenging year for Turnover during the year was 18.3% Lothian, as the company faced huge higher at £89.5m, whilst operating costs 10.0% increases in the cost of pensions as well as were 17.8% up at £84.5m. The resulting the fuel price hike and a rise in unit wage operating profit of £5.0m compared with costs of around double the then prevailing 8.5% 8.5% £3.9m in 2005. Operating profit margin 8.6% 8.5% rate of inflation. was 5.6%, up from 5.2%. The fleet grew by 3.4% and the workforce After increased net interest earnings, the by 5.9%. However, it is not clear whether company recorded a pre-tax profit of this was the result of new business or more £7.3m, 72% ahead of last year’s £4.2m, resources required to maintain existing with a pre-tax margin of 8.2% (2005: service levels in the face of growing traffic 5.6%). After taxation and last year’s congestion in the city. exceptional profit on land disposals, net The figures suggest that the company profit for the year was 59.4% down at responded well, reporting an increase in £4.6m. A dividend of £2.2m (last year revenue of over 18% - driving revenue up £2.2m) was paid to the shareholders. by a sufficient amount to increase profit Capital investment was 45% up at margins, thanks to passenger volume £16.7m, bringing the five-year total to growth of 5%. Unlike England, this volume £52.7m. As a result, the value of the fixed growth was not on the back of free 2002 2003 2004 2005 2006 assets rose by over 20% to £66.7m, with concessions, which are now over four years net worth 45.2% higher at £33.3m. * - margins are shown excluding FRS17 changes for consistency old north of the border. The company maintained and increased LOTHIAN BUSES PLC investment levels, spending £13.4m on new buses, contributing to the already low YEAR TO 31/12/2006 31/12/2005 31/12/2004 31/12/2003 31/12/2002 average fleet age, recorded as 7.4 years in £000 £000 % CHANGE £000 £000 £000 May 2006. The company had already Turnover 89,522 75,683 +18.3% 73,499 69,508 62,856 replaced almost 25% of its fleet in the Operating Costs 84,528 71,774 +17.8% 67,259 63,566 56,579 previous three calendar years. OPERATING PROFIT/(LOSS) 4,994 3,909 +27.8% 6,240 5,942 6,277 The company’s record of revenue growth is impressive - just over 42% in the last five Other Costs/(Income) (2,322) (336) +85.5% 855 251 235 years. In looking at profit levels, though, the PRE-TAX PROFIT/(LOSS) 7,316 4,245 +72.3% 5,385 5,691 6,042 distortions of the new FRS17 reporting Tax Payable/(Credit) 2,677 4,839 -44.7% 1,435 1,695 1,728 standard on pension liabilities needs to be NET PROFIT/(LOSS) 4,639 (594) +881.0% 3,950 3,996 4,314 taken into account. The directors report that Exceptional Items 0 12,026 - (1,856) (418) (736) this has depressed operating profit levels by Profit/(Loss) forYear 4,639 11,432 -59.4% 2,094 3,578 3,578 around £2.6m a year (and would have cost Exceptional items last year represented profits on the disposal of land and buildings.The adoption of FRS17 has resulted in a depression of operating profit margins over the over £3m in 2004). last two years compared with previous levels. Calculated on the same basis, margins for this year would have been 8.6%, compared with 8.6% in 2005 and 8.5% in 2004. As Edinburgh gets used to having an SNP PERFORMANCE government, the future of transport policy Operating Profit Margin 5.6% 5.2% - 8.5% 8.5% 10.0% in the capital is once again back in the Pre-Tax Profit Margin 8.2% 5.6% - 7.3% 8.2% 9.6% melting pot. But, on the basis of these figures, the city can be confident that it has Return on Capital 22.0% 18.5% - 18.3% 20.6% 23.0% a highly competent and viable bus network. Dividend Paid (£000) 2,198 2,198 - 2,198 2,198 2,747 Turnover per employee £42,569 £38,108 +11.7% £37,121 £34,308 £31,365 Pre-tax profit per employee £3,479 £2,137 +62.8% £2,720 £2,809 £3,015 STATISTICS OPERATING COSTS (%), Staff employed (total) 2,103 1,986 +5.9% 1,980 2,026 2,004 LOTHIAN BUSES PLC Fixed AssetValue (£000) 66,663 55,314 +20.5% 49,493 43,977 46,580 Company NetWorth (£000) 33,284 22,919 +45.2% 29,424 27,672 26,292 Capital investment (£000) 16,661 11,464 +45.3% 11,022 2,962 10,594 Administration COSTS CURRENT YEAR LAST YEAR % CHANGE 1.5% Depreciation Wages and Salaries 45,009 40,268 +11.8% 6.2% Other National Insurance Payments 3,311 2,916 +13.5% Leasing/Finance 26.8% Pension Costs 6,687 3,360 +99.0% 0.8% Depreciation 5,291 4,594 +15.2% Administration 1,246 1,366 -8.8% Operating Lease Costs 202 211 -4.3% Interest Payable 464 437 +6.2% Other Costs 22,782 19,059 +19.5% TOTAL COSTS 84,992 72,211 +17.7% Analysis by Chris Cheek , courtesy of TAS Publications & Events Ltd. Further details are INCOME CURRENT YEAR LAST YEAR % CHANGE in Rail Industry Monitor and Bus Industry Turnover 89,522 75,683 +18.3% Labour Monitor , now available. For more details ring Interest receivable 481 571 -15.8% 64.7% Finance 2,305 202 +1041.1% 0870 900 1440 or visit www.tas.uk.net TOTAL REVENUE 92,308 76,456 +20.7%

TRANSIT | 29 JUNE 2007 analysis 19

KEY INDICATORS Chiltern parent slips into the red as tunnel M40 TRAINS LIMITED Profit & Loss Account changes collapse and investment costs both bite Turnover: +14.6% Operating Profit: -106.8% M40 TRAINS, the Laing Rail subsidiary Other costs - including fuel - were 23.3% Data from National Rail Trends shows Pre-tax Profit: -170.6% which owns and operates the Chiltern higher at £34.0m. that the combination of the tunnel collapse Margins Railways franchise, recorded a small On the revenue side, income from and the terror incidents in the summer of Operating Profit: (0.5%) operating and pre-tax loss in the 52 weeks passengers rose by 16.6% to reach £80m, 2005 restricted overall passenger growth to Pre-Tax Profit: (4.1%) ended January 6 2007, according to its whilst there was a 44% increase in subsidy 2.1% in 2005/06. Figures for the year to Return on Capital: (151.9%) annual accounts. payments (mainly a ‘pass through’ of March 31 2007 were not yet available at the M40 Trains was originally established additional track charges) to a total of £20m. time of writing. Balance sheet highlights between construction group Laing, venture Other income was 7.4% higher at £9.8m. Company net worth: £3.0m capital group 3i and BR’s Chiltern Last year’s £4.0m accrual for compensation Fixed asset value £71.5m management team. The joint venture from Tesco in respect of the Gerrards Cross Capital investment £10.4m acquired the Chiltern franchise on a seven tunnel collapse in June 2005 was not Comment year contract and commenced operation in repeated - and the directors report that sudden lurch into the red will have come as July 1996. John Laing bought out 3i in negotiations over the size of the payment After several years of significant revenue an unwelcome surprise to parent group January 1999 and the balance of the are still ongoing. growth and improvements in profits, the John Laing. management shareholders in 2002. A new The results are yet another vivid reminder 20 year franchise agreement was signed in REVENUE AND OPERATING COST BREAKDOWN (%), M40 TRAINS LIMITED of the knife-edge finances of the rail the same year and runs until 2022. industry, so vulnerable are TOCs to service Turnover during the year was 14.6% REVENUE COSTS interruption incidents and shifts in higher at £111.8m, whilst operating costs demand. No wonder there were mutterings were 26% ahead at £112.3m. The resulting from Laing’s new owners last year about operating loss of £0.6m compared with a Leasing/finance getting out of the UK rail business Subsidy Other Other profit of £8.4m in 2006. The operating 4.1% altogether. However, we can presumably profit margin slipped back from 8.6% last 17.8% 10.9% Rolling Stock 29.1% take the group’s victory last week in the new year to -0.5%. 12.1% London Overground franchise, in After increased net interest payments, partnership with the Hong Kong MTR the company recorded a pre-tax loss of Corporation, as signalling a change of heart. £4.6m compared with last year’s profit of It was unfortunate that the slowdown in £6.5m. The pre-tax margin fell to -4.1% revenue growth coincided last year with the from last year’s 6.6%. After taxation, there completion of the Evergreen project and the was a net loss of £3.6m, compared with last delivery of more new rolling stock. These - year’s profit of £4.3m. No dividend was combined with labour and pension costs - paid to shareholders (last year £2.8m). Track Access pushed costs up by more than a quarter. Labour Capital investment totalled £10.4m Passenger 25.9% However, the achievement of a 16.6% Depreciation 25.4% during the year, down from £17.7m last 71.3% 3.4% increase in passenger revenue bodes well for year. The spending took the value of fixed a recovery in profits in future. There could assets in the business up by 9.6% to £71.5m. Company net worth fell by 59.4% to £3.0m. M40TRAINS LIMITED Expenditure on wages and salaries was YEAR TO 06/01/2007 07/01/2006 08/01/2005 03/01/2004 04/01/2003 1.6% lower, with social security costs slightly £000 £000 % CHANGE £000 £000 £000 ahead. Employer pension contributions Turnover 111,758 97,494 +14.6% 99,439 91,519 79,215 were over 26% higher, though. Numbers employed by the company fell by 5.2%, Operating Costs 112,324 89,116 +26.0% 89,761 84,434 74,099 averaging 712 during the year. Unit labour OPERATING PROFIT/(LOSS) (566) 8,378 -106.8% 9,678 7,085 5,116 cost was £41,770, 6.5% up on the previous Other Costs/(Income) 3,989 1,924 +51.8% 1,588 1,125 1,285 year. PRE-TAX PROFIT/(LOSS) (4,555) 6,454 -170.6% 8,090 5,960 3,831 Depreciation costs more than doubled to Tax Payable/(Credit) (961) 2,134 -145.0% 2,415 1,835 1,473 £3.9m, whilst track access costs were 76% NET PROFIT/(LOSS) (3,594) 4,320 -183.2% 5,675 4,125 2,358 higher. This is attributable partly to the Exceptional Items 00-000 change in Network Rail’s funding regime Profit/(Loss) forYear (3,594) 4,320 -183.2% 5,675 4,125 2,358 (and is reflected in extra subsidy payments PERFORMANCE of £6.1m), but also believed to be a Operating Profit Margin (0.5%) 8.6% - 9.7% 7.7% 6.5% consequence of the completion of the Pre-Tax Profit Margin (4.1%) 6.6% - 8.1% 6.5% 4.8% Project Evergreen investment which saw improved line speeds and extra space at Return on Capital (151.9%) 87.3% - 71.9% 83.0% 82.4% London Marylebone station. Rolling stock Dividend Paid (£000) 0 2,840 -100.0% 1,600 1,600 880 leasing charges rose by 11.3% to £30.25m Turnover per employee £156,963 £129,819 +20.9% £134,559 £129,082 £123,005 following the delivery of additional stock Pre-tax profit per employee (£6,397) £8,594 -174.4% £10,947 £8,406 £5,949 last year. STATISTICS DATAFILE Staff employed (total) 712 751 -5.2% 739 709 644 Fixed AssetValue (£000) 71,519 65,261 +9.6% 50,597 33,519 20,898 M40 TRAINS LIMITED Company NetWorth (£000) 2,998 7,392 -59.4% 11,252 7,177 4,652 Capital investment (£000) 10,405 17,711 -41.3% 19,539 14,419 9,782 STATISTICS COSTS CURRENT YEAR LAST YEAR % CHANGE YEARTO 31 MARCH 2006 2005 CHANGE Wages and Salaries 24,420 24,810 -1.6% Passenger jnys (m) 14.40 14.10 +2.1% National Insurance Payments 2,079 2,075 +0.2% Passenger km (m) 717.90 715.40 +0.3% Pension Costs 3,241 2,564 +26.4% Passenger Rev. (£000)* 69,963 68,891 +1.6% Depreciation 3,922 1,945 +101.6% Subsidy Payment (£000) 12,100 14,228 -15.0% Rolling stock lease 14,210 12,772 +11.3% Train kilometres (m) 9.10 8.30 +9.6% Track Access 30,250 17,176 +76.1% * - estimated where financial year does not coincide with Interest Payable 4,639 2,400 +93.3% fiscal year. Operating Lease Costs 171 178 -3.9% Figures for y/e 31 March 2007 not yet available. Other Costs 34,031 27,596 +23.3% ANALYSIS TOTAL COSTS 116,963 91,516 +27.8% YEARTO 31 MARCH 2006 2005 % CHANGE INCOME CURRENT YEAR LAST YEAR % CHANGE Passenger franchise revenue 80,130 68,745 +16.6% Average Jny (km) 49.85 50.74 -1.7% Revenue Grant 20,056 13,923 +44.0% Average Fare £4.86 £4.89 -0.6% Other 9,823 9,150 +7.4% Yield per pass. km £0.0975 £0.0963 +1.2% Interest receivable 650 476 +36.6% Subsidy per pass. km £0.0169 £0.0199 -15.3% Rents Receivable 1,749 1,662 +5.2% Average train load 78.89 86.19 -8.5% Compensation 0 4,014 -100.0% (Pass km per train km) TOTAL REVENUE 112,408 97,970 +14.7%

29 JUNE 2007 | TRANSIT

products &services 21 solar power special

Transit Business Back-Up is your guide to new products and services for the passenger transport industry Horizon enters the solar power market Clear Channel Outdoor enhances its green and offers significant discount to buyers credentials with solar powered bus stops HUDDERSFIELD-BASED signage and market today. AS the UK’s market leader in outdoor Accredited Environmental Management street furniture specialists Horizon One major advantage of the advertising, providing more than 70,000 System which allows it to assess the Marketing say they have been Horizon Marketing system is that the outdoor advertising opportunities across aspects and impacts of any activities and carefully monitoring the solar power panel sits in the firm’s vandal resistant its portfolio, Clear Channel Outdoor UK establish programmes to reduce these market for some considerable time, timetable case. To enhance the ability considers the impact on the impacts, where practical to do so. and have waiting for the technology to for the user to quickly and easily view environment in all aspects of its activities This system is being rolled out across its become available that would enable the information inside the case is that and recognises that its corporate UK operations. them to offer a system that the market it can be illuminated on demand. responsibility is to minimise the The company has invested in energy wants to pay. That time is now and To take advantage of this function, potential for causing harm to the efficient lighting and new lighting Horizon is now offering the very latest the user simply has to press a button environment. controls for advertising displays, with in solar powered technology using low which switches on the display’s Clear Channel manages its Clear Channel’s 6-sheets controlled by voltage LED’s instead of conventional lighting system. environmental impacts through an photo electric cells which automatically light bulbs. However, Horizon warns that a switch on the lights during the night. Using the same solar panel, which is low introductory pricing offer, Solar-powered bus shelters have so far easily fitted to the top of a bus stop flag backed up with a national installation been introduced in areas including pole, it is possible to illuminate the bus service, will ensure that the new London, Surrey and Edinburgh. A stop flag, or the timetable case, or units will be in demand from number of these shelters, developed in both. The flag is permanently illumi - customers that appreciate the association with Zeta, use technology, nated using a dusk-till-dawn integral enhanced user experience offered including motion sensors, to maximise sensor with a timer override, giving by the system. Indeed, as part of the performance of the solar units. typically 10 hours illumination per Horizon’s wish to grow in the Martin Page, operations project day, especially useful during the much marketplace, a special introductory manager at Clear Channel Outdoor UK, darker winter months. offer will see a 15% discount for said: “Looking to the future, our The simplicity of the system is such anyone ordering five trial units during technical team is working closely with that it can be used to easily and July and August. manufacturers to develop more solar quickly illuminate existing flags and G For further details on availability of solutions, particularly in London.” Horizon claims that the LED panel the product call Allan McEvoy on G For more information about used to illuminate the timetable case 07874 405763 Clear Channel Outdoor UK visit ensures the brightest display on the Website: www.horizon-signs.co.uk A Clear Channel solar shelter in Edinburgh www.clearchannel.co.uk Carmanah says solar power could protect firms from future energy price increases THE message from all sectors of the better technology as removing wastage. media is clear; reduce your carbon The number of viable solar applications footprint. Solar energy in the public increases each day as the firm helps transport sector will generate no carbon customers to reduce energy wastage and emissions but it can be impractical due to work through their total cost of owner - the size of the system required which ship. Energy isn’t going to get cheaper makes the first cost too expensive. over the next 20 years; getting it where However solar power specialist you need it in the street may also Carmanah Technologies has combined become more difficult so now is the time solar power with LEDs, rather than to be mean and green. conventional light bulbs, in order to G For more information about allow the firm to put light where it is Carmanah telephone 01293 813980. needed, when it is needed, and eliminate Website: www.carmanah.com waste which has the potential to reduce lighting loads by over 30% while reducing costs significantly. With fast installation, no trenching costs or disruption, zero energy costs and a life expectancy of more than 20 years, there are many products which make sound commercial sense today. Carmanah currently has over 250,000 installations around the world where solar lighting is the best solution. We continue to combine solar energy with rapidly improving LED technology to create new opportunities in roadway and transit markets for lighting, security, traffic advisory, and safety. Lighting on- street advertising is another emerging opportunity. In London, Transport for London have to date installed over 600 bus shelters and 2,000 bus stops with solar lighting, improving the user experience for its passengers. Carmanah has installed solar lighting at over Energy efficiency is as much about 600 bus shelters, 2,000 bus stops for TfL

If you would like details of your company’s products or services to be featured in Business Back-Up, please contact Transit, Quadrant House, 250 Kennington Lane, London SE11 5RD. Tel: 0845 270 7870 Fax: 0845 270 7961 Email: [email protected]

29 JUNE 2007 | TRANSIT 22

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TRANSIT | 29 JUNE 2007 G Rail strategy, operations and performance

G Project appraisal

G Light rail planning

G Revenue forecasting

G Multi modal studies

G PFI advice/business cases

G LTP/LIP support

G Bus priority

G Bus station design/operations

G Interchange planning

G Travel plans

Equality Inclusion Consents Consultation

Equality Impact Optioneering Assessment Access Design Equality Schemes Business Case Action Plans and Monitoring Transport & Works Orders Impact Mitigation Parliamentary Bills Socially Inclusive Expert Witness Consultation Travel Information Systems Accessibility for Disabled People Consultation Events Public Transport Consultation Analysis Demand Management Strategies Market & Social Research & Reporting For further information please contact Travel Plans Kieran Holmes Tel: +44 (0)1543416416 Energy & Environmental Appraisal Bernard Gambrill E-Mail: [email protected] Scheme Consultation 07894 228 213 Offices in Lichfield, London, Bristol, Travel Awareness Campaigns [email protected] Nottingham, Edinburgh and Nantes Rural Transport www.nomis.uk.com http://www.ttr-ltd.com Freight Transport

29 JUNE 2007 | TRANSIT 24 EVENTS If you would like details of your coming courses, conferences and events to be featured in Transit please contact Transit, Quadrant House, 250 Kennington Lane, London SE11 5RD Tel: 0845 270 7968 Fax: 0845 270 7960 JULY OCTOBER 18 JULY 10-11 OCTOBER The art of smart conference Transport Innovation 2007 A one-day conference in central London, Two-day Transport Innovations exhibition on the 2008 English National of passenger transport technologies and Concessionary Travel Scheme, for which services at the NEC in Birmingham, the DfT have have issued tenders for sponsored by Transit, Local Transport Framework Agreement contracts to assist Today, Route One and Modern Railways. It Concessionary Travel Authorities in will be co-located and promoted with the procuring and issuing new permits. The ‘Coach & Bus Live’ event. event will discuss how smartcards will Tel: 0870 950 9620 help in managing concessionary travel Fax: 0870 950 9621 schemes and how the ITSO specification Email: [email protected] provides inter-operability and the ability Web: wwwtransportinnovations.com to choose from a range of suppliers. Tel: 01332 224507 Web: www.kc-jones.co.uk/metro07 17-19 OCTOBER European Transport Conference Three-day conference hosted by the Association for European Transport, in SEPTEMBER Leiden in the Netherlands. The conference 13 SEPTEMBER will focus on the key areas of transport Draft Local Transport Bill: practice, operations and research to inform transport decision making and includes transforming urban transport? a keynote presentation by the ministry of A one-day conference, sponsored by transport for the Netherlands. Waterfront in central London, which will Contact: Sally Scarlett examine the implications of the proposals Tel: 020 7348 1978 of the draft Local Transport Bill to enable Email: [email protected] local authorities and PTEs to improve the quality of local bus services, reform the arrangements for local transport governance, and reform the legislation NOVEMBER relating to local road pricing schemes. Contact: The Waterfront Conference 2 NOVEMBER Company, 130 - 132 Tooley Street, London Light Rail 2007: civilised urban SE1 2TU transit Tel: 020 7787 1210 One day conference in central London. Fax: 020 7787 1211 Further details to follow. Email: [email protected] Contact: Landor Conferences, 250 Kennington Lane, London SE11 5RD Tel: 0845 270 7965 19 SEPTEMBER Fax: 0845 270 7966 Latest developments in Bus Rapid Email: [email protected] Web: www.landorconferences.co.uk Transit A one-day conference in Birmingham, offering the opportunity to explore the 7 NOVEMBER planning, design and implementation UK Bus Awards of high quality bus transit and engage 12th annual bus industry awards more effectively with policy makers. ceremony to be held at Old Billingsgate in Contact: Helen Mallinson or Claire Wallis central London. In addition to the Tel: 0121 204 3593 or 0121 204 3624 Department for Transport’s ‘Winning New Fax: 0121 204 3684 Customers’ Award, six more awards have Email: [email protected] been introduced for 2007, including the Web: http://cel.conferences.aston.ac.uk Chris Moyes Memorial Award, ‘Industry People of the Year’. Contact: Pat Hartley, UK Bus Awards - Building awareness of the social, economic and 25 SEPTEMBER Entries environmental importance of Britain’s rural railways Vehicle design: the future for Tel: 0870 900 1450 passenger transport Fax: 0870 900 1480 Email: [email protected] Association of Community Rail A one-day conference in central London, Partnerships which will look at trends in transport Web: www.ukbusawards.co.uk Rail & River Centre 15a New Street vehicle design, new engineering Civic Hall Tel: 01484 847790 developments, and how they can 7 NOVEMBER Slaithwaite Fax: 01484 884241 contribute significantly to the appeal of Huddersfield HD7 5AB www.acorp.uk.com Email: [email protected] Smart environment conference public transport and become accepted as One-day international conference in the mode of choice. central London hosted by the ITS UK Contact: Landor Conferences, Smart Environment Interest Group where 250 Kennington Lane, London SE11 5RD a wide range of topics relevant to the Tel: 0845 270 7965 use of Intelligent Transport Systems to Fax: 0845 270 7966 minimise the environmental impacts fcp first class partnerships Email: [email protected] of mobility will be covered. Web: www.landorconferences.co.uk Contact: Maria Downs 148 Lawrence Street Tel: 020 7709 3005 27 SEPTEMBER Fax: 020 7709 3007 York Email: [email protected] UK Bus Awards seminar Tel: 01904 870 792. A one-day seminar to take place in Birmingham, which will include the 22 NOVEMBER www.firstclasspartnerships.com release of the shortlisted entries for UK rail stations this year’s awards ceremony on One day conference in central London. Railway Strategy, Expertise and Advice November 7. Further details to follow. Contact: Landor Conferences, Contact: Landor Conferences, 250 Kennington Lane, London SE11 5RD 250 Kennington Lane, London SE11 5RD Tel: 0845 270 7965 Tel: 0845 270 7965 Fax: 0845 270 7966 Fax: 0845 270 7966 Email: [email protected] Email: [email protected] Web: www.landorconferences.co.uk Web: www.landorconferences.co.uk

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TRANSIT | 29 JUNE 2007 EVENTS 25

A Major One Day Event Presented by Presented By

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Light Rail 2007 is a NEW event in the calendar. The industry has worked together and a number of separate events have now been brought together under one umbrella to create just the one major event. Light Rail 2007 brings a more influential conference, better networking and a new focussed exhibition. HIGHLIGHTS / Keynote paper from Ian Brown , MD Rail, Transport for London / Light rail development and city development explored / Speakers and case studies from France, Ireland, Sweden and UK / Focussed exhibition / Networking opportunities include drinks reception and NEW light rail awards / The only event to be supported by LTRA, LRT Forum, PTEG, UK Tram // Now all UK light rail interests are brought together in one unmissable event //

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TRANSIT | 29 JUNE 2007 27

29 JUNE 2007 | TRANSIT Editorial: 0845 270 7954 Fax: 0845 270 7961 Email: [email protected] Advertising: 0845 270 7968 Fax: 0845 270 7960 Email: [email protected] NO 314 JUNE 29 2007 Next issue published July 13 DfT urged to accelerate roll people ORR welcomes new board member out of smartcards to railway The Office of Rail Regulation has announced that Dr Chris Elliott will THE DEPARTMENT for Transport until 2011, 2012, 2013, and that is modules for smartcards to be join the ORR board as a non-executive has been urged to ensure that going to be too late to have a introduced. This requires an director at the start of July. Dr Elliott smartcard ticketing is introduced unified approach to smartcards 18-month lead time. “They replaces Jeffrey Jowell QC , who has across the entire UK rail network across UK rail by the Olympics,” cannot be switched on been a board member for three years. in time for the 2012 he warned delegates. overnight,” he said. Elliott is an independent consultant Olympic Games. “This is a once in a lifetime Unless the DfT acts now, with experience of rail and other Jeremy Acklam, an expert in opportunity. It’s a once in lifetime Acklam warned that there will transport issues. new ticketing solutions and opportunity for integrated only be patchy implementation Peter Bucks , current chairman of business development director for transport, and the DfT must be of smartcards and smartcard the ORR’s Audit Committee and a online retailer TheTrainline, bold and bring forward the phones across UK rail, and member of the Remuneration and warned that if action was not implementation dates for these therefore across integrated Proctor bids farewell Periodic Review Committees, has been taken soon the government risked remaining franchises.” ticketing opportunities. to Chiltern as MD reappointed to the board for a further missing out on a once in a Acklam also pointed out that “These [integrated ticketing Chiltern Railways’ Managing director, two years. lifetime opportunity. the DfT must order ITSO security opportunities] are needed to Cath Proctor has announced that she Speaking at last week’s Transit - persuade car drivers and car will leave the company at the end of ATOC promotes sponsored Public Transport Mobile travellers onto public transport August, having taken up the role in Generation conference in and therefore those moves will be February 2004. She stands down from Shaw as director Birmingham, Acklam called on heavily delayed unless DfT does June 18, when Adrian Shooter will The Association of Train Operating the DfT to put in place measures that,” said Acklam. “And all this become acting managing director as Companies has appointed to ensure that smartcards are is in an era when political well as his current role of chairman, Louise Shaw as director of standards adopted by all the rail franchises sentiment demands that travel is until further notice. Proctor will take and European affairs. The post focuses in the UK during 2009 and 2010, more and more green. The time the role of general manager and on interoperability and in time to allow that to bed down for vision and action is now.” deputy to Shooter until August 31. standardisation, and liaison with before the Olympics. To meet the demands of the Proctor has been in the railway government bodies. Shaw will South West Trains is the first mobile generation, Acklam said industry for 15 years. manage relationships between operator that is currently obliged that the passenger transport Commenting on her departure, she TOCs, industry and government to introduce smartcards, followed industry should be looking at said:“This has not been an easy partners, other European train by the new East Midlands, West “smartcard phones” capable of decision. This company and its staff operators and associations, and the Midlands, Cross Country and East making small cash transactions. have been important to me for a very European Railway Agency. The role Coast franchises, which also He called for a pilot scheme in the long time. I wish them all the best in has evolved from her previous role, as contain the ITSO requirement. UK to demonstrate the conve - achieving what I know will be a very the systems and standards manager “At the moment there is a risk nience of smartcard phones as a exciting and successful future.” for ATOC. that the later franchise renewals public transport ticket, and show are not going to adopt smartcards Acklam: ‘Time for action is now’ how hurdles might be overcome. Wilde to retire from New and re-elected Blazefield role chairs for PTAs Blazefield managing director Stuart Councillor for Otley and Yeadon, Wilde is to step down from his role Ryk Downes has taken over the role Forgeries of paper tickets now undetectable within the new three months at the of chairman of West Yorkshire completion of his annual contract. PTE, Metro. Downes was previously PUBLIC TRANSPORT operators the use of sophisticated forgeries. across them, and luckily we Wilde founded Blazefield with Metro’s deputy chairman and have been warned that London Buses has had to nipped it in the bud, but I know chairman Giles Fearnley 16 years heads the PTA’s ruling Conservative paper ticketing is increasingly change the design of its Saver Six they have now transferred their ago when they purchased the and Liberal Democrat alliance. He vulnerable to a new generation carnet ticket after forgeries attentions elsewhere in the UK. remaining Yorkshire and Hertfordshire replaces councillor Stanley King, of forgers. were discovered. Their forgeries are so good that bus operations of the AJS Group. who has been chairman for the past Speaking at last week’s Public “I think anybody that is still even the printer of the real ones They sold the business early last year year and moves to become Transport Mobile Generation running printed pre-paid tickets can’t detect them.” to the French-owned transport deputy chairman. conference in Birmingham, that you tear off in a pack and you Meanwhile, London revealed giant Transdev. Meanwhile, councillor Roger London Buses ticket technology buy from an agent is probably in that 12 million Oyster cards have Wilde began his career as an Jones has been re-elected to serve manager Paul London said the serious trouble,” said London. now been issued by TfL, with over assistant financial accountant at West for a seventh year as chair of the introduction of the Oyster “There are some very clever 5 million in use at least once a Yorkshire Road Car in the early 1980s Greater Manchester PTA. In the West smartcard in London had been gentlemen in China who are month. On London’s buses only and says that although he has no Midlands, councillor Gary Clarke has driven by the need to cut down making very, very good replicas of 2.5% of all passengers are paying immediate plans, he intends to stay been re-elected to lead Centro-PTA for on fraudulent travel, including printed tickets now. We’ve come with cash. within the industry in the future. the fourth year.

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