Operations Review
Financial Performance The company has had in place cost saving programmes over the last number of years and these programmes were escalated in 2008 to reduce the impact of lower revenue levels. Reductions in road passenger costs were achieved through strong financial controls and the introduction of ongoing improvements in operations and cost management programmes. Competition from other modes of transport as well as increased competition within the bus market arising from the issuing of licences on primary routes continued to impact on the revenue performance of the company. Road passenger revenue for 2008 was 5.6% lower than in 2007. Total revenue earned in 2008 amounted to €299.7 million compared to €282.9 million in 2007. The revenue performance over recent years in set out in the table below:
Effectiveness and Efficiency Report In summary, the Deloitte report said that Bus Éireann had grown passenger numbers by 15 per cent from 2001 to 2007. It also noted that Bus Éireann’s PSO funding is low compared to European counterparts. In addition, the report noted that Bus Éireann has been using its own resources, generated from its commercial services, to subsidise PSO services. The Deloitte report stated the company’s integrated network allows customers to travel from rural areas to larger towns/cities and from there to destinations across the country. Some of the examples of this integration in action were cited in the report such as journeys made by passengers from O’Rourkes Cross, Co Limerick, to Ballina and Kinsale, and from Crusheen, Co Clare to Tralee and Sligo. “Given the comprehensive and integrated nature of the services being offered to the public, we have found Bus Éireann’s network to be as efficient as its peers,” said the report. The Deloitte report also found that Bus Éireann’s administration and back office expenses are in line with benchmarks, while the scheduling of services and driver duties is efficient. It also stated that because of these efficiencies, the scope for savings at the company is limited and that Bus Éireann has already completed various cost reduction measures. The report said that if further savings are to be made they will largely have to be made through service rationalisation, while minimising the impact of any changes to service levels on the company’s integrated network. Bus Éireann has already introduced or is in the process of introducing a number of the recommendations made in the report including the introduction of double deck coaches, the provision of real-time information, enhanced bus stop and customer information, integrated ticketing, and ticket vending. Bus Éireann welcomes the findings of the Deloitte report and will work to implement its recommendations within the timeframes outlined in the report. Subvention As the Deloitte report noted, Bus Éireann receives a low level of subvention compared to European peers. In 2008, the net cost of providing PSO service amounted to €49 million. Bus Éireann has been using its own resources, generated on its commercial services, to subsidise the under funding of social services. Bus Éireann and the Department of Transport have a memorandum of understanding on service levels and targets for 2008 which includes the level of state support. The company met the performance targets set out in this memorandum. Subcontractors Major Employer A further 1,490 suppliers are contracted to provide services mainly to the School Transport Scheme. Our business activities also create employment for people in many other sectors who supply Bus Éireann with goods and services. Bus Éireann contributed €42.6 million to the Exchequer in 2008 through PAYE/PRSI payments and VAT payments. Focus on Customers Customer journey breakdown and Vehicle Kilometres
Increase in Customer Satisfaction
As the table shows, customer satisfaction has been rising steadily each year. An overall customer satisfaction rating of 95 per cent was recorded in 2008, while the company also scored highly in terms of bus safety, cleanliness and comfort (99 per cent); punctuality (95 per cent); service frequency (92 per cent); queuing times (94 per cent); friendliness of drivers (95 per cent); and station staff (97 per cent). Bus Éireann’s website – www.buseireann.ie – continued to be a highly popular resource for the travelling public with the site receiving an average of over 200,000 individual visits a month in 2008, which was a 30 per cent increase from 2007 and meant Bus Éireann’s site remained one of the top ten visited Irish websites. Results of the independent audit indicated that 43 per cent of Bus Éireann customers accessed information online and availed of the journey planner with some also purchasing tickets. The journey planner enables people travelling to different destinations across the country to see how they can make onward connections using Bus Éireann’s integrated network. New Customer Services Eastern Region In addition, the frequency of Wicklow-Dublin 133 route was enhanced to 30 minutes at peak hours with the service extended to the IFSC and Dublin Airport via the Port Tunnel to meet customer demand. Further enhancements were made to the network of services in the region with improvements being made to commuter routes such as Dublin-Monaghan, Dublin-Ratoath, and Dublin-Kildare. Additional services to Dublin Airport were also introduced to meet passenger demand. Western Region Other new services introduced during 2008 included a new early morning service departing from Birr to Athlone on a trial basis. Services to Galway Airport were also improved to meet customer demand.
Bus Éireann operated 16 services daily to Dublin with one of these departures operating direct to Dublin Airport departing Galway at midnight. Connecting Galway on the Atlantic corridor, Bus Éireann operated 12 services daily to Cork and 14 services to Shannon Airport. Derry and Letterkenny can also be accessed with ease as there are four services each weekday to both Derry and Letterkenny and six services direct to Sligo. Southern Region South-Western Region Nine new state-of-the-art low wheelchair accessible buses were introduced to the Limerick city bus fleet. These were funded under Transport 21. North-Western Region There are now nine daily services on the Donegal town/Enniskillen/Dublin Airport/Dublin route, operating on a 24 hour schedule. The service improvements have been very well received by customers, particularly those who want to travel to Dublin Airport in a direct and cost-effective manner. Furthermore, daily services from Sligo and Ballina to Dublin were improved and extended to Dublin Airport in line with demand. By making efficient use of resources, an additional Expressway service between Ballina and Galway was also introduced in 2008, bringing the number of Expressway services on that route to six in each direction. Bus Éireann also started a successful new day tour in Summer 2008, serving Slieve League sea cliffs and Donegal Bay, which was well utilised by visitors to the region and by locals. Festivals & Events Sporting Events It also operated a shuttle service from Limerick city to the new Thomond Park stadium for Munster Rugby matches. Bus Éireann again transported a record number to and from the Galway Races. Community Involvement The aim of the programme, which was in its fifth year, is to inform children of the important role the bus plays in the local community and how negatively vandalism of buses can affect neighbourhoods. In conjunction with Foras na Gaeilge, Gaillimh le Gaeilge, Raidió na Gaeltachta and the Galway Independent, Bus Éireann recognised eight innovative community initiatives encouraging people in the Galway region to speak Irish at the inaugural Bus Éireann Galway Gaeilge Community Awards. Bus Éireann is grateful for the support of the Minister for Community, Rural and Gaeltacht Affairs, Éamon Ó Cuív, TD, who presented the organisations with their awards at a ceremony in Galway during November, and Micheál Ó Muircheartaigh, who was chair of the judging panel. Traffic Congestion Congestion results in Bus Éireann services, particularly those at peak times, operating at greatly reduced operating speeds with a resulting increase in journey times. This significantly affects the reliability of the company’s services. It is estimated that congestion in Ireland costs the company €24 million per annum over and above the equivalent cost to European bus operators from congestion because of lower traffic speeds in Ireland. Traffic flows and average speeds are considerably worse than in comparable cities and towns in other European countries. In order to tackle this problem, Bus Éireann has long supported the introduction of bus lanes and bus priority measures in cities and towns across Ireland. Freeing up road space for public transport results in shorter journey times, increasing the appeal of public transport. This in turn reduces the number of private cars on the road, which improves the general traffic conditions and reduces emissions. Bus Priority Measures Measures such as Green Routes and Quality Bus Corridors are vital for separating the bus from traffic jams and improving the reliability and attractiveness of public transport. The following progress was made in the development of bus priority measures across the main cities in 2008: Southern Region Bus Éireann, in conjunction with the Lord Mayor of Cork, Cork City Council, An Garda Síochána and Cork Business Association, also launched an initiative in November to demonstrate the benefits of using Green Routes when travelling to and from Cork city.
Western Region During the year, Galway City Council started work on the outbound lane on the Dublin Road, although this is for a much shorter portion of the route compared to the inbound bus lane. There is an urgent requirement for more bus priority measures in Galway. Eastern Region During 2008, a significant number of these schemes were progressed including the introduction of QBCs on the N3 at Fairyhouse and The North Quays in Dublin City Centre, while work continued on the bus lane at the Blanchardstown By-pass. In addition, there are proposals for QBCs or Bus Priority Measures in the following areas – Amiens Street, North Wall, Naas and Navan. All these improvements are of benefit to our customers. South Western Region Limerick County Council has introduced valuable green routes to the perimeter of the city. However, despite the support of Limerick City Council officials for the introduction of three green routes along key roads within the city, Limerick City Councillors rejected their introduction in 2008. The introduction of these green routes would have greatly reduced journey times for the thousands of people who use our services into Limerick city every day. Bus Éireann will continue to work with local officials and representatives in Limerick County Council and Limerick City Council on the introduction of bus priority measures for the city and county. However, the difficulty of maintaining a reliable service in Limerick City continues to be a source of concern and failure to make progress on long standing plans for bus priority measures in the city will regretfully force Bus Éireann to review the level of services that can be provided to Limerick city. At both regional and national levels, Bus Éireann has been working with the relevant authorities on solutions to traffic congestion such as the opening of hard shoulders for use as bus lanes where possible and further bus priority measures. We look forward to making significant progress in this area during 2009. Park and Ride Bus Éireann also successfully operated the annual Christmas Park and Ride from Cork County Hall to the city centre. Technology In addition, all road passenger vehicles have now been fitted with the AVL system, which includes improved on-board communications technology and alarms with direct communication between the driver and the depot to improve driver and customer security. The trials of the system have been progressing well. It is envisaged that the system will be fully operational by Autumn 2009 when customers will be able to access information via the company’s website and SMS on when individual buses will arrive and depart at Bus Éireann stops across the country for all road passenger routes. In addition, the roll-out of real-time arrivals screens to other locations around the country are currently underway. Plans are also in progress to install Real Time Passenger Information (RTPI) road sign displays on a selected number of stops on a trial basis. In response to customer demand, Bus Éireann also introduced additional Ticket Vending Machines (TVMs) at bus stations throughout the country during the year. The machines are proving popular with customers who find them quick and easy to use, while also reducing queues at ticket offices in bus stations. Further technological advances were made in other areas of the business during 2008. These included the introduction of credit card payments on the school transport website, upgrades to the company’s website, and the provision of a Web-based facility for third-party firms to issue travel warrants. Accessibility New buses introduced into the fleet during 2008 for commuter and Expressway services are also accessible. Further accessible vehicles will enter the fleet in 2009. During the year, Bus Éireann began piloting accessible coaches with wheelchair lifts on two routes – 109A Navan to DCU, and Waterford to Cork – and these trials will continue in 2009. Drivers operating on these routes underwent specialist training in order to operate the service. The main challenge is to ensure that there are adequate footpath facilities and space at bus stops to ensure the safe use of the wheelchair lift on coaches. Under the chairmanship of the Department of Transport, a Bus Stop Working Group, which included Bus Éireann and local authorities has completed a template for the design of wheelchair accessible bus stops. The Bus Éireann Disability User Group, which comprises members from representative organisations, met four times during the year to review and input on the progress being made by Bus Éireann in this area including infrastructural projects.
School Transport In the region of 135,000 children were transported twice daily on dedicated Bus Éireann and contracted school transport fleet, and also on publicly owned and privately licensed scheduled local and national bus and rail services. More than 45,000,000 journeys are undertaken by children travelling under the School Transport Scheme each year. The quality and range of school transport services being provided under the School Transport Scheme continued to improve with 210 new services introduced in 2008. New services for children with special needs continued to be the main component of newly introduced services, with a large proportion of these now provided by taxi. A significant number of the new services were also provided to serve an increasing number of Gael Scoileanna and Educate Together schools nationally. All Bus Éireann and Contractors school buses providing services under the Department of Education & Science School Transport Scheme have safety belts of an appropriate standard installed, and accommodation for pupils is provided on a one schoolchild per adult seat basis. Safety is of paramount importance. A number of initiatives were undertaken during the year to promote school bus safety and, in particular, to communicate key safety messages, such as the importance of wearing the safety belt provided, to schoolchildren. Specifically they included:
In 2008, Bus Éireann introduced on-line payments for school transport permits. This convenient and more efficient method of payment proved very popular and it is anticipated that an increasing number of customers will avail of this system for making payments going forward. In conjunction with the Garda Central Vetting Unit, all new and existing personnel involved in the provision of school transport services under the School Transport Scheme are being vetted, involving some 6,000 Bus Éireann staff and Contractors. The number of vehicles used to transport children under the Department of Education & Science School Transport Scheme has increased by some 60 per cent since 2000, and now involves almost four thousand vehicles every school day, most of which are medium-sized and mini-buses. There are now 308 wheelchair accessible vehicles providing school transport services every school day, representing an increase of 45 from 2007.
Safety & Risk Management Fleet Upgrades Under Transport 21, Bus Éireann introduced over 150 new accessible buses into service in 2008 with a further 65 to be launched in early 2009. Over the last 18 months, Bus Éireann has taken delivery of 239 new buses and coaches in an investment of approximately €71 million. The company purchased from its own resources a further 60 Expressway coaches during 2008 to be used for commercial purposes. These enhancements mean that 40 per cent of Bus Éireann’s fleet adhere to the highest EU engine emissions standards, which has led to a major reduction in the company’s carbon emissions. Fleet enhancements in 2008 included the first accessible double deck commuter coaches in the Republic of Ireland, additional wheelchair accessible buses for city and commuter fleets, double deck buses for Cork city services, and upgrades to the fleets in Waterford, Galway, Limerick and the north-west of the country. These enhancements across the fleet have had significant benefits for customers in terms of accessibility, comfort and reducing their carbon footprint. Bus Éireann also began operating the first of its high capacity, high-specification double deck commuter coaches on the 109 Dublin-Navan-Cavan and the 111 Dublin-Athboy-Granard routes at the end of 2008. These high-specification coaches have a number of safety and customer-friendly features. In addition, six accessible double deck buses were re-introduced to scheduled services in Cork city. They are being used to increase capacity on busy suburban routes. Bus Éireann took possession of an additional 25 single deck buses for use on Cork city services, and 23 single midi-buses for services in Galway, Waterford, Sligo and Dundalk. These buses are compliant to the Euro 4 emissions standard, have high-spec interiors, and are fully wheelchair accessible. They will go into service in early 2009. Garage Upgrades On-going upgrading of necessary garage equipment continued during the year.
Improvements to the Road Network Across the Country The report noted that the opening of motorways and town bypasses place additional pressure on the maintenance of the existing network. The report states, “However, with major improvements to the road network, customers from large towns will opt for direct express services where possible, thus diluting the financial viability of services to smaller towns. Secondary locations by-passed as a result of direct express services may become uneconomic and may require PSO funding.” This situation is compounded by licences being issued to other operators to run more direct services and some just ahead of Bus Éireann services along the main corridors. In summary, as the Deloitte report stated, the maintenance of such services via certain secondary locations will be very much dependant upon the level of PSO funding available. Investing in People Driver Training The Drivers’ Handbook and Ticketing Manual was updated and distributed to all drivers in 2008. Bus Éireann’s training centres were approved by the Road Safety Authority for the delivery of the CPC (Certificate of Professional Competence). Maintenance and Apprentice Staff The training of apprentices continued with 14 new apprentices hired in 2008. The apprentices undertake a four year training programme which is provided by Bus Éireann in conjunction with FÁS. Clerical Staff Supervisory Development All School Transport Inspectors attended a further course dealing with a range of operational and supervisory issues. An Duaiscéim Management Development Bus Licensing/Policy Bus Éireann notes plans to update the Road Transport Act 1932 in 2009. The company is hopeful that this new Act will have regard to the company’s integrated nationwide network of services which is based on interlinking timetables and interchange locations. According to the Deloitte report, Bus Éireann’s integrated network is an integral part of its efficient operations. It is hoped that the new licensing framework will not undermine the services that are currently in place. These services are particularly important for provincial locations as they enable smaller locations to be linked to towns and onwards to a wide range of destinations. A significant number of Bus Éireann customers avail of this integrated network to make journeys from their homes to a wide range of locations throughout the country that are not connected directly. |
