DELIVERING REAL ECONOMIC BENEFITS THROUGH TRANSPORT PARTNERSHIPS ANDREW CLEAVES MARCH 2014
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1 DELIVERING REAL ECONOMIC BENEFITS THROUGH TRANSPORT PARTNERSHIPS ANDREW CLEAVES MARCH 2014
2 Overview Our international experience is that public transport works best when it is delivered in Partnership 2
3 Overview Public and private sectors both have very important but very different roles to play Getting this balance right is crucial to our joint success 3
4 Transforming Bus Travel in UK Previous partnership agreements have delivered their objectives New Smartphone bus travel app (over 100k downloads to date) The region s first environmentally friendly hybrid buses Doubled the number of ticket inspectors 4
5 Transforming Bus Travel in UK The seamless flow of partnership agreements over the years has led to major improvements for the passenger Record breaking punctuality in core markets such as Coventry, Wolverhampton and Walsall 5
6 Transforming Bus Travel in UK Partnership Plus is the most ambitious yet and will see over 86m invested into bus travel across West Midlands 86m Investment 6
7 Transforming Bus Travel in UK Partnerships deliver co-ordinated investment to improve passenger services and drive passenger satisfaction and growth 7
8 Transforming Bus Travel in UK The local authority is focusing on infrastructure, including passenger information State-of-the-art totems with real time information Bus priority on key routes 8
9 Transforming Bus Travel in UK National Express focused on new vehicles and customer service This work will be combined through the current partnership to develop the UK s first gold bus corridors, with best practice being brought together on key routes 9
10 The right partnership delivers and sustains passenger growth Annual bus usage/population density by English Local Authority Partnership areas Source: Passenger Transport; Stuart Linn of Réseaulutions 10
11 UK Bus: partnership case study Driving profitable growth in Coventry +5% TBT2 signed with Centro 14 new buses Full network redesign 33 new buses TBT3 signed with Centro Snow Further route expansions Commercial smartcards YoY patronage -5% July Jan July Jan July Jan % Graph shows rolling 8 week average commercial patronage compared to prior year Statistics use Q4 for each year, and show change versus the same quarter in prior year 11
12 Summary of improvements in Coventry Full network review completed Simple, clear route design Extensive marketing Telematics to improve driving $1.5m AVL facility used to improve punctuality Strong partnership with Centro and local council Smartcards rolled out to all customers 12
13 Partnerships address the concerns of public transport users in the West Midlands Recent Passenger Focus results show that partnership is delivering real benefits to bus users. The results include: 13
14 Partnerships address the concerns of public transport users in the West Midlands 78% 86% Overall satisfaction 14
15 Partnerships address the concerns of public transport users in the West Midlands 62% 73% Punctuality 15
16 Partnerships address the concerns of public transport users in the West Midlands 69% 74% Personal security 16
17 Partnerships address the concerns of public transport users in the West Midlands 53% 62% Driver attitude and helpfulness 17
18 What people in Saudi Arabia are saying... Women feel totally dependent on male drivers Non-car owners are reliant on others at times that are not convenient Too much congestion Cost and convenience is a key factor
19 Some views of public transport Not enough seats for women No stops near where I want to go Poor quality service Not a viable or credible choice Full of labourers There is no public transport
20 Views of proposed service Allowing me to travel when and where I want Safer than a taxi, cheaper than a car Possible bridge between a conservative and an open world
21 UK experience of partnership shows the opportunity Well run urban networks deliver significant economic benefit for a number of sectors and areas of the economy. 21
22 UK experience of partnership shows the opportunity Buses don't just link households to jobs and education: + = 27.2bn Bus users also make 1.4 million shopping trips a year - spending 30 each trip - giving an estimated retail spend of 21 bn Bus users also make 471 million leisure trips a year - spending 26 each trip - giving an estimated spend of 6.2 bn In total, retail and leisure spend by UK bus users amounts to 27.2 bn 22
23 UK experience of partnership shows the opportunity For every 1 of public spending, buses in the major urban areas generate 2.50 of economic benefit: Job flexibility Job Creation Job Growth Supports flexible labour markets, widening the pool of labour, overcomes barriers to access work/education for those on low incomes or without access to a car Buses are a major source of employment in their own right. In the UK buses directly employ nearly twice as many people as rail Reports show that increasing public transport use generated more employment than an equivalent increase in car use 23
24 Private and public sector work is vital but different Our experience as one half of Britain s industry leading partnership is that both the private and the public sectors roles are vital but very different. This is also something we see across the globe. 24
25 Private and public sector work is vital but different Authorities recognise the need to fund the infrastructure and manage the risks so that the private sector can do what it does best. Invest in their product Innovate to meet customer demands Develop their staff and customer service 25
26 Private and public sector work is vital but different Our research in Saudi Arabia show there is an openness to using public transport, if we get the product right Quick Easy Clean Safe These qualities are what need be delivered by the public and private sector working in a co-ordinated and structured way 26
27 Enablers for partnership Increased discussion at an early stage of contract development will improve the joint objectives Discussion Greater clarity of tender scoring regime will enable focused bids Clarity A focus on output specifications will encourage innovation and efficiencies Focus Improvement of the visa process would be extremely helpful to ensure that the right resource is applied to the bidding process Improved Visa Process
28 Conclusion Partnership working is crucial Successful public transport markets are built by both private and public sectors Partnership encourages mutually supportive investment and innovation Partnership drives safety, passenger growth, high customer satisfaction and helps to sustain these achievements Partnerships create good, skilled jobs for local people
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