Kelsian Group has underlined how its UK operating subsidiary Tower Transit “is ready to be a proven partner for change” in the rollout of bus franchising here through a leveraging of the group’s 30 years’ experience in that field across other global markets.
Tower Transit already has knowledge of domestic franchising via success on Jersey with the LibertyBus operation, which has been cited as a model that could be deployed elsewhere. Earlier this year, Tower Transit purchased HTL Buses in the Liverpool City Region, where work towards franchising rollout is progressing.
Meanwhile, in its native Australia, Kelsian was recently awarded the first competitively tendered bus contract in Brisbane as part of that Queensland city’s move to a franchised network.
Such success is “the latest chapter in a three-decade story of being the go-to operator for government and transport authorities leading the charge into franchising,” Tower Transit says.
Kelsian subsidiary Transit Systems will deliver the Brisbane services. The award forms part of an A$70 million service improvement package for the city that will bring bus services to 8,200 residents for the first time and improve access for over 42,000 others.
It was in Australia that Kelsian began its work in the franchised marketplace. During 1995, Perth introduced a contestable bus market and Kelsian won the first of those contracts. From there, it has seen success in Adelaide, Darwin, Sydney and now Brisbane, in addition to a 2016 triumph in Singapore.
Such experience is key to Tower Transit aspirations in the UK bus franchising market as momentum grows there, it adds.
The operator says that local transport authorities in the midst of rolling out reregulation “face a daunting task.” While Tower Transit acknowledges that Bus Services Bill work will make the process simpler in England, a lack of experience among procuring bodies “may create a significant barrier.”
It claims that Kelsian has “a ready-made blueprint for success” in helping UK local transport authorities to deliver bus franchising.
The owning group “has navigated the legal and operational challenges, managed the complex process of TUPE and stakeholder engagement, and delivered the service improvements that passengers and politicians demand,” adds Kelsian.
Continues Tower Transit Managing Director Samual Ribiero: “Our role in Brisbane mirrors what we have achieved elsewhere: being the first operator trusted to help a transport authority through the transition to franchising.
“We have a unique and unrivalled track record of not just winning the first contract, but of staying for the long-haul, growing the business, and becoming a true partner to the city.”
To that end, Kelsian has not yet exited a market it has helped to transition to a franchised model. In Perth, it has the maximum allowable market share of 50%. In Adelaide, it grew to 80% before being capped by regulation. In Sydney it is the largest franchise operator with 25% market share, and in Singapore it has doubled its size since 2016.
On the recent Brisbane win, Kelsian Group CEO Graeme Legh adds: “As Australia’s largest private bus operator, we proudly deliver millions of customer journeys across the country every day. As a trusted and established government partner, we are committed to bringing our global reputation for excellence to support Queensland’s public transport future.”
