Embrace

Yesterday’s post on CT Plus’ somewhat geographically isolated Kingston upon Hull park & ride contract incursion concluded that:

“…regular bus and coach operators are very wary of CT Plus and its sisters”

What CT Plus had done was win a Hull council tender from established East Yorkshire. Apparently, CT Plus wasn’t even the lowest, though I can only assume that quality scoring reflected in the decision. What else could there be?

Should bus & coach operators therefore be concerned about community transport (CT) ventures? They do appear to be, given the prominence given to the cause by none other than trade magazine routeONE itself. There was talk of a fighting fund to defend operators in the courts.

Whether CT operators (or their O-licence offshoots) pose a *significant* threat depends upon who asks the question. If you consider the Big Five, CT probably poses next to no threat at all. If you look at smaller one- or two-vehicle minibus operators, the threat’s a possibility because CT operators are more likely to undertake school & social services contracts on a S.19 permit than large bus work requiring an O-licence.

It seems to me that the industry needs to learn to live with CT operators. Why so?

• The government has done much to bring them into the mainstream. For example, they can now usually claim BSOG and can pay divers where once divers had to be volunteers.


• Their core activities—usually dial-a-ride (DAR) type operations—aren’t usually attractive to commercial businesses. Commercial enterprise is less likely to do this sort of thing well (yes, there are exceptions).


• These core activities are part of the integrated transport mix. Rural CT might, for example, feed in to strategic, inter-urban bus routes.


• Their core activities are also very vulnerable. Grants for new vehicles there may be (and, these will start drying up in the new financial reality) but keeping the wheels turning is by no means easy. And, society would be the poorer without DAR. CT operators therefore need to look at ways it can cross subsidise its core operations, through contract work, thereby broadening its base and reducing proportionately its overhead.


• The CT sector is far from “amateur” these days (yes, there are exceptions). It’s possible that it can undertake its core operations with a level of care that’s well ahead of the commercial industry. They are very specialist in nature and often offer high standards. Their driver training is usually to a high standard. Third sector operations tend by their nature to be more “caring” and customer focused.


• The lean years are ahead. Councils will look to save money. If CT can form community interest companies and operate contracts cheaper, then this has got to be a viable option for cash strapped local transport authorities. They may offer a similar service at lower cost or better service at the same cost. All so long as the contract or agreement is tightly worded.


• Vehicles are often available early mornings, evenings and at weekends. Provided CT operators grasp the concept of marginal costings, they can offer very good value to the taxpayer.