HOST OPERATOR: 2014 ALBUM E CONFERENC MAY 13-14
LOTHIAN BUSES
SUPPLEMENT ISSUE 082 2 MAY 2014
WWW.PASSENGERTRANSPORT.CO.UK
SPONSORED BY:
PT-Lothian-p01 1
28/04/2014 10:00
LOTHIAN BUSES INTRODUCTION
INSIDE
Planning for an integrated future
2014 looks set to be a landmark year for Lothian Buses and chief executive Ian Craig reveals the company’s ambitious future plans
06
LOTHIAN BUSES AND ITS BIG PLANS TO TACKLE CITY’S AIR POLLUTION
08
COMPANY BUILDS RELATIONSHIPS WITH THE WIDER COMMUNITY
How the company is working towards green goals
Lothian Buses emphasises its role in the community
11
LOTHIAN BUSES IS WORKING WITH EP MORRIS TO STREAMLINE DATA SYSTEMS
Integration will improve operational performance
14
EDINBURGH – THE MULTI-MODAL INTEGRATED TICKETING CITY
Parkeon is supplying ticketing systems to the city
Designed, produced and published by Passenger Transport Publishing Ltd Managing Editor & Publisher Robert Jack Deputy Editor/Supplement Editor Andrew Garnett Associate Editor James Dark Telephone: 020 7749 6909 Email: editorial@passengertransport.co.uk © Passenger Transport Publishing Ltd 2014
02 | 2 May 2014 PT-Lothian-p02-05 2
It was a beautiful cold sunny Tuesday morning about a year ago when Ian Craig, the chief executive of the newly formed Andrew Garnett Transport for Edinburgh Deputy Editor umbrella that brings together the city’s tram network with the council-owned Lothian Buses business, had what he calls his “road to Damascus moment”. Standing at the eastern edge of the newly constructed Edinburgh Trams depot at Gogar, Craig was inspecting some of the troubled tram network’s overhead line equipment with his senior management team after a minor incident. It was soon after the section of route between the depot and the airport had been handed over, allowing operational testing to finally begin in earnest and the moment when he realised the possibilities offered by trams. “This tram comes out of the back of the depot and it swept down and around past us silently and then stopped,” he recalls. “I took a moment and thought ‘damn, that looks really good!’. I could see it in service and I could see that it was something that could move a lot of people and do it in an aspirational way.” The problems stemming from the much delayed tram are well known, but Craig is keen to put that aside and move forward. Within weeks it is expected that Edinburgh Trams will finally be ready to enter service, the final piece of the jigsaw that has seen the creation of an integrated multi-modal transport business that has big plans for the future. But Craig believes that as well as looking to the future, it’s important to acknowledge the past and it is a rich past. For 143 years Lothian Buses and its predecessors have provided continuous public transport provision for the city of Edinburgh and its neighbours. “We have a very long and a very proud history and heritage,” says Craig. “I’m not in any way naturally nostalgic about the history or the
heritage of a company, but you start to look back and you start to see the passion and the affinity that people have with public transport in Edinburgh. How we take this business forward really, really matters.” During the years since the Edinburgh Tramways Corporation was first launched in 1871 there have been many changes. In 1920, Leith Corporation Tramways was merged with the city’s own tram operation, then in 1975 local government reorganisation saw the creation of Lothian Region Transport. 1986 saw the business become LRT Plc, followed by a further change to Lothian Buses in 2000. Craig believes that 2013 will also go down in history for a variety of reasons. “So I heard at the end of 2013 Bill Campbell [Lothian’s operations director] very modestly say that patronage had been okay and that we’d had a good year,” he jokes. “But we actually had an amazing year. We had a record-breaking year with the highest patronage in 25 years at 115.4 million passengers and we got to the end of the year with the tram on the cusp of coming into operation. From an operator’s perspective we’d spent the whole year or even 18 months prior to that building a light rail capability and team from scratch. It has been an amazing process and we’re really proud of the team, not just the senior people, but also all the people that we’ve recruited.” Opposition to the tram has been vocal and widespread but now that the system is close to operation, things seem to be changing. Craig reveals that this has manifested itself in the volume of job applicants for newly created roles at Edinburgh Trams. An advert for tram
“We had a record breaking year with the highest patronage in 25 years” www.passengertransport.co.uk
28/04/2014 10:00
drivers resulted in 1,300 applicants and there were over 1,000 applications for on-tram customer service assistant roles. “These aren’t necessarily high-paying jobs, but they are jobs that people value and they clearly want to be part of this new organisation,” believes Craig. “So whereas the project may have had issues with its reputation, the future operation of it mercifully seems to be viewed quite differently by large numbers of people and bringing it to life has been fantastic.” Last year also saw big changes for Lothian Buses with the creation of Transport for Edinburgh, a new governance structure that creates a single entity between tram and bus. What could have been a complicated ownership structure due to the different shareholders in the bus business and tram project has been solved rather pragmatically. Simply put, making the tram operation a subsidiary of Lothian Buses would have meant the minority shareholders in Lothian Buses, East Lothian, Midlothian, and West Lothian councils, would have become unwittingly involved in the tram business, which is 100% a City of Edinburgh project. It has led to the creation of Transport for Edinburgh, a new umbrella organisation that will manage the bus and tram networks in tandem, but retaining their independent ownership. Craig explains: “By keeping the two separate, but under Transport for Edinburgh, we’re able to keep the shareholding complete and whole, we’re able to keep the shareholders’ rights and benefits, but Lothian Buses will effectively become the commercial, operational and administrative heartbeat of the whole organisation. “It’s where the big passenger numbers, money and services are, so we’ll be effectively exporting our services to Transport for Edinburgh for the tram and to the open top bus tours business too. The services that I’m talking about are finance, administration, marketing and HR and those sorts of things, but to keep ourselves legal within the financial structure that we’ve created, that’s a paid for service with a profit element.” This new structure also has the added advantage in that it avoids the replication of functions, such as a marketing function for tram for example. “It’s a structure that we’ve used for the bus tours in the past,” Craig adds. www.passengertransport.co.uk
PT-Lothian-p02-05 3
Ian Craig, the chief executive of Transport for Edinburgh
“We’ve always treated it as though services were being supplied, but this more formalises the arrangement and gives it its own place within the hierarchy.” The Transport for Edinburgh board comprises Craig and his fellow Lothian Buses directors, Bill Campbell, Bill Devlin and Norman Strachan. They will be supported by non-executive directors and councillors Lesley Hinds (who will also chair the organisation), Steve Cardownie, Joanna Mowatt and Nigel Bagshaw, plus transport experts Tony Depledge, Dr Steve Cassidy and Ann Faulds, the newly appointed chair of Lothian Buses. Craig is keen to point out that politically, the Transport for Edinburgh board has cross-party representation from all political parties active in the city with the exception of the Liberal Democrats, who declined the invitation. He believes that this is important in building a consensus about the importance of sustainable
travel modes. “We want to be a world class transport provider,” says Craig. “That’s really important to me and to us. Edinburgh plays its part on the world stage as the capital city of a small nation, a nation that may just possibly be independent come September, and it has to compete for international investment from the best of them. So we have to raise our game. Second best just isn’t good enough.” He believes that the creation of Transport for Edinburgh is not just about creating the right governance structure, although that is clearly important. Craig says that he and his team have to bring it to life and that has manifested itself in the creation of a roundel that can already been seen on an increasing number of Lothian Buses fleet members, but also on tram and, in the future, on other modes. He explains: “We’ve created roundels for walking and cycling and the city has 2 May 2014 | 03
28/04/2014 10:00
LOTHIAN BUSES INTRODUCTION
a real need to improve its wayfinding for the millions of visitors each year, so we’re looking to leverage our branding into the things that the city provides so that it all starts to join it up. We actually have a unique opportunity to create something that looks like it has been consciously brought together and integrated, so are walking and cycling part of the mix? Absolutely.” Meanwhile, Transport for Edinburgh will not shy away from the big issues and Craig says that it should and will influence council policy. “You can have the best company in the world and the best operation, but unless you’ve got the right policy wraparound you’re never really going to move your business forward,” he believes. “[Stagecoach chairman] Sir Brian Souter advocates that the four Ps that are absolutely essential and I wholeheartedly subscribe to this theory: parking, priority, park and ride and planning. Because we’ve been drawn closer to our shareholders, I’d like to think that we’ll have more engagement and interaction with the council on these policies.” Edinburgh already has a very extensive bus lane network, but Craig points out that this is increasingly being scrutinised as pressure groups call for access to that priority. Camera enforcement is becoming more and more controversial. He also believes that the city is made for park and ride, but Edinburgh could do much better at it and it is important that with so many new housing and commercial development planned to the west of the city, sustainable transport options are included from the start. “What the tram is doing is focusing minds on creating sustainable development in and around the route,” he says. “Fine, hallelujah we say, that’s fantastic, but let’s not forget about bus too.” Taking up the integration theme again, the bus and tram networks will have integrated ticketing from day one of tram operations commencing, but Craig and his team are already looking at expanding this to other travel options. He continues: “What about a cycle hire scheme too? What about a car club? What about paying for a taxi ride? Or what about being able to pay for your car parking with a next generation smartcard or your smartphone? We are in a situation where our existing Ridacard smartcard scheme is 12 years old and it’s pretty bulletproof, but it’s old technology and to move the whole game 04 | 2 May 2014 PT-Lothian-p02-05 4
Ian Craig says that the structure of Transport for Edinburgh has been designed to bring tram and bus operations together
forward we’re going to have to invest in a new platform. Maybe ITSO? Maybe not? Our minds are open, but whatever we do, from a Transport for Edinburgh perspective, we need to be able to incorporate other modes so that we can then effectively leverage people into our public transport offering.” That transport offering may just one day also include an expanded tram network. Although the initial plans to operate trams to Leith and Newhaven were scrapped a couple of years ago as part of the rescue plan for the project, parliamentary powers remain that could allow the project to be revived in the future. A significant number of utilities diversions have also been undertaken on Leith Walk, meaning that a lot of the hard work has already been completed. “The priority for us all is to deliver from the airport to York Place,” says Craig. “End of story. And that’s a big task. When we talk about advocating for more tram that has to be over years, decades perhaps, and not necessarily short term. We have to prove that what goes in to service is attractive and is going to deliver the economic benefits that we hope it will.
“Already there’s strong signs of investment activity in the west of Edinburgh and particularly around Edinburgh Park that is linked to tram and the fact that it’s about to come into service. I’ve always said and I’ll continue to say that the value of tram to the city is not measured purely by its profit and loss account but it’s also got to be measured by the economic benefits that it brings to the city over a long period of time and the indirect benefits that will also emerge.” He believes that it’s encouraging to see that a lot of the rhetoric that has been seen for years about the difference that tram will make is manifesting itself in some serious strategic investment decisions that all manner of companies and funds are now starting to make in the city making future extensions a real possibility. “We already have the tram fleet to extend to Leith and Newhaven and a lot of infrastructure has already been bought but there has to be the right public opinion,” Craig adds. “The public need to want it. You wouldn’t go out right now on Princes Street with your soap box and say, ‘Good news! We’re digging up Leith Walk again!’ We all sincerely
“The governance structure ensures that any funding that tram requires has to come from the parent, the City of Edinburgh Council, and not from Lothian Buses” www.passengertransport.co.uk
28/04/2014 10:00
hope that tram is going to be a big success and generate the patronage we anticipate, but the real test will be if the city develops along that spine to the west. If the economic benefits are being realised by the network we have, the case for expansion could become compelling in the future.” For now Craig admits that the numbers for the tram are “challenging” and that they will remain so for quite a long time, but the operation has been structured in such a way that short term funding is effectively guaranteed by a council facility. “We are going to have to drive growth to get to the point where that tips over and it becomes self financing and the loan can be repaid,” he adds. “There’s elements of cost that have been retained by the council, so we’re taking on the direct operational costs but the council is looking after the infrastructure costs and some of the maintenance costs. That’s not necessarily going to always be the case but we’ve had to slice up the cost cake to allocate to those who can shoulder the burden.” Craig is also keen to dispel any concerns that any potential financial problems for the tram could endanger the viability and independence of Lothian Buses in the longer term. “The governance structure ensures that any funding that tram requires has to come from the parent, the City of Edinburgh Council, and not from Lothian Buses,” he firmly points out. “The big fear was the bus would just be subsidising tram. Bus will continue to pay a dividend to Transport for Edinburgh and
www.passengertransport.co.uk
PT-Lothian-p02-05 5
the minority shareholders and Transport for Edinburgh may choose to recycle some of its dividend back to tram as this is required. The two are distinctly separate and all processes are required to be transparent.” The only exception to the planned integration between bus and tram will be at Edinburgh Airport where a premium fare will apply on the tram as it already does on the bus. Despite previous suggestions that Lothian’s successful Airlink bus service between the airport and the city centre would be scrapped, the route will continue when the tram starts operating. Craig says that Edinburgh’s airport continues to go from strength to strength with new routes commencing all the time and that means that the market for travel to the airport is also growing, so Transport for Edinburgh is looking to create competition between the two modes by pitching them at different markets. “There will be a premium fare on tram to the airport and it will be more expensive than Airlink, but not at Heathrow Express levels,” he says. “It’s not settled, but even if it was say a fiver from the airport to the city centre by tram, then that’s a bargain. I took the bus from Glasgow Airport to the city centre recently and it’s £6 single! The mantra here is to drive patronage to uplift revenues, not to drive revenues through fares increases. That’s short term thinking and we want to be in this for the long term.” Although Craig and his team also have a vision for the future of the Lothian Buses network, including a fleet of plug-in hybrid buses that will allow zero-emission operation in some of the more sensitive areas of the city, it is clear that integration between bus and tram is the key priority. “We’re delivering tram and we’re integrating it with bus, we’re taking bus forward and we have a very clear plan around that,” he concludes. “Providing we get the right support from our shareholders and providing that we can keep the communities that we serve onboard, I have every reason to believe that Lothian Buses will be around for a long time. It might sound a bit egotistical, but I think that we’re coming from quite a strong starting point. Perhaps the best thing would be to come back in another 143 years and see how we’ve done,” Craig smiles.
WHO’S WHO IAN CRAIG Chief Executive Craig started his career in public transport in 1989, joining his family’s expanding bus and coach business, West Coast Motors. In 1996 he joined Scottish Citylink before moving to Arriva Scotland West as commercial manager in 1999. Two years later a move to Arriva Yorkshire as commercial director was followed in 2003 by a return to Scotland to assume full managerial responsibility for Arriva Scotland West. He joined Lothian Buses in August 2006 as managing director before being appointed chief executive in May 2013. BILL CAMPBELL Operations Director With over 30 years experience in the industry, Campbell joined Lothian Buses in July 1999 from FirstGroup where he had been operations director of the group’s Lowland, Midland Bluebird and SMT businesses. BILL DEVLIN Engineering Director Devlin joined Lothian Buses in 1999 from Stagecoach. In his 30-plus years in the industry, Devlin has managed engineering projects in Kenya and Malawi, but today is responsible for Lothian’s 600 buses and 328 engineering staff. NORMAN STRACHAN Finance Director Strachan joined the bus industry in 1991 as finance director for Stagecoach Bluebird. When he left the group in 2000 he was finance director for Stagecoach’s Scottish bus operations. He joined Lothian Buses in August 2000. GUY HUGHES HR Director Hughes joined Lothian Buses in 2012 as human resources director from BAE Systems. He has held senior operational and HR roles in the retail, defence and technology sectors being appointed to his first board level role in 1997.
2 May 2014 | 05
28/04/2014 10:00
LOTHIAN BUSES ENVIRONMENT
Hybrid buses will play a growing role in Lothian’s plans for the future
Going green with Lothian Buses Air pollution is rising up the political agenda and Lothian Buses has big plans to tackle the issue
The issue of air pollution is rising up the agenda in many British cities and Lothian Buses is not shirking away from its responsibilities in the area. The last few years have seen the council-owned bus company come up with a number of initiatives that aim to reconcile bus operation with the environmental agenda and the company has big plans in this area for the future. Steering this agenda forward is Dr Steve Johnson, the company’s environmental and corporate social responsibility manager. He says that the issue of carbon has always been high on the Scottish Government’s agenda, with ambitious targets to decarbonise the local economy, but air pollution is increasingly under the microscope at Holyrood. “In January, Friends of the Earth Scotland launched a new report which named the most polluted streets in Scotland,” Johnson says. “The fourth worst street was St John’s Road 06 | 2 May 2014 PT-Lothian-p06-07 6
here in Edinburgh where high levels of nitrogen oxides and particulate matter were recorded. Although we were well aware about some of the air pollution issues in the city, the way in which the report was picked up by the media in Scotland just illustrates how it’s rising up the political and public agenda.” The company has looked to a number of innovative solutions over the last decade in order to mitigate some of the air pollution aspects that are traditionally associated with buses. Previously the company’s approach in this area was to invest in its fleet through the purchase of new vehicles which have all
“We target investment into the areas with the greatest air pollution” Dr Steve Johnson
conformed to the increasingly prescriptive emissions standards demanded by European legislation. Now Lothian Buses is using a twopronged approach of continuing to invest in new vehicles while also upgrading existing fleet members with technologies that significantly reduce vehicle emissions, making them comparable to the latest standards. “Instead of just injecting new vehicles into the fleet or onto certain routes, we’ve aimed for a corridor approach,” explains Johnson. “This means that we target investment into the areas with the greatest air pollution issues through a mix of new vehicles and cascading vehicles of a higher environmental standard from elsewhere.” It means that on St John’s Road in Edinburgh, the company has gone from having routes in this area operated by vehicles conforming to the older Euro 2 and Euro 3 emissions standards to mostly Euro 5 standard www.passengertransport.co.uk
28/04/2014 10:00
MORE ONLINE For more about the company’s environmental agenda, visit www.ecolothianbuses.com
on the principle routes with Euro 3 vehicles on the secondary routes. “Subsequent analysis shows that it’s clear that a substantial drop in NOx has taken place at that monitoring station as a result of this action,” he adds. “It’s still a problem area, but we’re confident that our fleet’s contribution to that issue is reducing.” Meanwhile, the company is increasingly fitting fleet members with Selective Catalytic Reduction Technology (SCRT) emissions technology that have the capability to significantly improve the emissions standards of older members of the fleet. Several years ago the company experimented with a single Euro 2-standard Dennis Dart. Johnson says that this vehicle was selected as it was the oldest in the fleet and Lothian Buses “wanted to test the water to see just what was possible with SCRT”. The results were encouraging with NOx emissions reduced by 70%; particulate matter by 95%; and a 99% reduction in other air pollutants. It means that the emissions from this Euro 2 vehicles are now equivalent to Euro 5 standard. “That’s the great thing about this technology,” adds Johnson. “We skip forward three levels with it. So Euro 2 goes to Euro 5 and Euro 3 gets to EEV (Enhanced Environmentally Friendly Vehicle) standard.” Bill Devlin, engineering director at Lothian Buses, reveals that there is a slight fuel penalty when SCRT is fitted to lighter-weight single deck vehicles like the remaining Dennis Darts in the fleet, but with the more recent heavyweight Volvo single deckers, 35 of which have been equipped with SCRT, it is negligible. “These vehicles are far from life-expired,” he adds. “They have a good few years life left in them and SCRT means that they tick the right environmental boxes at the same time.” Further work with manufacturer Volvo aims to result in-vehicle software changes that will allow Euro 4 vehicles in the fleet to move up to Euro 5 emissions standards and there is likely to be more SCRT conversions. “Our aspiration is that by the end of 2014, with new vehicles, SCRT fitments and the conversions, we’ll get to all Euro 5 or better with the single deck fleet,” adds Devlin. “That’s about 150 buses and you shouldn’t underestimate the leap from Euro 4 to Euro 5. It’s a tricky, tricky job.” Meanwhile, there are a growing number of hybrid vehicles in the Lothian Buses www.passengertransport.co.uk
PT-Lothian-p06-07 7
fleet. Four successive rounds of the Scottish Government’s version of the Green Bus Fund mean that by early 2015, 65 hybrid buses with be in service with the operator, and the company has ambitious plans for their use in the future. The first round in 2011 funded the purchase of 15 Alexander Dennis Enviro400H hybrid double deck vehicles. Johnson says that the company could have taken the conventional approach of painting the vehicles green in order to push the environmental message, but instead Lothian Buses was looking for something a little different. “We went back to the drawing board and thought about what we wanted to achieve from hybrid and that was modal shift and passenger growth,” he says. “Yes, we wanted the fuel savings and to reduce emissions, but the key for us was getting people out of cars and onto buses. We just weren’t convinced that painting a bus green and putting some leaves on the side would be enough to attract the sort of person who normally drives a BMW.” Instead a premium look was chosen for the vehicles with gold supplanting the usual white areas of the Lothian Buses livery and subtle changes were also made to the internal Dr Steve Johnson (left) and Bill Devlin pick up the Best Green Large Company Award in 2012
AWARDS DEMONSTRATE COMMITMENT Lothian Buses has won a number of awards for its environmental programmes in recent years. These aren’t just for industry-specific awards schemes, but wider business and environmental award schemes too. As Dr Steve Johnson notes, the company’s participation in non-industry awards aims to reinforce that Lothian Buses is on the right track. “If you’re going to push your green credentials to the customers, then you have to prove that you’re really serious about the environmental agenda,” he adds.
specification in order to make them different to the rest of the fleet. When the vehicles entered service on Route 10 between Western Harbour and Torphin/Bonaly, the results where encouraging with year-on-year passenger growth in excess of 7%, leading senior figures within the company to conclude that the full hybrid brand proposition is successfully destigmatising bus use even further in the city. The following three rounds of GBF in Scotland have seen Lothian standardise on Volvo’s integral 7900 single deck hybrid product, with 10 vehicles procured in the second, 20 in the third (currently in build) and, more recently, a further 20 in the fourth round which was announced in late March. “In the medium to long term we’ve planned out this vision for the city in which we introduce self-imposed low emission corridors,” explains Johnson.” Initially there will be a mix of Euro 5, Euro 6 and low carbon vehicles on these corridors to bring their emissions up to standard, but the big aspiration in this plan is for the city centre. Within the not too distant future we’re planning an electric vehicle operation whereby everything that passes along Princes Street that we operate will be some form of electric vehicle. “You might think that that’s ridiculously unrealistic at the moment. We’re looking at Optare’s electric bus products perhaps for some shorter routes, so how do you deal with a big cross-city routing? Well, plug-in hybrid technology seems to be the way forward.” The Volvo 7900s from the third and fourth rounds of the Scottish GBF will have the capability to have the Swedish manufacturers en-route charging technology fitted. It means that with charging stations at each end of the route, these buses will be capable of operating for up to six miles on any given trip in all-electric mode after a 10-minute charge. it offers the tantalising possibility too of significantly reducing emissions in the most sensitive areas. “Using the on-bus telematics we’ll be able to tell the bus where it needs to run in EV mode by geo-fencing these air quality areas,” explains Johnson. “So they’ll recharge at the terminus, run as a conventional hybrid until reaching the air quality area and then essentially operate as an electric bus. The technology is just amazing but it will reinforce to our customers that we are serious about tackling air quality.” 2 May 2014 | 07
28/04/2014 10:00
LOTHIAN BUSES COMMUNITY
Lothian supports a number of charity initiatives. Last summer saw a charity bus pull to raise money for local charity Good 2 Give
Lothian aims for community’s heart
A wide range of initiatives aim to emphasise the key role that Lothian Buses has at the heart of the Greater Edinburgh region Lothian Buses believes it is more than just a bus company, it’s a committed partner in the local community. It has a series of initiatives that aim to reinforce the part the councilowned company plays in providing a vital service across the city of Edinburgh and surrounding areas. The company has more than 2,000 employees, making it one of Edinburgh’s largest employers and Lothian Buses has keenly supported a number of local and national charities over the last few years. The company also runs a range of projects through its community engagement strategy. These aim to inform, educate and provide new experiences to people from all walks of life. A particular focus is on young people. Lothian’s volunteer team works in schools, from its depots and at local events to break down barriers to using public transport. Other projects focus on helping school leavers 08 | 2 May 2014 PT-Lothian-p08-09 8
and those seeking employment to better understand their options - and how to develop the skills to reach their potential. However, a more visible demonstration of Lothian’s engagement with the local community is its annual participation in Scotland’s annual Doors Open Days’ events. Billed as the country’s largest free annual architectural event, it is co-ordinated nationally by the Scottish Civic Trust, and aims to give members of the public access to buildings and facilities that are
“It’s really encouraging that the community are really interested to learn more Lothian Buses” Dr Steve Johnson
normally private. Lothian first participated in 2009 by opening the doors of the cavernous red brick facade to its Central Depot on Annandale Street on the edge of the city centre. The building itself has a unique history as it was built as the Industrial Hall for the Edinburgh Exhibition Association to house an industrial exhibition in 1922, and after a decade as an exhibition and conference venue it was converted to house Edinburgh Corporation’s embryonic bus fleet in 1934. Dr Steve Johnson, the company’s environmental and corporate social responsibility manager, admits that he and his team were expecting a couple of hundred people at best to turn up, but were astonished when over 1,000 appeared at the first event. “We really didn’t expect that sort of response,” he says. “It worked really well and it’s encouraging that the community are really interested to learn more about us, what we do and how we work.” Last year the event welcomed over 3,700 people - not just bus enthusiasts but local families, historians, architecture fans and the curious - with a display of vehicles not only from the current Lothian Buses fleet, but preserved examples from its predecessors and trips through the bus wash. Meanwhile, Swedish bus manufacturer Volvo supported the event by bringing a prototype articulated vehicle developed from the findings of the European Bus System of the Future project that featured a number of innovations designed to make access to and from buses easier for passengers. However, stealing the show was a special ‘50:50’ bus that recognised the way in which Lothian’s bus livery and interiors have evolved since the late 1990s and highlighted the company’s famous attention to detail. One half of the bus was painted in the pre-dominantly white harlequin livery introduced with the first low floor buses a decade ago, with the other in the very latest madder-based livery. Inside one half of the interior featured the harlequin-era tartan moquette with the other the latest city landmark moquette. “It was all done in-house from concept to completion and it was really popular,” notes Johnson. “In fact it was so popular that we had to put it into service!” www.passengertransport.co.uk
28/04/2014 10:03
www.passengertransport.co.uk
PT-Lothian-p08-09 9
2 May 2014 | 09
28/04/2014 10:03
PT-Lothian-p10-13 10
28/04/2014 14:01
EP MORRIS
Lothian’s new control room at its headquarters
Integration aim for Lothian’s operations Lothian Buses is working with EP Morris to create a new system that will streamline data and improve operational performance
It wasn’t too long ago that bus operators relied on a variety of paper and computerbased systems in order to assess operational performance. There were drawbacks of course, in particular a lack of consistency between depots, let alone subsidiaries of much larger companies, plus the physical time it took in order to bring the different strands of data together and present it in a coherent form. As the bus industry has matured in recent years, there has been a quest to bring forward new technologies that can not only streamline www.passengertransport.co.uk
PT-Lothian-p10-13 11
these processes, but also save time and costs by bringing a variety of data together and allowing it to be used to monitor and track
“Lothian Buses have really provoked and pushed us along to develop the tools that help get the job done” Edward Morris, EPM
LOTHIAN COMMENT BUSES
performance. Bromsgrove-based bus industry auditing specialists EP Morris & Company (EPM) has worked with a number of companies over the years to provide a range of software tools that allow this process to happen and at Lothian Buses a unique project has brought these modules together in order to further streamline these processes. “Lothian Buses have really grown into our systems,” says Edward Morris, the founder of EPM. “It began with us providing modules for the calculation of the Bus Service Operators Grant back in 2000 and has expanded to include the auditing and monitoring of all aspects of their revenue and operational performance. They have really provoked and pushed us along to develop the tools that help them to get the job done and tailored to their specific and unique requirements.” With the company running a variety of systems from EPM, Lothian Buses was looking, as Morris says, to “bring all the bits and pieces” of the other systems together. Sarah Boyd, head of bus operations at Lothian Buses, had previously worked with EPM’s various software solutions in senior management roles with Stagecoach’s UK bus division. “At Stagecoach we used a variety of their systems for ticket analysis, fuel and mileage reporting,” she explains. “I could see the potential for a system that would bring all the pieces of data together as it would save time and resources and really strengthen service delivery. At Lothian Buses we had the opportunity to take that forward.” The catalyst was the decision by the operator to significantly invest in a new control room at its headquarters. Visiting the site it is clear that the sometimes dusty image that so much of the industry is tarred with is being swept away with a facility that is more reminiscent of air traffic control centre. This is a dynamic illustration of how technology is changing the industry as a whole. Matthew Hanlon, EPM’s senior director, takes up the story. “The starting point from our point of view was that control room. Lothian really wanted to strengthen their operational performance,” he says. “They were keen to integrate the existing systems that we had in place in order to provide them with a comprehensive management tool. Everything that we have developed has been brought 2 May 2014 | 11
28/04/2014 14:01
MORE ONLINE For further information about EP Morris visit www.epmorris.co.uk
“We don’t have to sift though lots of pieces of paper or files, it’s just a case of a few keystrokes” Sarah Boyd, Lothian Buses
together as one system at Lothian Buses.” The previous control room arrangements saw any incident reported by drivers through the radio system written down in a log with the entries transposed manually. Boyd felt that this was a time-consuming process and meant that operational performance suffered as it would obviously take some time for the appropriate data sets to be assembled into a coherent format. Meanwhile, by using a combined and unified computerised system, any incident could be instantly entered into the system and initialise a chain of events that would allow a variety of internal departments instant access to the information and a list of actions to solve the issue. From an engineering point of view any vehicle issues encountered by driving staff can be logged in the system with email prompts alerting engineering staff that a bus may have a problem. This can range from non-essential equipment failures to a full breakdown, allowing the engineering team to react accordingly, for example by either attending to the vehicle in question, or ordering replacement parts and arranging for the vehicle to be repaired when it returns to the depot at the end of the working day. Customer service is also enhanced as it means that any incident is immediately relayed to the customer service team, allowing them to inform customers of problems or issues in a proactive manner be it by answering customer queries by phone or through the use of social media channels. The system is also used to manage customer contact and can be used to not only log any complaint or comment, but allow for follow-up investigation by the depot management teams. Meanwhile, staff files and data are hosted in the system, bringing the real possibility of a paperless office for staff managers in transport operations. “It’s a fantastic system,” says Boyd. “Not that long ago it would have been a case of having to consult lots of paper and documentation in 12 | 2 May 2014 PT-Lothian-p10-13 12
EP Morris is developing a system that places data at the heart of Lothian Buses’ operations
order to find out the information. This system does away with that. I can sit at my desk, click on my computer and find out so much information so quickly. “For example, if there’s an issue involving a customer, we can ask for the ticket number and find out all the information about that particular ticket or journey. We have revenue data, driver data and vehicle data. I can also bring up full operational performance details for the company as a whole or by depot or route. We don’t have to sift through lots of pieces of paper or files, it’s just a case of a few keystrokes and then we can drill down. It’s granular detail and that makes the management process much easier and a lot quicker and we have all this information in our hands the very next day.” Boyd praises the close partnership and working relationship that has evolved between Lothian Buses and EPM in order to produce the system. “It’s still early days and a work in progress, but we’ve been really encouraged by their flexibility,” she adds candidly. “I’ve a wish list of features that I keep on my computer but as soon as we add a feature I find myself adding more possible things we could do to my list. We’re still ironing some issues out, but it’s a practical system that has real potential to save us time and money while bringing real benefits to our service delivery.”
A BUS INDUSTRY FOCUS Edward Morris was the National Bus Company’s group internal auditor during the 1980s and as the business began to be privatised, he quickly realised that there would be an opportunity to supply professional auditing services to the newly independent bus operators. With a small team assembled, he launch EP Morris & Company in April 1987. Since that time the company has experienced significant growth. Initially based in the former Carlyle Works of Midland Red in Birmingham, six years ago expansion saw the company move into a purpose built space at a canal-side location south of Bromsgrove. Further growth has seen this building expanded to house the 35 staff that the company now employs. Today EP Morris & Company works with a wide variety of operators from the Big Five down to smaller independents and municipals, plus local authorities and PTEs providing a wide range of audit services. These range from BSOG and concessionary fare calculations to providing expertise on more complex or challenging issues across any aspect of the business. Meanwhile, there are also tools that allow transport operators and organisations to asses a variety of key performance indicators. All aspects of the business are supported by the Bromsgrove-based team, each of whom has specialised industry knowledge.
www.passengertransport.co.uk
28/04/2014 14:01
PT-Lothian-p10-13 13
28/04/2014 14:01
LOTHIAN BUSES PARKEON
Parkeon offers a full suite of integrated systems for transport operators
Edinburgh - the integrated city Parkeon is working with Transport for Edinburgh to introduce integrated ticketing systems
From buses to trams, rail to parking technologies, Parkeon is a true urban transit partner for the city of Edinburgh. The company has been a public transport ticketing and parking systems provider to Edinburgh since 1989 and today plays a pivotal role in supporting the economic and social fabric of the city, delivering technologies that are multi-modal, easy to use and in tune with the needs of 21st century living. The partnership covers bus, tram, rail and parking and is a prime example of what can be achieved when scheme owners, transport operators and technology providers work to a common vision. This year will be a true milestone in the life of the city, with Transport for Edinburgh overseeing the services provided by the multiaward winning Lothian Buses and the soon14 | 2 May 2014 PT-Lothian-p14-15 14
to-be launched Edinburgh Trams to provide a seamless and high quality public transport choice for both residents and visitors to the city. “Central to the vision has been the development of a ticketing platform that not only meets our requirements in terms of functionality and integration, but one that is also capable of meeting future social and technological changes,” says Ian Craig, chief executive of Transport for Edinburgh. “Technology is changing the way we interact
“Technology is changing the way that we interact with each other” Ian Craig
with each other - social media, digital services and smartphone apps continue to evolve fast. These tools have become a vital part of the way we communicate with our customers so it’s important that we continue to focus on developing our use of industry-leading technology.” The dual functionality for bus and tram passengers of the Ridacard smart ticketing system is at the heart of Transport for Edinburgh’s vision, and Parkeon’s underlying architecture means that cardholders will travel seamlessly across both modes of transport. Craig added: “Our long-standing relationship with Parkeon has provided a solid base for our integrated ticketing offering which centres on Ridacard - our core commercial smartcard product.” Gavin Trimnell, head of sales and marketing www.passengertransport.co.uk
28/04/2014 10:03
MORE ONLINE For further information about Parkeon visit www.parkeon.co.uk
at Parkeon, commented: “As cities develop, they need mass transit systems and smarter parking technologies that support economic development, enhance social mobility and minimise traffic congestion. In the case of Edinburgh, this vision is being achieved in part through Parkeon technology that makes it easier for individuals to get the information they need and to gain access to services that shape a more sustainable environment.” Parkeon’s 25 year relationship with the city dates back to 1989, when Lothian Buses (then Lothian Regional Transport) specified the Wayfarer2 electronic ticket machines for its fleet of buses. In 2000, the Wayfarer3 electronic ticket machine was introduced to handle Lothian’s commercial smartcard scheme, Ridacard, delivering a further decade of reliable service for the operator. Then in 2010, Parkeon’s Wayfarer200 ticketing platform was commissioned, initially to enable the reading of Transport Scotland’s ITSO Scottish National Entitlement cards, but also to facilitate the dual-reading of the Lothian Buses commercial smartcard - an industry first. The city also installed Parkeon solar-powered on-street ticket machines for off-bus sales to ease boarding, speed-up journey times and reduce times at bus stops. Today, the bus operator routinely manages over 2 million passenger journeys each week over 70 routes across Edinburgh, Midlothian and East Lothian - and increasingly the
Parkeon has supplied ticketing systems for Edinburgh’s bus and tram operations
www.passengertransport.co.uk
PT-Lothian-p14-15 15
demand is for mobile ticketing and real time information apps. Parkeon’s technology has certainly proven its worth in recent times, for example during the Edinburgh Fringe Festival, when it processed more than 12.5 million transactions, 60% of which were smartcard-based. These numbers will soon be boosted with the arrival of the Edinburgh tram project, which utilises Parkeon’s Galexio-Plus ticket vending machines, Axio platform validators and hand-held payment terminals on the route from Edinburgh Airport to the city centre. The system will dual-read both ITSO cards and the Lothian Buses’ Ridacard, and will be linked to the existing Lothian Buses’ back office. All of this adds up to an exciting time for Edinburgh and its public transport network, says Ian Craig. “An integrated network with common ticketing across both bus and tram will create an even more compelling public transport offering in future years for the city and its environs.”
And there’s more Parkeon is increasingly involved in the city’s rail service offer, through the provision of advanced ticket vending machine technologies. In the parking arena, Parkeon is also a major player in the life of Edinburgh, with 1,200 terminals located across the city connected to a centralised management system to improve data capture and scheme-wide performance.
Innovation is driven by the customer Parkeon’s Wayfarer electronic ticket machines continue to lead the way in dual reading both ITSO concessionary and Parkeon commercial smartcard technologies, with top-up enabled on-bus, on-street, over-thecounter and via the internet. Bus operators are also increasingly utilising the in-built GPS and mobile communications functionality to support Real Time Information, CCTV, vehicle displays and vehicle and fuel efficiency monitoring systems. The Wayfarer200 system (pictured above) is the heartbeat of on-vehicle systems - not only driving fare collection systems but acting as the data hub for a wide variety of allied technologies. In the case of Parkeon’s most recent innovations in the areas of Real Time Information and Fleet Management, the effect is a lower cost and more accurate solution than is achieved with conventional architecture - this is just the sort of operational efficiency that operators value and need to compete effectively. The company is also engaged in rolling out highly innovative projects, notably in meeting the aspirations of ‘generation-m’, for whom mobile ticketing is increasingly the default mode of payment. As part of this programme, the Wayfarer200 system is capable of processing NFC and contactless bank cards (EMV) payments. In the hand-held devices arena, Parkeon units are capable of handling cash and contactless smart card transactions, payment by chip and PIN credit/debit card and contactless EMV. The hand-held can also be used as a fixed retail outlet solution supporting ITSO v2.1.4 contactless smartcards and period-based paper tickets. Equally importantly, these multi-device and multi-protocol transactions are capable of being processed via Parkeon’s ITSO HOPS managed service - a hosted back office facility that offers a cost-effective solution for individual operators while strengthening the company’s position as the leading ITSO bus ticketing system provider with the broadest UK coverage. 2 May 2014 | 15
28/04/2014 10:03
“For industry, news, reviews and the latest developments, Passenger Transport is my essential read” Ian Craig Chief Executive Officer, Transport for Edinburgh
SUBSCRIBE TODAY AND SAVE £35 Every fortnight, Passenger Transport brings you unrivalled coverage of your sector. Frequent and dependable, just like all the best bus, rail and tram services. A vital link for professionals and decision-makers. If you have not yet subscribed, sign up today and save 25% - an annual subscription for only £105. Offer ends May 31! Subscribing is easy - there are three options: 1 call our subscriptions hotline 020 7749 6909 2 visit www.passengertransport.co.uk 3 complete and return the subscriptions form overleaf
PT-Lothian-p16 16
28/04/2014 10:04