There have been a few bits of bus news recently
NZ Bus advises that it has been informed by Auckland Transport that it has not been selected as a preferred tenderer for any of its South Auckland public transport services which were tendered for in late 2015. The NZ Bus services currently comprise 153 vehicles out of the total NZ Bus fleet of 1,070 buses.
NZ Bus Chief Executive Zane Fulljames said “Not being selected as a preferred tenderer in one of our incumbent locations is a disappointing outcome, particularly for our staff who work hard every day to deliver a high quality service and are part of the South Auckland community. However, as an incumbent we understand clearly the costs of operating in the South Auckland market and submitted a strong, high quality tender to reflect this.”
The tender outcome will have implications for NZ Bus staff operating in South Auckland. There is a 9 month transition period to the implementation of the new South Auckland contracts, and NZ Bus will be taking this time to work through options for minimising the impact on staff.
Mr Fulljames said it is important to keep this outcome in perspective. “While a number of contracts are being tendered across Auckland, other contracts are being renewed with incumbent bus operators through a direct negotiation process. NZ Bus has rights to negotiate a number of these contracts, representing in scale around 50 percent of its existing business in Auckland.”
A map of the south Auckland routes being tendered is below. They are split up into eight groups – called units – that were tendered for.
That NZ Bus didn’t make it to being one of the preferred tenderers from any of the eight is fascinating given they are the incumbent for the area. I’m told that AT are still negotiating with operators so there has been no decision yet on just who will run services so all we know for sure is that it isn’t NZ Bus.
There are a few thoughts I had upon hearing the news.
- I think this is good news as it suggests there’s competition for services occurring and likely suggests we’ll be getting better value for tax/ratepayers out of the new PTOM contracts. This is some ways is expected because as I understand it, AT have been rolling over existing contracts for some time meaning bus companies are likely amortising their costs over a short time frame. As the PTOM contracts are longer term it will allow fixed costs to be spread out more easily.
- It likely signals that companies will have to be more competitive for future tenders, NZ Bus have stated in the past that they want to about retain their overall market share so they’ll have to up their game to do so. Again this is good as it likely means we’ll get better value for money meaning either costs reduce or we can get more service for what we pay.
- NZ Bus seemed to use their most clapped out buses for use in South Auckland. A new operator should mean newer buses – especially as we know AT had some fairly detailed requirements for bus quality under the new network. This will be good for people using buses in South Auckland.
- It was interesting timing for NZ Bus to come out and say now that they hadn’t won the tender. I suspect part of that might be related to being owned by a publicly traded company while also them wanting to be able to tell their staff before they hear the news through other channels.
Stuff reports the Union claiming that Ritchies and Hamilton based Go Bus have won and that Howick & Eastern have also lost some routes but we’ll have to wait to see if that is actually the case.
The other piece of news is that Ritchies are now rolling out an additional 15 new Double Deckers to the Northern Express, adding around 15% more capacity – they may even be on the road already and join the 3 existing double deckers in service.
Other bus companies are getting in on the double decker act too. By the end of the year NZ Bus will have 23 of them and Howick & Eastern 15 of them.
Update: Auckland Transport have advised that due to a union meeting, there will be no NZ Bus services operating between 9 and 2:30 – although disruption will linger for longer than that (based on the last one there were still delays in the afternoon peak)