Recipe

Here’s an interesting recipe. Take a couple of surplus Western National managers by the name of Messrs Rabey & Rumbles, buy out a small fry local operator in 1987, begin to grow the business on tenders and some local commercial work, consider a few innovations such as ‘branch lines’ from 1995, market well, seek an innovative approach to local employment, take on the routes your former employers don’t want, take on some more, win a few awards including Bus Operator of the Tear (2003)… and then sell back your successful business to the people for whom you used to work.

It all sounds a little like Waterstone's and W H Smith. In fact, it’s Tuesday’s announcement that 70-vehicle Truronian will sell to First Devon & Cornwall. Another chapter in the story of independent Cornish bus operator.

On the face of it, it’s pretty odd behaviour. Why would First cut back its Cornish operations only to buy the operator who in the county’s south and west took on all the dross? What is the point? The two significant First Cornish restructurings were for a purpose, to cut out millstone routes. Now, First has them back again.

Marc Reddy, First Devon & Cornwall’s MD (and dare we say former Bournemouth Transport man) does nothing without a reason. And we suspect that there are several reasons. The first is that Truronian has been looking for a buyer for a while. From FDC’s perspective, better First than Stagecoach or Veolia (both of whom were looking). Supplanting a major rival in Cornwall wouldn’t be good for First’s business. It would be like a Trojan horse.

Secondly, it ensures First has more of a monopoly in Cornwall. There are obvious economies to be had once the two companies are better integrated. Part of Truronian’s network is complementary to First’s. There’s an advantage in dealing with the wasteful competition that currently exists and, so far as tendering is concerned, FDC will be in a better position to take services on its terms. Cornwall council will be checking its budget.

Thirdly, and this may be somewhat of a surprise given that FDC is one of the five operators propping the rest up, First has made significant managerial progress in the last 18 months. Reddy’s restructurings mean it’s far stronger than once it was. Stronger, not strongest, admittedly, as it still reported a loss in its last financial accounts. Would FDC be as strong if it faced competition from Stagecoach?

The fact remains that many of the older FDC vehicles have now departed, even to he point of fewer open top services last summer. Free travel’s had a positive effect, especially in Plymouth (though what will happen in Cornwall over the summer with the free-for-all national (English) free travel is anyone’s guess). First Devon & Cornwall is now therefore in a position to buy and Truronian’s revenue plus the aforesaid restructuring will strengthen First’s business.

The unanswered questions are, what will happen to Truronian’s coaching activities? Will the competition authorities worry?

And, will former Western National employee created Western Greyhound be next?


Whatever happens, First's move cements its position in the far south west. There can be no doubting its renewed commitment.