February tenders

[BK63 YWP]

Interesting to see the 108 is now the X6 wonder if the the 907 will change the X7 at that point

[Trident 4194]

How are NX winning so many tenders when they clearly have higher operational costs?

[Tony]

How are NX winning so many tenders when they clearly have higher operational costs?

Why do you say clearly have higher operational costs?

Insurance costs can be lower,
Diesel costs can be lower (hedging)
New vehicle costs can be lower (bulk purchase)
Even things like NX's contactless system being the first major transport company the banks accepted as secure enough to guarantee payments on dodgy cards can help.

[MW]

£260 / day to run the 28A.

£130 / day per bus. Very cheap...

[Stu]

How are NX winning so many tenders when they clearly have higher operational costs?

Lack of other bidders?

[Tony]

Lack of other bidders?

There were 4 bidders for both. I wonder who other than Diamond wanted to run the 108

[2206]

I wonder who other than Diamond wanted to run the 108

Claribels possibly, using buses from some of other tendered routes (167/168/600) that run during the day?
And maybe Thandi as well.

[Matt.N0056]

£260 / day to run the 28A.

£130 / day per bus. Very cheap...

@MW Unless frequency has been reduced/reduced operating times?

[MW]

£260 / day to run the 28A.

£130 / day per bus. Very cheap...

£130 / day per bus equals to £10 / hour based on a 13 hour operation per day


Compared to the 1 in Coventry, which has been awarded to NX on the basis of £530 per day, which is £265 per day per vehicle, which is roughly £20 / hour.

Twice the cost of the 28A.

£10 an hour for the 28A seems ridiculously cheap to me. Are the passenger numbers that great on the 28A?

@Matt.N0056 maybe it has been reduced, yeah. Does anyone have access to the previous figures for the 28A showing how much subsidy Diamond were awarded?

[2206]

@Matt.N0056 maybe it has been reduced, yeah. Does anyone have access to the previous figures for the 28A showing how much subsidy Diamond were awarded?

£91, 208 per annum @MW.

[Matt.N0056]

£130 / day per bus equals to £10 / hour based on a 13 hour operation per day


Compared to the 1 in Coventry, which has been awarded to NX on the basis of £530 per day, which is £265 per day per vehicle, which is roughly £20 / hour.

Twice the cost of the 28A.

£10 an hour for the 28A seems ridiculously cheap to me. Are the passenger numbers that great on the 28A?

@Matt.N0056 maybe it has been reduced, yeah. Does anyone have access to the previous figures for the 28A showing how much subsidy Diamond were awarded?

@MW Used to have a handful or regulars around Small Heath, and would pick up between Heartlands & Ward End if there wasn't an NX28. Saturdays were pretty quiet

EDIT: miss read your post  :o

[MW]

£91, 208 per annum @MW.

Diamond operates it on the basis of 91,208 per annum.

That's £291 per day, divided by 2 buses which is £145 per day.

£145 per day divided by 13 hours = £11.20 an hour.

How do these companies make money of tenders so small?

Perhaps @metrocity or @Steveminor can help answer this?

[Tony]

Claribels possibly, using buses some of other tendered routes that run during the day?
And maybe Thandi as well.

Would need to be someone with 2 Euro 6 buses with other work for them during the day

[Steveminor]

28A is now only a 1 bus pvr so that reduces operating costs. Interesting that nx won the 108 on an alternate bid so maybe adjusting the timetable & route to lower its pvr

[MW]

28A is now only a 1 bus pvr so that reduces operating costs. Interesting that nx won the 108 on an alternate bid so maybe adjusting the timetable & route to lower its pvr

Thanks for clearing that up. So Diamond are running the current 28A cheaper than cheap. The new 28A works out at £20 an hour, which is in line with NX.

10 nbus/concessionary passes an hour and the service is running at a profit.