A new player in the Auckland public transportation market, Ngai Tahu and Tainui-owned Go Bus has secured half of the new South Auckland bus routes coming into effect later this year under the new public transport operating model (PTOM) tender process.
The new contracts cover eight different route clusters.
The new services will deliver Auckland Transport’s new network model. It will include frequent all-day routes in the south, connecting with trains at the new Otahuhu Interchange and Manukau Bus Station.
Go Bus managing director, Calum Haslop says his company will invest $40 million in new buses, equipment and depot facilities. It will commit 89 buses, mostly brand-new and built in New Zealand on European chassis.
The other successful winners of the first PTOM contracts for the new network were Ritchies Transport Holdings/Murphy’s in a joint venture, and Howick and Eastern Buses Ltd.
The Ritchies/Murphy’s JV secured 40% of the new South Auckland routes, with Howick and Eastern running the remaining 5%.
Howick and Eastern managing director Sheryll Otway says the company had recently committed to a new fleet of double-deckers.
The new contracts, between Auckland Transport and the bus operators, will also be delivered for $3.1 million less cost.
The current public subsidy is $20.3 million each year. From October, when the new contracts come into effect, the contracts will cost $36.3 million resulting in $17.2 million public subsidies with about $19 million in passenger fare revenue being paid to Auckland Transport thereby reducing the overall net cost by more than $3 million.
Bus customers will also see a 21% increase in hours of operation and a 15% in kilometres covered by the services.
South Auckland buses travel around 25,000 km each day and provide some 1,740 services. In total, the new services will operate 9.3 million km annually. In Auckland bus patronage is increasing at about 4% every year.
Despite being provided by different companies, all of the buses will be presented in the AT Metro livery to ensure a uniform appearance.
It will also help minimise confusion among new passengers, about whether or not they are catching the right bus.
Auckland Transport chief executive David Warburton, says achieving the cost savings was a mix of economies of scale, greater efficiencies in organising the routes and a modern fleet that is fuel efficient and maximises the number of passengers per trip.
He says, a modern, comfortable, fleet getting people where they want to go faster and more conveniently, will all contribute to attracting more passengers. It will also see increasing revenue share opportunity for the operators and reduce the cost of subsidies.
