The UK case: Lessons learned Challenges and opportunities for the next decade Steven Salmon Director of Policy Development
The Geography Lesson
The Private Sector Runs around 80% of the bus network (outside London) in a direct commercial relationship with passengers Runs a substantial interurban coach network Operates all London bus services under contract Operates most of the remaining 20% of the network outside London under contract
The Private Sector Contribution so far Key dates: – last major private national bus operator sold to the Government 1988 – 89 National Bus Company sold by the Government (as 70 lots) PTE Bus operating companies sold 1990 – 91 Scottish Bus Group sold 1993 – 95 London bus operating companies sold
The Private Sector Contribution so far Privatisation and market liberalisation went hand-in-hand Except in London and Northern Ireland
The Private Sector Contribution so far Sector turnover: €4bn per annum Investment: € m per annum In most years, the industry invests more than it earns in profits
Fares (real terms)
Passengers
Mileage
Public Spending on Supported Services (Real terms)
Inside
Outside
Promotion
Innovation
The private sector can be astute in its dealings with:- Its customers (the passengers and authorities) Its suppliers of vehicles and materials Its workers Its public sector partners
Bus and Coach Drivers’ Earnings (Per week in real terms)
Bus and Coach Drivers’ Working Hours (Per week)
Bus and Coach Jobs
Challenges of the next 10 years The costs are saved – now we must grow the revenue Develop partnerships to improve the passenger experience –Information –Waiting –Moving Keep up with expectations (or lead your customers to expect more) Capture the mood of the moment
Challenges of the next 10 years Avoid counterproductive legislation
Make buses and coaches an obvious, mainstream choice