Our Mystery Contributor compares the Cornwall of today with that only a few years ago and finds a very different place. Agree or disagree with his perhaps more controversial previous post here
Cornwall in the 21st Century
A couple of years back all the industry talk was about the ‘Big Five’ PLCs selling off the less profitable parts of their empires, with First Devon & Cornwall always quoted as being up for sale.
Now, in 2008, the big groups are buying what might be expected to be marginal operations (e.g. Cavalier bought by Stagecoach and Truronian by First), and the market looks very different.
A recent holiday in Cornwall gave the opportunity to view bus operation there for the first time in several years, and what a change. Gone are the tatty life-expired VRs that still provided several of First’s core routes just a few years back and gone, too, are vast areas of what was First territory. Visit Newquay, and there’s a new bus station, with a Western Greyhound travel shop and green & white buses coming and going regularly. First, meanwhile, appear perhaps three times an hour—on a holiday camp route, a direct Truro & Falmouth route, and an indirect Truro via Perranporth route. By various routes, Western Greyhound has five departures per hour to Truro alone!
Move down to Penzance, and First still dominates the bus station. However, even here Western Greyhound is very noticeable following last year’s take-over of local operator Sunset Coaches. Exeter, Plymouth, Bude, Truro, St Austell, Penzance—in all of these places the Varios and occasional Olympians of Western Greyhound present the image of a highly professional operator going about its business.
In Falmouth and Camborne, First still dominates, more so since the purchase earlier this year of Truronian. The two networks have yet to be integrated, and the differences are noticeable. The First operation is now very smart, with a high percentage of low floor Dennis Darts assisted by mainly tidy Volvo and Leyland Olympians, while the Truronian operation looks down-at-heel and in need of smartening up (I won’t say investment, for there are new buses, but even these look unkempt).
So overall, Cornwall now has an impressive level of bus service. One cannot help but feel that when First rather lost the plot they lost a lot of ground—and that Western Greyhound has taken full advantage of the opportunities they were handed. In buying Truronian, First has reacquired mainly deep rural routes given up many years ago, rather than routes with potential, squandered during periods of weaker management in more recent times.
Saturday, 12 July 2008
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Saturday, July 12, 2008
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1 comments:
There comes a point when any small company has to look at the finance needed for expansion. The cost of that may be that the bank, or outside investors, acquire a level of control that the owners of the company may not want to give them. The owners have to ask themselves if they really can afford to get bigger or not. Often the answer is to sell up and take what profit may be available.
The 'big five' will now be looking to such companies as a way to expansion as, in many areas, there is limited opportunity for natural growth.
When you have a situation, such as in Cornwall, where one of the 'big five' have a major presence they will not welcome one of the others into their territory. It may be that they will have to buy up smaller companies to prevent anyone else from doing so. Certainly the moves that Stagecoach West have been making in the First D&C area would make me worried if I were a First manager as I am sure that the purchase of Cooks by Stagecoach did.
We may now see a number of strategic purchases of companies with route networks that may not produce much revenue in themselves but will keep out the opposition and so protect an operating area.
The timescale for the integration of Truronian may well be governed by the contract of sale. It does seem, however, that things are rather back to front here. Normally a purchaser will protect his investment in goodwill by taking a gentle approach to integration. It is, therefore, strange that First are visually in better shape than the company they have bought and are allowing that situation to continue.
Although the Cooks website has not been updated for a while there is still no mention of Stagecoach nearly 12 months on. Likewise Stagecoach have no mention of Cooks on their site. It still gives the impression of being a family run business and that may be one of the assets they have.
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