Monday, 28 February 2011

Veolia off the Scene?

Continuing yesterday’s theme, Veolia is the other constituent of the forthcoming Transdev/Veolia combine. Veolia first entered the UK under the maligned Connex name … and departed swiftly. Connex started running the South Eastern & South Central rail franchises 15 years ago, with South Eastern due to finish this year and South Central five years ago. Citing a loss of confidence, the then SRA terminated early, in 2003 and 2001. Connex operated buses in London between 2000 and 2004, before selling to National Express who in turn sold to Ned Rail.

But Veolia had aspirations to return and return it did, in a very different guise. Five years ago, at the very time Transdev was moving in, it was all go for Veolia.

Five years ago, it’s believed Veolia paid well over the odds for the colourful South Wales independent Shamrock Travel, fronted by Clayton Jones. This Veolia added to its Bebb business, purchased the previous year. Also, five years ago came Alpha Bus & Coach, other South Wales independents and Paul James of Leicestershire. Significantly, that year, Veolia purchased Dunn Line. 2007 saw more in York added where initially it had tendered successfully. This Veolia has recently sold to Transdev, even before the French merger talks. And, last year, Veolia let Nottingham go (buses to Premiere ; National Express contracts to Yourbus).

Since 2006, its South Wales rump from Carmarthenshire to Monmouthshire and Powys remains but there are even question marks over that operation.

  • It’s never managed profit in spite of some heavy low floor investment

  • Now, Veolia is reported to have lost National Express work for a dozen or so vehicles, the contracts transferring to Edwards of Llantwit Fadre

  • It cut back heavily in 2008

  • It’s struggled with council contract work & time keeping in the Ammanford area of Swansea and reports suggest work is being handed in

  • Indeed, it remains exposed to any local transport authority budget cuts, as a significant slice of work is under contract

  • It was recently penalised to the tune of £33,000 for punctuality issues in and around Cardiff

  • In late 2009, Clayton Jones returned to compete against them.
Veolia staff in Wales have apparently been warned that there might be up to 200 redundancies. Rather than affirming post-Nottingham the South Wales position, a representative quoted in a local newspaper at the end of January stated, “At the moment senior management [at Veolia] are making no comment and not confirming anything”.

Ahead of the competition of the Transdev/Veolia merger, UK industry watchers are speculating as to which organisation will have the management upper hand. The seeds already seem sown in that 640-vehicle Veolia still with bases in Wales, the Midlands and the north east may actually exit ahead of the changes.

Meanwhile, under the merger, Transdev Yellow Buses was due to hive off to RATP Dev on 22 February. Nothing’s yet happened though matters are in train.

Lower-most photo by "Gerallt Cymro"

21 comments:

D9000 said...

Edwards of Llantwit Fardre and not ... what you wrote.

Anonymous said...

Worth remembering that the Connex name still exists in the British Isles, on the Jersey bus network.

Anonymous said...

It is Ammanford, not Amman Ford and it's a distinct town some way from Swansea rather than an area of that city

Anonymous said...

D9000, nice timing. Veolia's always sounded like a disease of said unused word.

Anonymous said...

Connex also set-up a bus operation in Lewes, later sold to RDH.

Anonymous said...

Regarding the Ammanford operations. It's worthy of note that these were taken on commercially towards the end of last year (following loss of contracts from the local council). Now they're being abandoned.

Another example of Veolia's poor judgement.

I don't know what to suggest will improve this company's lot. Can't see anybody wanting to buy this mess (apart from maybe Clayton Jones, who thrives on chaos).

Perhaps it'd be best for the ship to sink and let other more sensible companies pick up the pieces.

Busing said...

Apologies for embarrassing Welsh misspelling. Now corrected.

Dominic said...

"Ahead of the competition of the Transdev/Veolia merger, UK industry watchers are speculating as to which organisation will have the management upper hand. The seeds already seem sown in that 640-vehicle Veolia still with bases in Wales, the Midlands and the north east may actually exit ahead of the changes." - I agree that now the merger has been agreed, Veolia seems to have revealed that its UK bus operations were actually unhealthy, and is taking drastic action to close them down.

Eric said...

Re Anonymous yesterday at 20:54

Thinking of its offerings around the valleys and Cardiff, your notion of letting the ship sink seems the best one.

New Adventure would be my guess to take over any of Veolia's local routes in Pontypridd, they compete against them on many as it is. They already have stiff competition on their 3 flagship services; Edwards will replace their 100 and 400 routes, while there's enough competition on their 600 from Aberdare that it could disappear unnoticed - I have heard on the grapevine that Stagecoach have expressed an interest in running services from Aberdare to Cardiff.

If they were to disappear, I wonder who would take over the subsidised late evening and Sunday services they cover? They cover quite a number of services for Stagecoach and First.

Anonymous said...

Can anyone expect this to happen at Birmingham as the only work out of the depot is National Express contracts.
We have no answers from management but all wonder on the future of this depot.
Can anyone shed any light on this.
Thanks

Anonymous said...

Edwards are due to recieve 11 brand new Volvo B9R/Caetano Levantes to run the contracts, which will leave no National Express work at Veolia (Treforest) whatsoever.

Anonymous said...

RE: Eric. I bet if Veolia did go then the local councils would just ditch those evening and Sunday workings to save budgets during these cash strapped times.

Anonymous said...

anyone know who will be taking birminghams nx services from veolia

Anonymous said...

heard a whisper that Hardings are in pole position for some of the birmingham routes operated by veolia

Eric said...

Was talking to a Veolia driver based in South Wales and he's not expecting them to last much more than a week.

Saying that, there were drivers suggesting about a year ago that they were expecting to turn up for work only to find the gates locked and the business folded.

Anonymous said...

Hardings International, Redditch. No way!
I do hear that the work from Birmingham is going to be split into different companies

Anonymous said...

Veolia seem to be departing from Wales slowly. The Carmathenshire have gone, The Swansea ones & Vale of Glamorgan ones are going

Newport Contracts are up for re tender I suspect they will not bid for those

Anonymous said...

As far as Veolia Wales is conserned I doubt there is anything to sell. The only profitable part of the business was probably the National express work.

It seems that Veolia are slowly giving up contracts those in Carmarthenshire have gone & the Swansea & South Glamorgan ones are going with a few in Brecon going as well. The Newport contracts are up for retender in a few weeks

Whether the local management will try to keep a small part of the buiness going around Pontypridd who knows I doubt that Veoilia Trandev will want to get any of it so will be keen to get rid of it particularly condiering the very poor reputation Veolia has in those parts

Anonymous said...

Mike de Courcey of Coventry has just taken on a 15 coach NX contract based in Brum. Could this be the answer to where the Veolia contracts have gone.

Anonymous said...

VEOLIA ENGLAND have now Surrended their Licence so have no Servive in England

Veolia Cymru appears to still have a handfull of service still

Anonymous said...

Anon @ 17 November, 2011 10:55 - they've operated under a number of licenses with the same name, they may have given another up but Worcester depot still remains (although it is the only one in England now).

In Wales, they will remain in some form until at least July/August time next year.