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Tender savings

9th August 1986, Page 18
9th August 1986
Page 18
Page 18, 9th August 1986 — Tender savings
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Which of the following most accurately describes the problem?

• Tendered bus services operating in the London area are providing costs savings of up to 20%, claims London Regional Transport's contracts manager Nick Newton.

Newton says that overall service levels have been maintained or improved on the 22 tendered bus routes, and vehicle mileages have increased by up to 3.5% in central London. On some routes where independents are now operating a service, reliability has increased significantly, says Newton, and passenger numbers have increased accordingly.

Of the 24 central London routes which have been offered to tender, six are now operated by independent companies, nine by National Bus Company subsidiaries, and nine by London Buses. A further 19 routes which run across the London boundary, will begin operating this summer.

Of these, one route will be operated by an independent company, six routes by London Buses and 12 routes by National Bus Company subsidiaries.

Overall 159 bids have been received for these 43 routes, and a further 46 bids have been received for a new tenders-only bus network operating in Orpington from this summer.

In Orpington, London buses will operate 10 routes, an independent company will operate one route, and so will a National Bus Company subsidiary.

Newton says, "Independent operators have gained through tendering, but the major beneficiaries are the two NBC subsidiaries." He hopes to encourage more independent companies to bid for bus routes, and to that end LRT is offering brand new Optare City Pacer buses on a leased basis for a new service based on its No 53 service.

Newton says that tendering appears to be having an effect on wage levels and cost levels in the London bus area. "The system does require that people do more work for the same levels of pay," he says. "We cannot make requirements on pay or conditions, but London Buses was less cost effective."

Tags

People: Nick Newton
Locations: Optare City, London

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