Tuesday, 28 August 2012

Fighting Funds (1)

In an age of partnerships and even possibly quality contracts, competition seems alive and well. Here we focus on some English theatres that have sprung up or will shortly do so. A number, including this, feature First (e.g. Ipswich, already tackled). As local managers at First are reported as having more sway, there’s a rush at First to engage in some local conflicts. Some are pre-emptive; others responsive. We look first at…

Southampton


First’s new “Easier Southampton Network”, now bedded in, is looking good. One of its innovations was (and still is) a bit of a gamble in the form of the six per hour Millbrook Flyer X2. This avoids Shirley. Gamble it may be but First’s increased presence in Millbrook has nevertheless brassed off competitor Bluestar that runs its 18s nearby. So much so, in fact, that substantively from 1st October, Bluestar is to open up a new theatre of conflict on the north eastern side of the city. It’s the three per hour service 16, potentially offering a quicker service between Townhill Park & Southampton city centre.

From Townhill itself, passengers currently have the choice of First’s 2 or 7. The 2 operates three per hour via Bitterne and tales 30 minutes to Southampton. The 7 runs via Portswood at six per hour off-peak (five per hour peak) and takes 25 minutes.

The comment from Bluestar that:
“We have listened to the growing number of customers who have requested a fast and reliable service between Townhill Park and the city centre”
is somewhat predictable but, as yet, the operator isn’t revealing exactly how much quicker than First’s 7 (if at all) its new service will be. It doesn’t appear to offer much in the way of new links, though the 16 will operate twice an hour—and twice as frequently as First after 2100 currently—during weekday evenings. The 16 sticks at twice per hour on Sundays compared to First’s time-of-day variable 20-, 30- and 60-minute service. The 16 also adds to the already considerable number of buses that have to funnel through the busy Portswood corridor, including Bluestar’s indirect UniLink U1. Unsurprisingly, First is about to up its ante on the 7s.

Also from Bluestar’s press release is the following:
“A £1mil investment has been announced for an all new bus route for the Bluestar network”
£1mil? This for three *refurbished* single deck Volvos (once of Poole), complete with wi-fi (as paid for by Better Bus Funding Area status) and “comfortable seating”. I can’t make this figure add up, even with (eight new) drivers and on-costs.

But what started in Millbrook may well finish not in Townhill Park but deep in Bluestar territory, in Hythe, no less. Or will it?

On 7th October, one week after Bluestar’s 16, First will introduce an 11 between Southampton and Hythe. Bluestar already runs a bus every 20 minutes for Watersiders on its 9, to Langley or Fawley via Hythe, sweeping in an arc from Southampton first westwards and then southwards around the western side of the Solent.

First’s challenge, however, competes against Bluestar’s hourly 8 to Hythe via Marchwood (that the 9s ignore). The 8s are subsidised and the contract is due up at the end of October. First may therefore have considered it prudent to give the daylight two bus working 8s a go commercially, as is its right. If so, that isn’t so much head-to-head competition with Bluestar but if as a consequence the 8s are unlet, it does mean a loss of work, subsidy and revenue for the Go South Coast subsidiary. And that’s an easier position in which to be for First than another head on fight.

There may be room aplenty in Southampton for two antagonists, provided things don’t get silly. It’s possible that such tit-for-tattery may spark more changes.

Meanwhile, in terms of competition for tenders rather than commercially, in a surprise move, First has beaten Stagecoach and Velvet to part of the disintegrating Xelabus “network” by gaining Hampshire council’s 63/63A from Winchester to Owslebury. Or, maybe, the service was just too rural, too revenue depleted and just too infrequent for Stagecoach to bother.

20 comments:

Anonymous said...

Whilst bluestar has a long way to go is First not making a last ditch attempt to save another one of their failing businesses?

Anonymous said...

What is Anon@07:16 on about? Look at what First have done recently in Southampton - new multi million pound depot, new network with extra resource applied and new vehicles on their way. Where exactly does it point to a 'failing business'?

Anonymous said...

To correct the article the 16 route won't run after about 20:30 therefore won't be twice as frequent as First after 21:00 as First continue to run hourly from this time on each route (2 and 7).

Anonymous said...

I'm glad I'm not the only one who couldn't work out the £1m investment. Perhaps someone from Go-Ahead would like to explain, albeit perhaps an anonymous post?

Anonymous said...

I too was puzzled by Anon 07:16's remark. I was under the impression that First had identified certain areas that had growth potential and were targeting resources accordingly. The new route network in Southampton was one such area, possibly capitalising on GSC's pre-occupation with getting Damory sorted (as I guess that has soaked up a fair bit of management time, as well as cash).

So, the upshot is.....

First cut routes and vehicles....They're doomed

First introduce new routes and vehicles....They're doomed

Petras409 said...

It will be very interesting to see what fares are offered by First on their new Hythe link. There is already competition into Southampton on the ferry from Hythe, which beats the bus easily on journey time.

And Bluestar's fares level on the Waterside has consistently been high, as a legacy of the old Hants & Dorset scale, beyond the city boundary. If First can offer a competitive fare, they stand to offer something attractive.

But, they must bear in mind that there is only a limited catchment in Hythe, as South West Trains found when they offered a short-lived rail bus connection, fast from Southampton Central.

Tim Burns said...

The First network revamp both here and - arriving shortly - in Norwich does seem to be a split from the past in first. I noticed over the weekend that they have almost (well 75%) moved from their tube-like Overground maps to a style similar to Stagecoach. These maps have multi-coloured roads according to the route colour, but laid out on a geographic representation. To my mind an improvement (admire Harry Beck as I do) and can only help in showing passengers where to get on.

Southampton does seem to be a place where first is going for it - and good for them!

(And me First hawk as well - did I really say this?)

Anonymous said...

This is a rather strangely timed and lightweight'assault'on good bus territory.Why now,and why provoke the main operator in the city ? If I was First,I'd next target the large student population and hit uni-link with some creative fare structures. Rumour has it that it's juicy contract is all that keep BS afloat.

GSC use an outsourced firm for their press releases,which are well known for long rambling paragraphs which try an cram every 'fact' into one breath.This one seems to have fooled nobody,but surely editors should edit such material and be wary of such wild claims. If GSC has paid that much for three second hand buses,it won't be long before it gets noticed !!

fence watcher said...

I'd argue its GSC that are vulnerable to First and not the other way around. Wouldn't be surprised if they had a try on BS2/4 sometime - two other busy corridors.

Shouldn't they focus on improving their offering and addressing what customers want - which seems to be someone to deal with complaints before expanding their operations further??

Anonymous said...

Well thats Aberdeen, Norwich and now Falkirk all having Newtork reviews, With Falkirk not having one since 2001, and the town has change ahell of a lot...

I believe, Leicester, is also on the cards soon,

Anonymous said...

But at least First are trying to make improvements in a number of key areas, and most people should welcome this.

I forgot to ask: Has anyone heard Chester and Northampton will be sold/shut within weeks?

Wayfarer said...

Southampton is an enigma.

BlueStar have some very good, conscientious staff who care and offer a really good service. They alos have some right animals . . .

First have some really good, friendly staff who offer a really good service. They also have some pigs.

To me, the best staff by far are the UniLink staff, who although employed by GSC have effectively declared UDI and operate the contract for the University, the students and all their other customers despite the seeming efforts of management to try and break their resolve.

At the end of the day, all these competing services will only survive if passengers use them. Any bus operator is only as good as their passengers last journey experience. Good staff will win you passengers. The sooner more operators understand this (and actually treat their staff with dignity and respect) the better.

Anonymous said...

Well, Northampton has been readied for sale. The 2002 Eclipses were removed to FEC (Norwich?) in exchange for some dreadful B10BLE Renowns; looks like they specially chose the worst examples with mismatched panels and general accident damage.

Anonymous said...

Whilst the Southampton changes are interesting, they are atleast compatible with current operations. But First operating in Winchester is completely out of area and with only a very limited one bus on a school and shopping contract. It looks to me like a good way of legitably sitting in Winchester Bus Station taking notes on the Bluestar and Stagecoach businesses.

A Cumbrian said...

This just goes to show that the quality partnerships currently emerging actually incentivise competition. Instead of the equilibrium outcome being a zero profits Oxford Road type situation, there is now a positive probability of a collusive outcome (like Blacon or Oxford now) with positive profits. And everyone wants a slice of the collusive pie...

Anonymous said...

Anonymous said;
"(uni-link) Rumour has it that it's juicy contract is all that keep BS afloat."

More than a rumour - Solent Blue Line (to give it is proper name rather than its brand) has never ever been profitable and even cutting its prices to try and retain contracts has failed - look at Eastleigh bus station these days that used to be a sea of blue (and yellow of course!) and these days is in a minority . . . It did surge into better times under the Phil Stockley and Alex Hornby eras who both did good work but it is only Unilink that means it survives in all honesty . . . and anyone who comes on here ranting that I'm talking rubbish, well thats fine. But I know and they will know too that I'm not no matter how mucth they'd like it to be true . . .

Tired Old Git said...

How right Wayfarer is about UDI at Uni-link. The staff have no respect for their employer GSC and cant wait for the end of their 10 year contract. Fortunately the University claim ownership of the service and GSC are often called in to be admonished. Recent attempts to merge into Bluestar and gag staff spring to mind.

The Bluestar operation is highly profitable because they have retreated to only the best routes in recent years. This leaves them very exposed to other operators 'creaming' on their routes. Hedge End was crying out for it! Bluestar have chosen the wrong area for an attack on First and the actual route is poor. A sustained expansion by First with an attack by Stagecoach on the 1 route could see GSC in big trouble. First will no doubt redeploy the 5 buses on the bold but unsucessful X2 to better use soon.

Anonymous said...

Mr Git,

Do you know if there is a break clause in the 10 year contract? The Uni are apparently paying a huge sum each year to GSC,plus apparently they allow them to keep all the fares revenue too !



Tired old git said...

The financial arrangements are complicated. Revenue is not all kept by GSC and there is some kind of kind of divide I believe. Not sure but I believe break clause is only if there is a significant failure of service or change in circumstances of university. GSC would like to run it as part of bluestar but fortunately the university wont allow it.

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