“One network, one timetable, one ticket” - Is bus franchising the way forward for Wales?

Introduction

Following the publication of the UK Government’s bus strategy for England “Bus Back Better”, and the recent launch of the UK’s first bus franchise outside of London, the Manchester Bee Network (both of which we discussed in the context of decarbonisation initiatives in the bus sector here), bus franchising is receiving significant focus as a potential means of improving the provision of bus services around the UK in a post-COVID-19 world.

One notable area of the UK that is considering a move to a franchising model is Wales. Last year, the Welsh Government shared its white paper on bus reform, “One network, one timetable, one ticket: planning buses as a public service for Wales” (the “White Paper”), which recommended the adoption of a franchise model as a way to join-up and improve bus services across the country. The results of a public consultation on the White Paper were published in December 2022.

“One network, one timetable, one ticket”

The White Paper highlights that in Wales bus services are currently run by over 80 operators due to de-regulation, which, the White Paper comments, has resulted in a lack of co-ordination on fares, routes, and integration with other forms of public transport. Other issues with the current system highlighted by the White Paper include operators failing to maintain stable routes and destinations over time, and an array of bus numbers, tickets, fares and signage. Passenger numbers in Wales have generally seen a steady decline, which was accelerated by the COVID-19 pandemic. This is in sharp contrast with the London bus franchising system. The White Paper notes that since 1986, patronage in London has doubled (up to 99%), mileage has increased by 75%, and fare increases have been lower than the city regions.

The White Paper focusses on reversing this trend of decline by adopting a three-pronged approach:

1. making bus travel more attractive to members of the public (the “One Network” aspect);
2. adopting innovative ideas to make the bus network more simple to navigate (the “One Timetable” aspect); and
3. increasing affordability (the “One Ticket” aspect).

In addition, the White Paper stresses the urgency of encouraging uptake of bus travel in the context of the climate emergency – including noting that it is crucial that passengers feel willing and able to switch from emissions-producing private vehicles to lower emission forms of public transport; in turn it is vital bus fleets are upgraded from running on diesel to using battery electric or fuel cell electric technologies.

The White Paper advocates franchising as the means for the Welsh Government to achieve the pace of change and certainty required by the climate emergency. Under the proposed model, a newly established franchising team will let and manage franchise contracts on behalf of the Welsh Ministers and set out how the service should be run, including routes, vehicle standards (notably in respect of decarbonisation), timetables, fares, branding, passenger information and ticketing. A tender process would take place, whereby Operators would submit bids for a contract to run the franchise. The size of each franchise would vary from individual routes to local networks and network planning and the shape of the franchising system and its operation can be influenced by local authorities directly and through the Corporate Joint Committees. The switch to franchising would be supplemented by a number of other measures; these include the creation of a national supervisory board to act as an expert guiding mind made up of representatives of passengers, bus operators and bus company employees.

Notable themes arising out of responses to consultation on the White Paper: large-scale support for the proposals

As part of the White Paper, the Welsh Government launched a consultation to gauge the views of the Welsh public and the bus industry on the proposed move to a franchising system. Notably:

• on the whole, respondents were strongly supportive of the reforms advanced in the White Paper. Reasons given included a desire to see more simple timetabling, increased affordability, a move to low emission and upgraded vehicles, and improved services, especially in rural areas;
• affordability is a major concern for the vast majority of respondents. Interestingly, some respondents highlighted the need to consider the long-term costs of Wales not improving its public transport network when considering affordability (e.g. poor air quality, contributing to climate change, decreased health and wellbeing and fewer social benefits);
• a majority of respondents support the Welsh Government adopting a bus franchising model specifically; many cited their approval of the public sector overseeing the planning and delivery of bus services in the public interest as a reason for moving to franchising. Some cited integration with rail as a reason for their support; and
• most of the respondents were positive about the Welsh Government’s proposal to establish an operator of last resort (“OLR”) mechanism to ensure services continue to operate in the event that a franchise fails. Many respondents were of the opinion that an OLR should also be in place for bus franchising because the mechanism is used in the context of rail franchising, although the White Paper suggests that the OLR for bus franchises could be Transport for Wales at a national level, or a locally owned municipal operator (which it is proposed could be newly created).

Comment

The introduction of bus franchising could give rise to a large-scale shake-up of how bus services are operated across Wales, and could bring significant opportunities for bus companies to break into the franchising model. Wales is one of many areas of the United Kingdom that is currently exploring the merits of franchising. As well as Manchester, other such regions include the West Midlands, Glasgow, the North East and Liverpool. It will be interesting to see how franchising plans develop across the country.

It is particularly notable that the call for bus franchising in Wales is inextricably linked with decarbonisation goals; which is reflective of the increasing emphasis being placed on decarbonising bus fleets globally, in the context of the climate emergency.

How we can help

• ES Transport Franchising Team: the team has a significant record of delivering important transport projects having advised a number of private and public sector clients on passenger franchises and concessions (including in the bus sector).
• ES Infrastructure Team: the Europe team has particular experience in advising on PPP and transport projects ranging from rail and roads to airports. The Team is also based across the Middle East, Asia and Africa.
• ES Hydrogen Hub: this one-stop shop provides legal insight into the key issues shaping developments along the entire hydrogen value-chain.