Friday, 20 May 2011

Off the Rails

If the Competition Commission feels the bus industry is in a muddle, it need look no further than rail to see an absolute mess. Just how do you equate a dramatic upsurge in customers with inflation-busting fares on the one hand, gargantuan increases in public subsidy on the other and incredible over-crowding, to boot? It’s bizarre. Woe betide a bus operator who bases his business on such a model. Ah. It’s still the bus barons who control rail but the difference lies partly with the high cost straight-jacket that’s called Network Rail.

No such nonsense on the buses. Or is there? Perhaps a different sort. During the beginning of the CC inquiry, Wellglade’s Trent Barton was squeaky clean. Trent Barton even stated that it wouldn’t dream of competing with another operator on price, only on quality. That stratagem has changed as it has tried perhaps unsuccessfully to deal with Premiere. But, hey, that’s business. Premiere is probably now too big to touch, in any case. Better to have taken reprisals three years earlier. May be it was on Wellglade that the CC had its eye on when it wondered about the long term benefits of bus wars. With a regime that is relaxed compared to rail, the benefits of such competition are lower fares and a greater choice of buses. Even if this only lasts for the short term.

There’s now news of a merger of Centrebus’ Chapel-en-le-Frith Bower’s operation with Trent Barton’s nearby garage, creating a new operator with the name High Peak. This is eminently sensible, given the management and overhead savings; the distance between the two operators at less than three miles; and the fact that rural bus operations in a chilly free travel reimbursement climate are nowadays somewhat more noxious than normal. Such a move might stabilise employment and this is something upon which Wellglade is majoring.

But it does reduce the competition for tenders in the sort of rural area where that market is weakest. So far, on Omnibuses, we’ve concentrated upon the CC’s views on commercial mileage. The CC nevertheless feels that there are measures the DfT should take to increase the number of competitors for service contracts. Let’s face it, there are usually few. In spite of a trend that has seen tours & excursions decline sharply, the general coaching industry has failed to respond, as the government 25 years ago would wish, to bus service opportunities.

So, in merging, is Wellglade again potentially falling foul of what the CC wishes to see? Or is this a pragmatic stand against the inevitable further slide in rural bus services? Whatever the answer, it couldn’t be worse than on the railways.

21 comments:

Humber Transport said...
This comment has been removed by the author.
JimmyMac said...

Trentbarton's skyline 199 service between Buxton, Stockport and Manchester Airport has always been rather out on a limb: with the addition of Bowers sevices around New Mills and Disley there would be more of a network. Do we know have any details on who would own the new company? A joint-venture?

Humber Transport said...

With regards to tenders Wellglade also have TM Travel active in the peak district. There is Hulleys but they have tended to focus more on the eastern part of the Peak Distict.

However while tender competition may be reduced, potentialy pushing prices up, could this be better for taxpayers than Bowers and/or Trent Barton giving up commercial mileage that needs tendered replacements as they continue to feel the squeeze?

The Trent Barton-Premiere situation now is interesting. Premiere have almost given up on the Red 4, and TrentBarton almost given up on Bargain Bus, but not the Kinchbus 9. So TB have accepted competition to Cotgrave but forced it (almost) out from Nottingham-Sandiacre.

However Premiere have started the Red5 to Long Eaton this year, with so far no Bargain Bus response from Trent Barton.

Anonymous said...

TM Travel do operate in the Peak District, although solely tendered work for DCC, which has steadily been in decline since becoming part of the Wellglade Group. While Dove Holes (Buxton) would be well-placed as a location from where a number of TM Travel's service could be based, I'm sure Wellglade would have done this by now. Moving Bowers in will fill the small depot completely.

Frankfrog said...

The UK Bus East Midlands Yahoo Group says that the new company was registered on May 5 with it's office at Cannock St, Leicester. "Current directors" are from Centrebus, but it may be that Wellglade is yet to appoint directors.

Anonymous said...

I'd love to know where the 'only 3 miles' come from.

Anonymous said...

High Peak has been registered at the Centrebus HQ in Leicester (as is Bowers).

This appears to be a quiet way of Trent gently easing out of a 'difficult' (read unprofitable) area that doesn't really fit in with the rest of their business.

No doubt the lengthy 'Transpeak' service will receive the lower-cost Centrebus treatment. After all, Trent has already downgraded the service to mostly ancient Excels for the Nottingham to Manchester (nearly 4 hour) trip.

Anonymous said...

Who has sold to who here? Has Trent Barton sold its Dove Holes operation to Centrebus, or will Wellglade and Centrebus both have a stake or what? And I was wondering where that would leave Transpeak, considering currently there are driver changeovers on that route at Dove Holes and at least one other Trent Barton garage, and the service does go all the way to Nottingham (most journeys being between Nottingham and Buxton only). If Transpeak does become Centrebus, I do hope they'll at least buy new Optare Tempos for the route. Their Tempos on the Halifax-Rochdale 528 service are brilliant machines, as I imagine are all new Tempos including Trent Bartons.

Anonymous said...

Not sure that the Premiere thing isn't being overstated. They seem to have done well on Red 1, but I've travelled quite a few times off peak on Red 2 and Red 5, also Red 4 when it was running, and I can't see how the services are making any money at all if the tiny numbers carried on those occasions are typical, as i suspect they are. Someone backing Premiere must have a very deep pocket.

The services may do better in the peak, but do I recall that Trent Barton tried running Long Eaton Express all day and it didn't work, so it's no surprise to see Red 5 with minimum loads. Wellglade seems now to have reduced Bargain Bus to a simple spoiling operation, as their services also carried minimum loads off peak, when I tried them.

It's worth noting that the registration for cancellation of Red4 was published before Bargain Bus 4 had even started, so it cannot be said that Red4 was driven out. Indeed, Premiere have recently introduced a Sundays only Red 4.

Humber Transport said...

TM have a very limited amount of commercial mileage on the 65/66 in the Peak District, while part of the 218 is meant to be a zero tender

The TransPeak situation will be interesting as neither High Peak nor TrentBarton could realistically operate the route in it's current form without outstationing vehicles at each others depots - possible, but costly. I wonder if joint operation could occur? Either that or the route is split up

Metroman said...

Moving the TransPeak to Centrebus might improve the quality. That is something I would not have said a few years ago.

This move flies in the face of the CC complaining about the lack of competition for tenders. On the one hand Wellglade is "up for the fight", on the other it is colluding with another operator. Common sense might give one solution, competition law might give the other.

Anonymous said...

"Moving the TransPeak to Centrebus might improve the quality. That is something I would not have said a few years ago."

I assume Centrebus's operation in that part of the country is better than in Herts/Bucks, then. They are adequate, but they are not a quality operation.

The TransPeak and Skyline need to be like the Stagecoach X5 - as do all such inter-regional routes. Quality vehicles, understandable regular interval timetable, wheelchair lifts etc.

Given the massive success of the X5, I'm convinced a renaissance of mid-distance express operations could occur if they were run to that sort of quality.

pe251lz said...

By trentbartons standards it seems transpeak has long been forgotten about. This news frightens me for the future of this superb historic transpeak route. I only wish trentbarton would give this route the love & attention it needs. Keep hold of it Trent, & be proud of it too!

pe251lz said...

@ humbertransport
Trent cut the off peak long eaton xprss because of very low numbers but retained the peak periods, I've used the red5 & it must be costing a small fortune to operate during the day, just from my observations I don't think we'll be seeing a BargainBus 5 soon.

Anonymous said...

The Transpeak doesn't really contribute anything to profits for Wellglade, presumably down to the high proportion of 'Twirlies' - coupled with the fact that they travel long distances.

To have now got rid of most of the coaches (all but one?) and to be using totally unsuitable Excels on a near-4 hour trip is a clear indication of Trent's determination to be shot of it at the earliest opportunity.

pe251lz said...

@anon 19:58
I guess your right regarding wellglades profits v transpeak.
I used transpeak from Buxton last b/holiday, the bus was standing room only towards Nottingham & it was almost embarrassing going up the ashbourne road hill, I nearly felt inclined to get off & help push the bus up the hill. Also a branded Trentbarton bus was used too, not a transpeak one (excel). It's a wonder about profits as it's very expensive to use transpeak & you can't use the mango card either.
In the past transpeak was stationed at Derby, Matlock & Doveholes being the main, transpeak has never been stationed at Nottingham. I don't belive Matlock is used for transpeak now.
I would say trentbartons standards are high but those standards have never been applied to transpeak & will they drop around the Buxton area too?

Anonymous said...

I suspect that, in reality the merger does not reduce competition for tenders. Trent Barton's activity on tenders is fairly minimal, as their policy is to focus on their commercial services and they only have about 15 vehicles at Dove Holes. If the combined op is 50 vehicles, as the press release says, then the Bowers contribution is much larger, and that is mainly focussed on tendered services.

So what the merger does is to make a larger and more stable unit which might, in fact, be better able to provide commercial and tendered services. The two operations are complimentary.

pe251lz said...

It could be an exelent new network "high peak" lets hope trentbarton move this operation forward in a similar style to their current business. Will it be integrated within perhaps or kept kind of arms length like kinchbus or bowers/centrebus?
What comes around goes around... 188 & 189 was trent's routes until the early 90's using the nationals lol

Anonymous said...

Is it not most likely that it will be run by Centrebus, following the Huddersfield Bus Co model?

Anonymous said...

as a trent dove holes driver, and having just come from a staff meeting regarding the merger, i can confirm that "High Peak" is a joint 50-50 venture between wellglade and centrebus. transpeak buses/drivers that are normally be based at derby will still be based at derby, or "outstationed"

Anonymous said...

Premiere have registered withdrawal of their Red2 service to Cotgrave wef 25th July. Whatever next?