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Go Cornwall Bus

Goldfish62

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The branding used on the timetable for this commercial service as being Transport for Cornwall as opposed to Go Cornwall Bus does seem to further muddy the waters as to who controls the 'rights' to the brand and what Transport for Cornwall represents.

Does this service appear in the Transport for Cornwall timetable booklet and if so why this commercial service but not others, from say, First Kernow?
I don't think there's any confusion as to who owns the TfC brand. It's the council. The confusion is using it on a GCB commercial service.

I'm told staff were out and about promoting it yesterday. Shame they can't be bothered to post timetables for services they've been running for well over two months now.
 
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richw

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I don't think there's any confusion as to who owns the TfC brand. It's the council. The confusion is using it on a GCB commercial service.

I'm told staff were out and about promoting it yesterday. Shame they can't be bothered to post timetables for services they've been running for well over two months now.
I guess they get paid whether people use them or not on the subsidised services so it doesn’t matter too much to them if they get passengers. A commercial service is a whole different game
 

Goldfish62

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I guess they get paid whether people use them or not on the subsidised services so it doesn’t matter too much to them if they get passengers. A commercial service is a whole different game
Do we have a definite answer for who takes the revenue risk for the TfC contract? I know its it's been discussed on here, but without conclusion.
 

richw

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Do we have a definite answer for who takes the revenue risk for the TfC contract? I know its it's been discussed on here, but without conclusion.
Based on knowledge of services, PVR, rough running costs and the subsidy amount, I would estimate there is at least an £8m Running cost shortfall per year to pcb. But that is if they solely received funding from The council. There will be other income from fares, fuel rebates, VAT, bus operator grants. It also doesn’t include unforeseen expenditure such as accident damage, breakdowns and recovery costs amongst other unforeseen expenses.
 

Goldfish62

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Based on knowledge of services, PVR, rough running costs and the subsidy amount, I would estimate there is at least an £8m Running cost shortfall per year to pcb. But that is if they solely received funding from The council. There will be other income from fares, fuel rebates, VAT, bus operator grants. It also doesn’t include unforeseen expenditure such as accident damage, breakdowns and recovery costs amongst other unforeseen expenses.
So I think you're implying there that it's a net cost contract, ie the operator taking the revenue risk on the basis that fares revenue is required to make up the shortfall between awarded contract price and operating costs.

If it's not and those cost estimates are accurate then PCB has got its sums wrong!
 

richw

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So I think you're implying there that it's a net cost contract, ie the operator taking the revenue risk on the basis that fares revenue is required to make up the shortfall between awarded contract price and operating costs.

If it's not and those cost estimates are accurate then PCB has got its sums wrong!
As I said my sums Don’t include funding sources away from the council. BSOG for example and passenger fares. The sums aren’t an exact science.
Someone has messaged me since I made that post that TfC is losing 1/2m a month. (They said I can comment but obviously they need anonymity). They did say the agency drivers cost are the issue as instead of £11 an hour, they’re being paid £14 an hour, plus the agency fee of £10 an hour plus accommodation plus £25 a day food allowance. There are around 85 agency drivers!
I’m led to believe agency drivers accommodation mainly consists of houses with a few sharing.
To give indication of that cost the cheapest 3 bed on rightmove to rent is £1100 pcm and cheapest 4 bed is £1500 pcm. So we’re looking at £400 per driver for accommodation. That’s £34000, plus £25 a day food allowance assuming a 30 day month that’s £750 per agency driver or £63750 a month for 85! The accommodation and food is confirmed from adverts and speaking to drivers as a known expense. The agency drivers are guaranteed 50 hours a week, many are doing 13 days in 14, at Max 10 hour Driving days. Call that £1560 per driver per week (132600 for 85 agency drivers per week on wages). This doesn’t even include full time staff and management.

The contract is £104m over 8 years, so just over a million a month!

I haven’t even touched fuel, but every time I’ve seen a TfC in filling station it’s taken between 100-150 litres. This lines up with rough daily amounts at FK per bus. Not knowing what rate they get on fuel card it’s hard to Calculate exact fuel cost per day, but it would be reasonable to estimate around 10p cheaper than pump price from when I used to use fuel cards. They would also reclaim VAT etc
 

TheGrandWazoo

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So I think you're implying there that it's a net cost contract, ie the operator taking the revenue risk on the basis that fares revenue is required to make up the shortfall between awarded contract price and operating costs.

If it's not and those cost estimates are accurate then PCB has got its sums wrong!

I'm dubious on certain elements as, quite simply, many of the routes will have no historical fare revenue. The Bodmin Moor Tour can probably be put in at £0 revenue anyhow.

Still, PCB were considerably more expensive than FK so there will be some insulation on their figures anyway though undoubtedly there will be pain with agency drivers as opposed to full time substantive staff.

As regards fuel, it all depends on the scheme. For KeyFuels, you simply buy at your wholesale price and pay about 2p a litre handling.
 

MarkC

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If Citybus are losing millions per year on their tfc contracts how long can they sustain this or will they be able to walk away?
 

Lizard1324

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If Citybus are losing millions per year on their tfc contracts how long can they sustain this or will they be able to walk away?
I remember someone saying there was a half way break which will be 4 years.
If they did pull out after 4 years who would get the vehicles are they all owned by go ahead apart from the council 18 plate 200mmc ir do the council own some more buses?
 

MarkC

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I remember someone saying there was a half way break which will be 4 years.
If they did pull out after 4 years who would get the vehicles are they all owned by go ahead apart from the council 18 plate 200mmc ir do the council own some more buses?

I am not sure about the buses but I can see this contract being to a total disaster for Go Ahead as can't see they will ever recruit enough drivers not to need agency staff. That added to the loyalty to First that many locals have. I can see this having serious effect on Go South West profits with First taking over these contracts before 8 years is up and fare increases in Plymouth to help pay for loses. If I were Stagecoach I would be ready to pounce in Plymouth area!
 

markymark2000

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As I said my sums Don’t include funding sources away from the council. BSOG for example and passenger fares. The sums aren’t an exact science.
Someone has messaged me since I made that post that TfC is losing 1/2m a month. (They said I can comment but obviously they need anonymity). They did say the agency drivers cost are the issue as instead of £11 an hour, they’re being paid £14 an hour, plus the agency fee of £10 an hour plus accommodation plus £25 a day food allowance. There are around 85 agency drivers!
I’m led to believe agency drivers accommodation mainly consists of houses with a few sharing.
To give indication of that cost the cheapest 3 bed on rightmove to rent is £1100 pcm and cheapest 4 bed is £1500 pcm. So we’re looking at £400 per driver for accommodation. That’s £34000, plus £25 a day food allowance assuming a 30 day month that’s £750 per agency driver or £63750 a month for 85! The accommodation and food is confirmed from adverts and speaking to drivers as a known expense. The agency drivers are guaranteed 50 hours a week, many are doing 13 days in 14, at Max 10 hour Driving days. Call that £1560 per driver per week (132600 for 85 agency drivers per week on wages). This doesn’t even include full time staff and management.

The contract is £104m over 8 years, so just over a million a month!

I haven’t even touched fuel, but every time I’ve seen a TfC in filling station it’s taken between 100-150 litres. This lines up with rough daily amounts at FK per bus. Not knowing what rate they get on fuel card it’s hard to Calculate exact fuel cost per day, but it would be reasonable to estimate around 10p cheaper than pump price from when I used to use fuel cards. They would also reclaim VAT etc
Are we sure GoAhead are renting houses? I know that when Stagecoach do loans, they often use hotels/serviced apartments and they can manage to get some bulk discount since they rent out so many of these places.


With so many other areas furloughing workers (Including but not limited to NatEx coaching staff and local service drivers), would it not have made more sense to loan within the GoAhead group to reduce agency fees? Even if it was just for, it's a saving of £10 per hour agency fees and potentially a saving on the drivers wages.

TFC would always be a horrible contract to run. Far too much awarded to one company and whoever won it (First or GoAhead), there would have been some issues since there were a lot of additional routes and buses. It's a bit of a shame that other operators haven't been able to take some more trips since if GoAhead owned the buses and rented the buses out, it could help some coach companies as well who are currently struggling to earn a little bit of extra money on the side for minimal effort.
 

richw

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Are we sure GoAhead are renting houses? I know that when Stagecoach do loans, they often use hotels/serviced apartments and they can manage to get some bulk discount since they rent out so many of these places.
100% renting houses on 6 month agreement.
I was sat in Newquay bus station one day when an agency driver was ranting down the phone to his manager about how badly house trained the house mate he’d acquired from the company was. There were plenty of obscenities!
Plymouth based pcb drivers on loan to TfC were in hotels for working days. That agreement ends tomorrow and the Plymouth driver will be Signing on And running dead from Plymouth each day.. that’s gone down like a lead balloon with them
 

markymark2000

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100% renting houses on 6 month agreement.
I was sat in Newquay bus station one day when an agency driver was ranting down the phone to his manager about how badly house trained the house mate he’d acquired from the company was. There were plenty of obscenities!
Plymouth based pcb drivers on loan to TfC were in hotels for working days. That agreement ends tomorrow and the Plymouth driver will be Signing on And running dead from Plymouth each day.. that’s gone down like a lead balloon with them
Ahh, fair enough.

Plymouth drivers going dead to start some routes could be interesting. Must be a potential saving there somewhere as it's not sustainable to pay drivers to drive dead for such a distance (Depending of course on the routes being ran by Plymouth). There must be some generous perks for drivers to make it more sustainable to use Plymouth as the base and then make drivers drive to the routes.

Stagecoach I know normally do minimum 12h pay per day you are in, £75 per week each for food shopping plus hire cars and their expenses. (Purely posting this for a comparison against GoAheads loan perks).
 

Busaholic

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GoCornwall Bus are introducing a commercial service (sorry if mentioned, Ive never been to Cornwall so not sure)
I wonder why GCB considered Praa Sands to Penzance to have escaped FK's notice as a worthwhile route to operate profitably. My shop neighbour in Penzance who lives in Goldsithney had to come in to Pz today on the U4 as his van had broken down and told me that his conversation with the driver of the empty bus that brought him in went along these lines:=

Les - 'you look empty today'
Driver - 'it.s always like this now, some days I only get ten passengers a shift'

Now Les has no idea in my interest in buses (I keep my life compartmentalised to an extent :) )so his remark wasn't aimed at me in any way.
 

MarkC

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I wonder why GCB considered Praa Sands to Penzance to have escaped FK's notice as a worthwhile route to operate profitably. My shop neighbour in Penzance who lives in Goldsithney had to come in to Pz today on the U4 as his van had broken down and told me that his conversation with the driver of the empty bus that brought him in went along these lines:=

Les - 'you look empty today'
Driver - 'it.s always like this now, some days I only get ten passengers a shift'

Now Les has no idea in my interest in buses (I keep my life compartmentalised to an extent :) )so his remark wasn't aimed at me in any way.

Seems pointless fighting over ten or so customers... I think perhaps Go Ahead do not fully understand the rural ops in Cornwall which in the main, First seem to have nailed?
 

Goldfish62

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TFC would always be a horrible contract to run. Far too much awarded to one company and whoever won it (First or GoAhead), there would have been some issues since there were a lot of additional routes and buses. It's a bit of a shame that other operators haven't been able to take some more trips since if GoAhead owned the buses and rented the buses out, it could help some coach companies as well who are currently struggling to earn a little bit of extra money on the side for minimal effort.
As has been said on many occasions on this thread, it was not tendered as one contract, but as multiple lots. It's GoAhead that decided to offer a bulk discount to operate everything.
 

MarkC

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As has been said on many occasions on this thread, it was not tendered as one contract, but as multiple lots. It's GoAhead that decided to offer a bulk discount to operate everything.
Something that I suspect FK were not naive enough to do.
 

MarkC

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As has been said on many occasions on this thread, it was not tendered as one contract, but as multiple lots. It's GoAhead that decided to offer a bulk discount to operate everything.
Something that I suspect FK were not naive enough to do.
 

richw

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Seems pointless fighting over ten or so customers... I think perhaps Go Ahead do not fully understand the rural ops in Cornwall which in the main, First seem to have nailed?
If it isn’t worth the extra few minutes to run the U4 through Praa sands Without the council funding it, I think that tells us all we need to know About Praa sands as a commercial service from an operator who knows the territory and numbers!
 

Busaholic

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If it isn’t worth the extra few minutes to run the U4 through Praa sands Without the council funding it, I think that tells us all we need to know About Praa sands as a commercial service from an operator who knows the territory and numbers!
Praa Sands and Perranuthnoe have both been served by a minority of buses either working off the through route or as a separate service over the years but they never come to anything with the possible exception of during the summer holidays. A few ENCTS pass holders will probably comprise almost all of the regular travellers on such services. There are also problems with congestion on narrow roads and, in the past at least, with terminal arrangements.
 

carlberry

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As has been said on many occasions on this thread, it was not tendered as one contract, but as multiple lots. It's GoAhead that decided to offer a bulk discount to operate everything.
I thought that it had been said that Go Ahead's bid was more expensive but won on quality in some way?
 

Goldfish62

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I thought that it had been said that Go Ahead's bid was more expensive but won on quality in some way?
Yea, that has been said, but that's got nothing to do with the fact the tenders were offered in several different lots (batches of routes).

29 bids were received, 25 of which were received from SMEs (small and medium enterprises). We can absolutely sure that these companies would not have bid for everything.

Unfortunately I keep having to repeat this on this thread because CC have yet to fulfill their legal obligations by publishing the full tender results.
 

carlberry

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Yea, that has been said, but that's got nothing to do with the fact the tenders were offered in several different lots (batches of routes).

29 bids were received, 25 of which were received from SMEs (small and medium enterprises). We can absolutely sure that these companies would not have bid for everything.

Unfortunately I keep having to repeat this on this thread because CC have yet to fulfill their legal obligations by publishing the full tender results.
Yes I know that. However you said that Go Ahead offered a bulk discount to cover all the tenders and others have said that Go Ahead was more expensive but won on quality. I cant see how both can be true!
 

richw

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Yes I know that. However you said that Go Ahead offered a bulk discount to cover all the tenders and others have said that Go Ahead was more expensive but won on quality. I cant see how both can be true!
Because they scored highly on “quality” scoring. The overall price was more expensive than other bids, but cheaper than they bid for each route separately
 

Goldfish62

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Because they scored highly on “quality” scoring. The overall price was more expensive than other bids, but cheaper than they bid for each route separately
That is indeed a correct explanation for when the winner is more expensive.
 

richw

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That is indeed a correct explanation for when the winner is more expensive.
There collective bid was still more expensive,

But for simplicity terms say operator 1 bid £10000 for an individual route, but included if It became part of a package it would be £8000. operator 2 bid £7000. Operator 1 said they’d bow to local authority demands No matter how onerous that they are, operator 2 says some of the demands are rubbish and we won’t do that. As “quality“ had a stronger score rating Operator 1 won despite being more expensive because they’ve said they’ll jump if the council says so
 

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