1. In the 21st Century Ian Manning Managing Director Stagecoach West
20 November 2012

2. BRIEF HISTORY (1) Bristol Tramways and Carriage Company Ltd
Bristol Omnibus Co. Ltd
Cheltenham District Traction Co. Ltd
City of Gloucester
Tilling Group Companies

3. BRIEF HISTORY (2) Part of the National Bus Company (established 1969)
Split up of Bristol Omnibus Co. Ltd pre privatisation in 1983
Bristol City – Cityline
Bristol Country – Badgerline
Cheltenham & Gloucester – Cheltenham and Gloucester Omnibus Co. Ltd
Privatisation of NBC from 1985 onwards
Management Buyouts

4. BRIEF HISTORY (3)
Divisional Management Structure of Cheltenham & Gloucester Omnibus Co.
Cheltenham District Traction
City of Gloucester
Stroud Valleys
Swindon and District
Western Travel (Holding Company)
Subsequently Western Travel bought Red and White (part of National Welsh) and Midland Red South Companies
Stagecoach Group purchased Western Travel Group (except the hotels) in December 1993

5. STAGECOACH WEST
One of 18 regional bus companies collectively forming the UK Bus division of Stagecoach Group plc, a leading international public transportation group
Our company operates from 6 depots and outstations in Gloucestershire, Wiltshire & Herefordshire
234 - strong fleet plus 5 training & 13 ancillary vehicles
We employ over 665 staff (one of Gloucestershire’s largest employers)
During FY11-12, we carried million customers

6. MANAGEMENT TEAM

7. WHERE WE WERE
At the beginning of the twenty-first century, our performance left a lot to be desired
Reliability was seriously undermined by:
Staff recruitment difficulties and high levels of turnover
An inherited, relatively old fleet
An inadequately designed network
Local politicians, the media and public justifiably demanded better from us
2000 reorganisation had seen the creation of a West and Wales monster
Passenger numbers static or declining
Operating at little better than break even in West

8. OUR SOLUTIONS
To attract a better calibre of driver and reduce turn-over and training costs, we had to introduce significantly higher wages appropriate to the area
These rises could not be covered by a one-off fares increase, so medium-term profitability was suppressed
We invested substantially in the fleet reducing the average age of the fleet to only 7.1 years
c.f. the current Government target is 8 years
We’ve also redesigned our bus networks to ensure they more effectively satisfy demand
We tailor made our fares offers and promotions
We set about energetically marketing our products
We reviewed our staff and operating practices along the way

9. ENGINEERING REMIT Fleet Maintenance Fleet & Safety Inspections
Annual Tests
Property Portfolio
Ongoing Staff & Apprentice Training
Health & Safety

10. FLEET MAINTENANCE Safety is of paramount importance
Each vehicle has a:
Daily walk round check before entering service
Full 78 point safety inspection every 21 days
17 planned inspections per year
MOT test every year (Class VI)

11. INSPECTIONS
All engineers are trained in vehicle inspection techniques to VOSA standards
Stagecoach’s Engineering Audit Team audit each depot at least once every 12 months
Full safety inspection includes:
Brake performance
Exhaust gas analysis
Tyre tread depth
Brake liner thickness
Oil changes are carried out at 3 monthly intervals

12. ANNUAL TEST Our annual MoT test pass rate last year was 97.7%
c.f. national average of 76.8% amongst PCV and HGV operators (data courtesy of VOSA web site) (Class VI)

13. SPARE VEHICLES
To carry out routine maintenance on the fleet, each depot has spare vehicles
Company wide, we have 14% spare vehicles above our Peak Vehicle Requirement (PVR)
The current PVR is 202 vehicles against a licensed fleet of 234, leaving 32 spare vehicles
Each spare vehicle costs the engineering department on average an extra £15,750 per annum

14. OPERATIONS REMIT Primary objectives:
To have sufficient drivers to operate services according to published timetables
To roster the resources effectively
To manage day - to - day operational requirements, problems and relationships with external bodies
Rely upon the support of 3 Operations Managers, 3 Assistant Managers, 3 Controllers, 10 Supervisors and 13 Leading Drivers based throughout our depots and outstations
Currently employ 520 drivers

15. TRAINING SCHOOL
Consists of 6 staff, plus 5 driving instructors and an examiner
Training is not just technical - it includes:
Customer care
Disability awareness
Ongoing training to the CPC qualification
Safety awareness training as buses get wider for wheelchair access and higher following the reintroduction of double deckers
EU Dictate on Driver CPC has cost the Company £210k per annum

16. SPECIAL OPERATIONS
Cheltenham Racecourse shuttle service from the Railway Station to Prestbury Park during the Gold Cup (70+ double deckers) and other race meetings

17. SPECIAL OPERATIONS
Coach transfers for international aircrews at the Fairford Air Tattoo
Cheltenham – Gloucester – Swindon - London megabus
Weekend rail replacement services

18. COMMERCIAL REMIT Contracts and Tenders Revenue Management
Budgets and analysis
Concessionary Fares
Fares & Tickets
On bus and via travel shops & agencies
Development of Green Travel Plans with external organisations
Network & Service Development
“The ideas factory"
Bus and Driver Scheduling

19. MARKETING REMIT Promotions Media Relations Market Research
Internet & Social Media
Design & Publicity
Events
Charitable & Community Initiatives

20. THE MICRO PICTURE Route-Specific Enhancements Fleet Investment
Network Redesign
Innovation & Marketing
Fares and Ticketing Initiatives
Staff Travel Schemes
Community-Friendly Initiatives

21. ROUTE ENHANCEMENTS: 94
Flagship service, emanating from a Quality Bus Partnership between Stagecoach and GCC / CBC
Fleet of 10 low-floor easy access double deckers providing a 10 minute frequency of service between Cheltenham and Gloucester via Churchdown and Longlevens
Real Time Information
Over 40% patronage growth from 2003
Upgraded again in 2009 to Stagecoach gold. In 2011 / 12 patronage was up by over 15%

22. ROUTE ENHANCEMENTS: 37
To counteract falling patronage, 2 new low-floor buses were launched on a revised route in Nov 2004, offering enhanced 15 min daytime frequency to/from Merrywalks
Follow-up research suggested a minor town centre route revision would bring greater results

23. ROUTE ENHANCEMENTS: 37
Hence, new route via King Street was introduced in Aug 2005, with special fares from Merrywalks
Result: 64% patronage growth from 2004
But – Poor Concessionary Travel Reimbursement
Further Stroud network changes have put the depot into the black for the first time under Stagecoach’s management
Recent setback with tender losses

24. ROUTE ENHANCEMENTS:
Joint Kickstart submission with GCC to the DfT, focusing on our Hatherley & Warden Hill to Bishop’s Cleeve services
GCC met the cost of the consultants
One of 43 English schemes accepted by the DfT

25. ROUTE ENHANCEMENTS:
We invested £700k in new buses for use on a new routing and 10 minute daytime ‘turn-up-and-go’ timetable
DfT agreed to invest £435k over 3 years
35% patronage growth target for first 3 years, by which time the service reverted to its pre-Kickstart commercial level
Initial growth in excess of 50% year on year

26. FLEET INVESTMENT Route enhancements often linked with fleet investment
Annually submit business case to Perth for new vehicles
2004 / 05 saw a £2.4 million investment in 16 new Trident double deckers for Service 10 (Cheltenham – Brockworth – Gloucester – Lower Tuffley)
Also purchased 2 new single deckers to boost Service A (Prestbury – Town Centre – GCHQ/Benhall) and 6 new midi buses as part of a section 106 funded partnership for Service 14 to Kingsway, a new estate in Gloucester in 2007
Just taking delivery of 19 Gold liveried Scania double deckers for Service 10

27. NETWORK REDESIGN: THE FOREST OF DEAN
In September 2004, we became the Forest’s principal bus operator, accepting responsibility for Cottrell’s routes
Seven months later, the network was redesigned to encompass more buses, more destinations and more frequent services
Some daytime frequencies were doubled and total mileage increased by over 30% at no extra cost to passengers

28. NETWORK REDESIGN: THE FOREST OF DEAN
Results for the first 12 months speak for themselves:
Coleford and Cinderford corridor patronage up 21.5%
Newent & Ledbury patronage up 22%
We’ve since filled the void left by Duke’s Travel in April 2006, and extended the Forest megarider later that year
Increased the patronage on the residual Duke’s operation by 10%

29. INNOVATION & MARKETING: 41
Cheltenham – Tewkesbury
A high frequency bus service on new, attractive and easily accessible branded vehicles
Launched in 2003 with new vehicles, local advertising, a discount voucher door-drop and associated marketing materials, the route has also benefited from a two-phase telemarketing campaign

30. INNOVATION & MARKETING: 41
Patronage grew a staggering 85% in the early years
Received the Most Innovative Transport Project at the 2004/05 National Transport Awards
Forthcoming diversion into Wheatpieces when Concessionary Fares funding has been rectified

31. INNOVATION & MARKETING
Vehicle Branding
Direct Mail and Telesales
Route Branding
High Quality Publicity
Advertising including print, on-line, radio and outdoor media
Ticket promotions
Internet and Social Media
Geographical promotions

32. STAGECOACH GOLD Reciprocate luxury of a modern car Gold livery
Leather seats
Drivers in smart uniforms
Customer Charter
Free Wi-Fi (enables customers to do what a car driver cannot!)
Implemented on
94 Cheltenham – Churchdown – Gloucester (existing frequency)
66 Swindon – Oxford (doubled frequency)
and soon:
10 Cheltenham – Brockworth – Gloucester – Lower Tuffley
(frequency doubled Cheltenham – Brockworth)
Results:
% increase in patronage
% increase in patronage

33. INNOVATION & MARKETING
Highly commended in the 2011 UK Bus Awards “Eureka Award for Marketing Initiatives”
Highly commended in the 2011 UK Bus Awards “Marketing Excellence Award”
Highly commended in the 2011 UK Bus Awards “Shire Operator of the Year Award”
Nominated as a finalist for the ”Large Operator of the Year Award” in the 2010 Route One Awards

34. FARES AND TICKETING INITIATIVES
Megariders and pricing sensitivity
Try to keep fares as affordable as possible
Employer deals
Current initiative is to implement commercial products on Smartcard
Latest addition will be Multi Operator tickets such as Swindon Travelpass

35. STAFF TRAVEL SCHEMES: ROUTE 99
Partnership between Stagecoach West and the Gloucestershire Hospitals NHS Foundation Trust providing passengers with a frequent shuttle bus between the two hospitals and a park and ride service from the Racecourse to Cheltenham General Hospital via the Town Centre
Hospital staff benefit from free travel to and from work within the county, easing pressure on both car parks and the region’s roads
Four brand new Optare Solos purchased to operate the service

36. STAGECOACH WEST GTi SCHEME
The Greener Travel Initiative is a scheme developed by Stagecoach West to encourage large organisations to promote the use of public transport to and from their premises instead of cars, as part of their carbon reduction plans. Recognising that young people are potentially the bus passengers of the future, Stagecoach West is also keen to form similar partnerships with academic institutions
The scheme offers discounted fares at peak times. Revenue is recouped by additional journeys being made as a result of the scheme at off peak times and by leisure users.

37. STAGECOACH WEST GTi SCHEME
Currently signed up to the scheme:
- Swindon College
- New College, Swindon
- Honda
- Cranfield University
- Wiltshire College
- Zurich
- Gloucestershire Hospitals NHS Foundation Trust
- GlosCol
In addition to GTi we also operate a discount ticket scheme called Unirider with a number of Academic Institutions

38. COMMUNITY INITIATIVES
NIGHTBUS
Series of weekend services up until 3am for a flat fare of £2.80
Run in association with Gloucestershire Police, the Crime & Disorder Partnership, town/city councils and local pubs/clubs
Redesigned timetables to reflect changes in licensing laws
Deemed a failure in the end as the licensing laws diluted the carryings over a greater number of hours

39. COMMUNITY INITIATIVES
PRIDE OF GLOUCESTERSHIRE AWARDS (2007)
Co-Sponsor of Caring Hero award
FIVE VALLEYS WALK
Shuttle Service for Macmillan Cancer Charity
TERRITORIAL ARMY
Staff on active service in Afghanistan

40. ENVIRONMENTAL ISSUES Target to reduce Buildings CO2e emissions by 8%
Target to reduce annual fleet transport CO2e emissions by 3%
Stagecoach Group is investing £11million in measures to support its sustainability strategy to reduce further the carbon emissions from its transport operations in the UK and North America
Earlier this year, Stagecoach Group was re-certified under the prestigious Carbon Trust Standard for its UK bus and rail operations
Initial success in West however targets get more challenging

41. THE RESULTS TODAY
Patronage continues to grow at all 4 key depots. During the financial year of 2011 / 2012 patronage was (compared to 2006/07):
Up 1.5% in Gloucester (4.6%)
Up 2% in Cheltenham (12.6%)
Up 1.4% in Stroud (16.5%)
Up 9.4% in Swindon
Over 90% of our mileage today is run commercially
Reliability rates have significantly improved
Provision of low-floor, wheelchair/buggy friendly buses is well ahead of the Government’s 2017 target
Operating at a healthy above industry average profit

42. ROOM FOR IMPROVEMENT
Despite all these successes, our operation still has some room for improvement
Some of our staff need to work harder at being good ambassadors for our company
Some of our services have underperformed
But significant progress has been made thanks in no small part to the passion of management and staff
This despite the recession

43. OUR NEXT DESTINATION
In 2004, our founder and current Group Chief Executive, Brian Souter, suggested that there was at best 18 months of innovation left within the UK bus industry without serious infrastructure help from local authorities
Those 8 years have elapsed and little has happened
Our operation has to all intents and purposes now reached a plateau
We can only go up another gear with the help of external partners such as GCC / SBC

44. WHY? Consider some of the external challenges we currently face:
Spiralling Fuel & Insurance Costs
Road Works & Diversions
Indiscriminate Parking
Staff Recruitment
Barrage of Unwelcome EU Legislation
Lack of joined-up thinking in Land Use Planning
Engineering
Poor Passenger Behaviour
Inadequate Concessionary Fares reimbursement
Yet another review of Bus Service Operator’s Grant (BSOG) or Bus Passengers Tax

45. FUEL & INSURANCE Our fuel costs have risen by 73% since May 2003
The actual price we pay has almost doubled once the BSOG effect is removed
Our insurance costs have risen by 59% since May 2003

46. ROAD WORKS & DIVERSIONS
Seriously undermines punctuality
Traffic gridlock from M5 closure
4 sets of road works along London Rd, Hucclecote Rd, at the junction between Seymour Rd and Bristol Rd, and near the Cross Hands Brockworth in Nov 2004 brought traffic chaos to Gloucester
Avoidable if discussions had taken place and careful consideration given to the timing
Failure to negotiate Punctuality Partnerships with LA's

47. CAR PARK CHARGES
Maintain realistic parking charges, at the very least in line with inflation
Good public transport will never flourish where cheap parking is available
Unhelpful Portas Report
Problems with LA's in Gloucester and Swindon

48. INDISCRIMINATE PARKING
Fully support decriminalisation
Withdrew from Tredworth High St, Gloucester, in 2005 due to a failure to enforce double yellow lines
Prevents access to bus stops

49. STAFF RECRUITMENT Shortage of skilled commercial staff
Age restrictions for driving a bus prevent recruitment direct from schools
Life on the buses is rarely a first-choice career
Also an acute shortage of skilled mechanics
Company had to respond by recruiting from Poland at the height of the shortage
40 Cheltenham drivers
1 Mechanic

50. EU LEGISLATION Training Directive
Drivers Hours & Working Time Directive
Vehicle Specifications
Lower emission requirements causing increasing fuel consumption
Also National Employment legislation…
Digital Tachographs
Bus services over 50 kilometres
Passenger Charter threat

51. LAND USE PLANNING
Poorly negotiated Section 106 Grants – Tewkesbury, Cooper’s Edge and Kingsway
Threat to Section 106 grants
The new Swindon Bus Station
Peripheral office development is unhelpful

52. ENGINEERING
Evolution of bus design and manufacture proving ever more costly to maintain
Computer diagnostics required to repair engines
Skirts on low-floor vehicles susceptible to kerb damage
Very high accident costs
Full cost of keeping the fleet in a safe and reliable working order in the last financial year - £3.9 million

53. PASSENGER BEHAVIOUR
Large number of buses now fitted with assault-prevention screens and CCTV to counteract instances of unacceptable behaviour:
Vandalism and graffiti
Window-smashing during school holidays
Alcohol and drugs
Consumption of hot food on board
Litter
Push-chair wars
Trouble hotspots have included Matson in Gloucester, Springbank in Cheltenham and parts of Swindon

54. CONCESSIONARY FARES
Inadequate and worsening reimbursement from all schemes (except Scotland and Wales)
Full buses not covering even their marginal cost of operation

55. BSOG (BUS SERVICE OPERATORS’ GRANT / FUEL DUTY REBATE)
Buses and coaches pay the normal taxes on fuel
Buses received an 82% rebate (less in Wales)
Tax per bus passenger 8.7 pence per journey
20% reduction in April 2012
New DFT consultation
Currently no tax for rail passengers
Has led to severe reduction in rural and marginal services in some areas of the UK

56. BUT THE BIGGEST PROBLEM OF ALL?
CONGESTION

57. IMPACT OF CONGESTION Consider Service 94
A recent analysis of stage-to-stage timings shows delay points between Lansdown Castle and Estcourt Road in either direction
Journey times constant between 0900 and 1400 but:
Increase by up to 30% between 1500 and 1800
Increase by over 50% between 0700 and 0900
Had to put 4 extra buses into Service 10 to maintain the timetable

58. AVERAGE WEEKDAY RUNNING TIMES

59. COST OF CONGESTION
Timetables are constantly rewritten to combat congestion
Service 94 timetables changed 3 times in 2005 for this reason alone and worsening
In 2005, we also assigned 2 additional vehicles to Service 10 to combat congestion, costing us £250,000 per annum for no additional revenue
Forest of Dean average running times increase by 20% during the peaks

60. HOW CAN LA's HELP DECONGEST OUR ROADS?
Reorganise road space
Introduce further dedicated bus lanes
Selective vehicle detection at junctions and traffic lights
Cost? Primarily white paint!
Control indiscriminate parking
Speedier introduction of more park and ride sites
CBC’s civic pride initiative has underlined the importance of bus penetration in Central areas
Need for partnerships to be dynamic with an immediacy of response on both sides

61. WHAT CAN WE OFFER IN RETURN?
If main roads used by buses are decongested, we can:
Run more frequent services more reliably
Peg fares for longer periods, all other things being equal
Commit to greater levels of investment, as quicker buses will attract more passengers and ultimately earn more
Innovate
Restrain or reduce ongoing subsidy requirements

62. “For every Local Authority that invests in bus priority measures to improve the operating environment, I will match that investment with new buses.”
Brian Souter, Chief Executive

63. AND IF WE DON’T DECONGEST?
Our punctuality and reliability will fall
Journey times will lengthen in the peaks and the number of departure options will decrease
Modal shift towards rather than away from cars
Bus operators will have to focus solely upon routes where commercial success is guaranteed, and deregister marginal routes
Bus fares will rise and service frequencies will reduce
Councils would probably have to raise council tax to underwrite the increased number of non-commercial, socially-necessary services if they wish them to continue (they will not be allowed to)

64. PIPS
The progress of our Punctuality Improvement Partnership has been anything but punctual:
Initial Stagecoach/GCC discussions Feb 05
Template document issued to GCC March 05
…but still no evidence of a signed agreement!
Swindon meetings held over 9 months ago and still waiting

65. WHAT’S HAPPENING ON THE BUSES IN THE UK AS A WHOLE?

66. HOW BUSES WORK IN THE UK
Great Britain outside London: commercial networks (about 90% of buses); local authorities subsidise 10% of mileage where there is a social need not met by the commercial network
London: 100% competitive tendering; all decisions on fares and frequencies taken by TfL
Northern Ireland: 100% owned and operated by the state

67. QUALITY CONTRACTS
Local authority takes over responsibility for designing and paying for the network
Operators bid for contracts – local authority pays for what it specifies
No link to key issue of highway management
Risks for existing networks, investment plans and employees (and terms and conditions)
Completely incompatible with the enterprise economy
Certain death for SMEs

68. QUALITY PARTNERSHIPS
Formal or informal agreement between operators and local authorities on how to improve bus service quality
Quality Partnership Schemes allow local authorities to decide on standards for buses using new infrastructure (e.g. bus lanes) and can exclude buses that do not meet standards
Quality Partnerships concentrate on issues important for passengers
Need politically tough decisions about highway management

69. WHAT WORKS… Passenger growth when there is:
Strong local relationship between operators and local authorities
Willing operator who delivers consistent high quality and reliability
Willing local authority which delivers pro-bus policies such as priorities for bus users, car parking management
Buoyant local economy, including population stability/growth

70. THE SOLUTION FOR STAGECOACH WEST?
What we desire are effective partnerships to keep our buses on the move
These must be dynamic in nature, and promote an immediacy of response on both sides
There is an immediate perishability to our product
Cannot instantaneously turn off supply
Costs are incurred regardless

71. CENTRAL GOVERNMENT Competition Commission Investigation
- Major operator Ticketing Schemes
- Bus Station Charges
Threat to BSOG (already reduced by 20%) and new unnecessary complicated way of paying it
Planning System dismantled without a meaningful replacement
Localism and the potential failure to ringfence funding
LEP’s
- Adjudication of “Major Scheme Bids”
No votes in buses despite the fact that 67% of public transport journeys are made on them

72. CONCLUSION
We are a non-political organisation with a passion for what we do and a determination to offer people a real alternative to the car
We want to provide a bus network which is:
Frequent
Reliable
Cost-effective
Utilises the highest standard of vehicles

73. CONCLUSION
We have made significant advances over the past 10 years but are still far from perfect
We can only go to the next level with the support and co-operation of LA’s
We face many external challenges, with traffic congestion in particular a real threat to our industry
Working in partnership, we can:
Decongest the roads
Reap the benefits of PIPs and other occasional Government grants
Provide a public transport system we can all be proud of

74. ONE FINAL THOUGHT
Confederation of Passenger Transport research shows that many of the most successful commercial centres benefit from a good public transport system
This is because bus users travel more often and hence ultimately spend more than the one visit a week car user