Issue 49 November 2010 www.stsg.org ISSN 1462-8708 An independent publication by WHAT’S INSIDE: What next for Scotland’s bus industry? Turning Japanese West of Scotland Transport Summit News Update Research Update 2 CONTENTS The Scottish Transport Contents Studies group (STSg) WhaT nexT fOr ScotlaNd’S buS iNdustry STR is the newsletter of the Scottish Transport FocuS on ThE needS Of ThE CustomEr 3 Studies Group (STSG) and is largely funded from STSG STR editor Derek Halden suggests that a shift is needed in the debate about the bus membership subscriptions. STSG was formed in 1984 industry from how to get improvements, to a shared view of priorities for improvement. and now has corporate and individual members from transport operators, industry, national government, local government, universities, and consultants. RetailiNg to RecovEry 4–5 Transport Minister Stewart Stevenson says that government’s role is to facilitate The aims of STSG are “to stimulate interest in, and partnership, innovation and improvements to build on the achievements already awareness of, the transport function and its importance for made by the bus industry in Scotland. the Scottish economy and society: to encourage contacts between operators, public bodies, users, academia and ThE KEyS to ThE fuTurE 6–7 other organisations and individuals with interests in Paul White of CPT shows that the bus industry is changing and the industry looks to transport in a Scottish context; to issue publications and government for support and funding consistent with its sustainable development goals. organise conferences and seminars related to transport policy and research”. STSG is a charity registered in haS InstiTuTional ChaNgE DelivErEd a better Deal? 8–9 Scotland number SCO14720. David Quarmby compares the regulation of buses with rail and roads, and argues published by LBD • www.lbd.uk.net that buses have lost out in the battle for funding. There is a case for change in the Tel. 0131 665 3326 institutional framework for every mode, but would the costs of disruption be less than the benefits of further change? Who decides what InstiTuTional ChaNgE iN ScotlaNd 9 Alan Howes notes that politicians would be in a better position to assess the goes in STr? framework for buses if they travelled more by bus. Firstly the members of STSG – We rely on STSG News update members and others telling us about interesting studies they have completed or knowledge they have. Some of the public debate about Scottish transport in recent months from 10–11 To keep subscriptions low we need members to invest the newspapers time to share their knowledge. STSG has some funds to commission some analysis and reporting but the editorial work is undertaken voluntarily. West Of ScotlaNd TranspOrT SummiT 12 Secondly the Editor Derek Halden, assisted by the ResearCh aNd InnovaTion update STSG Committee tries to fit the contributions into 16 pages and create a readable document. Personalised travel planning, factors that make good places to live, and a fall in 13–15 If you can contribute to STR please e-mail road casualties. [email protected] Lessons fOr ScottiSh railWayS frOm JapaN? 16 John Yellowlees Ensure you receive Scottish Transport Review Regularly by Joining STSG Individual subscriptions £40, Company subscriptions £75 to £500 All STSG correspondence and subscriptions enquiries should be addressed to 2 Dean Path, Edinburgh, EH4 3BA. E-mail [email protected] Name: ................................................................................................Position: .......................................................................................................................... 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Telephone: ...................................................................................................................E-mail: ................................................................................................... [email protected] www.stsg.org WhaT NExT fOr SCOTlaNd’S buS iNduSTry 3 Where next for Scotland’s buses? Derek Halden, STR Editor Scotland’s bus industry faces a dilemma. The bus industry appears to be conscious to business, and business to consumer Should it seek to move towards a more of its social role, as one might expect from markets. The Transport Minister Stewart highly regulated model of delivery such as an industry that makes much of its income Stevenson concentrates on these issues that deployed on the railways to improve from social markets. This results in many non in his vision for the industry. Ticket prospects for greater public funding, or profitable routes and parts of routes being run deals between large employers and bus should it seek to compete more strongly commercially, as operators seek to provide a companies are not yet the norm, and with the much larger private markets reasonably comprehensive service for their core attractive consumer deals associated traditionally dominated by car and taxi. In customer base. However, the industry seems to with yield management and customer this issue of STR, Stewart Stevenson, David be poor at managing change. When services relationship services remain very unusual. Quarmby, Paul White, and Alan Howes are withdrawn blame cultures quickly emerge There remain only isolated examples of the identify changes needed to deliver in each between local authorities and operators. sort of customer services that would be the market segment creating a world beating norm in other industries. Back up systems bus industry in Scotland. to protect consumers and customer loyalty and reward services are increasingly There is no doubt that the increasing Stronger partnerships are expected by discriminating consumers. dependence on state funding in recent years needed between local makes the arguments put forward by David Paul White highlights the urgent challenge Quarmby for more bus quality contracts authorities and operators to use smart ticketing to modernise compelling. Yet follow the Quarmby to help manage change payment systems, and linked with a new arguments through, that formal and informal generation of innovation in premium bus quality partnerships work well outside services for new niche markets the large cities and that Lothian Buses is one of prospects for the industry are bright. It the most successful city models, and perhaps In the coming years much stronger seems that the industry has a choice about the bus policy debate in Scotland is really partnerships are needed between local whether to offer attractive consumer more about targeted changes with localised authorities and operators to help manage facing services, or retrench to traditional contracts to secure public policy goals. change and raise public expectations of skills in the logistics of bus operation. The buses. Local authorities do not have a good future of the bus industry is looking for The starting point is to clarify what these track record in specifying social needs in their leadership. Although this could come from policy goals might be. If local authorities set areas and policy instability remains one of either local authorities or industry, the out clear plans to help drive increased profits the greatest barriers to efficiency. Setting evidence suggests that when both work in bus companies then there could be mutual out shared goals for bus services would not in partnership the greatest potential can benefits. In principle there is no reason why only make buses more understandable to the be released. partnership agreements could not be used to public but help to manage change through agree a revenue share between the authority partnerships or if necessary contracts. Public Perhaps buses could learn from rail that and the bus operators in return for cost sharing confidence in bus travel is greatest where a solutions agenda leads to greater arrangements for implementing ticketing, operators and public authorities promote investment, public support and growth information and bus priority measures. Such joint messages. in patronage. A clear vision of prospects arrangements might find a place in an age of and possibilities for buses can potentially austerity, just as the close liaison highlighted The industry stepped up to run rail franchises demonstrate that as the dominant mode by Paul White on public spending programmes for government but has so far has not of