Melbourne Metropolitan bus franchises (ANNOUNCED)

[PaxInfo]

Interested parties are now invited to register for further information.

Details at: http://corp.ptv.vic.gov.au/managing-vic ... racts/#opc

Operating rights to be offered include SmartBus, regular route and school bus services currently operated by MBL & National. Plus the three SmartBus orbitals.

Existing arrangements expire in December.

[runawaybus]

And if you can download the document and have a look at how what I would call sadly most Melbourians are neglected in way of bus services is scares me to think that such a great city is let down by its bus system.

[revenue]

http://corp.ptv.vic.gov.au/media-centre ... franchise/

Press release

[system improver]

"Ian Dobbs, Chair and CEO of PTV, said that the request for Expressions of Interest marks the beginning of a world wide competitive tender process, the first time such a significant portion of Melbourne’s public bus network has been publicly tendered."

I suppose that's sort of correct, given that the components, while being previously open for tender, were not all done at the same time. It is also strange that he has chosen words to "scare" those with contracts with 'grandfather' rights at the same time. Treasury must have been working on him.

[huyie]

Looks like the contract doesn't start until Q3 2013, meaning they'll are in the process of extending the existing contracts for another 6 months.

Interesting to see that there is a requirement for the SmartBus routes for the construction of new depots (or transferring existing depots) within 4 years, and handed over to PTV at the end of the contract.

[tranzitjim]

I trueley expect nothing much to change.

Although that does not mean nothing can change at all.

[jarf]

Obviously something will change, considering the orbital routes will be consolidated into a single contract.

[dex]

Thanks Jarf, mentioning orbital routes to Tranzijim.
Appreciate it....

[system improver]

From The Age:
"Melbourne's struggling bus system will be revamped next year when the state government replaces five separate bus companies that run much of the network with a single operator."
Full story link:
http://www.theage.com.au/victoria/revam ... 1zyyb.html

The link posted by PaxInfo in the OP has this:
The following bus contracting arrangements expire in December 2012:
National Bus Company: these services include 41 routes servicing the eastern suburbs and the Melbourne CBD plus 106 school-only services. Also included are four Doncaster Area Rapid Transit (DART) services running from the Melbourne CBD to the Doncaster area.
Melbourne Bus Link: these services include nine routes servicing the western suburbs, south-eastern suburbs and the Melbourne CBD, plus 16 school-only services.
SmartBus Orbitals - Yellow (901), Green (902), and Red (903): these services include three bus routes running circumferential to the Melbourne CBD through the outer suburbs.
The procurement process for contracts relating to these services will be managed by Public Transport Victoria.

I read that as three separate contracts, which could possibly all be won by the same company, but which could also remain with the current holders or any other combination.

However, revenue's link (the media release) has this:
Public Transport Victoria (PTV) has today called for Expressions of Interest for the operation of the Melbourne Metropolitan Bus Franchise, which provides for the operation of approximately 30 per cent of the Melbourne public bus network.

It talks about "The Melbourne Metropolitan Bus Franchise", which does sound like a single entity. I can, therefore, understand why our young journalist may have written the story. Maybe the tender documents make this clear. If not, then at least three operators are going to lose contracts.

[huyie]

The document mentions "Franchise' as "The contract for the operation of the Eastern Area, Western Area and SmartBus Orbitals, also known as
the "Melbourne Metropolitan Bus Franchise"" meaning the contract for 7 years is for the whole thing and outlines what those areas cover, buying out the existing MBL depots, a buy out or lease of existing fleet from current bus operators and possible 3 year extension.

[tranzitjim]

** Will there be any changes to bus routes in result of this....

** Could there be some change to the Orbitals like could they be broken up into sections again.

** What about improvements to the existing network. Say, as a tempter bus operator shall say we will seek $xxx for this contract, AND, we will also fund the expansion of services at some locations.

[revenue]

It's one contract. One large contract that will certainly attract global interest.
Game on!

I think the expectation is that there will be scope to increase the number of services within the current budget. Less dead running. Better connections. More professional rostering and asset utilisation.

[dex]

how about
*more bus lanes....that work
*Better security for drivers
*Making buses pre-paid
*Making drivers understand theyre not ticket inspectors
*Harsher penalties for car driver who infringe on buses
*Harsher penalties for vehicles parked in bus stops
*more time on routes so drivers are pushing like crazy on 45 year old timetables
*Making it compulsory not to talk to the drive while theyre driving

Anyone??

[huyie]

Given there is a requirement for the SmartBus orbital routes to have their own full service and satellite depots before the half way mark of the contract (within the 4th year), I wonder how this may affect the smaller private operators in the vicinity of these routes.

Could this encourage a possible sell out of these smaller operators to whoever gets this contract? (at least for those with a larger depot space, and not necessarily operate just route service, but rather a mix of both route and coach services)

[system improver]

From the tender documents:

"The Project seeks to optimise the value for money outcome..."

"This proposed commercial framework is targeted towards incentivising the highest standards in the delivery of quality bus services."

Mmm. The return of incentivation!

There is no mention of any government funded expansion of services. Rather, if the franchisee can run more services for less cost, then no-one will stand in their way. Like that's going to happen. Clearly, the idea is to provide the current services for less money - it's a cost cutting tender process, not a service improvement tender process.

I note that no Australian government body can tender for the contract, but of course, non Australian government bodies can ( e.g. Singapore and France).

[mrmoopt]

This is a large enough contract for Arriva or other European operators to enter the market here in Melbourne.
CDC was eyeing Grenda's but I think they were wise to wait for this to come up.

Only time will tell.

[revenue]

The bus industry hasn't actively supported prepaid bus services - which I've personally found to be very disappointing. We trialled it on 401 and 601 and Doncaster Park and Ride, but the industry certainly hasn't driven it - or requested it - or pushed for it. I was hoping these examples would have gotten them enthused about it - but the general attitude seems to be "that would involve change and its easier not to do anything".

In regard to the tender, this isn't a cost cutting exercise - there is significant scope to improve the operation of Melbourne's buses within the existing budget. Once you have National and Melboure Bus Link together again there is also the potential to change routes around. Is Sunshine to Gardenvale actually a logical route? Once you have the same operator running the orbitals and services in the western suburbs - is there potential to extend the orbitals more cheaply?

I think there are some really good opportunties here for improvements to a range of elements of bus services. Definitely less dead running. Hopefully better designed routes.

[mrmoopt]

Revenue, so in essence, the future operator is encouraged to submit (new/augmented) route designs if they win the contract?

[dex]

Which is funny, TBL submitted new routes for the 478, 479 and 500 and they were knocked back by the governement. Apparently improvemets aren't needed.

[Peter1805]

The changes will be all about cost-cutting... Hopefully, that will involve greater efficiencies, but I wouldn't bet on it..

[mrobsessed]

In Perth, a percentage of our circle route running is attached to the contracts of the areas it covers. No reason why that could not be the case in Melbourne.

[huyie]

I think there are some really good opportunties here for improvements to a range of elements of bus services. Definitely less dead running. Hopefully better designed routes.

I can't see how there can be an improvement in reducing the number of dead runs in its current form with a new operator, when you have some National bus routes around Ringwood such as 270, 271, 366, 367 which will no longer be operating out of Ventura's Croydon depot. Not to mention the dead runs on the western side with MBL, which was worse when 216 did go all the way to Melton, but still just as problematic now when it was shortened to Caroline Springs.

Unless of course they are merged into existing routes such as 270/271 or new satellite depots are strategically placed as part of the contract (e.g. near Ringwood, Scoresby, Braeside) to accommodate the orbital routes and also address these problems.

On a short term, they will also need to address issues with housing the orbital fleet, since there is no agreement to transfer depots (besides the lease to operate out of the NBC depots, and buying out MBL depots) to the new operator.
It's not like Ventura will suddenly decide to give up an existing (satellite) depot(s) for next to nothing or eagerly keen to suddenly lose any, especially if they don't get the new contract.

[RailwayBus]

I'm also skeptical at the actual level of improvement we might see (yes, I think any costs saved will be sent back to the parent), but there are opportunities available.

For instance, transfer some 903 Oakleigh buses to Footscray for the shifts that start in Altona/Sunshine/Essendon, and in exchange, transfer some MBL buses to Oakleigh for the 216-219-220 shifts that start at Brighton or Gardenvale.

[paulgersche]

Just a question, if I may ...

What routes of Ventura / National are run from each of their depots? This might show up some of the dead running.

Thanks, in anticipation.

Paul

[krustyklo]

The other question of interest would be that of how much does it cost to build (presumably through borrowing money at a rate of interest) a depot and then staff it compared to the cost of dead running.

I have a sneaking suspicion that based on current practice that the latter is deemed cheaper. If there were mixed policies amongst operators I'd be more inclined to think it was borderline or that some operators were operating inefficiently. However, most larger operators seem quite happy to run buses some distance back to home base and not just the orbitals.

Of course, if under the new Melbourne wide operator there was a closer depot to some of the terminii generating the dead running, then it is possible that some of the dead running could be eliminated. But if it is deemed cheap enough to do in the first instance, then how much can really be saved overall? At the time of Ventura buying Ivanhoe I produced some figures for potential savings for running some of the buses terminating at Heidelberg to a combined depot somewhere in the area, but I must admit to second thoughts at the capital and interest tied up in such an option, something I think has been forgotten in any discussion of new depots for the new contract. I suspect the freedom to contract by having a dedicated fleet and depots for the orbitals for example is potentially going to cost more than moving buses between operators every x number of years by the time someone pays for the new depots and infrastructure to keep things seperate, as well as the interest owing and extra staff required (although admittedly not many, it doesn't take much to add up).

Unfortunately it will be impossible to get an approximation to any of these questions due to 'commercial in confidence'...