Tfwm to run metro

[karl724223]

Any truth in nx has lost the midland metro contract and tfwm will run it themselves ?

[Dom]

Any truth in nx has lost the midland metro contract and tfwm will run it themselves ?

Indeed there is, from October 2018.

[Tony]

Indeed there is, from October 2018.

https://www.tfwm.org.uk/news/tfwm-to-take-direct-control-of-midland-metro-services/?utm_medium=social&utm_campaign=SocialSignIn&utm_source=Twitter

[Trident 4194]

Any truth in nx has lost the midland metro contract and tfwm will run it themselves ?

Haha

[the trainbasher]

One advantage is you will be able to FOI them :)

[Dom]

Haha

Why is that funny @Trident 4194 ?

[Stu]

Hmm, I thought it had been reported elsewhere previously that NX had actually been making a loss on the Metro? If thats the case, I wonder where all these millions of pounds of profit are going to come from...

[Stuharris 6360]

Hmm, I thought it had been reported elsewhere previously that NX had actually been making a loss on the Metro? If thats the case, I wonder where all these millions of pounds of profit are going to come from...

Probably a hefty increase in fares.

[the trainbasher]

It's ironic really that National Express had the control of the majority of transport options in the Midlands back when the Metro started and now they only run the buses and Long Distance coaches there.

[winston]

Hmm, I thought it had been reported elsewhere previously that NX had actually been making a loss on the Metro? If thats the case, I wonder where all these millions of pounds of profit are going to come from...

@Stu - Here's the most recent accounts for Altram L.R.T Ltd for operating & managing Midland Metro:

https://beta.companieshouse.gov.uk/company/02868384/filing-history

As you will see, I don't know where these profits will be coming from for TfWM to re-invest in to the network??? Plus unless an agreement is reached with NX, the NXWM travelcards with 'West Midlands with Metro Tram' options could be withdrawn. Tram with nBus travelcards are quite a bit more expensive than the NX range....

http://www.expressandstar.com/news/transport-news/2017/03/22/midland-metro-trams-to-be-publicly-run-as-national-express-loses-contract/

[the trainbasher]

From a freedom of information standpoint I welcome the move as it will make Midland Metro management more accountable to the taxpayers, but on the other hand it's bad in the sense that NX lose out on potential revenue, plus also means that there could be some degree of disparity between different modes of transport, plus a potential lower chance of integration when the crap hits the fan on the metro

[winston]

From a freedom of information standpoint I welcome the move as it will make Midland Metro management more accountable to the taxpayers, but on the other hand it's bad in the sense that NX lose out on potential revenue, plus also means that there could be some degree of disparity between different modes of transport, plus a potential lower chance of integration when the crap hits the fan on the metro

The operating contract for the Metro has consistently been loss making for NX. As you say, I can't see this decision doing anything for an 'integrated transport network' in the West Midlands, plus TfWM have no operating experience, if a commercial operator can't make it profitable, what do TfWM think they can do better? In terms of lost revenue, I think Metro will suffer more than NXWM, as the NX travelcard is by far still the most popular product.

[Stuharris 6360]

The first I can see happening is NE extending the 79 into Birmingham once again and why not.

[Kevin]

The first I can see happening is NE extending the 79 into Birmingham once again and why not.

Reliability
That's why not

[Walsall1955]

@Stu - Here's the most recent accounts for Altram L.R.T Ltd for operating & managing Midland Metro:

https://beta.companieshouse.gov.uk/company/02868384/filing-history

As you will see, I don't know where these profits will be coming from for TfWM to re-invest in to the network??? Plus unless an agreement is reached with NX, the NXWM travelcards with 'West Midlands with Metro Tram' options could be withdrawn. Tram with nBus travelcards are quite a bit more expensive than the NX range....

http://www.expressandstar.com/news/transport-news/2017/03/22/midland-metro-trams-to-be-publicly-run-as-national-express-loses-contract/

The profits are forecast by TfM to come from extra passengers.
The past 18 years' losses are down to seriously over-optmistic forecast passenger numbers (something like 4 times actual numbers achieved).   The business case for line 1 needed to show 20 million passengers a year to get the line built, so that's what it did.     Another error in the original business case was staff numbers.
A weak point / risk of any business plan is forecast numbers.

Let's hope that the new forecast of passenger numbers is correct, otherwise there will be losses to be borne by the taxpayer as opposed to being currently borne by the most profitable bus operator in the region.

One further scenario, if losses are incurred under TfM operation, is that bus passengers will pay for the losses in terms of cutbacks in bus projects and subsidised bus services - the cross subsidy strategy, ie. move funding from one transport mode to another.