Private Sector Contribution to Economically Sustainable Mobility David Martin, 2 December 2009

Who we are * Including share of associates Arriva operates in 12 European countries 16,000* buses 570* trains More than 43,000* people >1 billion passengers every year

Sharing Pan-European experience Exchange of ideas / solutions Effective partnerships Innovation Investment Customer-based approach Track record of delivery Significant savings What does the private sector bring?

Our perspective EU objectives for sustainable transport can be reached by: –Accelerating liberalisation –Increasing competition to generate substantial savings –Better utilising existing resources –Promoting sustainable mobility

Case Study: Helsingborg, Sweden

The challenge In 2004 transport by car was forecast to increase by 40% by 2020 Local air quality, and CO 2 emissions needed addressing The city wanted a modal shift from individual to public transport Aimed to make bus services closer to carbon neutral through the use of CNG and biogas

The targets Doubling public transport use in Helsingborg in the 10 years to 2014 Public / private sector cooperation on investment to expand public transport and improve infrastructure Public tender of Helsingborg bus network in 2004 with an active involvement of the city

The contract Arriva proposed incentives for beating quality and passenger growth targets Contract started June 2005 when Skånetrafiken took over as transport authority for Helsingborg Partnership between Helsingborg city, Skånetrafiken and Arriva to fulfil the vision Arriva introduced new ‘green’ low-floor buses powered by CNG and biogas

The way forward Increased average speed for buses Priority bus lanes and signals A market based timetable: Open dialogue with the customers – they know what works and what is required Offer new routes, services and solutions Create a market based public transport solution Enter partnerships with other stakeholders Increase public support for public transport in Helsingborg to 80 per cent by 2014

The toolbox Everything organised as partnership Strong incentives form a common agenda between the three stakeholders Clear distribution of tasks and responsibilities The municipality invests to optimise the infrastructure The PTA strongly markets public transport services Arriva invests, motivates and optimises

The Helsingborg Model How has it worked out so far?

Result: Quality Growth

Result: Passenger growth YearPassenger journeysYearly growth % % % ,4% ,2 % ,5 % ,0 % ,5 % ,5 % ,5 % ,5 % Projected

Result: Employee satisfaction 98% attendance Increased interest and involvement from employees More than 200 employee suggestions for services and business improvements Increased employee satisfaction Increased employee responsibility Employee performance bonus

Why it’s working Tendering provided opportunities for innovation and commercial thinking Alternative contracts = new possibilities Investments in infrastructure and bus priority Partnership – common vision and strategy for passenger and environmental benefits Strong incentives related to quality and passenger growth Coordinated effort on marketing, traffic and infrastructure Lessons we can benefit from elsewhere

Looking Ahead

The wider view Challenges across Europe Increasing congestion Ageing populations Infrastructure Sustainable mobility

How do we get there? EU Framework Need for solid foundations Increased choice, liberalisation Level playing field Facilitating Competition Flexible and efficient solutions Value for money

Private Sector Contribution to Economically Sustainable Mobility David Martin, 2 December 2009