Rationalisation within the bus industry continues apace and not just in terms of predators gobbling up minnows for lunch. First Group announced yesterday that it is likely to merge First in Essex (Eastern National) with Eastern Counties.
This follows a similar move in Yorkshire announced before Christmas where all but South Yorkshire merged five into one West Yorkshire conglomerate. Other than those retiring, all the former managing directors found jobs within First.
The very real benefit of such mergers is in the removal of duplicative back and head office functions. In the Eastern National/Eastern Counties case, this agglomerates some 355 vehicles at one with 325 at the other, creating a combined operatiom of some 680 vehicles and 2,000 staff.
Following the Yorkshire and eastern mergers, there will remain 14 bus divisions. To achieve First Bus’ desired goal of improving efficiencies, the scope for further rationalisation seems likely, indeed inevitable. There is, for example, a relatively small subsidiary based at First’s Aberdeen HQ, employing 500 staff. Merging with First’s Edinburgh operation formerly SMT, Borders & Midland Bluebird seems sensible—until you realise that it’s three hours by road for the 130 miles between main operating centres, with National Express Dundee in-between.
First has rationalised and reorganised a fair amount along the way. First’s Alder Valley rump is managed with its London operations. Its west & east midlands operations are similarly as one, as are Porstmouth, Southampton, Gosport & Weymouth; and Potteries, Chester & Wirral. And the phenomenon isn’t confined to First, of course, and never have been, though the pace has hotted up in recent years. Witness Go South Coast, Arriva Midlands and Arriva North West & Wales, though the last of these, like Stagecoach West & Wales, has de-merged.
There’s speculation that National Express may pass its London operations to Comfort DelGro in a deal estimated at £50mil. It’s understood that talks were initially inconclusive but then restarted. Comfort DelGro operates about a sixth of the London bus market through its Metroline subsidiary. If true, the monopolies authorities are less likely to be interested in this one. Stagecoach sold its London operations to the Macquarrie Bank in July 2006.
Wednesday, 18 February 2009
Rationalisations
Subscribe to:
Post Comments (Atom)
3 comments:
Interestingly this will give this one division four isolated units:
1)Essex - since withdrawal of Ipswich-Colchester services there has been no link between EN and EC.
2)Ipswich - already isolated from the rest of FEC.
3)Bury St Edmunds - already isolated from the rest of FEC.
4)Norfolk (and North East Suffolk) - Kings Lynn, Norwich, Great Yarmouth & Lowestoft.
This merger may (in my dreams perhaps) cause these to be linked back up again although I fear the opposite. A new larger company may well want to withdraw even further - goodbye Kings Lynn? I'm sure Norfolk Green would be only too happy to replace any losses, together with the other 'great' Norfolk independents - Anglian, Konectbus & Sanders. This would almost certainly lead to improved services here.
There aren't really any operators of that sort in Suffolk - Stagecoach might be interested in Bury St Edmunds (in that case it would pass to the 'other half' of the old EC) but I suspect any withdrawals in Suffolk would be followed up with very piecemeal replacement - SCC supports too many services as it is, with there being a lack of any highly enterprising operators (apart from the aforementioned Anglian). A large number of operators of services (a list would be too long) would be the outcome of any large scale withdrawal in Suffolk - a mess in other words. However Ipswich Buses might be an interesting possibility, whether as part of the 'new', larger, EC or through a takeover of IB and FEC Ipswich by someone else, although this would isolate Essex from Norfolk even more.
All these are possibilities that could happen, although the latter probably won't.
Well BSE is IPS, these two are isolated from other FEC depots. Even though its a merger, its only the people behinds the scenes being affected. They both may only have one MD, and one of other things, this will make job losses of course, but will save First a lot of money by putting them together.
It may also cause more trouble in terms of duties etc for Kings Lynn done by Essex staff and the other way around.
Im sure we will see how it turns out like, and if it is failing im sure as youve mentioned other companies like Anglian, Norfolk Green and Konectbus will pick up peices in Norfolk and Ipswich Buses Will pick up any Ipswich routes if this occurs.
But i doubt this would happen, it should all run as per normal, but instead of having a FEC human resource manager and a Essex human resource manager, they'd only be one dealing with both for example.
They may come under a different name but will remain as First Eastern Counties and First Essex for sure. (kinda of thing with Go South Coast management in control of W&D, SBL and SV)
There are definite geographical variances between this and the First Yorkshire merger though. All the parts of recently merged First Yorksire are within an hour or so from Leeds.
I'm sure Kings Lynn and Lowestoft were far enough from Norwich, let alone Chelmsford. Larger groupings may well result in back office economies, but will the operations benefit on the ground ??
Post a Comment