Quote from: Winston on August 28, 2013, 10:05:34 AMQuote from: Simon Dunn on August 28, 2013, 06:50:54 AM
Hi Simon & welcome,
Thanks for joining and giving us the ability to ask you questions, we appreciate as Rotala Plc CEO that your are tied by Stock market rules etc,
Couple of questions/points from me:
1. Do Rotala prefer to buy new buses generally from dealer stock as and when the need to upgrade/replace the existing fleet & new contract wins dictate, rather than ordering a larger batch of say 40 x B7RLE/Wright annually for fleet replacement for group and achieving a lower cost per unit for buying in bulk?
2. We were led to believe through Tony that 3 x B7RLE/Wright would be released from Wessex to Tividale upon receipt of their 4 x 13 plate examples (30936-30939) to complement their 4 new 13 plate examples & the 3 ex Midland Classic 57/08 plate examples, have plans changed or are they still expected?
3. We've noticed over the last couple of years that Diamond have withdrawn from a number of long standing commercial routes from both Long Acre i.e. 17, 37 & 97 & the 9 & 74 from Tividale, obviously the economy/reduced passenger journey's may have played some part, the B'ham City Centre omission zone (min Euro 3 requirement) another, has increased competition from NX also had an impact of your decision to withdraw?
4. Have Rotala Plc considered the 10 plate Scania Omnicity double decker ex Scania Demo or the batch of 08 plate dual door ex London Central Omnicity double deckers currently for sale at Ensign Bus & Coach as potential options to complement the examples currently at Wessex
5. How many additional B7RLE/Wright have been purchased for Wessex? I've seen a report of 2 allover white B7RLE registered BL13SWW and BL13SWX. The poster also goes on to say that there are two branded for route 13, not sure if they are also new or from the existing fleet, can you advise?
6. Have you had any more luck selling on any further redundant Levantes? I'm surprised another NX contractor didn't snap up a batch of that size for fleet replacement or even NX themselves for owned Op's
7. Do you intend to undertake a similar review of your Kidderminster operation in due course?
Thanks in advance for your reply,
1. Since about 2010, the market for buying buses has changed. There has been no need for stock orders. We have however made orders for buses to Optare for Hybrid Single Decks, to Volvo for the Hybrid double decks, and the 4 normal Deckers we acquired last year. We will shortly be ordering another 2 new Double Deckers for the South West, and we are looking at options for at present for next year. Our rates for new buses are the same (excluding extras) whether we buy 1 or 50.
2. The plan was for 3 Ex Park & Ride Volvo Centros to come to the West Midlands. There are a large number of service frequencies increases in the South West. All but one of these vehicles will now go back to Keynsham.
3. There are two reasons why
1. We expected the Competition Commission report, to have a greater impact on the Multi-Operator ticketing in the West Midlands. It didn't.
2. We wanted to improve and focus on the quality of the rest of our service provision
4. Having acquired and operated a large number of Ex-London vehicles, I am not a fan hence my reluctance on the 08 plate buses. On the 10 plate bus, I made Ross an offer which he refused. We seem to both have a different view on its worth.
5. The 2 you have mentioned have been purchased, plus 2 "59" plate Volvo Centro's, plus BX62FGD will be transferred (one "59" plate will replace this) The rebranded ones are from existing fleet.
6. At the end of this week, I should have a better idea of what is happening.
7. Yes
Hi again Simon,
Thanks for your reply
From observations, it appears that a lot of the focus for new vehicle investment is dictated by the needs/growth of Wessex & the South West Business and to a lesser degree the Preston business, whilst Diamond @ Long Acre & Tividale which is Rotala's biggest subsidiary appears to be the poorer relation which generally losses newer buses to Wessex or receives older cascades. Even the entire batch of Hybrid Versas were originally destined for Wessex according to the Green bus funding announcement as I understood it.
Are there any plans to grow the business/allocation at Long Acre? As that depot has seen the most loss of work i.e. withdrawal from commercial routes, Centro tender losses, exit from NX work, loss of NEC shuttle work etc
With the impressive growth Scott has achieved @ Yourbus in just 4 years, going from start-up to a 100 vehicle operation / second-hand Darts/B10B's/Olympians being replaced by brand new Mercedes Citaros/Streetlights on newly launched routes etc. Were Scott & team unable to achieve similar growth results at the Diamond business? From observations the Diamond business doesn't appear to be as strong as it was during the period Scott was in charge and appears to be losing ground to new entrants such as Arriva & WMSNT. Are the operating conditions in the West Midlands much tougher?
In an ideal world all areas would justify and warrant new fleets. Each market is different, each market has its own requirements. In the South West Area most of our work comes under either high contractual requirements or SQPS stipulations that require vehicles to a high standard. These requirements and standards, influence cost of provision and quality of vehicles. In the West Midlands, I believe over a period of time we have invested in our Commercial corridors, yes there is still room for improvement. In terms of subsidised Contracts we are happy to provide whatever the client requires, ultimately though someone has to pay for it.
In relation to Long Acre, it is always disappointing to lose work. I am responsible for doing what is right for the Rotala businesses, and in all honesty I regret losing none of what has gone. Medium term we have opportunities in the pipeline.
In relation to Scott. His business operates in a different market with different opportunities. It is difficult to compare what we are doing with him.
Overall, from memory I think our operational fleet has an average age of 7.5 years. From the last TAS report I saw (again from memory) I believe this would compare well with our Peers.