May 2008 ROAD TRANSPORT, DRIVING PEACE & PROSPERITY THE UK PERSPECTIVE PART 1

2 Background – the UK, outside London, is de-regulated -operators take commercial risk -operators determine route, frequency, times and fares -success comes from increasing passengers -public money is received for purchase of specific services

3 ROAD TRANSPORT,DRIVING PEACE & PROSPERITY THE UK PERSPECTIVE PART 1 Give customers what they want – high quality services -reliability -punctuality -stable route network -value for money Whilst at the same time - minimising cost base -using assets efficiently – drivers and buses

4 ROAD TRANSPORT,DRIVING PEACE & PROSPERITY THE UK PERSPECTIVE PART 1 Developing local authority partnerships – vital to providing reliable and quality services -focusing on reducing journey speeds

5 ROAD TRANSPORT,DRIVING PEACE & PROSPERITY THE UK PERSPECTIVE PART 2 Typically in the UK – -driver costs represent 75% of total labour cost - labour costs represent 68% of the total cost base Control of costs essential to operating profitable and sustainable networks in the commercial environment Driver costs – two aspects -pay competitive rates - scheduling efficiency

6 ROAD TRANSPORT,DRIVING PEACE & PROSPERITY THE UK PERSPECTIVE PART 2 Drivers multi-task -highest standards -increasing congestion whilst keeping to schedule -responsibility for safety and security of passengers - inter-facing with customers - operating the cash till - largely unsupervised

7 ROAD TRANSPORT,DRIVING PEACE & PROSPERITY THE UK PERSPECTIVE PART 2 Need to recognise the role of the driver – not just through pay rates -job security -pension -quality and quantity of training -occupational health - staff facilities - management support Historically no bonuses but….

8 ROAD TRANSPORT,DRIVING PEACE & PROSPERITY THE UK PERSPECTIVE PART 2 Wage rates affordable -reflect skills and responsibilities The right pay and conditions - reduces staff turnover - reduces recruitment and training costs - pool of applicants

9 ROAD TRANSPORT,DRIVING PEACE & PROSPERITY THE UK PERSPECTIVE PART 3 Increasing role for scheduled services The bus has to compete with the car The bus journey experience must be good -information - bus stop environment -the vehicle itself - the driver - the fare - the punctuality, reliability and frequency

10 ROAD TRANSPORT,DRIVING PEACE & PROSPERITY THE UK PERSPECTIVE PART – Transdev Blazefield introduced -13 new twin-deck buses in Ripon-Harrogate- Leeds (Route 36) -Aircraft style seating – leather covered -Additional legroom -Striking black and chrome livery

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13 ROAD TRANSPORT,DRIVING PEACE & PROSPERITY THE UK PERSPECTIVE PART 3 Route 36 -same frequency -same running times - same fares Patronage +20% - 12 months +60% - 4 years Required payback of 5% per year for 5 years Increased legroom most important for passengers